Telkom Indonesia ups CAPEX as it mulls Asia expansion

20 Apr 2015

Alex J. Sinaga, the president of state-owned telecommunications company PT Telekomunikasi Indonesia (Telkom), has said his company is ‘expecting to be more aggressive’ this year and is upping its 2015 CAPEX as it looks to boost its ambitious expansion drive in the Asia-Pacific region. Mr Sinaga confirmed that the firm is lowering its dividend payout ratio this year to 60%, from 70% in 2014, to make it easier to expand more vigorously in the region. The official went on to note that with the lower dividend payment, Telkom will be able to increase its 2015 capital expenditure to between 25% and 30% of FY 2014 revenues – up from its initial allocation of around 22% to 25%. The operator booked IDR89.7 trillion (USD7 billion) in revenue last year, with data, internet and IT services making up 42% of the total. ‘I can be pretty sure that it will be above 25%,’ Sinaga confirmed, going on to say that the operator has been seeking opportunities to expand into other countries since the first quarter of this year. ‘Our vision is to become a global player, particularly in the Asia-Pacific region,’ he said. Telkom Indonesia currently has operations in ten overseas markets, namely Singapore, Hong Kong, Timor Leste, Australia, Myanmar, Malaysia, Taiwan, Macau, the US and Saudi Arabia.

Indonesia, Telkom Indonesia