PR96917

JAKARTA, Indonesia, July 8, 2022 /PRNewswire＝KYODO JBN/ --

Recently, there's been a lot of discussion regarding Telkomsel's investment in

Indonesia's ride-hailing decacorn Gojek (now GoTo). It's interesting to see

this from an economic and investment perspective, as the global

telecommunication sector is facing many challenges with voice and message

revenue continuing to decline. On the other side, Indonesia's internet economy

continues roaring high, reaching $70B and signifying an optimistic projection

of $146B according to the e-Conomy SEA 2021 report by Google, Temasek, and Bain.

Harris Turino, an economist and member of The House of Representatives of the

Republic of Indonesia, Commission VI, also a working committee member in

Indonesia's Stated Owned Enterprise investment in sharing economy company,

explained his view. He stated that corporate action-wise, the Telkomsel

investment in Gojek is necessary to overcome the voice and message business and

global telco trend that continues to decline. Telkom needs to find a new

revenue stream that will support its sustainable business growth as a telco

company.

The investment in Gojek, the largest base ride-hailing in Indonesia, brought

synergy more than business profit. Harris stated that the collaboration between

these two giants company could bring social and economic value to the more

extensive base. For instance, they could collaborate on a synergy program where

gojek drivers or SMEs use Telkomsel as their provider and provide special

packages.

Telkomsel invested in Gojek at a lower price than today's IPO. It signed that

there's a lot of potential growth in the future and unrealized gain or loss in

the capital market is part of the business activities. Harris also explained

that this type of investment is executed by Telkom and other companies in the

global market to stay competitive. He added, "A sharing economy company like

Gojek is not for a short-term but long-term business plan as it's not only

considering gain/ loss but sustainable growth that will support company

fundamentally and continue to contribute to the Indonesian economy."

Source: Telkomsel