PT Telkom Indonesia (Persero) Tbk, also simply known as Telkom, is an Indonesian multinational

telecommunications Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that fe ...

conglomerate. Telkom is listed on the

Indonesia Stock Exchange Indonesia Stock Exchange (IDX) ( id, Bursa Efek Indonesia, formerly nl, Vereniging voor de Effectenhandel) is a stock exchange based in Jakarta, Indonesia. It was previously known as the Jakarta Stock Exchange (JSX) before its name changed in ...

and has a secondary listing on the

New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed ...

. The government of Indonesia owns over half of Telkom's

shares outstanding Shares outstanding are all the shares of a corporation that have been authorized, issued and purchased by investors and are held by them. They are distinguished from treasury shares, which are shares held by the corporation itself, thus represent ...

. Telkom has major business lines in fixed line telephony,

internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, pub ...

, and

data communications Data transmission and data reception or, more broadly, data communication or digital communications is the transfer and reception of data in the form of a digital bitstream or a digitized analog signal transmitted over a point-to-point or ...

. It is operated as the parent company of the Telkom Group, which is engaged in a broad range of businesses which consist of

telecommunication Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that fe ...

, multimedia, property, and financial services. Since 2008, Telkom Indonesia began changing its business focus, infrastructure, systems, organization, and human resources, as well as the corporate culture, in their effort to face rising competition. After

privatization Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...

in 1995, Telkom Indonesia's total consumer base grew by 7.8% in 2010 to 129.8 million customers at the end of December 2011, making the company the nation's largest telecommunication service provider in terms of subscriber count.

History

Telkom is one of the world's oldest telecommunication companies. The company can be traced back to an establishment of the first electromagnetic

telegraph Telegraphy is the long-distance transmission of messages where the sender uses symbolic codes, known to the recipient, rather than a physical exchange of an object bearing the message. Thus flag semaphore is a method of telegraphy, whereas p ...

service in Indonesia on 23 October 1856, by the Dutch Colonial Government to connect Batavia ( Jakarta) and Buitenzorg ( Bogor). In 1884, the Dutch Colonial Government founded a private company with headquarter in Bandung to provide postal and domestic telegraph services and, later on, international telegraph and telephony services.

Early years

Telephony Telephony ( ) is the field of technology involving the development, application, and deployment of telecommunication services for the purpose of electronic transmission of voice, fax, or data, between distant parties. The history of telephony is i ...

services had been introduced to Indonesia in 1882 by

privately owned companies A privately held company (or simply a private company) is a company whose shares and related rights or obligations are not offered for public subscription or publicly negotiated in the respective listed markets, but rather the company's stock is ...

under a 25-year government license. In 1906, all postal and

services in Indonesia were taken over by the government as single, unified government agency named Post, Telegraph, and Telephone Service ( nl, Post-, Telegraaf-, en Telefoondienst, PTT). In September 1945, roughly a month after the

Indonesian proclamation of independence The Proclamation of Indonesian Independence ( id, Proklamasi Kemerdekaan Indonesia, or simply ''Proklamasi'') was read at 10:00 on Friday, 17 August 1945 in Jakarta. The declaration marked the start of the diplomatic and armed resistance of th ...

, the agency headquarters in Bandung was taken over by Indonesian nationalists. In December 1949, after years of national revolution war, the PTT was nationalized by Indonesian Government as part of Indonesian effort to oust the remaining Dutch and nationalize Dutch corporate assets.

State-owned company

In 1961, PTT was converted from an official government agency into a newly established state-owned company, the Postal and Telecommunications Services company. Four years later, on 6 July 1965, Indonesian Government separated this company into two state-owned companies; ''PN Pos Giro,'' responsible for providing mail services and ''PN Telekomunikasi'' as

services. The mail services ''PN Pos Giro'' developed over the year to become the

Pos Indonesia Pos Indonesia is the state-owned company responsible for providing postal service in Indonesia. It was established with the current structure in 1995 and now operates 11 regional divisions. History Postal service in colonial Dutch East Indie ...

in 1995, which is still state-owned today and the official postal carrier for Indonesia's 230 million people. In 1974, ''PN Telekomunikasi'' was further divided into two state-owned companies. Perusahaan Umum Telekomunikasi (Perumtel) provided domestic and international telecommunications services, while PT Industri Telekomunikasi Indonesia (PT INTI) manufactured telecommunications equipment. A further division in 1980 saw the international telecommunications business taken over by the newly nationalized PT Indonesian Satellite Corporation (

Indosat PT Indosat Tbk, trading as Indosat Ooredoo Hutchison, is a telecommunications provider in Indonesia which is owned by Ooredoo Hutchison Asia, a joint venture between Ooredoo and Hutchison Asia Telecom Group (a part of CK Hutchison Holdings) si ...

