.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of April, 2021
Perusahaan Perseroan (Persero)
PT Telekomunikasi Indonesia Tbk
(Exact name of Registrant as specified in its charter)
Telecommunications Indonesia
(A state-owned public limited liability Company)
(Translation of registrant’s name into English)
Jl. Japati No. 1 Bandung 40133, Indonesia
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F þ Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ¨ No þ
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ¨ No þ
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned, thereunto duly authorized.
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| Perusahaan Perseroan (Persero) |
| PT Telekomunikasi Indonesia Tbk |
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| (Registrant) |
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Date April 30, 2021 | By: /s/ Heri Supriadi |
(Signature) | |
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| Heri Supriadi |
| Director of Finance |
2
THEME
Digitizing The Nation To Create Opportunities For Sustainable Future
The COVID-19 pandemic has impacted society and various sectors on an unprecedented scale. For TelkomGroup, the various obstacles that emerged due to the COVID-19 pandemic have been taken as opportunities to push digital acceleration, by providing services and solutions in the field of information and communications technology. As a key element in the nation's infrastructure, TelkomGroup has the vitality to help the people and the Government of Indonesia to address the pandemic, and to rise once more to face the future. TelkomGroup provides a variety of services and solutions to all customers and the public with the support of a digital connectivity infrastructure, digital platforms, and digital services.
In line with our efforts to transform into a world-class digital telco and amid various challenges throughout the reporting period, TelkomGroup has continued to expand and improve its digital connectivity infrastructure and to strengthen digital platforms and develop various digital services with the purpose of furnishing the best digital customer experience. Our mission as a public institution that supports the Government in various fields, including disaster management, is to provide continuous communication services.
All TelkomGroup business activities and business development initiatives are executed strategically in accordance with market potential as well as the needs and characteristics of Indonesians, to support digitalization in various fields such as education, the development of Small and Medium Enterprises (SMEs), finance, agriculture, and various other sectors.
3
DISCLAIMER
This report is a form of transparency and accountability of PT Telkom Indonesia (Persero) Tbk to present material data and information regarding corporate performance and governance for stakeholders such as investors, customers and the government. In general, the contents of this report come from internal analysis as well as reliable documents and resource persons. Some parts of this report contain data and information regarding Telkom's future views, which are forward-looking statements, such as targets, expectations, forecasts, estimates, prospects, or projections of Telkom's operational performance and future business conditions.
Prior to its inclusion in the Report, Telkom had carefully considered the certainty of data and information in the forward-looking statements. However, Telkom cannot guarantee that the data and information are true and accurate and can be completely fulfilled. Readers need to understand that Telkom faces various risks and uncertainties caused by various factors, such as changes in the economic, social and political situation in Indonesia. This of course can affect operational performance and future business conditions.
In addition to publishing this report Telkom, as a listed company in the New York Stock Exchange (NYSE), is also required to submit the SEC Form 20-F as an annual report to the Securities and Exchange Commission (SEC). This 2020 Annual Report and the SEC Form 20-F are not the same set of reports, although some of the information in this report can also be found in SEC Form 20-F.
The term “Telkom” as used in the Report emphasizes the parent entity, while the term “Telkom and subsidiaries” or “TelkomGroup” refer to the entire parent company, subsidiaries and affiliated entities. Nevertheless, the use of the term “Telkom” does not exclude subsidiary and affiliation within the scope of the content and discussion of the Report.
To make it easier for stakeholders, this report can be accessed and downloaded in softcopy through http://www.telkom.co.id
Or scan here:
Telkom stakeholders can submit questions and suggestions to:
Investor Relation Unit
Andi Setiawan
PT Telkom Indonesia (Persero) Tbk
The Telkom Hub, Telkom Landmark Tower 39th Floor
Jl. Jend. Gatot Subroto Kav. 52, Jakarta 12710, Indonesia
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Phone | : (62-21) 521 5109 |
Fax. | : (62-21) 522 0500 |
: investor@telkom.co.id | |
: TelkomIndonesia | |
: telkomindonesia | |
: @telkomindonesia |
4
TABLE OF CONTENTS
TIPS FOR READING THE CONTENTS OF THIS REPORT
Readers looking to gain a general understanding of Telkom are advised to read this Report from the beginning to the “Report of the Board of Commissioners and Board of Directors”. Readers who wish to learn in depth about Telkom are advised to continue reading this Report until the end.
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THEME | 3 | ||
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DISCLAIMER | 4 | ||
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TABLE OF CONTENTS | 5 | ||
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TELKOM HIGHLIGHTS | 8 | ||
Kaleidoscope 2020 | 9 | ||
Profile of Telkom and Its Subsidiaries | 11 | ||
Infrastructure | 13 | ||
Products and Customers | 14 | ||
Social Responsibility | 15 | ||
Financial Data Overview | 16 | ||
Stock Information | 18 | ||
Bond, Sukuk or Convertible Bond and Medium Term Notes (MTN) Information | 20 | ||
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REPORT OF THE BOARD OF COMMISSIONERS AND DIRECTORS | 21 | ||
Report of the Board of Commissioners | 22 | ||
Report of the Board of Directors | 26 | ||
Statement Letter of Responsibility for 2020 Annual Report | 32 | ||
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ABOUT TELKOM | 34 | ||
Purpose, Vision, Mission, and Strategy | 35 | ||
Telkom: A Brief History | 37 | ||
Business Activities | 39 | ||
Awards and Certifications | 41 | ||
Telkom Organizational Structure | 45 | ||
Profile of the Board of Commissioners | 46 | ||
Profile of the Board of Directors | 56 | ||
Telkom Employees | 68 | ||
Shareholders Composition | 73 | ||
Subsidiaries, Associated Companies, and Joint Ventures | 75 | ||
Chronology of Stocks Registration | 79 | ||
Chronology of Other Securities Registration | 81 | ||
Name and Address of Institutions and/or Supporting Capital Market Profession | 83 | ||
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5
MANAGEMENT DISCUSSION AND ANALYSIS | 86 | ||
Business Environment Overview 2020 | 87 | ||
Operational Overview by Business Segment | 91 | ||
Marketing Overview | 107 | ||
Comprehensive Financial Performance | 121 | ||
Solvency | 134 | ||
Capital Structure and the Management Policies for Capital Structure | 135 | ||
Realization of Capital Expenditure | 137 | ||
Material Commitment for Capital Expenditure | 138 | ||
Receivables Collectability | 139 | ||
Material Information and Fact After Accountant Reporting Date | 140 | ||
Business Prospects and Sustainability of The Company | 141 | ||
Comparison of Initial Year Target and Realization | 143 | ||
Target or Projections for the Following Year | 144 | ||
Dividend | 145 | ||
Realization of Public Offering Fund | 146 | ||
Material Information regarding Transaction with Conflict of Interest, Transaction with Affiliated Parties, Investment, Divestment and Acquisition | 147 | ||
Changes in Regulation | 148 | ||
Changes in Accounting Policy | 149 | ||
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CORPORATE GOVERNANCE | 151 | ||
Corporate Governance Principle and Platform | 152 | ||
Corporate Governance Structure | 159 | ||
Corporate Governance Assessment | 160 | ||
General Meeting of Shareholders (GMS) | 161 | ||
Board of Commissioners | 171 | ||
Audit Committee | 187 | ||
Committee for Nomination and Remuneration | 194 | ||
Committee for Planning and Risk Evaluation and Monitoring | 199 | ||
Board of Directors | 203 | ||
Corporate Secretary | 219 | ||
Internal Audit Unit | 222 | ||
Internal Control System | 226 | ||
Risk Management System | 229 | ||
Whistleblowing System | 237 | ||
The Policy of Reporting Share Ownership of Directors and Commissioners | 240 | ||
Employee Stock Ownership Program | 241 | ||
Significant Legal Disputes | 242 | ||
Information Regarding Administrative Sanctions | 243 | ||
Information Access and Company’s Public Data | 244 | ||
Corporate Code of Conduct | 245 | ||
Corporate Culture | 247 | ||
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CORPORATE SOCIAL RESPONSIBILITY | 249 | ||
The Governance of Corporate Social Responsibility | 250 | ||
Business Integrity, Human Rights, and Fair Practices | 255 | ||
Goods and Services Responsibility | 261 | ||
Social Responsibility for Employment | 266 | ||
Social Responsibility for Community Engagement and Development | 274 | ||
Environmental Responsibility | 279 | ||
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6
PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAM (PKBL) | 287 | ||
Partnership and Community Development Program (PKBL) Report | 288 | ||
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APPENDICES | 292 | ||
Appendix 1: | Glossary | 293 | |
Appendix 2: | List of Abbreviations | 300 | |
Appendix 3: | Circular Letter to Financial Services Authority No.30/SEOJK.04/2016 Cross Reference | 306 | |
Appendix 4: | List of Affiliate Transactions | 319 | |
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CONSOLIDATED FINANCIAL STATEMENTS | 324 | ||
Audited Consolidated Financial Statements 2020 and Audited PKBL Financial Statements 2020 | |
7
TELKOM HIGHLIGHTS
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9 | Kaleidoscope 2020 |
11 | Profile of Telkom and Its Subsidiaries |
13 | Infrastructure |
14 | Products and Customers |
15 | Social Responsibility |
16 | Financial Data Overview |
18 | Stock Information |
20 | Bond, Sukuk or Convertible Bond and Medium Term Notes (MTN) Information |
8
KALEIDOSCOPE 2020
January | 2 | TelkomGroup set up Flood Assistance & Network Equipment Alert Stations to support and care for the communities and customers affected by the Jabotabek flood. |
| 23 | To support the Government in advancing the tourism industry, Telkomsel strengthened the quality of the 4G network in five super-priority tourist locations in Indonesia, namely in Lake Toba, Likupang, Borobudur, Mandalika, and Labuan Bajo. |
February | 6 | To further develop the digital ecosystem in Indonesia, especially the gaming ecosystem, Telkom once again opened registration for the Indigo Game Startup Incubation program. |
March | 16 | In pursuing the accelerated development of underdeveloped areas, the Ministry of Villages, Development of Disadvantaged Regions, and Transmigration (Kemendesa) collaborated with Telkom to implement a village tourism digitization program in Sumba. |
| 23 | TelkomGroup provided internet access support as well as information and communication technology facilities at the Kemayoran Emergency Hospital. |
April | 9 | The Minister of Communication and Information launched the PeduliLindungi application developed by Telkom. It is the official app used by the Ministry of Communication and Information to help stop the spread of COVID-19. |
22 | Telkom, through MDI Ventures, set up the IndonesiaBergerak initiative with the support of 4 startups: Kata.ai, Qiscus, Volantis, and Qlue. IndonesiaBergerak is a website that provides up-to-date data on the spread of the COVID-19 infection and their distribution areas. | |
May | 20 | The CEO of TelkomGroup and the Minister of State-Owned Enterprise distributed 100,000 aid packages worth nearly Rp40.7 billion. These are donation made by the TelkomGroup for communities affected by COVID-19 throughout Indonesia. |
| 30 | 25 Years Telkomsel: Putting Meaning to our Consistency in Serving the Country To Continue Moving Forward with Indonesia. |
