Indonesia’s dominant telecoms company PT Telekomunikasi Indonesia (Telkom) is setting up a new subsidiary, PT Telkom International, to oversee its business expansion plans abroad. The new unit, which is awaiting formal legalisation, will offer consultation and educational support, as well as developing the provision of code division multiple access (CDMA) telecommunication services. Local press reports suggest that the new company’s business will focus on the Asian and African markets and that the development of CDMA in other countries includes plans either to establish new ventures abroad or acquire existing operations in its target markets.
Telkom is looking to raise its market capitalisation to USD30 billion within five years and in order to do this, it must expand. The operator has set aside between IDR15 trillion (USD1.65 billion) and IDR20 trillion for capital expenditure in the current year, of which around IDR13.5 trillion will be allocated for mobile expansion, IDR1.8 trillion for fixed wireless services and IDR450 billion for its broadband internet service Speedy.