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

telecommunications Telecommunication, often used in its plural form or abbreviated as telecom, is the transmission of information over a distance using electronic means, typically through cables, radio waves, or other communication technologies. These means of ...

conglomerate with its

corporate headquarters Corporate headquarters is the part of a corporate structure that deals with tasks such as strategic planning, corporate communications, taxes, law, books of record, marketing, finance, human resources, and information technology. Corporate headqu ...

Bandung Bandung is the capital city of the West Java province of Indonesia. Located on the island of Java, the city is the List of Indonesian cities by population, fourth-most populous city and fourth largest city in Indonesia after Jakarta, Surabay ...

and its operational headquarters in the

Telkom Landmark Complex Telkom Landmark Complex or The Telkom Hub is an office complex of three high-rise building in Jakarta, Indonesia. The oldest of the building is known as Graha Merah Putih. The other two buildings are named as Telkom Landmark Tower and Telkomsel S ...

Jakarta Jakarta (; , Betawi language, Betawi: ''Jakartè''), officially the Special Capital Region of Jakarta (; ''DKI Jakarta'') and formerly known as Batavia, Dutch East Indies, Batavia until 1949, is the capital and largest city of Indonesia and ...

. Telkom is listed on the

Indonesia Stock Exchange Indonesia Stock Exchange (IDX) ( (BEI)) is a stock exchange based in Jakarta, Indonesia. It was previously known as the Jakarta Stock Exchange (JSX) before its name changed in 2007 after merging with the Surabaya Stock Exchange (SSX). In rece ...

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, Manhattan, Financial District of Lower Manhattan in New York City. It is the List of stock exchanges, largest stock excha ...

—the only Indonesian company, currently listed there (but not the first—the first was

Indosat PT Indosat Tbk, trade name, trading as Indosat Ooredoo Hutchison, abbreviated as IOH, is an Indonesian telecommunications provider which is owned by Ooredoo Hutchison Asia, a joint venture between Ooredoo and Hutchison Asia Telecom Group (a part ...

, which delisted from the exchange in 2013). The

government of Indonesia The term Government of the Republic of Indonesia (, GOI, sometimes also referred to as Government of Indonesia or the Central Government () especially in laws) can have a number of different meanings. At its widest, it can refer collectively ...

owns over half of the Telkom's

outstanding shares 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 representi ...

. Telkom has major business lines in fixed line telephony,

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

, and

data communications Data communication, including data transmission and data reception, is the transfer of data, signal transmission, transmitted and received over a Point-to-point (telecommunications), point-to-point or point-to-multipoint communication chann ...

. 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, often used in its plural form or abbreviated as telecom, is the transmission of information over a distance using electronic means, typically through cables, radio waves, or other communication technologies. These means of ...

, multimedia, property, and

financial services Financial services are service (economics), economic services tied to finance provided by financial institutions. Financial services encompass a broad range of tertiary sector of the economy, service sector activities, especially as concerns finan ...

. Since 2008, Telkom Indonesia began changing its business, focusing on infrastructure, systems, organization and human resources, and the corporate culture, in order to face the rising competition. After

privatization Privatization (rendered 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 w ...

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 the 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 ...

service in Indonesia on 23 October 1856, by the Dutch colonial government to connect Batavia (

) and Buitenzorg (

Bogor Bogor City (), or Bogor (, ), is a landlocked city in the West Java, Indonesia. Located around south of the national capital of Jakarta, Bogor is the 6th largest city in the Jakarta metropolitan area and the 14th overall nationwide.

). In 1884, the Dutch colonial government founded a private company with its headquarters 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 telecommunications services for the purpose of electronic transmission of voice, fax, or data, between distant parties. The history of telephony is ...

services had been introduced to Indonesia in 1882 by privately owned companies under a 25-year government license. In 1906, all postal and

services in Indonesia were taken over by the government as a single, unified government agency named Post, Telegraph and Telephone Service (, PTT). The outbreak of World War II greatly weakened Dutch defense forces, especially when telephone services were was nationalized by

Nazi Germany Nazi Germany, officially known as the German Reich and later the Greater German Reich, was the German Reich, German state between 1933 and 1945, when Adolf Hitler and the Nazi Party controlled the country, transforming it into a Totalit ...

on 14 May 1940. Then, telephone services were was nationalized by

Japan Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...

from 1942 to 1945 In September 1945, roughly a month after the Indonesian proclamation of independence, the agency headquarters in

was taken over by Indonesian nationalists. In December 1949, after years of national revolution war, the PTT was nationalized by the Indonesian Government as part of an 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

statutory corporation A statutory corporation is a corporation, government entity created as a statutory body by statute. Their precise nature varies by jurisdiction, but they are corporations owned by a government or controlled by national or sub-national government ...