June | 10 | To help corporations face a New Normal, Telkom offers a variety of ICT solutions including thermal CCTV, thermal camera tablets, AdsQoo application, and shared services. |
| 30 | In collaboration with Gojek, Telkom expanded access to the PeduliLindungi application to increase the use and utilization of the application as part of an effort to break the chain of spread of the COVID-19 virus. |
July | 9 | Groundbreaking of the Telkom HyperScale Data Center (HDC), a large-scale data center with global standards and tier 3 and 4 certifications, to accelerate the digital platform business as an enabler of various ICT services and solutions. |
| 23 | Launch of AKHLAK Core Values, a behavior guide for all State-Owned Enterprise employees, which have been adopted into TelkomGroup's core values. |
August | 10 | The Directorate General of Taxes (DGT) and Telkom strengthened their cooperation through the integration of tax data, including exchange, processing, research, and testing of tax data through information technology-based facilities. |
| 17 | Launch of PaDi UMKM (Pasar Digital UMKM), a platform created by the Indonesians, initiated by the Ministry of State-Owned Enterprises and developed by Telkom, which acts as a centralized manager of information and business-to-business marketing services. |
| 19 | Transfer of ownership of TS Global Network (TSGN) from Telin to Telkomsat as part of a series of satellite business consolidation processes in which all satellite business management is carried out by Telkomsat. |
September | 4 | Telkom celebrated National Customer Day 2020 with an array of appealing programs for IndiHome customers, such as open channels and minipacks as well as invoice discount vouchers up to 80%. |
| 22 | Telkomsel supported the Ministry of Education and Culture of the Republic of Indonesia’s the internet data quota assistance program for students, teachers, and lecturers to help them with distance learning. |
9
October | 14 | To Strengthen the tower business through Portfolio management, TelkomGroup transferred ownership of 6,050 Telkomsel towers to Mitratel. |
| 18 | The Minister of State-Owned Enterprises (SOE), the Minister of Tourism & Creative Economy, the Deputy Minister of SOE II, the President Commissioner of Telkom, the President Director of Telkom, and the Director of Telkom CONS conducted the soft launching of an English language news channel, Southeast Asia Today (SEA Today). The channel targets an international public audience and is managed by PT Metra Digital Media (MDM) as a subsidiary of Telkom. |
November | 16 | Telkomsel invested US$150 million in PT Aplikasi Karya Anak Bangsa (Gojek) as a commitment by the digital telecommunication company to provide services beyond connectivity. |
| 19 | Opening Bell Ceremony and 25th Anniversary of Telkom's IPO on the Indonesia Stock Exchange and the New York Stock Exchange. |
December | 2 | Telkom launched the BigBox Platform, a big data analytics solution for the Satu Data Indonesia Program initiated by the Government of the Republic of Indonesia. |
| 10 | To improve services to the community and ensure an effective and efficient fuel distribution, Telkom and Pertamina completed the digitization program for gas stations throughout Indonesia. |
10
PROFILE OF TELKOM AND ITS SUBSIDIARIES
PROFILE OF TELKOM
Company’s Full Name | Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk | |
Company’s Short Name | PT Telkom Indonesia (Persero) Tbk | |
Commercial Name | Telkom | |
Business Fields, Type of Products and Services | To operate telecommunications and information networks and services, as well as the optimization of the usage of resources owned by the Company to produce goods and/or services of high-quality and strong competitiveness to obtain/pursue profits in order to increase the value of the Company by applying the principles of a Limited Liability Company. | |
Corporate Status | Public Company, State-Owned Enterprise | |
Ownership | 52.09% The Government of the Republic of Indonesia 47.91% Public | |
Legality | NPWP 01.000.013.1-093.000 | |
| TDP 101116407740 | |
| SIUP 0029/IUP-UB/X/2017/DPMPTSP | |
| NIB 9120304490415 | |
Date of Establishment | November 19, 1991 | |
Legal Basis of Establishment | Pursuant to the Government Regulation No.25 of 1991, the Company’s status was changed to a State-Owned Limited Liability Company (“Company”) based on a Notarial Deed inscribed by Imas Fatimah, S.H., No.128, dated September 24, 1991, which was approved by the Minister of Justice of the Republic of Indonesia through Decree No.C26870.HT.01.01.Year.1991 dated November 19, 1991, and announced in the State Gazette of the Republic of Indonesia No.5 of January 17, 1992 Supplement to the State Gazette No.210. | |
Address and Contact of Headquarters Office | Graha Merah Putih Jl. Japati No. 1 Bandung Jawa Barat, Indonesia - 40133 | |
| Phone Fax Website | : +62-22-4521404 : +62-22-7206757 : www.telkom.co.id : corporate_comm@telkom.co.id |
| | : investor@telkom.co.id |
Social Media | : TelkomIndonesia | |
| : telkomindonesia | |
| : @telkomindonesia | |
Stock Listing | The Company was listed on the Indonesia Stock Exchange (IDX) and New York Stock Exchange (NYSE) on November 14, 1995 | |
Ticker | Indonesia Stock Exchange: TLKM New York Stock Exchange: TLK | |
Stock Type | Series A Dwiwarna shares and series B shares | |
Authorized Capital | 1 series A Dwiwarna share 399,999,999,999 series B shares | |
Issued and Fully Paid Capital | 1 series A Dwiwarna share 99,062,216,599 series B shares | |
Rating | International | : Baa1 (stable) from Moody’s BBB (stable) from Fitch Ratings |
| Domestic | : idAAA from Pefindo |
11
PROFILE OF SUBSIDIARIES
Telkom is the largest telecommunication company in Indonesia with:
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10 | direct subsidiaries, actively operating |
24 | indirect subsidiaries |
10 | affiliated companies |
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Telkomsel www.telkomsel.com | PT Telekomunikasi Selular (Telkomsel) is a cellular operator with the widest network in Indonesia, reaching more than 90% of the population. Its core business comprises of cellular telecommunications services and the operation of cellular telecommunications networks. |
Telkom Metra www.metra.co.id | PT Multimedia Nusantara (Telkom Metra) is an investment company and sub-holding which has expanded into various basic digital services and ICT industries through acquisition, partnership and building a strong business ecosystem. |
Telkomsat www.telkomsat.co.id | PT Telkom Satelit Indonesia (Telkomsat) is a company with a satellite business portfolio that provides end-to-end satellite-based digital service focusing on customer needs (customer-oriented). |
PINS pins.co.id | PT PINS Indonesia (PINS) is involved in the business of integrating devices, networks, systems, processes, and the Internet of Things (IoT). Its core business is providing various technological, information, and communication equipment and IoT facilities. |
Telkom Akses www.telkomakses.co.id | PT Telkom Akses (Telkom Akses) is engaged in the deployment and management of fixed-broadband access network infrastructure services, with the core business of fixed-broadband access network deployment construction services, managed service & operation maintenance, and fixed-broadband access networks. |
Telin www.telin.net | PT Telekomunikasi Indonesia International (Telin) is a global telecommunications operator that provides telecommunications & IT service solutions overseas. Currently, Telin has 9 global offices abroad. |
Mitratel www.mitratel.co.id | PT Dayamitra Telekomunikasi (Mitratel) is a national infrastructure provider for telecommunications towers (tower provider). Its core business includes tower construction and tower management services (collocation & resellers). |
Telkom Infra telkominfra.co.id | PT Infrastruktur Telekomunikasi Indonesia (Telkom Infra) is a provider of domestic and international telecommunications infrastructure (service and solution) management services. The Telkom Infra’s core business is telecommunications infrastructure and submarine cable services. |
Metranet www.metranet.co.id | PT Metranet (Metranet) is an integrated media and digital content provider. Its core business is online media, digital content, and digital billing. |
Telkom Property telkomproperty.co.id | PT Graha Sarana Duta (Telkom Property) is a property service company that focuses on leveraging Telkom’s idle assets. Its core business is property management, property development, project management, and facilities management. |
Note:
a more complete list of subsidiaries can be seen in the Consolidated Financial Statements.
12
INFRASTRUCTURE
Telkom and its subsidiaries continue to actively develop infrastructure to support technology and information services and support the growth of digital service innovations.
id-Con | Data Center | 26 data centers | |
• | 5 data centers (overseas) | ||
• | 18 data centers neuCentrIX (domestic) | ||
• | 3 data centers tier 3 and 4 (domestic) | ||
Digital Platform | Big Data & Analytics, API Factory & Internet of Things | ||
id-Ring | Fiber Optic Backbone Network | 167,935 km | |
• | 103,235 km of Domestic fiber optic backbone | ||
• | 64,700 km of International fiber optic backbone | ||
Point of Presence (PoP) | 117 PoP | ||
| | • | 59 PoP in domestic network |
• | 58 PoP in International network | ||
Satellite | 3 satellites with total capacity of 133 TPE | ||
• | Merah Putih Satellite (60 TPE) | ||
• | Telkom 3S (49 TPE) | ||
• | Telkom-2 (24 TPE) | ||
id-Access | Mobile Network | 231,172 BTS | |
• | 50,252 BTS 2G | ||
• | 73,397 BTS 3G | ||
• | 107,523 BTS 4G | ||
35,822 towers | |||
• | 16,000 Telkomsel towers | ||
| | • | 18,473 Mitratel towers |
• | 1,349 Mitratel towers | ||
Fiber Optic Access Network | • | 960 Telkom Clouds | |
• | 30.1 million Homes Passed | ||
• | 12.7 million Optical Ports | ||
Wi-Fi | 386,856 Access Points | ||
• | 146,053 Managed Access Points | ||
• | 240,803 Homespots |
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7 | Regional Telkom Offices. |
61 | Telecommunications areas. |
383 | Plasa Telkom Outlets. |
9 | Global offices in Singapore, Hong Kong, Timor Leste, Australia, Malaysia, Taiwan, USA, Myanmar, and New Zealand. |
19 | GraPARI Internasional di Hong Kong, Taiwan, dan Timor Leste. |
403 | GraPARI in Indonesia, including 9 GraPARI TelkomGroup in Medan, Pematang Siantar, Pangkal Pinang, Palembang, Tangerang, Jakarta, Bandung, Surabaya, and Sorong. |
365 | Mobile GraPARI units. |
896 | IndiHome Sales Car units. |
13
PRODUCTS AND CUSTOMERS
To create and increase value for its customers, Telkom manages the business based on the customer segment, or Customer Facing Unit (CFU). Telkom categorizes its products portfolio into five segments: Mobile, Consumer, Enterprise, Wholesale International Business, and Other.
Consumer Providing fixed voice, fixed broadband, IP-TV, and digital services. | Fixed Broadband IndiHome Subscribers 8.0 million | |||
Fixed Line Subscribers 9.1 million | ||||
Mobile Providing cellular legacy services including voice and SMS, mobile broadband, as well as mobile digital services including IoT, big data, financial services, VOD, music, gaming, and digital advertisement. | Cellular Subscribers 169.5 million | |||
Postpaid Subscribers 6.5 million | Prepaid Subscribers 163.0 million | |||
Mobile Broadband Subscribers 115.9 million | ||||
Enterprise Providing ICT and smart platform services including connectivity, IT services, data centers and cloud, business process outsourcing, devices, satellite business, digital services, and adjacent services (such as e-health services and ATM management). | Corporate Customers 1,703 | Small and Medium-Sized Enterprises Customers 339,182 | Government Institution Customers 935 | |
Wholesale and International Business Providing wholesale telecommunication carrier services, international business, tower business/telecommunications tower, infrastructure, and network management services. | Other Licensed Operator (OLO) Customers 8 | Transponder & Closed User Group Customers 25 | ||
Internet Service Provider Customers 237 | Global Partner Customers 370 | |||
Others Providing digital services such as digital platforms, digital content, B2B e-commerce in support of other segments as well as providing property management services to fully utilize Telkom’s property assets throughout Indonesia. | Digital Music 41,7 million active users | Digital Games 25,2 million paid users |
Note:
The data presented on this page is current as of December 31, 2020.
