Corporate Transformation

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.

TELKOM’S TRANSFORMATION (2.9)
TELKOM’s transformation of its business from Fixed Mobile & Multimedia (FMM) to TIME, which began in 2008, is the most extensive ever undertaken by the Company, involving the transformation not just of the core business but of the infrastructure, systems, organization and human resources, as well as the corporate culture. (3.10)

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.

The TELKOM Transformat ion Team (T3) led the planning and supervision of the transformation process, while the overall concept was communicated to all employees. At the same time, the TELKOM Group’s fixed wireline, fixed wireless, broadband, enterprise, wholesale and portal business were enhanced as part of the transformation program.

In mid-2009 the 10 Strategic Initiatives (SI) were revitalized with:

  • the appointment of a BoD Champion and an Initiatives Coordinator, who are responsible for the implementation of the 10 SI program;
  • the 10 SI Charter Program, which is a synchronization and integration of new and ongoing programs; and
  • the development of performance criteria and targets for each SI.

To ensure that the transformation proceeds in line with the stated objectives, the BoD Transformation Forum (BTF) is held periodically as a forum for the discussion and evaluation of the transformation program plans and implementation at the Directors’ level.

Among the transformation program activities implemented during 2009-2010 were the following:

  • Implementation of the Fixed Business Improvement Program (FBIP), aimed at slowing the rate of decline of the Plain Ordinary Telephone Service (POTS) business.
  • The TELKOM Flexi Division began operating as a fully independent division in July 2009.
  • The Access Division began operating in July 2009 to enhance access to customers.
  • The re-segmentation of corporate (Enterprise) customers was carried out from April to August 2009 to create more effective solutions.
  • TELKOM won the WiMax frequency license tender and began implementing its Innovative Broadband Solution (IBS) in anticipation of the competition in the broadband business.
  • TELKOM launched its new brand identity in October 2009 with the tagline The world in your hand, reflecting TELKOM’s transformation.
  • Several companies acquisition, particularly in the IT Services sector, were acquired to support the growth of the Enterprise business and increase the Company’s future value.
  • The Consumer Service Division, focusing on the retail and personal customer segment, and the Business Services Division, which focuses on the SME customer segment, began operating in January 2010.
  • Phasing in of the 5C values (Commitment to Long Term, Customer First, Caring Meritocracy, Cocreating Win-win Partnerships and Collaborative Innovation) of the new Corporate Culture began in Q1 2010.
  • The SME Center, Creative Center and Plasa.com super por tal—the center for IT Services and Media Edutainment—were launched in March-April 2010.
  • Broadband End-to-End Transformation Labs began in May 2010 as a demonstration of the 5C culture.

These programs are designed to support the achievement of the Company’s strategic objective as stated in the Corporate Strategic Scenario (CSS), i.e. competitive sustainable growth with the target of achieving 60% of the industry revenue in 2015.