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ISSUER NEWS - JAKARTA. PT Telkom Indonesia Tbk (TLKM) is using IDR 33 trillion for capital expenditure (capex) throughout 2023. This is equivalent to 22.1% of Telkom's total revenue.
For illustration, this red-plate telecommunications issuer pocketed revenue of IDR 149.21 trillion in 2023. This amount grew by 1.30% annually or Year on Year (YoY) from IDR 147.30 trillion in 2022.
Telkom's President Director Ririek Adriansyah explained that the capital expenditure is used for several things. However, primarily, capex is focused on the development of telecommunications network infrastructure.
In line with the implementation of Fixed Mobile Convergence (FMC), Telkom prioritizes the optimization of synergy value from capital expenditure related to access networks, infrastructure, and IT systems for efficiency improvement.
"The capital expenditure budget is also used for several major company initiatives including improving the quality and capacity of the 4G network, developing 5G technology, and creating the Red and White Satellite 2," Ririek explained in his statement, Monday (25/3).
Read Also: Double-Digit Growth, Telkom (TLKM) Secures a Net Profit of IDR 24.56 Trillion in 2023
Not only that, continued Ririek, capital expenditure is also used for the processing of submarine cable communication systems and the completion of the Cikarang Hyperscale Data Center and the construction of the Batam Hyperscale Data Center.
The absorption of TLKM's capex last year was lower compared to 2022. Throughout 2022, Telkom used capex of IDR 34.2 trillion or equivalent to 23.2%.