14
SOCIAL RESPONSIBILITY
CUSTOMER EXPERIENCE
| | | | | | | |
NPS Score | 2020 | | 2019 | ||||
| 2H 2020 | | 1H 2020 | | 2H 2019 | | 1H 2019 |
Telkom | 45 | | 43 | | 43 | | 41 |
Point Increase | 2 | | 0 | | 2 | | 2 |
SOCIAL CONTRIBUTION
| | | |
Description | 2020 | 2019 | 2018 |
| Rp (billion) | ||
Partnership and Community Development Program | 346.39 | 368.70 | 385.86 |
Partnership Program | 221.66 | 253.44 | 279.98 |
Community Development Program | 124.73 | 115.26 | 105.88 |
Corporate Social Responsibility | 50.75 | 49.50 | 39.80 |
Total | 397.14 | 418.20 | 425.66 |
ENERGY AND WATER CONSUMPTION
| | | | | | | |
Description | Unit | 2020 | 2019**** | 2018**** | |||
Fixed Network (STO) | kWh |
| 287,927,905 |
| 323,667,742 |
| 338,596,501 |
Operational Building* | kWh | | 71,981,976 | | 80,916,935 | | 84,649,125 |
Cellular Network (BTS) | kWh | | 1,889,032,157 | | 1,776,077,129 | | 1,679,150,702 |
Data Center | kWh | | 64,358,862 | | 54,191,239 | | 43,042,256 |
Sigma Data Center | kWh | | 62,736,741 | | 52,821,841 | | 41,801,266 |
Telin Data Center in Hong Kong | kWh | | 251,241 | | 90,678 | | 18,430 |
Telin Data Center in Timor Leste | kWh | | 1,370,880 | | 1,278,720 | | 1,222,560 |
Total Electricity Consumption | kWh | | 2,313,300,900 | | 2,234,853,045 | | 2,145,438,584 |
Water Consumption** | m3 | | 1,588,177 | | 1,881,747 | | 1,779,662 |
Total Water Consumption | m3 | | 1,588,177 | | 1,881,747 | | 1,779,662 |
Fixed Network (STO) | Litre | | 1,082,622 | | 1,583,986 | | N/A |
Operational Vehicle*** | Litre | | 2,100,567 | | 1,463,650 | | 4,799,513 |
Cellular Network (BTS) | Litre | | 9,979,993 | | 10,246,811 | ± | 12,000,000 |
Sigma Data Center | Litre | | 18,215 | | 16,642 | | 27,230 |
Telin Data Center in Timor Leste | Litre | | 9,000 | | 10,000 | | 12,000 |
Total Fuel Consumption | Litre | | 13,190,397 | | 13,321,089 | ± | 16,838,743 |
Remarks:
* | Electricity consumption in operational buildings managed by Telkom Property. |
** | Domestic water consumption in buildings managed by Telkom Property. |
*** | Fuel consumption for operational vehicles managed by Telkom Property. |
**** | Reiteration. |
CARBON EMISSIONS
Description | Unit | 2020 |
| 2019 |
Carbon Emissions from Electricity Consumption* | KgCO2/TJ | 800,309,579 | | 773,169,759 |
Carbon Emissions from Fuel Consumption** | KgCO2/litre | 34,453,894 | | 35,061,450 |
Total Carbon Emissions | | 834,763,473 | | 808,231,209 |
Increased Carbon Emissions from Electricity Consumption | Ton CO2 eq | 27,140 | | 30,934 |
Reduction of Carbon Emissions from Fuel Consumption | Ton CO2 eq | 608 | | 8,065 |
Total Increase in Carbon Emissions | Ton CO2 eq | 26,532 | | 22,869 |
Remarks:
| |
* | Scope 2 carbon emission for electricity consumption. |
** | Scope 1 carbon emission for fuel consumption. |
|
15
FINANCIAL DATA OVERVIEW
Consolidated Statements of Comprehensive Income (in billions of Rupiah except for net income per share and per ADS | Years ended on December 31 | |||||||||
|
| 2020 |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
Revenues | | 136,462 | | 135,567 | | 130,784 | | 128,256 | | 116,333 |
Expenses* | | 93,274 | | 93,913 | | 93,009 | | 84,093 | | 75,367 |
EBITDA | | 72,080 | | 64,832 | | 59,181 | | 64,609 | | 59,498 |
Operating profit | | 43,505 | | 42,394 | | 38,845 | | 43,933 | | 39,195 |
Profit for the year | | 29,563 | | 27,592 | | 26,979 | | 32,701 | | 29,172 |
Profit for the year attributable to: | | | | | |
| |
| |
|
Owners of the parent company | | 20,804 | | 18,663 | | 18,032 | | 22,145 | | 19,352 |
Non-controlling interest | | 8,759 | | 8,929 | | 8,947 | | 10,556 | | 9,820 |
Total comprehensive profit for the year | | 25,986 | | 25,400 | | 31,921 | | 30,369 | | 27,073 |
Total comprehensive profit for the year attributable to: | | | | | |
| |
| |
|
Owners of the parent company | | 17,595 | | 16,624 | | 22,844 | | 19,952 | | 17,331 |
Non-controlling interest | | 8,391 | | 8,776 | | 9,077 | | 10,417 | | 9,742 |
Net income per share | | 210.01 | | 188.40 | | 182.03 | | 223.55 | | 196.19 |
Net income per ADS (1 ADS : 100 common stock) | | 21,001 | | 18,840 | | 18,203 | | 22,355 | | 19,619 |
Remark:
| | | | | | | | | | | |
* | exclude other expenses. |
| | | | | | | | | | | |
Consolidated Statement of Financial Position | | Years ended on December 31 | |||||||||
(in billions of Rupiah) |
| 2020 |
| 2019 |
| 2018 |
| 2017 |
| 2016 | |
Assets | | 246,943 | | 221,208 | | 206,196 | | 198,484 | | 179,611 | |
Liabilities | | 126,054 | | 103,958 | | 88,893 | | 86,354 | | 74,067 | |
Equity attributable to owner of the parent company |
| 102,527 |
| 99,561 |
| 98,910 |
| 92,713 |
| 84,384 | |
Net working capital (current asset - current liabilities) |
| (22,590) |
| (16,647) |
| (2,993) |
| 2,185 |
| 7,939 |
| | | | | | | | | | |
Capital Expenditure | | Years ended on December 31 | ||||||||
(in billions of Rupiah) |
| 2020 |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
Total |
| 29.436 |
| 36,585 |
| 33,620 |
| 33,156 |
| 29,199 |
| | | | | | | | | | |
Consolidated Financial and Operation Ratios | | Years ended on December 31, | ||||||||
|
| 2020 |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
Return on Assets (ROA (%)(1) |
| 12.0 |
| 12.5 |
| 13.1 |
| 16.5 |
| 16.2 |
Return on Equity (ROE) (%)(2) |
| 24.5 |
| 23.5 |
| 23.0 |
| 29.2 |
| 27.6 |
Operating Profit Margin (%)(3) |
| 31.9 |
| 31.3 |
| 29.7 |
| 34.3 |
| 33.7 |
Current Ratio (%)(4) |
| 67.3 |
| 71.5 |
| 93.5 |
| 104.8 |
| 120.0 |
Total Liabilities to Equity (%)(5) |
| 104.3 |
| 88.7 |
| 75.8 |
| 77.0 |
| 70.2 |
Total Liabilities to Total Assets (%)(6) |
| 51.0 |
| 47.0 |
| 43.1 |
| 43.5 |
| 41.2 |
Debt to Equity Ratio(x)(7) |
| 0.54 |
| 0.44 |
| 0.38 |
| 0.32 |
| 0.30 |
Debt to EBITDA Ratio(x)(8) |
| 0.91 |
| 0.80 |
| 0.74 |
| 0.55 |
| 0.53 |
EBITDA to Interest Expense (x)(9) |
| 15.9 |
| 15.3 |
| 16.9 |
| 23.3 |
| 21.2 |
Remarks:
| |
(1) | ROA is calculated as profit for the year divided by total assets at year end December 31. |
(2) | ROE is calculated as profit for the year divided by total equity at year end December 31. |
(3) | Operating profit margin is calculated as operating profit divided by revenues. |
(4) | Current ratio is calculated as current assets divided by current liabilities at year end December 31. |
(5) | Liabilities to equity ratio is calculated as total liabilities divided by total equity at year end December 31. |
(6) | Liabilities to total assets ratio is calculated as total liabilities divided by total assets at year end December 31. |
(7) | Debt to equity ratio is calculated as debt (included finance lease) divided by total equity. |
(8) | Debt to EBITDA ratio is calculated as debt (included finance lease) divided by EBITDA. |
(9) | EBITDA to interest ratio is calculated as EBITDA divided by cost of funds. |
16
17
STOCK INFORMATION
TELKOM’S STOCK INFORMATION AT THE IDX
The following is the report of the highest, lowest and closing share prices, trading volumes, number of shares outstanding and market capitalization of the stock which were recorded at the Indonesia Stock Exchange (IDX) for the periods indicated:
Calendar Year | Price Per Share | Volume | Outstanding Shares Excluding Treasury Stock | Market Capitalization | |||
| Highest | Lowest | Closing | | | | |
| (in Rupiah) | (shares) | | (Rp Billion) | |||
2016 | | 4,570 | 3,045 | 3,980 | 23,017,915,300 | 99,062,216,600 | 401,184 |
2017 | | 4,840 | 3,780 | 4,440 | 21,225,443,500 | 99,062,216,600 | 447,552 |
2018 | | 4,460 | 3,250 | 3,750 | 24,436,003,500 | 99,062,216,600 | 371,483 |
2019 | | 4,500 | 3,480 | 3,970 | 20,656,298,500 | 99,062,216,600 | 393,277 |
| First quarter | 4,050 | 3,690 | 3,950 | 4,878,089,700 | 99,062,216,600 | 391,296 |
| Second quarter | 4,200 | 3,480 | 4,140 | 5,154,944,000 | 99,062,216,600 | 410,118 |
| Third quarter | 4,500 | 4,050 | 4,310 | 5,234,147,400 | 99,062,216,600 | 426,958 |
| Fourth quarter | 4,400 | 3,800 | 3,970 | 5,389,117,400 | 99,062,216,600 | 393,277 |
2020 | | 4,030 | 2,450 | 3,310 | 34,789,507,100 | 99,062,216,600 | 327,896 |
| First quarter | 4,030 | 2,450 | 3,160 | 6,183,711,600 | 99,062,216,600 | 313,037 |
| Second quarter | 3,540 | 2,970 | 3,050 | 8,074,592,300 | 99,062,216,600 | 302,140 |
| Third quarter | 3,190 | 2,540 | 2,560 | 7,535,262,700 | 99,062,216,600 | 253,599 |
| Fourth quarter | 3,640 | 2,540 | 3,310 | 12,995,940,500 | 99,062,216,600 | 327,896 |
| September | 2,970 | 2,540 | 2,560 | 2,760,379,700 | 99,062,216,600 | 253,599 |
| October | 2,850 | 2,600 | 2,620 | 2,809,943,700 | 99,062,216,600 | 259,543 |
| November | 3,500 | 2,540 | 3,230 | 5,838,181,000 | 99,062,216,600 | 319,971 |
| December | 3,640 | 3,160 | 3,310 | 4,347,815,800 | 99,062,216,600 | 327,896 |
Telkom’s stock price on the last trading day of the IDX, which was December 30, 2020, closed at Rp3,310. At that price, Telkom’s market capitalization reached Rp328 trillion or 4.7% of the total capitalization of the Indonesia Stock Exchange (IDX).