, the Postal and Telecommunications Services company. Four years later, on 6 July 1965, Indonesian Government separated this company into two statutory corporations; ''PN Pos Giro,'' responsible for providing mail services and ''PN Telekomunikasi'' for

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

Pos Indonesia PT Pos Indonesia (Persero) (trade name, trading as POS IND Logistik Indonesia or POS IND since 2023) is the Government-owned corporation, state-owned company responsible for providing Mail, postal service in Indonesia. It was established with t ...

in 1995, which is still state-owned today and the official postal carrier for Indonesia's population of 230 million. 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 (

). In 1991, Perumtel became a state-owned ''

perseroan terbatas A business entity is an entity that is formed and administered as per corporate law in order to engage in business activities, charitable work, or other activities allowable. Most often, business entities are formed to sell a product or a serv ...

'' 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 their 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 investm ...

on the Jakarta Stock Exchange and the Surabaya Stock Exchange (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, Manhattan, Financial District of Lower Manhattan in New York City. It is the List of stock exchanges, largest stock excha ...

and the

LSE LSE may refer to: Education * London School of Economics, a public research university within the University of London * Lahore School of Economics, a private university in Lahore, Punjab, Pakistan * Lincoln Southeast High School, a public gove ...

, the former in the form of American depositary shares (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. The exchange is owned by Japan Exchange Group (JPX), a holding company that it also lists (), and operated by Tokyo Stock Exchange, Inc., a wholly owned sub ...

. 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 business and finance, a golden share is a type of share of stock that lets its owner outvote all other shareholders in certain circumstances. Golden shares often belong to the government when a government-owned company is undergoing the process ...

. In mid-1997, Indonesia was badly affected by the

Asian economic crisis The 1997 Asian financial crisis gripped much of East and Southeast Asia during the late 1990s. The crisis began in Thailand in July 1997 before spreading to several other countries with a ripple effect, raising fears of a worldwide economic meltd ...

. 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 have ceased 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 were 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 telecommunications company founded in 1995. Its ownership is divided between Telkom Indonesia (69.9%) and Singtel (30.1%), which serves as Telkom's consumer services arm startin ...

, 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 is a physical telephone connection that uses metal wires or optical fiber from the subscriber's premises to the network, allowing multiple phones to operate simultaneously on the same phone number. It is also referred to as plain old ...

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-dista ...

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 an artificial satellite is an object, typically a spacecraft, placed into orbit around a celestial body. They have a variety of uses, including communication relay, weather forecasting, navigation ( GPS), broadcasting, scient ...

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

Transformations

In 2009, Telkom started transforming its business, being the only company in the field of telecommunications to transform to a broader range of business. The company expanded to telecommunications, information technology services, media and

edutainment Educational entertainment, also referred to by the portmanteau edutainment, is media designed to education, educate through entertainment. The term has been used as early as 1933. Most often it includes content intended to teach but has inciden ...

. 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 ( 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 on the Proton-M and Angara A5. T ...

upper stage of the

Proton-M The Proton-M, (Протон-М) GRAU index 8K82M or , is an Expendable launch system, expendable Russian heavy-lift launch vehicle derived from the Soviet Union, Soviet-developed Proton (rocket family), Proton. It is built by Khrunichev State R ...

rocket that had launched it. Its replacement

Telkom-3S Telkom-3S is an Indonesian geostationary communications satellite built as a replacement of Telkom-3 that was lost due to a launch failure on 6 August 2012. Telkom-3S was successfully launched on 14 February 2017, at 21:39 UTC and commissioned ...

successfully launched aboard an

Ariane 5 Ariane 5 is a retired European heavy-lift space launch vehicle operated by Arianespace for the European Space Agency (ESA). It was launched from the Guiana Space Centre (CSG) in French Guiana. It was used to deliver payloads into geostationar ...

rocket on 14 February 2017, 21:39 UTC. In March 2019, Telkom Indonesia was one of the first Asian telco's to launch a

cloud gaming Cloud gaming, sometimes called gaming on demand or game streaming, is a type of Online game, online gaming that runs video games on remote Server (computing), servers and Streaming media, streams the game's output (video, sound, etc.) directly to ...

service in cooperation 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 A telephone exchange, telephone switch, or central office is a central component of a telecommunications system in the public switched telephone network (PSTN) or in large enterprises. It facilitates the establishment of communication circuits ...

, 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 co ...

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 Domains: # 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 teleco ...

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

: Consumer division, until 2023 wireless division; joint venture with

Singtel Singapore Telecommunications Limited, trading as Singtel, is a Singaporean telecommunications conglomerate, the country's principal fixed-line operator and one of the four major mobile network operators operating in the country. Overview T ...

* 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., abbreviated as SKT ( 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 perce ...

) ** 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: 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 * PT Pasifik Satelit Nusantara: Satellite telecommunications company * Citra Sari Makmur: Satellite and terrestrial network company

Logos

File:Telkom Indonesia (1991).svg, The "cricket ball" logo used from 1 May 1991 until 13 September 2002 File:Telkom Indonesia (2002).svg, The "cricket ball" logo used from 13 September 2002 until 16 October 2009 File:Telkom Indonesia.svg, Logo used from 16 October 2009 until 16 August 2013 File:Telkom Indonesia 2013.svg, Logo used since 17 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 Companies in the IDX 30 Companies in the LQ45 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