). In 1991, Perumtel became a state-owned limited liability corporation and renamed to what is now ''Perusahaan Perseroan (Persero)'' PT Telekomunikasi Indonesia or Telkom. Until 1995, Telkom's operations were organized along twelve regional operating units known as ''Wilayah Telekomunikasi'' or Witel. Each Witel had full responsibility for all aspects of business and operations in their respective regions, such as telephone services, property management, and security. In 1995, Telkom reorganized the twelve Witels into seven regional divisions and one network division. Under a series of Cooperation (KSO) Agreements, Telkom transferred the right to operate five of its seven regional divisions (I, III, IV, VI, and VII) to private sector consortia. Under these agreements, the KSO partners manage and operate the regional division concerned for a fixed term, build a specified number of fixed lines which at the end of the term, transfer the telecommunications facilities to Telkom for an agreed amount in compensation. Revenues from the KSO operations were shared between Telkom and the KSO partners.

Privatization

On 14 November 1995, Telkom became a privatized company when shares went on sale through an

Initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...

on the Jakarta Stock Exchange and the

Surabaya Stock Exchange Surabaya Stock Exchange (SSX) ( Indonesian: Bursa Efek Surabaya (BES)) was a stock exchange that officially opened on June 16, 1989, based on the Minister of Finance Decree of Indonesia No. 654/KMK.010/1989 with only thirty-six shareholders. It wa ...

(which merged in December 2007 to become the

). Telkom's shares are also listed on the

NYSE The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its liste ...

and the

LSE LSE may refer to: Computing * LSE (programming language), a computer programming language * LSE, Latent sector error, a media assessment measure related to the hard disk drive storage technology * Language-Sensitive Editor, a text editor used ...

in the form of

American depositary shares An American depositary receipt (ADR, and sometimes spelled ''depository'') is a negotiable security that represents securities of a foreign company and allows that company's shares to trade in the U.S. financial markets. Shares of many non-U.S ...

(ADSs), and were publicly offered without listing on the

Tokyo Stock Exchange The , abbreviated as Tosho () or TSE/TYO, is a stock exchange located in Tokyo, Japan. It is the third largest stock exchange in the world by aggregate market capitalization of its listed companies, and the largest in Asia. It had 2,292 listed ...

. Telkom is now the largest company by market capitalization in Indonesia, with a market capitalization of approximately IDR 190,512 trillion as of 31 December 2009. The Government retains an aggregate interest of 51.19% of the issued and outstanding shares of Telkom. The Government also holds one ''Dwiwarna'', or golden share. In mid-1997, Indonesia was badly affected by the

Asian economic crisis The Asian financial crisis was a period of financial crisis that gripped much of East Asia and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion. However, the recovery in 1998–1 ...

. Among those impacted were certain KSO partners, who experienced difficulties in fulfilling their obligations to Telkom. Telkom eventually acquired control of its KSO partners in Regions I, III, and VI, and amended the terms of the KSO agreements with its KSO partners in Regions IV and VII to obtain legal rights to control the financial and operating decisions of those regions. Since 5 June 2014, Telkom shares are no longer traded on the London Stock Exchange ("LSE"), and since 16 May 2014, they cease to be registered on the Tokyo Stock Exchange ("TSE") in Japan.

Telecommunication deregulation

In 1999, Indonesia passed a deregulating telecommunication law that set in motion a sweeping array of reforms and enlivened

competition policy Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust ...