18
TELKOM’S AMERICAN DEPOSITORY SHARES (ADS) INFORMATION AT THE NYSE
On the last trading day of the NYSE for 2020, which was December 31, 1 Telkom ADS closed at US$23.52. Effective October 26, 2016, Telkom changed the Depositary Receipt (DR) from 1 Depositary Share (DS) representing 200 shares to 1 DS representing 100 shares
The following is the report on the highest, lowest, closing and trading volume of Telkom’s ADS which were listed on the New York Stock Exchange (NYSE) for the stated period.
| | | | | |
Calendar Year | Price Per ADS | Volume | |||
| | Highest | Lowest | Closing | (ADS) |
| | | (in US$) | | |
2016 | | 34.65 | 21.22 | 29.16 | 110,532,172 |
2017 | | 36.19 | 28.10 | 32.22 | 76,122,383 |
2018 | | 32.51 | 21.75 | 26.21 | 98,313,215 |
2019 | | 31.48 | 24.27 | 28.50 | 58,515,643 |
| First quarter | 28.55 | 25.75 | 27.46 | 17,397,564 |
| Second quarter | 29.49 | 24.27 | 29.24 | 16,129,872 |
| Third quarter | 31.48 | 28.24 | 30.11 | 13,689,830 |
| Fourth quarter | 30.70 | 27.18 | 28.50 | 11,298,377 |
2020 | | 29.37 | 16.06 | 23.52 | 69,959,149 |
| First quarter | 29.37 | 16.06 | 19.25 | 14,250,945 |
| Second quarter | 23.32 | 18.29 | 21.88 | 21,448,517 |
| Third quarter | 22.66 | 17.33 | 17.37 | 16,701,828 |
| Fourth quarter | 25.55 | 16.97 | 23.52 | 17,557,859 |
| September | 20.25 | 17.33 | 17.37 | 6,026,745 |
| October | 19.10 | 16.97 | 17.09 | 6,000,492 |
| November | 24.47 | 17.22 | 22.45 | 6,592,934 |
| December | 25.55 | 22.56 | 23.52 | 4,964,433 |
CORPORATE ACTION INFORMATION REGARDING STOCKS
During the period covered by this report, Telkom did not take any corporate actions, such as stock splits, reverse stock, shares dividend, bonus shares and decrease in nominal value of shares. Therefore, this report does not contain information regarding the dates of corporate actions, stock split ratios, mergers of shares, stock dividends, bonus shares, the number and value of shares before and after corporate actions.
19
BONDS, SUKUK OR CONVERTIBLE BONDS AND MEDIUM TERM NOTES (MTN) INFORMATION
Bonds | Principal | Issuance | Maturity | Term | Interest Rate per Annum (%) | Underwriter | Trustee | Rating (Pefindo) |
Telkom Shelf Registered Bond I 2015 Series A | 2,200,000 | June 23, 2015 | June 23, 2022 | 7 | 9.93 | PT Bahana Sekuritas: PT BRI Danareksa Sekuritas; PT Mandiri Sekuritas: PT Trimegah Sekuritas Indonesia Tbk | PT Bank Permata Tbk | idAAA |
Telkom Shelf Registered Bond I 2015 Series B | 2,100,000 | June 23, 2015 | June 23, 2025 | 10 | 10.25 | | | |
Telkom Shelf Registered Bond I 2015 Series C | 1,200,000 | June 23, 2015 | June 23, 2030 | 15 | 10.60 | | | |
Telkom Shelf Registered Bond I 2015 Series D | 1,500,000 | June 23, 2015 | June 23, 2045 | 30 | 11.00 | | | |
Medium | Currency | Issuance | Maturity | Term | Interest Rate per Annum (%) / | Arranger | Monitoring | Rating |
---|---|---|---|---|---|---|---|---|
MTN I Telkom Year 2018 Series C | 296,000 | September 4, 2018 | September 4, 2021 | 3 | 8.35% | PT Bahana Sekuritas, PT BNI Sekuritas, PT CGS-CIMB Sekuritas Indonesia, PT BRI Danareksa Sekuritas and PT Mandiri Sekuritas | PT Bank Tabungan Negara (Persero) Tbk | idAAA |
MTN Syariah Ijarah I Telkom Year 2018 Series C | 182,000 | September 4, 2018 | September 4, 2021 | 3 | Rp15,000 | | | idAAA Sy |
20
REPORT OF THE BOARD OF COMMISSIONERS AND DIRECTORS
| |
22 | Report of the Board of Commissioners |
26 | Report of the Board of Directors |
32 | Statement Letter of Responsibility for 2019 Annual Report |
21
REPORT OF THE BOARD OF COMMISSIONERS
"Overall, we have assessed that throughout 2020, the Board of Directors has carried out all its duties and roles in managing the company in a good manner and has been able to balance aspects of finance, operations, business processes, and learning and growth."
Esteemed shareholders and stakeholders,
Let us offer praise and gratitude to God Almighty, that despite the challenging conditions we experienced due to the COVID-19 pandemic, TelkomGroup managed to get through 2020 by recording a fairly good performance.
GENERAL VIEW OF MACROECONOMICS AND INDUSTRIES
The COVID-19 pandemic has paralyzed community activities and has had quite a heavy impact on diverse sectors in various parts of the world. The Government's strategy to control the pandemic through large-scale social restrictions (PSBB) which were balanced with economic policies and stimulus to promote growth has succeeded quite well. Gross Domestic Product (GDP) grew negatively by 2.07% in 2020, better than the economic downturn experiences by several neighboring countries such as Singapore, Malaysia, and Thailand. In the future, it is estimated that economic growth will soon recover. This, supported by a mass vaccination program, has created public confidence in resuming activities. Economic institutions predict that Indonesia will record positive growth again in 2021: the International Monetary Fund (IMF) projects GDP a growth of 4.8%, while the Organization for Economic Cooperation and Development (OECD) estimates growth at 4.9%.
For the telecommunications sector, social restrictions that hindered physical mobility have forced the formation of new communication habits within the society, thus creating new opportunities. Concurrent with limited physical interactions, there is an increased need for high-quality internet and various applications to support work, study, shopping, and various other activities. The changing conditions and habits of the community require new services that can be fulfilled by a variety of digital solutions which require a dependable supporting infrastructure.
22
SUPERVISION AND ASSESSMENT OF BOARD OF DIRECTORS PERFORMANCE AND BASIS OF ASSESSMENT THROUGHOUT 2020
Overall, we have assessed that throughout 2020, the Board of Directors has carried out all its duties and roles in managing the company in a good manner and has been able to balance aspects of finance, operations, business processes, and learning and growth. We are of the view that the Board of Directors has compiled the right work plan and strategy as well as execution in order to achieve the strategic goals that were set in accordance with the Company's purpose, vision and mission. The results can be seen with the achievement of positive growth in the Company's Revenue, EBITDA, and Net Profit in 2020, even though economic conditions and purchasing power weakened due to the COVID-19 pandemic.
From an operational perspective, the Company also recorded a very good performance growth in which important parameters, such as IndiHome fixed-broadband subscribers and data traffic for cellular services, grew extremely well. This positive performance has further strengthened Telkom's position as the market leader in the Indonesian telecommunications industry.
The company is also further strengthening its infrastructure capabilities, both backbone network and fiber-optic-based access as well as 4G BTS to ensure the best and broadest digital connectivity. Infrastructures that support the strengthening of digital platforms such as data centers and clouds are also being built. Additionally, the development of various applications through digital services is being continuously carried out in order to provide the best experience for customers. We consider that all of this is carried out to increase competitiveness and create a competitive and sustainable growth in the long term.
VIEWS ON BUSINESS PROSPECTS
We are of the view that the Company's future business prospects will remain good. This is supported by the Company's complete and integrated infrastructure network. Telkom also continues to invest in increasing its network capacity and capability to anticipate increasing needs in line with various community activities, including the preparation for the arrival of new technology, namely 5G. By strengthening its digital connectivity, digital platforms, and digital services, it will be easier for the Company to capture various opportunities as well as to continue to grow sustainably in the future.
Opportunities for growth mainly come from fixed broadband services, digital mobile business services, and enterprise solutions services – services that are increasingly needed concurrent with changes in the ways that people communicate and interact, as well as new habits and activities. Supported by its unmatched capacity and infrastructure capabilities, Telkom is at the forefront in capturing future opportunities.
In addition to the aforementioned matters, the Board of Commissioners also supports the Board of Directors' efforts to explore other opportunities in order to increase the Company's value, including selectively and prudently carrying out inorganic activities, unlocking assets that have not been evaluated optimally and developing start-ups with the hope that someday it can be of greater value or produce synergetic value.
23
ASSESSMENT OF THE PERFORMANCE OF COMMITTEES UNDER THE BOARD OF COMMISSIONERS
Three Committees assist Telkom's Board of Commissioners in carrying out their supervisory duties and functions. The three Committees are the Audit Committee, the Nomination and Remuneration Committee (KNR), and the Planning and Risk Evaluation and Monitoring Committee (KEMPR). In our view, the functions of the three Committees have performed well in accordance with their respective roles. The committees conduct studies and provide recommendations to the Board of Commissioners, fully supporting the supervisory mechanism of the Board of Directors so that it can run smoothly.
We are assisted by the Audit Committee in supervising and ensuring the effective implementation of internal controls in the preparation of financial statements; reviewing the Company's financial information; reviewing the implementation of audits by the Internal Audit Unit; and monitoring the follow-up actions by the Board of Directors based on the findings of internal auditors, including monitoring the audit process in the Partnership and Community Development Program. The Nomination and Remuneration Committee has effectively supported the Board of Commissioners by providing various recommendations related to policies, criteria and selection of strategic positions within the Company, as well as the remuneration of the Board of Directors. Whilst the Planning and Risk Evaluation and Monitoring Committee provided several important recommendations related to strategic aspects, corporate risk management, and conducted comprehensive evaluation and monitoring of the Directors' suggestions related to the Company's Budget Activity Plan.
VIEWS ON THE IMPLEMENTATION OF SUPERIOR CORPORATE GOVERNANCE
Corporate governance is one of the focuses of the Board of Commissioners' supervision. We are committed to ensuring that the implementation of corporate governance is of a high standard, in accordance with the principles and best practices of Good Corporate Governance (GCG). The Board of Commissioners actively supervises and provides advice and recommendations related to various aspects of governance and risk management, in line with the growth and complexity of the Company’s business.
One of the corporate governance practices implemented by Telkom is the Whistleblowing System (WBS). Throughout its implementation in 2020, WBS was quite efficacious in helping identify policy irregularities or internal violations as well as minimizing the potential for fraud that could occur within the Company.
24
CHANGES IN THE COMPOSITION OF THE BOARD OF COMMISSIONERS
The composition of Telkom's Board of Commissioners has changed in accordance with the resolution of the AGMS on 19 June, 2020. The Annual General Meeting of Shareholders for the 2019 Financial Year resolved to honorably terminate the term of office of the following Members of the Board of Commissioners:
| |
1. | Margiyono Darsasumarja as Independent Commissioner; and |
2. | Cahyana Ahmadjayadi as Independent Commissioner |
Furthermore, the Annual General Meeting of Shareholders for the 2019 Financial Year also resolved to appoint five new members to the Board of Commissioners, namely Alex Denni, Rizal Mallarangeng, Ahmad Fikri Assegaf, Wawan Iriawan, and Chandra Arie Setiawan.
