Full Year 2020 Telkom Indonesia (Persero) Tbk PT Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Choong Chen Foong - CIMB Research - Analyst : This is Foong from CIMB. Three questions from me. Firstly, on IndiHome, can you talk a bit about competition in this space? And do you see that as potentially posing some risk to your ARPU and also your subscriber targets for 2021? That's the first question. Secondly, for the Enterprise business, you mentioned there are still some uncertainties with regards to the impact from COVID-19 and all that. But I wanted to find out do you expect the Enterprise business to be still loss-making this year? Or do you see a turnaround? And my third question with regards to Telkomsel. How do you see OpEx trending this year, excluding depreciation? Yes, those are my 3 questions.

Question: Kresna P. Hutabarat - PT Mandiri Sekuritas, Research Division - Analyst : I have 3 questions actually, so just bear with me. My first question is to Telkomsel. Can we get some update on Telkomsel's capital allocation strategy over the next 2 to 3 years? We can see that Telkomsel has monetized its brick-and-mortar assets, such as towers, and at the same time, invested more heavily into tech platforms, such as investments in Gojek, LinkAja, and TMI and so on. So as Telkomsel recalibrates its asset structure, can you get some color as to how much of Telkomsel's business will actually be towards the digital mobile? And perhaps any guidance on the retail CapEx budget for the next 2 to 3 years? And what sort of ROIC and enterprise valuation impact that Telkomsel is to achieve? Second question is to Telkom management as well, similar to the question to Telkomsel. When it comes to digital investments, we understand that some digital investments may not yield as high cash returns as traditional Telkom businesses in the near term. So how should we balance the need to maintain steady cash returns at Telkom level with the need to fulfill Telkom's digital telco strategy and leadership going forward. Just 2 questions.

Question: Niko Margaronis - PT. Danareksa Sekuritas, Research Division - Analyst : Congratulations, I think, for the good fourth quarter. Three questions, but I think they're straightforward. First of all, you mentioned about EBITDA margins guidance for 2021 to be stable. Can you break it down by business pillar, mobile IndiHome and Enterprise business? That's my first question. Secondly, how should we think about PSAK 72 in terms of data revenue? That should mean that going forward, there will be some revenue -- some data revenue being allocated under Legacy revenue. Is that a fair understanding? That's number two. And number three, in terms of your 5G rollouts, and you mentioned that would be within 2021. Is that going to be for retail segment? Or would it be selective rollouts? How do you plan in doing this? Are you going to be initially focusing on the business segments?

Question: Niko Margaronis - PT. Danareksa Sekuritas, Research Division - Analyst : The 5G? Unidentified Company Representative Yes I think he stopped. Let me answer it. Okay. Pak Niko, for the 5G, 5G is a bit different with 4G. 4G is for mass usage. This year for Telkomsel 5G will be -- we will implement it selectively, not as a mass rollout of network all over Indonesia. It will be selective in certain area and certain condition. And it will be both for B2B and B2C. So as a leader in the technology implementation, Telkomsel will always put the good service and leading service to its customer both for consumer and B2B market. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 04, 2021 / 8:00AM, TLKM.JK - Full Year 2020 Telkom Indonesia (Persero) Tbk PT Earnings Call

Question: Niko Margaronis - PT. Danareksa Sekuritas, Research Division - Analyst : I would like to pick up on the Gojek collaboration and some news that are found in the Bloomberg terminal that you're considering of increasing your investment in Gojek. Could you provide some more color on this? And what do you expect to achieve by increasing your stake in Gojek? Setyanto Hantoro - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - VP of Strategic Business Development Niko, Setyanto from Telkomsel here. Yes. As you may aware, we invest in Gojek, and we have the plan to continue to invest and collaborate with them. Of course, as a strategic investor, one of main purpose of investment is to get the synergy value between us and them, right? So we hope that in the upcoming future, with the recent development in Gojek, we will increase our collaboration. So we will -- both parties will derive synergy value from the synergy collaboration that will happen. And also -- as an investment also, we also hope that we can get a capital gain from our investment. So it will be both sides. Number one is in terms of synergy value that we can derive and the second one is from the capital gain that we invest.

Question: Niko Margaronis - PT. Danareksa Sekuritas, Research Division - Analyst : Okay. So let me confirm, late '23 you mentioned. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 04, 2021 / 8:00AM, TLKM.JK - Full Year 2020 Telkom Indonesia (Persero) Tbk PT Earnings Call