The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Choong Chen Foong - CIMB Research - Analyst
: Three questions from me. Firstly, I wanted to ask about the -- it was mentioned that there was a moderation in the O&M costs due to lower content
costs. Can you share with us what is the total content cost, I think, especially at Telkomsel? And what drove the cost lower? And what would be
the content strategy going forward? That's question number one.
Question: Hussaini Saifee - UBS Investment Bank, Research Division - Analyst
: A few questions from me. First, on Telkomsel. So how should we see Telkomsel mobile growth going forward given multiple price increases industry
has undertaken? And is it still a low single-digit growth outlook? Or we expect to see it accelerating to mid-single-digit growth in the coming
quarters? That's question number one.
Second question is on the data center side. So any update on the data center revenue growth? And why -- and what is the time line of data center
IPO? Is it still the first half of next year?
Derrick Heng
Okay. I will take the question on the mobile growth going forward. From our strategy, we will want to defend market share, both Java and outside
Java. We want to focus on targeted CDN to maintain competitiveness. We want to drive personalized offering and protect high-value customers
to cater for increasing productivity from our existing base.
We want to make sure that we prioritize and deliver differentiated experience for our crFme de la crFme customers both from a service perspective
as well as a network perspective. For example, the service differentiation, they will be able to enjoy a better service at our touch points, be it at our
GraPARI stores or the digital channels.
We want to make sure that we accelerate the network leadership and experience, and we want to maximize digital service to support and complement
all forms of connectivity: big games, video and music, et cetera. This is our answer.
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AUGUST 02, 2022 / 8:00AM, TLKM.JK - Half Year 2022 Telkom Indonesia (Persero) Tbk PT Earnings Call
Heri Supriadi - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - CFO, Director of Finance & Risk Management and Director
On the data center, what we have the growth of today is around 4.5% year-on-year. The growth was low because actually, the capacity almost fully
utilized compared to last year. Our HyperScale Data Center just finished by -- last month. So that's -- I mean, we're going to have additional new
subscriber coming to our data center around third and fourth quarter of the year.
And when -- about the time line of the IPO. You see, what we plan to do is we're going to have additional data center maybe with cooperation with
Singtel. In addition to that, we're also going to build another two HyperScale Data Centers that we do expect going to completed by the end of
next year.
And whether we're going to IPO or we're going to have a strategic investor, that's going to be, I think, a choice whenever there's coming to the
scale that we set already for the basically exit strategy.
Question: Ranjan Sharma - JPMorgan Chase & Co, Research Division - Analyst
: Two questions from my side. Firstly, if you can provide some color on the tariff hikes that you've seen in the market by yourself and also by the
peers. And then what is the impact that you're seeing on industry revenues?
And the second question is in the same vein. Like how should we think of industry revenue growth over the next few quarters?
Question: Ranjan Sharma - JPMorgan Chase & Co, Research Division - Analyst
: And on the wireless revenue trend for the industry?
Derrick Heng
Sorry, could you...
Question: Ranjan Sharma - JPMorgan Chase & Co, Research Division - Analyst
: How should -- how do you think...
Derrick Heng
Yes. I think competition to us is starting to be more rational, yes. We have seen a healthier conduct and we are driving for profitability. When we
look at, for example, XL, they have stopped true unlimited. They have also now looked at a more tempered [SUP]. We have also seen our competition
of Indosat increasing price. So that, to us, is really a concerted effort to drive the right pricing in our industry.
From a Telkomsel angle, we want to make sure that we continue to be relevant to our customers by prioritizing the best of our experience at our
touch points as well as the network perspective.
Question: Hussaini Saifee - UBS Investment Bank, Research Division - Analyst
: Sorry, all my questions have been answered.
Question: Choong Chen Foong - CIMB Research - Analyst
: Two follow-up questions. Firstly, for Pak Heri. Just you mentioned on the data center that you'll be building another two HyperScale Data Centers
to be completed by the end of next year, end of 2023. Are you referring to Phase 2 and Phase 3 of the Cikarang HyperScale Data Center? Or are
you talking about new data center entirely?
And also, you mentioned that the plan is to have additional data center with Singtel. Are these going to be greenfield or just an injection of data
centers from their side?
Heri Supriadi - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - CFO, Director of Finance & Risk Management and Director
Actually, first on the -- from Singtel, it is greenfield that we plan to have a new data center in Batam. We're going to use more energy friendly. So
we are now in the process of basically talking for gear on this one to supply for the market in Singapore.
And the first one, the data center that -- I mean, it's actually the second and the third data center in Cikarang because we still have land banking
in Cikarang and also some infrastructure relating to the power and -- on -- already in there. So we do expect this is going to be -- optimize all the
capacity and also all the costs -- common costs that we already put.
Question: Choong Chen Foong - CIMB Research - Analyst
: Okay. And phase 1 will completed by when? Yes.
Bogi Witjaksono - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - Director of Wholesale & International Service and Director
Sorry?
FM Venusiana R - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - Acting Director of Enterprise & Business Service, Director of
Consumer Service and Director
The time frame.
Bogi Witjaksono - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - Director of Wholesale & International Service and Director
Yes.
Question: Choong Chen Foong - CIMB Research - Analyst
: Okay. And subsequent capacity expansion to the 80-megawatt maximum capacity would be dependent on demand, is that right? Or do you already
have a planned expansion?
Bogi Witjaksono - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - Director of Wholesale & International Service and Director
Yes, depending on the demand. Depending on the demand.
Heri Supriadi - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - CFO, Director of Finance & Risk Management and Director
Depending on the demand not only in basically Singapore but also can be in our side as well.
Question: Choong Chen Foong - CIMB Research - Analyst
: And when it comes down to the -- you mentioned the injection of IndiHome into Telkomsel, right? Does that include any fiber assets, the last mile
or maybe even a trunk network? Or is it just maybe the customers?
Heri Supriadi - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - CFO, Director of Finance & Risk Management and Director
Under discussion.
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AUGUST 02, 2022 / 8:00AM, TLKM.JK - Half Year 2022 Telkom Indonesia (Persero) Tbk PT Earnings Call
Budi Setyawan Wijaya - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - Director of Strategic Portfolio & Director
We are under discussion about this asset because the asset is also opportunity for us also to monetize -- monetizing in the future. That's why we
are on the process of the discussion also for this asset.
Heri Supriadi - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - CFO, Director of Finance & Risk Management and Director
Yes. Basically, what we are doing right now, we determine what is the right operating model with regard to how we run the FMC. So regarding
who's going to manage the asset, where we put the asset is going to be also under discussion.
In addition to this, actually, we see that the fiber that we have actually can also serve the industry in the future. I think this is also a kind of potential
that we need to see in order to basically unlock the valuation and to be a substantial player or the leading player here.
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