Therefore, as of December 31, 2020, the composition of the Company's Board of Commissioners is as follows:
Rhenald Kasali | : President Commissioner / Independent Commissioner |
---|---|
Marsudi Wahyu Kisworo | : Independent Commissioner |
Wawan Iriawan | : Independent Commissioner |
Chandra Arie Setiawan | : Independent Commissioner |
Ismail | : Commissioner |
Marcelino Rumambo Pandin | : Commissioner |
Ahmad Fikri Assegaf | : Commissioner |
Alex Denni | : Commissioner |
Rizal Mallarangeng | : Commissioner |
APPRECIATION TO STAKEHOLDERS AND CLOSING
On behalf of the Board of Commissioners, we would like to thank all Directors, management, and employees who have contributed wholeheartedly to manage Telkom's business activities. We would also like express our appreciation to all stakeholders, including shareholders, customers, business partners, and other stakeholders who have fully supported effort to bring to fruition the Company's purpose, vision and mission.
We believe that with a good collaboration between stakeholders, Telkom can continue to grow in a sustainable manner and to play an important role in supporting the advancement of the nation.
Jakarta, April 30, 2021
/s/ Rhenald Kasali
Rhenald Kasali
President Commissioner/Independent Commissioner
25
REPORT OF THE BOARD OF DIRECTORS
“Digitizing the Nation to Create Opportunities for a Sustainable Future”
"TelkomGroup’s business development initiatives continues to focus on digitizing various aspects of community life to create opportunities and advancement in a sustainable future."
Esteemed Shareholders, Board of Commissioners, and all stakeholders,
We give thanks and gratitude to God Almighty who has bestowed upon us His infinite mercy, thus enabling PT Telkom Indonesia (Persero) Tbk (“Telkom” or “The Company”) to successfully navigate a challenging period in 2020.
On this auspicious occasion, allow us to present a summary of the various efforts and achievements that we have successfully attained throughout 2020.
ECONOMIC AND INDUSTRY CONDITIONS
The COVID-19 pandemic battered the world, including Indonesia, weakened many industry sectors and put quite intense pressure on the national economy. The Government's decision to implement measurable social restrictions through Large-Scale Social Restrictions (PSBB) to suppress the spread of the pandemic, combined with a series of fiscal and monetary policies and stimuli to promote economic growth, worked well. Indonesia recorded a small decline in Gross Domestic Product (GDP) of -2.07% in 2020, better than the economic decline of other countries such as Singapore -5.4%, Malaysia -5.6%, and Thailand -6.1%.
In terms of key macro indicators, the Rupiah exchange rate against the USD in 2020 experienced a slight decline; however, this was within a controlled range. Based on data from Bank Indonesia, the USD exchange rate on January 2, 2020 was at Rp13,895 per USD and the USD exchange rate on December 31, 2020 closed at Rp14,105. Meanwhile, Bank Indonesia’s benchmark interest rate (BI 7 Days Repo Rate), which was at 5% in early 2020, was lowered to 3.75% at the end of December 2020, a part of BI's efforts to support economic growth during the COVID-19 pandemic.
When the COVID-19 pandemic emerged in early 2020, almost all industries, including the telecommunications industry, were negatively affected. This was mainly caused by a decline of purchasing power, especially for the lower-middle class. However, in parallel, the COVID-19 pandemic increased the need for home internet services (fixed broadband), prompted by the necessity to work and learn from home as well as other activities such as shopping through e-commerce platforms or consulting with a healthcare provider through an e-health platform. Pandemic conditions also increasingly encouraged companies, both large and small, to take advantage of various digital facilities to improve services to their customers as they created efficiency. Government agencies also utilized digital services, including its efforts to control the spread of COVID-19. In short, the COVID-19 pandemic indirectly accelerated the digital transformation of the Indonesians, which is both a challenge and an opportunity for TelkomGroup as digital transformation requires the support of a reliable connectivity, capable digital platforms, as well as diverse and suitable digital services.
COMPANY PERFORMANCE IN 2020
In 2020, Telkom recorded a total revenue of Rp136.5 trillion or a growth of 0.7% compared to 2019. In terms of profitability, Telkom’s recorded EBITDA was Rp72.1 trillion or an increase of 11.2% with a Net Income of Rp20.8 trillion, or a rise of 11.5% compared to 2019. We experienced positive growth in revenue performance with good profitability in the midst of the COVID-19 pandemic conditions and fierce business competition in the telecommunications industry.
26
In the Mobile segment, Telkom, through its subsidiary Telkomsel, was able to maintain its position as the largest cellular operator in Indonesia with a national coverage that serves 169.5 million subscribers, of which 115.9 million are mobile data users. Telkomsel's Digital Business revenue grew quite well, an increase of 7% YoY or Rp62.34 trillion, driven by an increasing need for public data services amid the COVID-19 pandemic. The revenue contribution from the Digital Business increased to 71.6% of Telkomsel's total revenue, compared to the previous year's 63.9%. The Digital Business’ growth was supported by an 8.3% rise revenue from Data, driven by an upsurge of data traffic (Data Payload) of 43.8%. At the same time, revenue from the Legacy business decreased by 24.6%, in line with a trending shift from voice and SMS to data, resulting in a 4.4% decrease of Telkomsel's overall revenue. However, Telkomsel was able to increase its EBITDA margin to 58.7% compared to the previous year’s 54.0%. The Mobile segment contributed 61.5% to the Company's Consolidated Revenues.
In the Consumer segment, IndiHome also sustained its position as the market leader in fixed broadband services in Indonesia with an 82.3% market share. The number of IndiHome subscribers increased by 1.0 million, to 8.0 million subscribers. The rise in the number of subscribers also contributed to the growth of the Consumer segment's revenue, which rose significantly by 18.4% to Rp21.0 trillion and contributed 15.4% to the Company's Consolidated Revenues. Additionally, IndiHome's profitability has much improved with an EBITDA margin reaching 38.9%, a significant increase compared the 33.9% recorded last year.
In the Enterprise segment, in 2020 we continued with our policy to strengthen our business fundamentals by focusing on services that have better margins as well as reducing products and services with relatively small margins to ensure business sustainability as well as revenue quality. Even though the Enterprise segment decreased by 5.2% to Rp17.7 trillion, it went through significant improvement in the second half of 2020. The Enterprise segment contributed 13.0% to the Consolidated Revenues.
The Wholesale and International Business (“WIB”) segment, through a comprehensive provision of infrastructure and services, serves other licensed operators (OLO), service providers, and digital players at domestic and abroad. The WIB segment also performs a vital role as an enabler for TelkomGroup’s other business segments. In 2020, the WIB Segment recorded a revenue of Rp13.5 trillion or a growth of 27.3% compared to 2019, which amounted to Rp10.6 trillion. This segment contributed 9.9% to Telkom's Consolidated Revenues.
In the Other segment, which primarily consists of Digital services, Telkom reported a growth of 11.2% in 2020. Although its contribution to the Consolidated Revenues is still relatively small, this segment shows our initiatives in the development and provision of a variety of digital services for both business-to-business (B2B) and business-to-consumer (B2C). The assorted digital services we have developed include that in finance, education, logistics, health and lifestyle such as videos, games and music.
OVERVIEW OF BUSINESS PROSPECTS
Telkom continually strives to create growth opportunities through three business pillars: namely Digital Connectivity, Digital Platform, and Digital Services. Our consistent investments are an important effort to strengthen our position as a market leader in the digital connectivity domain, by providing quality mobile data and fixed broadband services with the widest coverage in Indonesia. We also continue to build data centers and clouds as the core of the digital platform, which enables the creation of various digital service features and solutions in accordance with our customers’ needs. We believe that these three business pillars will still be very relevant in the future, consistent with the needs and demands of our consumers. We endeavour to ensure that Telkom's business continues to have good prospects.
27
In the Mobile segment, in an effort to provide the best experience for customers, we are committed to always implement the most advanced and newest technologies. We discern that 5G technology will be promptly implemented and we have the resources and operational capabilities to roll out this new technology. Nevertheless, we will remain careful and we will implement the right strategy in deploying new technology to ensure that the investments made will be efficient and profitable. Additionally, we will also continue to develop various digital services to meet various needs and simultaneously augment the mobile customer experience. In the B2C segment, we will continue to prioritize customer-centricity through digital products that meet the customers’ needs such as digital lifestyle (videos, music, games) as well as digital financial services. We will also continue to strengthen the B2B services by providing digital solutions in keeping to the needs of our customers, such as digital advertising, big data, and the Internet of Things to support breakthroughs in various industries.
For the Consumer segment, IndiHome is one of the materializations of Telkom's commitment to support the creation of a digital lifestyle for all levels of Indonesian society. We believe that the need for high-quality fixed broadband services will remain high, to support the diverse day-to-day activities of the community such as work, study, shopping, entertainment as well as entrepreneurship. With Indonesia’s fixed broadband penetration still low at around 15%, this is an opportunity for IndiHome to further maintain its growth momentum in the future.
To create synergy between the Mobile and Consumer segments as well as boost growth opportunities, Telkom has developed a product innovation, fixed wireless, that both complement and strengthen the segments. We expect that this novel product will suit the characteristics of Indonesia’s geography and demography characteristics and we hope that it will accelerate the penetration of broadband services in the country.
In the Enterprise segment, we see growth opportunities that are still completely accessible, in line with increasing importance of digitalization of business processes for large and small companies in to expand their competitiveness. The digitalization of business processes is also increasingly important for government agencies or local governments in order to improve public services. With its diverse enterprise solutions supported by a comprehensive infrastructure including data centers, Telkom is in a strong position to seize business opportunities and grow together with corporations as well as small and medium enterprises in Indonesia.
Whilst for the Wholesale and International Business segment, Telkom will focus on increasing the tower, data center and infrastructure manage service business to strengthen Telkom’s position as a partner to domestic and global content providers in support of the digital ecosystem.
Telkom continues to increase company value through other strategic efforts such as inorganic activities, unlocking assets that have not been optimally assessed, as well as investing in, developing and growing start-up companies with the expectation that the start-up companies will, in the future, become good contributors to the Company whether through business synergies or through increasing valuations as these start-up companies grow. We are always open to investing in or forming partnerships with other companies, including digital companies, to gain bigger opportunities in building synergies as well as to accelerate a digital transformation. We also own assets that have not been optimally reflected in the company's valuation, such as towers and data centers which generally have a higher valuation than telecommunication companies. Consequently, we are working hard so that these assets can be unlocked in the future to increase our corporate value, either through strategic partnerships or by going public in the capital market.
28
SUPPORTING THE COUNTRY THROUGH DIGITIZATION
The COVID-19 pandemic has impacted society and various sectors on an unprecedented scale. For Telkom, the various obstacles that emerged due to the COVID-19 pandemic increasingly speed up digital acceleration, by providing services and solutions in the field of information technology and communications. We have the vitality to help the people and the Government of Indonesia address the pandemic, and to rise up once more to face the future. Telkom develops and provides a variety of services and solutions to all customers and the public, with the support of a digital connectivity infrastructure that spans the entire country, a reliable digital platform, and digital services that meet customer needs. In step with our efforts to transform into a world-class digital telco and amid various challenges, Telkom remains committed to expanding its digital connectivity infrastructure, strengthening its digital platforms and developing various digital services, with the purpose of providing the best digital customer. All TelkomGroup business activities and business development initiatives are carried out by considering market potentials as well as the needs and characteristics of Indonesians, to support the digitalization of various fields such as finance, education, logistics, health, the development of Small and Medium Enterprises (SMEs), agriculture, and various other sectors.
Additionally, in running our business, we are particularly consistent in continuing to advance national economic growth, for example through a program to enhance the Domestic Component Level (TKDN) that supports and increases the productivity of domestic businesses, to encourage better national economic growth in the future.
