Telkom Spurs Business of SME Information Technology

PT. Telekomunikasi Indonesia, Tbk (Telkom) continues spurring business of information technology services for the small and medium enterprises and corporation sector in order to pursue the revenue growth which is expected reaching 17% in the next five years.

Muhammad Awaluddin, Enterprise and Business Services Director of Telkom, said that in the last five years, the average revenue growth for IT services business in the corporation segment is approximately 11%.

“The more rapid growth is shown in the SME business segment instead with the average of 43%. The total new wave revenue of Telkom in 2013 is approximately Rp 6 trillion,” he said.

“In our calculation assumption, in the next five years (2018), Telkom IT services business will still grow with the overall CAGR will approximately reach 17% for corporation and SME segments,” Awaluddin added.

According to Awaluddin, Telkom, as an SOE in the field of information and communication technology business, should not merely rely on the income of connectivity and access business serving cable telephone, data communication, broadband, satellite, and network connection, as long as interconnection.

Telkom should also involve in the field of information technology services as a new business covering network management, application management, and IT services management.

“In the last five years, Telkom becomes the market leader for telecommunication services in the corporation and SME segments. Yet, we realized that the trend of people’s lifestyle in communication is highly developed and lead to the utilization of creative contents and applications as well as IT services,” Awaluddin explain.

He added that there were three cornerstones of thought for Telkom to continue developing IT Services business and pack it with the concept of Think BIG (Business Model, Innovation, and Growth).

According to Awaluddin, business model for customers was highly determined by the shift to more efficient expenditure, while innovation nowadays was evolving toward mobile solution.

In addition, there was a rapid growth in the consumption of broadband (bandwidth) in this era of big data, and corporation and SME were predicted to be very much utilized social media as their marketing network.

“IT Services Market is expected to grow about 13 percent this year so it should be anticipated,” he said.

In particular, he continued, SME segment would continue focusing on working on the ICT business because the potential of the market is very huge and wide throughout Indonesia.

In 2014, Telkom is targeting revenue from corporation and SME segments reached around Rp 10 trillion, with a composition of 75% from corporations and 25% from SME.

61% of revenue from corporation and SME segments was coming from the new business of broadband and IT services while the 39% was coming from the voice and network services.