Telkom Plans Rp800 Billion Investment in Business Services

Published Date : Feb 26, 2015

Telkom has been among the top dogs in the Indonesian telecom market for many years running. The state-owned telecom giant is planning a massive investment to expand into new areas to outperform market growth. PT Telekomunikasi Indonesia, better known as Telkom, is planning a huge investment of Rp800 billion (Indonesian Rupiah) into the development of its own business services and enterprise divisions in the ongoing year. The investment totals about US$62 million, and is aimed at outperforming market growth.

Muhammad Awaluddin, director for enterprises and business services for Telkom, announced on Wednesday that the state-owned telecom giant’s budget for large enterprises and small to medium enterprises and business services would range from Rp700 billion to Rp800 billion. The budget has taken a massive jump from the figures from last year, which ranged from Rp600 billion to Rp700 billion.

Telkom offers IT services to small to medium as well as large enterprises, small to medium businesses, and government agencies. Telkom’s annual capital expenditure stands at Rp20 trillion to Rp 25 trillion, equating to close to US$1.7 billion. The budget allocated for the stated expansion of business services and enterprise will come from this sum.

The IT market in Indonesia is slated to grow at a rate of about 7 to 8 per cent when it came to enterprises and about 10 to 11 per cent when it came to small business. Awaluddin stated Telkom’s intentions to outpace the expected growth of the market. He stated his confidence that the demand for IT services from both the public as well as private sector will continue to rise during this year, which will help Telkom achieve its stated targets.

The administration of President Joko Widowi, popularly known as ‘Jokowi’, has emphasized the need to bring about a change to increase transparency in government dealings.