PROGRAM AND PERFORMANCE GOALS FOR 2021
In 2021, Telkom affirmed its 2021 Corporate Theme: Strengthen Business Health and Accelerate Digital Transformation to Smartly Cope with Changing Customer Behavior. This consists of 3 main programs:
1. | Accelerate transformation to lead in digital space and get stronger customer engagement: the company will accelerate digital transformation to get a stronger customer engagement. |
2. | Drive cost leadership and CAPEX efficiency, underpinned by innovative operating models: the Company will continue to innovate to reduce costs and CAPEX while maintaining business effectiveness and efficiency. |
3. | Leverage and unlock group potential to increase corporate value, to encourage TelkomGroup's subsidiaries to always increase their valuation by going public or by looking for strategic partners. |
We are committed to implementing these 3 key programs, with the expectations that they will be supported with an improvement of economic conditions in 2021, even though the impact of the pandemic will be felt for some more time. Telkom hopes to accelerate its transformation to become the people’s digital telco company of choice, one that will provide a better customer experience, that, in turn will create greater corporate value.
DEVELOPMENT OF CORPORATE GOVERNANCE IMPLEMENTATION
Telkom continually upholds and applies the principles of good governance (Good Corporate Governance or GCG) in carrying out its business activities. We believe that good governance is a key aspect that will ensure the company’s long-term sustainability. The GCG values are transparency, accountability, responsibility, independence and fairness. Furthermore, the implementation of GCG at Telkom also refers to the provisions of the Financial Services Authority (OJK), as well as the implementation of eight principles of company management in accordance with GCG best practices. The implementation of GCG at TelkomGroup is to support the realization of the Company’s purpose, vision and mission which in turn will provide added-value and benefits to shareholders and other stakeholders.
Telkom's efforts in implementing good governance have received awards, including "The Best State-Owned Enterprise" in the BigCap category from IICD and “The Best Indonesia GCG Award” in the Public Company Telecommunication category given by the Economic Review and the Indonesia-Asia Institute.
29
SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES AND PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAMS
As the largest telecommunications company in Indonesia that is also a State-Owned Enterprise, Telkom is committed to continuously contribute and provide support to the community in the form of social and environmental responsibility and through a Partnership and Community Development Program (PKBL). Telkom's commitment in implementing PKBL refers to the Ministerial Regulation Number PER-09/MBU/07/2015 concerning the SOE Partnership and Community Development Programs. We hope that our social and environmental efforts as well as the PKBL program are positive contributions to the communities, including an improvement in their welfare and economy particularly during the pandemic.
In 2020, TelkomGroup disbursed Rp346.39 billion in PKBL funds for various programs related to improving the welfare and social life of communities. With regards to support for the management of COVID-19, Telkom has disbursed funds amounting to Rp40.91 billion, with the best part used to purchase personal protective equipment (PPE) for medical personnel, medicine, medical equipment and for social safety nets. Particularly for the Partnership Program, in 2020 TelkomGroup disbursed funds amounting to Rp221.66 billion to 5,091 mentorship partners with businesses in industry, trade, agriculture, livestock, plantation, fishery, services and other sectors. Meanwhile, in 2020 TelkomGroup disbursed funds amounting to Rp124.73 billion for Community Development. These have been put to use in 8 fields, namely assistance for survivors of natural disasters, as well as support for education, health improvement, development of public infrastructure and/or facilities, religious facilities, nature conservation, and community social assistance related to poverty alleviation.
CHANGES TO THE COMPOSITION OF THE BOARD OF DIRECTORS IN 2020
On June 19, 2020, Telkom held an Annual General Meeting of Shareholders (AGMS). One of the decisions determined during the AGMS was changes to the composition of the members of the Company’s Board of Directors. The resolutions of the AGMS stipulate:
| ||
1. | To honorably end the term of service of the following: | |
| Harry Mozarta Zen | : Director of Finance |
| Siti Choiriana | : Director of Consumer Service |
| Zulhelfi Abidin | : Director of Network & IT Solution |
| Achmad Sugiarto | : Director of Strategic Portfolio |
| Bogi Witjaksono | : Director of Enterprise & Business Service |
| Edwin Aristiawan | : Director of Wholesale & International Service |
| Faizal R. Djoemadi | : Director of Digital Business |
2. | To reassign Edi Witjara, previously Director of Human Capital Management, to become Director of Enterprise and Business Service. | |
3. | To nominate the following to the Board of Directors: | |
| Heri Supriadi | : Director of Finance |
| Herlan Wijanarko | : Director of Network & IT Solution |
| FM Venusiana R | : Director of Consumer Service |
| Muhamad Fajrin Rasyid | : Director of Digital Business |
| Budi Setyawan Wijaya | : Director of Strategic Portfolio |
| Dian Rachmawan | : Director of Wholesale & International Service |
| Afriwandi | : Director of Human Capital Management |
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Thus, at the closing of the AGMS on June 19, 2020, the composition of the Board of Directors as follows:
| Ririek Adriansyah | : President Director |
| Heri Supriadi | : Director of Finance |
| Herlan Wijanarko | : Director of Network & IT Solution |
| FM Venusiana R | : Director of Consumer Service |
| Muhamad Fajrin Rasyid | : Director of Digital Business |
| Budi Setyawan Wijaya | : Director of Strategic Portfolio |
| Dian Rachmawan | : Director of Wholesale & International Service |
| Afriwandi | : Director of Human Capital Management |
| Edi Witjara | : Director of Enterprise & Business Service |
We would like to express our deepest appreciation to the members of the Board of Directors whose their term of service have ended for their roles and contributions. We hope that the positive values that have been built thus far will be maintained and developed for the advancement of the Company.
CLOSING
On behalf of the Board of Directors of PT Telkom Indonesia (Persero) Tbk, I would like to express our gratitude and great appreciation to all shareholders, the Board of Commissioners, loyal customers, business partners, the media, the general public, and other stakeholders for the support accorded to Telkom throughout 2020. We would also like to express our gratitude to the management and all TelkomGroup employees for their dedication and contributions in carrying out their duties and responsibilities as well as their support in realizing the Company's purpose, vision, mission and work program throughout 2020. Hopefully in the future, Telkom can continue grow sustainably for the creation of even higher corporate value.
Jakarta, April 30, 2021
/s/ Ririek Adriansyah
Ririek Adriansyah
President Director
31
STATEMENT OF THE MEMBER OF BOARD OF COMMISSIONERS
REGARDING WITH RESPONSIBILITY FOR
PT TELKOM INDONESIA (PERSERO) TBK 2020 ANNUAL REPORT
We the undersigned hereby declare that all the information in the PT Telkom Indonesia (Persero) Tbk 2020 Annual Report has been presented in its entirety and that we assume full responsibility for the accuracy of the content of the Company’s Annual Report.
This statement is made in all truthfulness.
Jakarta, April 30, 2021
Board of Commissioners | |||
/s/ Rhenald Kasali | |||
Rhenald Kasali President Commissioner/Independent Commissioner | |||
/s/ Marsudi Wahyu Kisworo | /s/ Wawan Iriawan | /s/ Chandra Arie Setiawan | |
Marsudi Wahyu Kisworo Independent Commissioner | Wawan Iriawan Independent Commissioner | Chandra Arie Setiawan Independent Commissioner | |
/s/ Ismail | /s/ Marcelino Rumambo Pandin | /s/ Ahmad Fikri Assegaf | |
Ismail Commissioner | Marcelino Rumambo Pandin Commissioner | Ahmad Fikri Assegaf Commissioner | |
/s/ Alex Denni | /s/ Rizal Mallarangeng | ||
Alex Denni Commissioner | Rizal Mallarangeng Commissioner |
32
STATEMENT OF THE MEMBER OF BOARD OF DIRECTORS
REGARDING WITH RESPONSIBILITY FOR
PT TELKOM INDONESIA (PERSERO) TBK 2020 ANNUAL REPORT
We the undersigned hereby declare that all the information in the PT Telkom Indonesia (Persero) Tbk 2020 Annual Report has been presented in its entirety and that we assume full responsibility for the accuracy of the content of the Company’s Annual Report.
This statement is made in all truthfulness.
Jakarta, April 30, 2021
Board of Directors | |||
/s/ Ririek Adriansyah | |||
Ririek Adriansyah President Director | |||
/s/ Edi Witjara | /s/ FM Venusiana R. | /s/ Dian Rachmawan | |
Edi Witjara Director of Enterprise & Business Service | FM Venusiana R. Director of Consumer Service | Dian Rachmawan Director of Wholesale & International Service | |
/s/ Heri Supriadi | /s/ Afriwandi | /s/ Herlan Wijanarko | |
Heri Supriadi Director of Finance | Afriwandi Director of Human Capital Management | Herlan Wijanarko Director of Network & IT Solution | |
/s/ Muhamad Fajrin Rasyid | /s/ Budi Setyawan Wijaya | ||
Muhamad Fajrin Rasyid Director of Digital Business | Budi Setyawan Wijaya Director of Strategic Portfolio |
33
ABOUT TELKOM
| |
35 | Purpose, Vision, Mission, and Strategy |
37 | Telkom: A Brief History |
39 | Business Activities |
41 | Awards and Certifications |
45 | Telkom Organizational Structure |
46 | Profile of the Board of Commissioners |
56 | Profile of the Board of Directors |
68 | Telkom Employees |
73 | Shareholders Composition |
75 | Subsidiaries, Associated Companies, and Joint Ventures |
79 | Chronology of Stocks Registration |
81 | Chronology of Other Securities Registration |
83 | Name and Address of Institutions and/or Supporting Capital Market Profession |
34
PURPOSE, VISION, MISSION, AND STRATEGY
Telkom has determined its purpose, vision, mission and strategy as stated in its long-term plan and approved by the Boards of Commissioners and Directors on December 9, 2019.
PURPOSE
To build more prosperous and competitive nation as well as deliver the best value to our stakeholders.
VISION
To be the most preferred digital telco to empower the society.
MISSION
1. | Advance rapid buildout of sustainable intelligent digital infrastructure and platforms that is affordable and accessible to all. |
2. | Nurture best-in-class digital talent that helps develop nation’s digital capabilities and increase digital adoption. |
3. | Orchestrate digital ecosystem to deliver superior customer experience. |
STRATEGIES
Telkom conceives its strategic framework into a portfolio direction strategy that includes the development of 3 (three) business domains, namely digital connectivity, digital platforms and digital services. This business domain strategy is supported by a value delivery model strategy that includes strategies for portfolio optimization, technology, organization, synergy and operational excellence, talent management and corporate culture, inorganic initiatives, and corporate governance.
Broadly speaking, Telkom's strategy is contained in the acronym WINDIGITAL, which includes:
Win broadband connectivity business to maximize cashflow |
Invest to scale DC/IaaS and be the national B2B digital leader to maximize value |
Nurture digital B2C service ecosystem through selective investment to maximize synergy |
Drive continuous and strict optimization of business and asset value |
Increase group technology integration and digitization |
Gear up for streamlined lean digital-ready organization |
Improve operation quality and synergy for cost leadership and better customer experience |
Transform digital telco talents and incorporate digital culture |
Acquire digital capabilities inorganically and accelerate ecosystem partnership |
Link up group strategy plan and implementation and enhance risk management and compliance |
35
TRANSFORM AND DIGITIZE
Throughout 2020, TelkomGroup continued to pursue its primary program to deliver best quality of digital connectivity services with improved customer experience; develop digital talent and establish digital platform business leveraging group collaboration & synergy; and drive portfolio optimization along with cost leadership and a lean organization. TelkomGroup believes that carrying out consistent transformations towards digital telecommunication will drive TelkomGroup to become a leading company in Asia. In line with TelkomGroup's efforts to provide the best digital customer experience, Telkom is strengthening leadership positions in its core businesses, namely digital connectivity by nurturing digital talents to accelerate the growth of its digital and encourage increased business value through portfolio optimization and lean organization.
