Telkom Urged to Find Business Model Not Reliant on Infrastructure

TEMPO.CO, Jakarta - The Ministry of State-Owned Enterprises (SOEs) has asked PT Telkom Indonesia Tbk (Persero) to find a business model that does not rely on infrastructure.

"Telkom must look for businesses that no longer rely on infrastructure, but leading to capitalize on platforms. The Minister of SOEs (Erick Thohir) is directing the company there," said Minister of SOEs Special Staff, Arya Sinulingga, in Jakarta, on Monday, February 18, 2020.

Currently, according to Arya, people tend to spend more money on applications whose infrastructure is built by PT Telkom.

"If calculated, more consumers spend more for applications than infrastructure, such as telephones. Therefore, Telkom must be able to anticipate. How could more people get money from Telkom's infrastructure than Telkom themself," he said.

He expressed his hopes for Telkom's business to be in accordance with the times.

"So, the Minister encourages Telkom to seek a business model, it does not mean that Telkom is dissolved," he said. "This is just a comparison, don't let the subsidiary (be the one) to give a lot of dividends."

Previously, PT Telkom Indonesia (Persero) Tbk would aggressively modernize telecommunications networks by using technology based on 100 percent optical fiber in cities and districts throughout Indonesia.

Telkom Network & IT Solution Director Zulhelfi Abidin explained in Jakarta on Sunday that, the modernization program, known as Modern Broadband City, is a form of Telkom's commitment to improve the quality of Information & Communication Technology (ICT) services for the community and to accelerate the realization of Indonesia's digitalization.

"In the current digital era, the realization for a 100 percent optical fiber infrastructure is expected to answer the needs of the community for quality broadband services, so that people can enjoy a much better digital service," Zulhelfi Abidin said in an official statement.

The modernization of the network to the optical fiber, he continued, is an important foundation in providing digital services both for digital platforms and services, which can be accessed through high-speed 3G / 4G fixed broadband and cellular networks.

This modernization is also a step for TelkomGroup in preparing 5G services.

ANTARA | DIO SUHENDA (INTERN TRANSLATOR)