MORE CHALLENGING STARTING POINT

PT Telkom Indonesia (Persero) Tbk (TelkomGroup) is a BUMN in ICT services and telecommunications networks business in Indonesia. The majority shareholder of TelkomGroup is the Government  at 52.09%, while the remaining 47.91% is controlled by the public. TelkomGroup shares are traded on the Indonesia Stock Exchange (IDX) with the code “TLKM” and the New York Stock Exchange (NYSE) with the code “TLK”. TelkomGroup always report their completed investor relations in https://www.telkom.co.id.

In transformation of digital telecommunication company, TelkomGroup implements their business strategies and operations in customer-oriented path. This transformation arranges the TelkomGroup organization become more agile. Also expected to increase efficiency and effectiveness in creating their quality customer experience.

TelkomGroup currently manages four consumer segments –corporate(Enterprise&Government), SME,  Retail and other consumer segments.

TRANSFORM OR DIE

From TelkomGroup highlight financial performance 9M 2018, the record of revenue is growth 2.3% YoY, But minus of EBITDA (-10.3%), operating profit (-17.3%), and net income (-20.6%). This condition occurs from 2017, because from 2017 TelkomGroup focus in their customer-oriented business which customer digital needs become more demanding. This condition forces TelkomGroup to increase their Fixed Asset (TelkomGroup spent Rp24.9 trillion in Capital Expenditure (Capex). In mobile services, Capex was mainly utilized for radio access network (BTS) development. While in fixed businesses, Capex was primarily utilized to develop access and backbone infrastructure, including satellite and submarine cable systems to support fixed as well as mobile broadband businesses. Some portion of Capex were also utilized for other projects such as tower), in other risk that TelkomGroup minus their EBITDA, and increase O&M expenses.

Other situation become risky beside O&M expenses is G&A expense of 9M 2018 vs 2017 that increase 21.6% from TelkomGroup’s account receivable.

POSITIVE STARTING POINT

In increasing TelkomGroup’s  fixed asset which is build their “big infrastructure”, TelkomGroup faced new risk and new market potential that will be expected to become new market share in good monetizing (legacy) and increase their revenue and of course cash flow for operation. Because TelkomGroup use their cash (from sales) for operation activities.

Deal with quality sales is very important, because this TelkomGroup’s “homework” from building their big infrastructure to get more profit.

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pratamia

A Student from SBM EMBA 59B. Happy wife and mother who works in Telkom Indonesia in Sales and Marketing anthusiast 🙂

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pratamia

Sales and Marketing at Telkom Indonesia

A Student from SBM EMBA 59B. Happy wife and mother who works in Telkom Indonesia in Sales and Marketing anthusiast 🙂