Jakarta, 29 April 2021 – Despite the Covid-19 pandemic that still ravages Indonesia, PT Telkom Indonesia (Persero) Tbk (Telkom) was able to record a good performance by posting positive growth in terms of revenue, EBITDA (Earning before Interest, Taxes, Depreciation, and Amortization) and net profit during 2020. The Company recorded Rp136.46 trillion in consolidated revenues, a positive growth of 0.7% compared to 2019. The Company's EBITDA in 2020 was Rp72.08 trillion with a net profit of Rp20.80 trillion, or each grew double digits by 11.2% and 11.5%. This shows a positive signal that digitalization can become a driving force in Covid-19 response and national economic recovery.

Telkom President Director, Ririek Adriansyah said, 2020 was a very challenging and dynamic year for Indonesia during which Covid-19 pandemic spread around the world until today. Just like other business sectors, the telecommunications industry has been significantly impacted by the pandemic. However, it is undeniable that the pandemic has also brought changes to people's needs and lifestyles, with the community’s digital adoption significantly increased. 

“The pandemic has accelerated digital transformation to several years ahead and this serves also as an acceleration for Telkom. In line with the company's transformation into a digital telecommunications company, Telkom actively continues to support the government's efforts in handling Covid-19 and recover the national economy with support such as connectivity, platforms and digital applications, as well as social assistance. We are committed to always present to provide convenience to the community, since due to the pandemic they have to carry out their activities digitally from home, including to work and to study," Ririek said in Jakarta (29/4).

The Covid-19 pandemic has pushed for a greater public need for home internet access. Telkom seized the situation to meet the increasing public demand throughout 2020 by serving IndiHome additional subscribers of more than 1.01 million. By the end of 2020, the number of IndiHome subscribers reached 8.02 million subscribers or grew by 14.5% compared to the end of 2019. This had a positive impact on the company, because IndiHome recorded a significant revenue increase of 21.2% to Rp22.2 trillion compared to last year and positioned itself as Indonesia’s internet provider with the largest market share. 

In the mobile segment, Telkom’s subsidiary, Telkomsel recorded a fairly large increase in data traffic up to 43.8% compared to the same period last year to 9,428 petabytes, in line with the increasing demand for data services, especially due to changes in people's lifestyles impacted by the pandemic. This is due to Telkomsel's 169.5 million subscribers, out of which are 115.9 million subscribers with mobile data, an increase of 5.2% compared to last year. Throughout 2020, Telkomsel's Digital Business revenue grew 7.0% to Rp62.33 trillion, which also became a catalyst in shifting the legacy business to digital business services. Revenue contribution from Digital Business increased to 71.6% of Telkomsel's total revenue, from 63.9% in the previous year.

As an effort to support the education sector during the pandemic, Telkomsel introduced the Merdeka Learning Distance (MBJJ) initiative, or  a special package that offers learning quotas for Indonesians to access e-learning and quotas for video conferencing platforms.

In 2020, Telkomsel built 27,700,000 new 4G LTE Base Transceiver Stations (BTS) and by the end of 2020, Telkomsel has more than 231,000 BTS of which 78% are 3G/4G BTS.

In the Enterprise segment, business fundamentals are getting healthier following the implementation of Telkom's policy to focus on business lines that have higher profitability, resulting in lower operating costs, especially from customer equipment costs in this segment. Consequently, the Enterprise segment posted Rp17.7 trillion revenue in 2020. In the fourth quarter of 2020, the Enterprise segment's revenue reached Rp6.3 trillion, a significant 67.9% growth compared to the third quarter of 2020. This achievement was possible with revenues from data center & cloud, application services, and enterprise broadband.

Furthermore, the Wholesale & International Business segment, which is a strategic enabler of all TelkomGroup business segments, showed good performance, with an increase in revenue of 27.3% YoY to Rp13.5 trillion. This achievement was mainly driven by the increase in telecommunication tower business, voice wholesale, data center, and inorganic initiatives. The company is currently preparing a plan to unlock Mitratel's value in order to increase its valuation and strengthen the TelkomGroup's telecommunication tower business portfolio. In this segment, the company also continues to develop the neuCentrIX initiative to serve the wholesale market for the telecommunications industry and the digital ecosystem, by providing a globally competitive integrated data center services that has a backbone infrastructure with the widest coverage. 

In line with its transformation into a digital telecommunications company, Telkom continues to develop a variety of digital services for consumer and enterprise segments. Telkom supports development in five main ecosystems, namely MSMEs, education, health, logistics, and agriculture. For national economic recovery, Telkom and eight other state-owned enterprises support the Ministry of SOE's initiative to introduce the MSME Digital Market (PaDi MSME), an e-commerce aggregator application platform for MSMEs to gain wider market access, especially from SOEs.

The total corporate capital expenditure in 2020 was Rp29.4 trillion or 21.6% out of total revenue. The capital expenditure absorption in 2020 is lower than the projected plan due to the pandemic which prompted the large-scale social restrictions (PSBB). The capital expenditure was mainly used to strengthen networks and other infrastructure in order to improve digital capabilities to provide the best digital experience for customers, including 4G LTE networks, fiber optic access networks to homes, underwater fiber optic backbone networks as well as telecommunication towers and data centers. In order to support the national economy, Telkom recorded its Domestic Content Level (TKDN) value achievement at 41.6% of Capex spending and 92% of Opex spending in 2020.

"In the midst of the ongoing pandemic, we thank the Indonesian people for their trust in TelkomGroup's various services. We will continue to strive in offering the best digital solutions to assist the community in dealing with the pandemic and to restore the national economy, in line with our commitment to become the driving force of Indonesia's digitalization. We believe that with digitalization, together we will be able to face the pandemic and make Indonesia a better place," Ririek said. 

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