TelkomGroup increases the competitiveness of broadband and digital businesses through investments in the required infrastructure and creating lean operations based on sustainable digital processes. Additionally, TelkomGroup also works with various partners who have reliable resources to support Telkom's operations. With the WFH (work from home) policy implemented throughout 2020, Telkom accelerated the transformation to digital culture in internal management by emphasizing effectiveness, speed, accuracy in work, and collaborations with various parties.
Telkom had already established a specific Group Corporate Transformation (GCT) unit to oversee and accelerate digital transformation in the TelkomGroup’s business strategy. GCT reinforces the company's digital readiness, becoming leaner, more agile and streamlined. Through its subsidiary streamlining program, TelkomGroup implemented various policies that increased synergetic value, including the structuring of business portfolios by focusing on subsidiaries to support TelkomGroup's vision. Additionally, the implementation of shared service operations (SSO) in 2020, Telkom combined several repetitive, massive and transactional operational activities, including at several subsidiaries, to increase the efficiency and effectiveness of the company as a group.
36
TELKOM: A BRIEF HISTORY
The history of Telkom begins with the separation of postal and telecommunication services by the Government of Indonesia in 1965. At that time PN Postel was split into Perusahaan Negara Pos and Giro (PN Pos and Giro) and Perusahaan Negara Telekomunikasi (PN Telekomunikasi). Subsequently, in 1974, PN Telekomunikasi became two entities, namely Perusahaan Umum Telekomunikasi (Perumtel) and PT Industri Telekomunikasi Indonesia (PT INTI). PT INTI is a manufacturer of telecommunications equipment. In 1991, Perumtel changed to a state-owned limited liability company with the official name PT Telekomunikasi Indonesia (Persero), known as Telkom.
In 1995, Telkom began to enter the national capital market by registering on the Indonesia Stock Exchange (IDX), and in parallel entered the international capital market through the New York Stock Exchange (NYSE). The market capitalization values on the stock exchange until the end of 2020 are respectively valued at Rp328 trillion on the IDX and US $ 23.3 billion on the NYSE.
2020
TelkomGroup actively took part in several initiatives that responded to the COVID-19 pandemic at the company, community, and national levels. In particular, TelkomGroup increasingly improved network reliability and availability as well as service accessibility at affordable prices, in line with the increasing number of people being asked to work or study from home. Additionally, Telkom also participated in application development, including for the purposes of the national vaccination campaign.
TelkomGroup also built the Telkom HyperScale Data Center with a tier 3 and 4 mega class capacity, which will complement the 26 data centers that are already in operation (five international data centers, 18 neuCentrIX and three tier 3 and 4 data centers). Telkom HyperScale Data Center is intended to support Indonesia's digital transformation by empowering global players and corporations from various sectors to further develop access to their services and continue digitalization efforts.
In 2020, subsidiary Telkomsel signed a conditional sale and purchase agreement for the sale of 6,050 telecommunication towers to Mitratel. Telkomsel also entered into a new partnership with PT Aplikasi Karya Anak Bangsa (“Gojek”) through its investment in the company.
In 2020, Telkomsel added 18,937 BTS units, while IndiHome subscribers grew by 1.0 million, or 14.5%, to 8.0 million subscribers.
2019
In order to expand the company, TelkomGroup acquired, through Mitratel, 2,100 towers owned by Indosat Ooredoo. Additionally, TelkomGroup also purchased 95% shares of PT Persada Sokka Tama, which owned 1,017 towers. Telkomsel, a subsidiary of Telkom, added 23,162 BTS. IndiHome subscribers also grew 1.9 million or 37.2% to 7.0 million subscribers. Telkom was awarded the "2019 Indonesia IoT Services Provider of the Year" by Frost & Sullivan at the Asia Pacific Best Practices Awards.
2018
Expanding its network, Telkom launched the Merah Putih Satellite. Telkom also completed the Indonesia Global Gateway (IGG) submarine cable construction project, connecting two main submarine cable systems: the South East Asia-Middle East-Western Europe 5 (SEA-ME-WE 5) and the Southeast Asia-United States (SEA- US) Submarine Cable Systems. That same year Telkom also inaugurated the Telkom Hub as a Center of Excellence and Source of Inspiration to Build Digital Indonesia. IndiHome subscribers, Telkom's mainstay digital service, recorded growth to 5.1 million subscribers.
37
2017
The Telkom 3S satellite launch is a subsequent undertaking to expand the network area. Also in 2017, Telkom completed the submarine fiber optic cable route for Southeast Asia-United States (SEA-US). Telkomsel, a subsidiary of Telkom, succeeded in expanding its service coverage by obtaining an additional 30 MHz spectrum at 2.3 GHz frequency.
2016
Telkom successfully completed the construction of the crucial South East Asia-Middle East-Western Europe 5 (SEA-ME-WE 5) submarine cable.
2011-2015
In 2011, to penetrate the digital era, Telkom completed the Super Nusantara Highway and the True Broadband Access projects to provide internet access with a capacity of 20 Mbps to 100 Mbps. In 2014, supported by the availability of the latest infrastructure, Telkom became the first operator in Indonesia to enter the 4G service network. The following year, Telkom launched the IndiHome service package which consisted of broadband internet, fixed wireline telephone and interactive TV services.
1999-2010
To strengthen its telecommunication service infrastructure, Telkom launched the Telkom-1 and Telkom-2 satellites. During that period Telkom also succeeded in completing the submarine fiber optic cable project, JaKaLaDeMa.
1991-1995
Based on Government Regulation no. 25, In 1991, Perumtel changed to Telkom. In 1995, Telkom established a subsidiary, Telkomsel, a cellular operator. That same year Telkom entered the stock exchange with an IPO on the Jakarta Stock Exchange and the Surabaya Stock Exchange, registered shares on the NYSE and LSE, and publicly offered shares without listing on the Tokyo Stock Exchange.
1974
PN Telekomunikasi became two entities: PT INTI, an independent company manufacturing telecommunications equipment, and Perumtel.
1965
1965 marked the beginning of PT Telkom as an independent entity, when the Indonesian Government separated postal and telecommunication services by splitting PN Postel into Perusahaan Negara Pos dan Giro (PN Pos dan Giro) and Perusahaan Negara Telekomunikasi (PN Telekomunikasi).
38
BUSINESS ACTIVITIES
BUSINESS ACTIVITIES BASED ON TELKOM’S ARTICLES OF ASSOCIATION
Referring to the Company's Articles of Association as stated in Deed No.32 dated June 21, 2019, Telkom's purposes and objectives are to conduct business in the field of telecommunication network and services, informatics and the optimization of the utilization of Company’s resources to produce to produce goods and/or services that are of high quality and strong competitiveness to gain/pursue profits in order to increase the value of the Company by applying the principles of a Limited Liability Company. In general, the business lines containing Telkom's business activities according to the latest Articles of Association are as follows:
Main Business Lines
1. | Planning, building, providing, developing, operating, marketing/selling/leasing, and maintaining telecommunication and information technology networks in the broadest definition with due observance of the statutory regulations. |
2. | Planning, developing, providing, marketing/selling, and improving telecommunication and information technology services in the broadest definition with due observance of the statutory regulations. |
3. | Making investments including equity participation in other companies in line with and in order to achieve the goals and objectives of the Company. |
Supporting Business Fields
1. | Provide payment transaction and money transfer services through telecommunications and informatics networks. |
2. | Carry out other activities and businesses in the context of optimizing resources owned by the Company, including the use of fixed and movable assets, information system facilities, education and training facilities, maintenance and repair facilities. |
3. | Cooperate with other parties in the context of optimizing informatics, communication or technology resources owned by other parties in the informatics, communication, and technology industries, in line with and in order to achieve the aims and objectives of the Company. |
39
PORTFOLIO PRODUCT AND/OR SERVICE
Telkom's business activities throughout 2020 were in accordance with its Articles of Association, namely providing telecommunications, informatics, and network services. The development of business activities in various segments were in line with Telkom's digital transformation strategy and the development of the telecommunications industry.
