Indosat reports strong mobile growth through Jan-May

6 Jun 2008

Indonesian telecoms group Indosat says its mobile arm Satelindo has witnessed a 22% rise in subscribers in the first five months of this year to 30 million, putting the unit well on course to meet its target of 32.5 million users by the end of 2008. Indosat president Johnny Swandi Sjam reaffirmed his goal of signing up eight million new users this year, despite tougher economic conditions in the country which are impacting on consumer spending. The government of Indonesia recently raised subsidised fuel prices by close to 30%, Reuters reports, a move that is putting upwards pressure on inflation. Local industry watchers warn the decision could affect cellphone usage in the country, particularly among lower-income groups. Given that around nine out of ten users are on some form of pre-paid option, the issue of price sensitivity is very apparent and users are expected to switch to rivals which offer cheaper tariffs.

Indonesia, Indosat Ooredoo Hutchison (IOH)