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CORPORATE ACTION - JAKARTA. PT Indosat Tbk (ISAT) has allocated about IDR 12 trillion for capital expenditure (capex). The budget is planned to be used to expand reach.
Indosat's Director & Chief Financial Officer Nicky Lee Chi Hung stated that last year ISAT had prepared a capex of IDR 13 trillion. However, only IDR 12.7 trillion was used.
He said most of it was used for the development of cellular business and the expansion of network coverage to rural and remote areas, especially in the eastern part of Indonesia.
"In 2024, it's almost the same as last year, we have prepared a guide for capex at IDR 12 trillion," said Nicky in a virtual press conference, Wednesday (7/2).
If observed, the capex budget is lower than the capital expenditure allocation last year. It's even still below the budget that this issuer managed to use.
However, Nicky explained that the majority of the capex will be used to expand coverage, increase capacity and strengthen the network. In addition, ISAT will also continue to expand its network outside Java.
"In terms of network expansion, most of the new sites will be built in rural areas outside Java such as Maluku and Papua," explained this Chinese national.
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According to the financial report, ISAT recorded revenue of IDR 51.22 trillion. This achievement increased by 9.57% year on year (YoY) from IDR 46.75 trillion in 2022.
In detail, the cellular segment contributed IDR 43.74 trillion. Meanwhile, the multimedia, data communication and internet (MIDI) segment contributed IDR 6.47 trillion.
However, the increase in revenue was accompanied by an increase in expenses. Throughout 2023, ISAT had to bear costs of IDR 40.80 trillion or an increase of 12.83% YoY from IDR 36.16 trillion.
As a result, the net income attributable to the parent entity of ISAT reached IDR 4.50 trillion throughout 2023. This value decreased by 4.59% annually from IDR 4.72 trillion.
