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: Ranjan Sharma - JPMorgan Chase & Co, Research Division - Analyst
: It's Ranjan from JPMorgan. I have 2 questions. Firstly, on Mitratel. If you can share any tentative time lines for a potential IPO. And also for Mitratel,
as towers are being transferred from Telkomsel to Mitratel, can you share thought process around how you're deciding which transfer -- or which
telco -- or which towers to transfer and lease back from Mitratel? So that's the first one.
The second question is on the omnibus law. Do you have any idea on the time line of the introduction of the implementing regulations? And do
you think that the omnibus law will be supportive of consolidation in Indonesia?
Question: Choong Chen Foong - CIMB Research - Analyst
: I'm Foong of CIMB. Three questions from me. Firstly, a question on the bad debt provision. Even though the economy remains pretty soft, you've
seen lower bad debt provisions into the third quarter. Any one-offs in the quarter, reversals or anything like that? And does Telkom expect bad
debt provisions to stay low in the last quarter of the year? That's my first question.
Second question on the CapEx. The year-to-date spend seems a bit low versus the full year guidance. Are we expecting the CapEx in the fourth
quarter to rise significantly to meet the full year guidance? Or have we successfully achieved some real savings for this year?
And my third question for mobile. With the tariff adjustments that you have made in the third quarter, the data you have now go up 35% premium
to your peers. And you also saw double-digit growth in your data subscribers. Are you comfortable with Telkomsel's market positioning currently?
Or do you see a need to extend your offers to more geographies or to narrow the premium further? Or do you think that it's now time to focus on
monetizing the subscribers (inaudible)? Yes, those are my 2 questions.
Question: Choong Chen Foong - CIMB Research - Analyst
: Yes, it does. I think it was fine.
Question: Prem Jearajasingam - Macquarie Research - Analyst
: This is Prem Jearajasingam from Macquarie. A few questions from me, please.
First and foremost, can I just clarify that Telkomsel in the medium to long run is going to continue to see itself as a market leader and therefore
continue to price at a premium? Or have we changed our strategy to become a price leader? If you could clarify that, please. One.
Secondly, with regards to the Enterprise business, is it a change in the products that we are selling that's causing this revenue decline and margin
expansion? Or is it just a change in the way we sell, i.e, we no longer book the revenues from the equipment portion of any contract with that being
passed straight through to someone else? If you could clarify that as well, that would be great.
And finally, on the omnibus law. Do you see the potential for spectrum sharing as something that should or should not be part of the final outcomes
on this one?
Setyanto Hantoro - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - VP of Strategic Business Development
This is [Yanto] from Telkomsel. So from Telkomsel point of view in the medium and long term, we will maintain as a market leader and maintain
our position as the premium price compared to the market, but the premium will be not as high as previously to maintain our leadership in the
market.
Heri?
Question: Prem Jearajasingam - Macquarie Research - Analyst
: Sorry, if I could just clarify on that?
Question: Prem Jearajasingam - Macquarie Research - Analyst
: The -- so do you let them buy the equipment separately? Or your partner sells them the equipment separately?
Question: Prem Jearajasingam - Macquarie Research - Analyst
: All right. So nothing to do with 4G or 4.5G?
Question: Kresna P. Hutabarat - PT Mandiri Sekuritas, Research Division - Analyst
: Sorry if any of my question is repeated. I had some call disconnection earlier. I have 2 questions, please.
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NOVEMBER 10, 2020 / 8:00AM, TLKM.JK - Q3 2020 Telekomunikasi Indonesia (Persero) Tbk PT Earnings Call
My first question is on the non-Telkomsel's businesses. If you look at the quarterly cash OpEx and quarterly EBITDA run rates at non-Telkomsel level,
they have been less volatile in the past 9 months versus in previous years. Could we expect relatively stable quarterly cash OpEx to continue in
fourth quarter 2020 and going forward? And is the stability more due to cost savings or due to IFRS 16 or due to the lower IT procurement business?
And along the same line, could we expect the 40%-plus EBITDA margin at non-Telkomsel level year-to-date will be sustainable in the coming
quarters as well? If yes, why so?
My second question is on IndiHome. Can you give some color on the quality of IndiHome revenues? You mentioned the current crisis. How has
revenue collection and receivable trended so far?
We also understand that the new Consumer Director is from Telkomsel, right? So will this influence how Telkom structure IndiHome home product
and maintain growth going forward, especially in terms of fixed and mobile collaboration as well as residential broadband market segmentation
with Telkomsel?
I think I'll just stop there. Just those 2 questions, please.
Question: Kresna P. Hutabarat - PT Mandiri Sekuritas, Research Division - Analyst
: And so if I may have a follow-up question. Is it possible to distinguish how much of your IndiHome customers actually come from the SME categories,
especially like people who use their houses as their working place as well like shop houses and small, medium enterprises? Is it possible to distinguish
the split? We have the breakout?
Unidentified Company Representative
Oh, from the -- oh, this -- this is just from Enterprise end. Actually, IndiHome is really for the retail customers. This one was different. This is your
question or...
Unidentified Company Representative
(inaudible).
Unidentified Company Representative
Yes, (inaudible).
Unidentified Company Representative
(inaudible) anything here. And in the (technical difficulty) customer. So around the 100,000 customer who -- in the SME but also the corporate
customer in the special [JP] services.
Budi Setyawan Wijaya - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - Director of Strategic Portfolio & Director
Okay? Yes. Thank you.
Question: Niko Margaronis - PT. Danareksa Sekuritas, Research Division - Analyst
: This is Niko from Danareksa. I would like to ask about the omnibus law with relation to -- that to the product tariffs, minimum prices for products.
How do you see this being implemented? I understand there has been some already some work from before. Do you expect to see prices changing
significantly, going -- perhaps moving upwards following the implementation of omnibus law? I would like to hear your thoughts on this.
Also, may I add a second question? With regards -- again, following up from from Kresna on the quality of IndiHome subscribers. What is currently
the generate on the IndiHome subscribers? Yes. I mean -- and the ARPU going up to IDR 253,000 on a monthly basis, do you see this as being
sustainable? Or -- yes, maybe some -- provide some trajectory going forward.
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