, private investment, and long term industry direction. Among the proposed reforms was the progressive elimination of the joint ownership, by Telkom and

, of most of the telecommunications companies in Indonesia. This was intended to promote a more competitive market. As a result, in 2001, Telkom acquired Indosat's 35.0% stake in

Telkomsel PT Telekomunikasi Selular ( trading as Telkomsel) is an Indonesian wireless network provider founded in 1995 and is owned by Telkom Indonesia (65%) and Singtel (35%). It is headquartered in South Jakarta. Telkomsel is the largest cellular ...

, resulting in Telkom owning 77.7% of the shares of Telkomsel, while Indosat acquired Telkom's 22.5% interest in Satelindo and its 37.7% stake in Lintasarta. In 2002, Telkom sold 12.7% of Telkomsel to Singapore Telecom Mobile Pte Ltd (SingTel Mobile), reducing Telkom's ownership of Telkomsel to 65.0%. On 1 August 2001, the Government terminated Telkom's exclusive right to provide

fixed line A landline (land line, land-line, main line, home phone, fixed-line, and wireline) is a telephone connection that uses metal wires or optical fiber telephone line for transmission, as distinguished from a mobile cellular network, which uses ...

services in Indonesia and Indosat's right to provide international direct dial services. Subsequently, Telkom's exclusive rights to provide domestic and

long-distance Long distance or Long-distance may refer to: *Long-distance calling * Long-distance operator * Long-distance relationship * Long-distance train *Long-distance anchor pylon, see dead-end tower Footpaths * Long-distance trail *European long-d ...

services were terminated in August 2002 and August 2003, respectively. On 7 June 2004, Telkom began to provide their own international direct dial fixed line services. On 16 November 2005, the

Telkom-2 Telkom-2 was a geosynchronous communications satellite built by Orbital Sciences Corporation (OSC) for Indonesia's state-owned telecommunications company, PT Telekomunikasi Indonesia Tbk (PT Telkom). Telkom-2 was successfully launched on 16 N ...

satellite was launched to replace all

satellite A satellite or artificial satellite is an object intentionally placed into orbit in outer space. Except for passive satellites, most satellites have an electricity generation system for equipment on board, such as solar panels or radioi ...

transmission services that have been served by previous satellite, Palapa B-4.

Transformations

In 2009, Telkom started doing the business transformation of the only company in the field of telecommunications to a broader range of business, the company expanded to the telecommunications, information technology services, media and

edutainment Educational entertainment (also referred to as edutainment) is media designed to educate through entertainment. The term was used as early as 1954 by Walt Disney. Most often it includes content intended to teach but has incidental entertainmen ...

. Telkom's decision to transform its business was prompted by the shift in customer lifestyles and supported by advances in technology and regulatory changes that enabled service providers to deliver enhanced service to customers. With this new business transformation, Telkom also plans to conduct the acquisition of several companies that are in line with Telkom's transformation of the new business. In August 2012, the

Telkom-3 Telkom-3 is an Indonesian communications satellite which failed to reach its target orbit due to a launch failure on 6 August 2012. It was built by ISS Reshetnev for Indonesian telecommunications provider PT Telekomunikasi Indonesia. It was b ...

satellite was lost in a launch failure, being placed into an unusably low orbit following the failure of the

Briz-M The Briz-K, Briz-KM and Briz-M (russian: Бриз-К, КM and M meaning ''Breeze-K, KM and M'') are Russian liquid-propellant rocket orbit insertion upper stages manufactured by Khrunichev State Research and Production Space Center and used ...

upper stage of the

Proton-M The Proton-M, (Протон-М) GRAU index 8K82M or , is an expendable Russian heavy-lift launch vehicle derived from the Soviet-developed Proton. It is built by Khrunichev, and launched from sites 81 and 200 at the Baikonur Cosmodrome in Ka ...

rocket that had launched it. Its replacement Telkom-3S successfully launched aboard an Ariane 5 rocket on 14 February 2017, 21:39 UTC. In March 2019, Telkom Indonesia was one of the first Asian telcos to launch a cloud gaming service in coopération with Gamestream.

Operations

Telkom Indonesia is a dominant and largest provider of

services due to owning most of Indonesia's copper network. Telkom also runs

telephone exchanges telephone exchange, telephone switch, or central office is a telecommunications system used in the public switched telephone network (PSTN) or in large enterprises. It interconnects telephone subscriber lines or virtual circuits of digital syste ...

