Jakarta, CNBC Indonesia – TelkomGroup is currently consolidating. The consolidation carried out took the form of merging the Telkomsel tower into PT Dayamitra Telekomunikasi Tbk (MTEL) aka Mitratel.
President Director of PT Telekomunikasi Indonesia Tbk (TLKM) Ririek Adriansyah said that consolidation of the connectivity business would increase the valuation of Telkom’s subsidiaries. “With this merger, the unlocking of the telecommunications sector business under the Telkom Group can be implemented,” he said in a written statement, Wednesday (24/8/2022).
Ririek said that the steps to consolidate Telkom’s subsidiary business were the realization of 5 big strategies, one of which was to become a world-class telecommunications industry with targets including encouraging business transformation, increasing market capitalization (market cap) with a valuation of IDR 500-700 trillion, unlocking business, as well as EBITDA which must continue to grow.
Meanwhile, Mitratel President Director Theodorus Ardi Hartoko said that the growing need for mobile data, the development of 5G and LoT (Internet of Things) technology, as well as the merger of mobile operators had an impact on the further development of the telecommunications tower industry in Indonesia. This is a pretty good market potential to continue to grow.
According to him, with ownership of 34,800 towers achieved after the acquisition of 6000 Telkomsel towers, Mitratel has a big opportunity.
“With this mapping, we are optimistic that this strategy will be welcomed positively by all operators. “Moreover, the additional 32% of Mitratel towers are the main priority for tenants from mobile operators,” he said.
After the acquisition of the Telkomsel tower, the company was more aggressive in increasing the tenancy ratio and expanding services including supporting businesses to increase added value for customers’ businesses. “The business scheme and total solutions that we offer to operators do not require large investments so that it becomes easier and more efficient for customers,” he explained.
Deputy Minister of BUMN II Kartika Wirjoatmodjo said that the steps to merge the tower business into a Telkom subsidiary were deemed appropriate. He explained that Mitratel’s business strategy for acquiring Telkomsel towers was to make it efficient and increase the company’s valuation and competitiveness.
This can be seen from the management of Mitratel’s telecommunications towers which can be leased to all mobile operators. Apart from that, the tower acquisition business step taken by Mitratel has become a new revenue stream for the Telkom Group and has increased the influx of capital (Mitratel) from investors. “Management of the Tower, which was previously a cost center, can now become a profit center because it can also be filled by other operators,” he said.
Tiko also stated that the Job Creation Law allows and encourages the use of tower infrastructure for shared services (infrastructure sharing). Apart from towers, fiber optics can also be used together by operators. According to him, the current level of competition is no longer in control of infrastructure, but the quality of service to customers.
A market cap above IDR 100 trillion is considered a big cap. Currently, PT Bank Central Asia Tbk (BBCA) has a market cap of IDR 964 trillion, followed by PT Bank Rakyat Indonesia Tbk. (BBRI) with a market cap of IDR 645 trillion. The TLKM market cap is currently IDR 462 trillion.
Sumber:
CNBC Indonesia
