Telkom seeks IDR10tn in loans to support 2016 plans

13 Jan 2016

The Jakarta Post reports that PT Telekomunikasi Indonesia (Telkom) is looking to secure loans of up to IDR10 trillion (USD730 million) to support its working capital in 2016, with finance director Heri Sunaryadi noting that the state-backed enterprise would need between IDR5 trillion and IDR10 trillion to finance activities such as ongoing network maintenance and the purchase of new SIM cards. ‘We are going to raise the funds from a syndicated loan involving three banks, possibly state-owned lenders,’ he is quoted as saying, adding that the funds ’would be withdrawn in stages as needed’.

Earlier, Telkom president Alex Sinaga announced that his company had booked revenue of more than IDR100 trillion in FY2015 – to meet its own target for the year – with cellular arm PT Telekomunikasi Selular (Telkomsel) contributing the lion’s share in terms of revenue growth. Although it is yet to publish its audited results, Alex said he was ‘almost certain’ the telco will exceed the IDR100 trillion mark, which compares to the figure of IDR89.7 trillion recorded in FY2014.

Growth is also being driven by broadband. As reported by CommsUpdate, Telkom now has over one million subscriptions to its IndiHome triple-play fibre-to-the-home (FTTH) service, and is targeting four million by the end of this year. Telkom’s FTTH network supports peak download speeds of 100Mbps and is typically bundled with a high definition (HD) television service and a voice telephony package that includes 1,000 local or domestic long-distance call minutes. Telkom expects to see strong subscriber take-up from the areas of Jakarta, Bogor, Tangerang and Bekasi (Jabotabes), although it is also expecting to see growth in East Java, Bali, and Nusra, followed by Sumatra, West Java, Central Java and Yogyakarta, and lastly Kalimantan and eastern Indonesia.

Indonesia, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)