, trunk network and

local loop In telephony, the local loop (also referred to as the local tail, subscriber line, or in the aggregate as the last mile) is the physical link or circuit that connects from the demarcation point of the customer premises to the edge of the commo ...

connections for its fixed-line telephones. Currently, Telkom is responsible for approximately 8.3 million telephone lines in Indonesia. And like most of the other state-ownership telecommunication companies in the world, Telkom is obliged to provide public services such as public call boxes. Telkom Indonesia businesses are operated under government regulation by the Indonesian Ministry of Communication and Information. Telkom, as a government-owned company, is required to comply with additional obligations such as provide telecommunication services and not being discriminatory. As well as providing service in those regulated areas, Telkom has expanded into more profitable products and services where there is less government-owned-related regulation. Telkom Indonesia is the parent company of the Telkom Group, which is engaged in a wide range of businesses that consist of telecommunication, information, multimedia, property, and financial services. Telkom mainly operates in fixed line telephony,

and

business, while other businesses are run by subsidiaries.

Business divisions

Telkom now categorizes its portfolio into 3 Digital Business Domain: # Digital Connectivity: Fiber to the x (FTTx), 5G, Software Defined Networking (SDN)/ Network Function Virtualization (NFV)/ Satellite # Digital Platform: Data Center, Cloud, Internet of Things (IoT), Big Data/ Artificial Intelligence (AI), Cybersecurity # Digital Services: Enterprise, Consumer

Subsidiaries and investments (Telkom Group)

Telin PT Telekomunikasi Indonesia International or Telkom International, and commonly abbreviated as Telin, is an Indonesian carrier services and investment company and is a wholly owned subsidiary of Telkom Indonesia. It is an international telecom ...

(Telekomunikasi Indonesia International): International telecommunications services and investment company *

: Mobile phone services based on GSM and UMTS protocol * Infomedia Nusantara: Information & communication services * Multimedia Nusantara: Strategic investment and holding company ** Telkomsigma: IT, consulting services and data centre ** Finnet: Financial services ** Mojopia: Internet commerce business ** Melon Indonesia: Music and entertainment business (with

SK Telecom SK Telecom Co., Ltd. ( or ) is a South Korean wireless telecommunications operator and former film distributor and is part of the SK Group, one of the country's largest chaebols. It leads the local market with 50.5 percent share as of 2008. ...

) ** Admedika: Healthcare network provider ** MDI Ventures: Corporate Venture Capital * TelkomProperty: Property development and management company * PINS Indonesia: Trading, distribution, and integration CPE business ** Scicom: Global CRM consulting, technology services, education, and outsourcing company *

Daya Mitratel Daya may refer to: Religion *Daya (Sikhism), the concept of compassion in Sikhism *Daya (virtue), the concept of compassion in Hinduism Media and music * Daya (film), ''Daya'' (film), a 1998 Malayalam film * Daya (EP), ''Daya'' (EP), a 2015 reco ...

: Wireless telecommunication provider * Telkom Akses: Wireline telecommunication provider * Napsindo: Marketing business Other investments: * Patrakom: Strategic IT and telecommunications * Bangtelindo: Telecommunication planning, construction, installation and maintenance company * Pasifik Satelit Nusantara: Satellite telecommunications company * Citra Sari Makmur: Satellite and terrestrial network company

Logos

File:Telkom Indonesia (1991).svg, Logo used from 1 May 1991 until 13 September 2002. File:Telkom Indonesia (2002).svg, Logo used from 13 September 2002 until 23 October 2009. File:Telkom Indonesia.svg, Logo used from 23 October 2009 until 16 August 2013. File:Telkom Indonesia 2013.svg, Logo used since 16 August 2013.

References

External links

*
Telkom Indonesia Business Structure

Financial and Operational Facts
{{Authority control 1850s establishments in the Dutch East Indies 1995 initial public offerings Companies based in Jakarta Companies listed on the Indonesia Stock Exchange Companies listed on the New York Stock Exchange Companies formerly listed on the London Stock Exchange Government-owned companies of Indonesia Government-owned telecommunications companies Internet service providers of Indonesia Mass media companies established in the 1850s Mass media companies of Indonesia Satellite operators Telecommunications companies established in 1856 Telecommunications companies of Indonesia