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ISSUER NEWS - JAKARTA. Telecommunication issuer, PT Indosat Tbk (ISAT) has allocated a capital expenditure (capex) of IDR 12 trillion in 2024.
SVP Head of Corporate Communications Indosat Ooredoo Hutchison, Steve Saerang said the capex allocation will be used to expand coverage, increase capacity, and improve network quality to rural areas, especially in the eastern region of Indonesia.
"This reflects our commitment to expanding digital inclusion and opening unlimited opportunities, as well as continuing our major goal of empowering all Indonesian people," Steve told Kontan on Wednesday (20/3) night.
Steve said, through a comprehensive Go-to-Market strategy focused on customer needs, Indosat Ooredoo Hutchison (Indosat or IOH) has adopted several strategies, including expanding infrastructure to rural areas and providing innovative solutions to improve the company's performance in 2024.
"This effort is supported by strategic partnerships with our partners to diversify services and implement the latest technologies such as Artificial Intelligence (AI), Machine Learning, IoT, and other related technologies," he said.
Steve explained, at the beginning of this year, ISAT has collaborated with global companies at the Mobile World Congress (MWC) 2024 in Barcelona. In addition, ISAT has also partnered with several partners such as Huawei, NVIDIA, Tech Mahindra, Nokia, Ericsson, and Netcracker Technology.
"Some partners provide solutions that focus on efforts to develop young digital talents and grow the digital economy in the country," he said.
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In the cellular sector which is the core business, ISAT will continue the company's roadmap in meeting digital needs and providing a marvelous experience for customers throughout Indonesia. Then, the broadband and enterprise business continues to be strengthened with reliable connectivity through the expansion of fiber optic networks.
"Lastly, we are targeting sustainable revenue growth by optimizing the use of digital infrastructure to serve the digital needs of nearly 100 million of our customers," he added.
Citing the 2023 financial report, ISAT recorded revenue of IDR 51.22 trillion. This achievement increased by 9.57% annually or 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 up 12.83% YoY from IDR 36.16 trillion.
The swelling burden of operator Indosat Ooredoo Hutchison (IOH) was caused by several items. ISAT's depreciation and amortization post increased by 6.69% YoY to IDR 14.62 trillion.
Then, Indosat's marketing expenses increased from IDR 1.39 trillion to IDR 1.67 trillion. This means, ISAT's marketing costs soared by 20.02% annually.
On the other hand, ISAT's total assets reached IDR 114.72 trillion as of December 31, 2023. The total assets of the telecommunications company increased by 0.93% from the position of December 31, 2022.
