Telkom aims on beating Singaporean giant SingTel in term of market capitalization. The titan telco has set Rp 1000 trillion as its check point in 2020. Hence, strategic and intensive strategies are designed in order to reach the goal in five years.
“In five years, we think SingTel may upgrade its capitalization up to that scale. Thus, we set Rp 1000 trillion as our capitalization target in 2020,” said Alex J Sinaga, Telkom’s CEO.
The target reflects what Telkom has achieved in these past five years. So far, Telkom has secured Rp 300 trillion of market cap. The value met what Telkom set five years ago, meaning that Telkom has principally achieved the target.
In achieving the next target, Sinaga confidently stated that Telkom needs no acquisition strategy.
He argued:
“I’m not into acquiring local companies, but won’t reject should any international companies show their interests. This is part of Telkom’s footprint in various countries.”
Sinaga explained that the steps are already implemented in Telkom’s allocated capital purchase, which reached 63 percent for broadband network which functions as a hub, from the U.S to Middle East, goes on to Asia or goes back to the U.S and vice versa.
“So, Singapore may become the hub for air and sea transportation in Asia, but Indonesia takes care of the broadband hub,” Sinaga added.
Abdul Somad Arief, Telkom’s Network Director, was on the same page. According to him, Telkom will keep on rolling trillions to keep expanding its network, both inside and outside Indonesia.
“We prepare 25 trillion, in which 40 percent goes to infrastructure development, while the rest are allocated to mobile network. Telkom will expand its network to the U.S and Western Europe. As for Indonesia, the development of network up to 4G quality will be started from Medan to Batam, Surabaya, Makassar, Tarakan, and Balikpapan. We’ll regard domestic growth as our first priority,” Arief ended.
