Telkom's Telekomunikasi Seluler (Telkomsel) May Conduct IPO in 2014
In order to raise new funds for business expansion, PT Telekomunikasi Indonesia (Telkom) is considering to list its subsidiary Telekomunikasi Seluler (Telkomsel) on the Indonesia Stock Exchange in 2014. Through its Telkomsel unit, Telkom is Indonesia’s leading provider of mobile telecommunications and digital data services. The company currently has around 125 million cellular subscribers in a sector where rife competition for cellular subscribers has limited net profits. Telkom, however, is the only Indonesian operator that posts strong growth.
Indra Utoyo, the Director of Innovation and Strategic Portfolio of Telkom, stated that Telkom prefers its unit to conduct an IPO although it is also considering a backdoor listing. Singapore Telecom Mobile Pte Ltd, which owns 35 percent of Telkomsel's shares, already approved such a corporate action. The remaining 65 percent of Telkomsel's shares are owned by Telkom. Telkom is for 51 percent state-owned.
Comparison of Indonesia's leading telecommunication networks and services providers:
| Number of Cellular Subscribers |
2008 | 2009 | 2010 | 2011 | 2012 |
| Telkomsel |
65.3 | 81.6 | 94.0 | 107.0 | 125.1 |
| Indosat | 36.5 | 33.0 | 44.3 | 51.7 | 58.5 |
| XL Axiata | 36.0 | 31.4 | 40.4 | 46.4 | 45.8 |
| Bakrie Telecom | 7.3 | 10.6 | 13.0 | 14.6 | 11.7 |
numbers are in millions
Sources: Annual Reports 2012
| Net Profit (loss) |
2010 | 2011 | 2012 |
| Telkomsel | 12,362.0 | 12,824.0 | 15,715.0 |
| Indosat | 666.4 | 968.6 | 375.1 |
| XL Axiata | 2,891.0 | 2,830.0 | 2,744.0 |
| Bakrie Telecom | 10.0 | (782.7) | (3,138.9) |
in billion IDR rupiah
Sources: Annual Reports 2012
Further Reading:
• Telekomunikasi Indonesia (Telkom), includes overview of Indonesia's telecommunication sector