Telkom's product and service portfolio is described as follows:
Segment | Business Line | Product |
---|---|---|
Mobile | Data | Mobile broadband |
Digital Service | financial services, video on Demand (VoD), music, gaming, IoT solutions, big data analytics, digital advertising | |
Legacy | Mobile voice, mobile SMS | |
Consumer | Fixed Services | Fixed voice, fixed broadband, home digital (IPTV, gaming, advertising) |
Enterprise | Connectivity | Fixed voice, fixed broadband, enterprise data, CPE networks |
Satellite | Upstream, link, downstream | |
IT Services | System integration, IT service management | |
Data Center & Cloud | Enterprise data center, internet data center, cloud (IaaS, Paas, SaaS) | |
Business Process Operations (BPO) | Traditional BPO, digital BPO, shared service operation service | |
Device, Digital Service, & Adjacent service | CPE trading, CPE managed service, IoT, cyber security, financial service, big data, digital advertising, e-health, managed ATM, professional services | |
Wholesale | Telecommunication Carrier Services | Wholesale Voice, Managed Services, A2P SMS, IP Transit, IP Connectivity, Data Center & Cloud, CDN, Security, Value Added Service, Digital Business |
International | MVNO, MNO, call center | |
Tower & Infrastructure | Tower built to suit, co-location & reseller, microcell, network & infra managed service, submarine cable service, construction solution, power solutions | |
Other | Smart Platform & E-Commerce | Big data, financial service, IoT, cyber security, digital advertising, B2B e-commerce, digital content |
Digital Content | Music, gaming | |
| Property | Property development, property management, project management, facility management |
40
AWARDS AND CERTIFICATIONS
AWARDS
Month | Date | Award Name | Achievements | Institution Provider |
---|---|---|---|---|
February | 7 | Indonesia Corporate Secretary & Corporate Communication Award 2020 | Corporate of The Year 2020 | Economic Review |
1st The Best Indonesia Corporate Secretary & Corporate Communication 2020 on Public Company category at Telecommunication sector | ||||
12 | Indonesia Digital Innovation Award 2020 | Innovative Company for Digital Edutainment Service in Telecommunication category | Warta Ekonomi | |
27 | Indonesian CSR Brand Equity Award 2020 | Excellence Corporate Social Responsibility Program in 2020 | Iconomics | |
28 | Indonesia Top Digital PR Award 2020 | Achievements in Building Digital Public Relations on the Infrastructure, Utilities, and Transportation-telecommunication categories | TRAS N CO Indonesia | |
March | 4 | BUMN Performance Excellence Award 2020 | Industry Leader Based on Assessment KPKU BUMN 2019 Total Score 763.75 | Forum Ekselen BUMN |
April
| 15 | Indonesian Most Admirer Companies Award 2020 | Top 3 Most Admired Company in Telecommunication category | Warta Ekonomi |
20 | PR Indonesia Award | Gold Winner of PR Indonesia Award 2020 on BUMN categoryat Social Media Sub category | PR Indonesia | |
Silver Winner of PR Indonesia Award 2020 on BUMN category at Website sub category | ||||
Silver Winner of PR Indonesia Award 2020 on BUMN category at Brand Guideline sub category | ||||
Winner of PR Indonesia Award 2020 on Most popular in Media category at BUMN Tbk. sub category | ||||
29 | Digital Innovation & ICT for Excellence Award 2020 | Top Corporate Performance in Telecommunication Industry 2020 | Itech | |
May | 14 | Indonesia Corporate Branding PR Award | Excellence in Corporate Public Relations | Iconomics |
| 22 | Contact Center Service Excellence Award | Contact Center 147 (IndiHome) - Internet Service Provider category | Service Excellence and Marketing |
June
| 4 | Indonesia's Most Valuable Brands 2020 | 1st of 100 Most Valuable Brand 2020 | SWA and Brand Finance |
5 | Indonesia Top Corporate Social Responsibility Award 2020 | Special Achievement of The Corporate's Contribution to Social Responsibilty in COVID-19 Handling Activities | Infobrand | |
19 | Indonesia Millennial’s Top Brand Award 2020 | 1st Millennial’s Choice Brand for Internet Provider (IndiHome) | Warta Ekonomi | |
| | | 1st Millennial’s Choice Brand - Category TV Cable (IndiHome) | |
July | 13 | Indonesia Original Brands Award | Champion Indonesia Original Brand 2020 on SLI (International Direct Dialing) category for 007 Product | SWA |
15 | Teropong CSR Award | Teropong CSR Award Care for MSMEs Category | Teropong Senayan | |
Teropong CSR Award Digital E-Learning Development Category | ||||
23 | BEST CEO – Employees’ Choice Award 2020 | Best CEO 2020 in Broadband Telecommunication | Iconomics |
41
Month | Date | Award Name | Achievements | Institution Provider |
---|---|---|---|---|
August | 14 | Top 100 Indonesia’s Most Valuable Brand 2020 | IndiHome Brand of Choice in Pandemic Era | SWA |
27 | Anugerah Gatra 2020 | Gatra Award in the Innovation and Economic Development category of MSMEs | Gatra | |
September | 9 | The 6th Jambore PR Indonesia | Most Popular Leader in Social Media | PR Indonesia |
23 | Indonesia CSR PKBL Award 2020 | Best PKBL for Indonesia CSR x PKBL Telecommunication category | Warta Ekonomi | |
28 | 2nd BUMN Brand Award 2020 | BUMN Brand Award in Market Domination, Brand Strength, and Social Economy Contribution | Iconomics | |
October | 8 | Top Corporate Award 2020 | Top Corporate Award 2020 | TRAS N CO Indonesia |
22 | 11th Nusantara CSR Award 2020 | Latofi CSR Nusantara Award category of Education Quality Improvement | La Tofi | |
November | 4 | WOW Brand Festive Day | Gold Champion Category Pay TV | Indonesia WOW Brand |
6 | Indonesia Information Technology Award (IITA)-III- 2020 | Best of The Best Indonesia IT Award 2020 | Economic Review | |
27 | BUMN Award 2020 | The Best Financial Performance of Indonesia Best BUMN Award 2020 Acceleration of Digital Transformation During Pandemic | Warta Ekonomi | |
27 | HR Excellence Award 2020 | Excellence Award, Excellence in CSR Strategy, Gold | HREA | |
December | 3 | Obsession Awards 2020 | Best Companies | Obsession Media Group |
7 | Indonesia Best Companies in Creating Leaders from Within (IBC CLfW) 2020 | Best Companies in Creating Leader From Within 2020 | SWA | |
10 | Best of The Best Awards 2020 | The Top 50 Companies for 2020 | Forbes Indonesia | |
10 | CNBC Indonesia Awards 2020 | Best State Owned Company in Nation Building and Best Digitalization Enabler Enterprise | CNBC Indonesia | |
17 | BUMN Terbaik 2020 | Non Financial Category in Telecommunication and Broadcasting Sector | Berita Satu | |
17 | Best Practice Awards 2020 | 2020 Indonesia Telecom Service Provider of the Year | Frost and Sullivan | |
18 | Teropong Leadership Award 2020 | Inspiring Leader of Professional and Business | Teropong Senayan | |
| 18 | Marketeers Editor's Choice Award | One stop Entertaintment Media of The Year - IndiHome TV | Marketeers |
22 | Top Digital Awards 2020 | Top Digital Implementation on Digital Sector 2020 | IT Works | |
| Top Digital Transformation Readiness 2020 | |||
Top Leader on Digital Implementation 2020 | ||||
Top CIO in Digital Implementation 2020 |
42
CERTIFICATIONS
Telkom has various certifications as a form of commitment to provide the best services for customers and implement international standards. Following is the list of TelkomGroup certifications and ISO:
No. | Recipient | Year | Certificate | Institution Provider | Validity Period |
---|---|---|---|---|---|
1. | Telkom | 2018 | SNI ISO/IEC 27001:2013 | TUV Rheinland | 2021 |
2018 | ISO 9001:2015 QMS | TUV Rheinland | 2021 | ||
2018 | ISO 27001:2013 ISMS | TUV Rheinland | 2021 | ||
2018 | ISO 22301:2012 BCMS | TUV Rheinland | 2021 | ||
| | 2018 | ISO 20000-1:2011 ITSMS | TUV Rheinland | 2021 |
2020 | ISO 37001:2016 Anti-Bribery Management System | Sucofindo | 2023 | ||
2. | Telkomsel | 2013 | ISO/IEC 27001:2013 | BSI | 2022 |
2014 | ISO 9001:2015 | TUV-NORD | *) | ||
3. | AdMedika | 2019 | ISO/IEC 27001:2013 | British Standards Institution (BSI) | 2022 |
| | 2019 | ISO/45001:2008 Standard | MSC Global | 2022 |
| | 2020 | ISO 9001:2015 Standard | MSC Global | 2023 |
4. | MD Media | 2018 | IT IL Foundation Certificate in IT Service Management | IT IL Foundation | Applied onwards |
5. | Infomedia | 2016 | ISO 27001:2013 | TUV NORD Indonesia | **) |
6. | Finnet | 2017 | ISO/IEC 27001:2005 | TUV Rheinland | 2020 |
7. | Telkom Sigma | 2014 | ISO 20000-1 | British Standards Institution (BSI) | 2020 |
| 2016 | EMS ISO 14001:2015 | British Standards Institution (BSI) | 2022 | |
| 2016 | BS OHSAS 18001:2007 | British Standards Institution (BSI) | 2021 | |
| 2016 | PAS 99:2012 | British Standards Institution (BSI) | 2022 | |
| 2016 | ISO 27001 | British Standards Institution (BSI) | 2022 | |
| 2016 | ISO 9001:2015 | British Standards Institution (BSI) | 2022 | |
| 2017 | Payment Card Industry Data Security | TUV Rheinland | 2021 | |
| | 2017 | Data Center Tier III | Uptime Institute | Applied onwards as long as there are no changes |
| | 2018 | Data Center Tier IV | Uptime Institute | Applied onwards as long as there are no changes |
| | 2020 | Data Center Certificate of Conformance Constructed Facilities ANSI/TIA-942-B:2017 Rate 3 | EPI | 2023 |
8. | Telin | 2019 | ISO 20000 - 1:2011 | Intertek | 2021 |
| | 2019 | ISO 27000-1:2013 | Intertek | 2023 |
| 2019 | ISO 22301:2012 | Intertek | 2022 | |
| 2019 | ISO 45001:2018 | British Standards Institution (BSI) | 2022 | |
9. | Telin Singapore | 2019 | SS 564 for Telin-3 Data Centre | TUV SUD | 2023 |
| | 2019 | ISO 50001 Energy Management System for Telin-3 Data Centre | TUV SUD | 2023 |
10. | TelkomProperty | 2019 | ISO 9001: 2015 | LLOYD Register | 2022 |
| | 2019 | OHSAS 18001:2007 | Sucofindo | 2022 |
| | 2019 | SMK3 | Sucofindo | 2022 |
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No. | Recipient | Year | Certificate | Institution Provider | Validity Period |
---|---|---|---|---|---|
11. | Telkomsat | 2017 | BS OHSAS 18001:2007 | TUV Rheinland | 2020 |
| | 2019 | ISO 9001:2015 | TUV Rheinland | 2022 |
12. | Telkom Akses | 2019 | CIQS 2000:2018 | Telkom Professional Certificate Center (TPCC) | 2022 |
| | 2020 | ISO 9001:2015 | British Standards Institution (BSI) | 2022 |
| 2020 | ISO 45001:2018 | British Standards Institution (BSI) | 2023 | |
| | 2020 | ISO 27001:2013 | British Standards Institution (BSI) | *) |
13. | PINS | 2018 | ISO 9001:2015 | URS Services Indonesia | 2021 |
| | 2019 | CIQS 2000:2009 | Telkom Professional Certification Center (TPCC) | 2022 |
| | 2020 | ISO 14001:2015 | Quality Sertification Services | 2023 |
| | 2020 | OHSAS 18001:2007 | Quality Sertification Services | 2023 |
14. | SSI | 2017 | ISO 9001:2015 | Lloyd's Register LRQA | 2020 |
15. | Dayamitra Telekomunikasi | 2019 | ISO 9001:2015 | SGS | 2022 |
16. | TelkomTelstra | 2019 | ISO/IEC 20000 Service Management System | Intertek | **) |
17. | TelkoMedika | 2018 | SNI ISO 9001:2015 | International Certification Service Management | 2021 |
| | 2018 | SNI ISO 14001:2015 | International Certification Service Management | 2021 |
| | 2018 | SNI ISO 45001:2015 | International Certification Service Management | 2021 |
Remarks:
| |
*) | Update process every year. |
**) | On renewal process. |
44
TELKOM ORGANIZATIONAL STRUCTURE
45
PROFILE OF THE BOARD OF COMMISSIONERS
MEMBER OF THE BOARD OF COMMISSIONERS WHO OFFICIATE AS OF DECEMBER 31, 2020
Rhenald Kasali
President Commissioner/Independent Commissioner
Born | : Jakarta, August 13, 1960 |
Age | : 60 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
| |
1985 | Bachelor degree in Economics, Universitas Indonesia. |
1993 | Master of Science in Business Administration, University of Illinois, United States of America. |
1998 | Ph.D, University of Illinois, United States of America. |
Basis of Appointment
Telkom's Annual General Meeting of Shareholders (AGMS) on May 24, 2019.
Work Experiences
2009 – present | Professor of Economics Faculty, Universitas Indonesia. |
2015 – 2019 | President Commissioner, Angkasa Pura II. |
2007 | Founder, Yayasan Rumah Perubahan. |
Marsudi Wahyu Kisworo
Independent Commissioner
Born | : Kediri, October 29, 1958 |
Age | : 62 years old |
Citizenship | : Indonesian |
Domicile | :Jakarta, Indonesia |
Educations
| |
---|---|
1983 | Bachelor degree in Electrical Engineering, Institut Teknologi Bandung, Indonesia. |
1990 | Post graduate diploma degree in Computer Science, Curtin University of Technology, Australia. |
1992 | Ph.D. in Computer Science, Curtin University of Technology, Australia. |
Base of Appointment
Annual General Meeting of Shareholder (AGMS) of Telkom on May 24, 2019.
46
Work Experiences
. | |
---|---|
2019 – present | Professor of Computer Science, Universitas Prasetiya Mulya and Universitas Bina Darma. |
2016 – present | Advisory Team of the 100 Smart-City Movement, Ministry of Communication and Information Technology of Republic of Indonesia. |
2015 – present | Cyber Telematics and Defense Expert Staff, Ministry of Defense Republic Indonesia. |
2015 – present | Special Advisory Committee on Corrections, Ministry of Law and Human Rights Republic Indonesia. |
2015 – present | Member of the Board of Advisors The Indonesian Association of Islamic Economist. |
2013 – present | Chairman of Creative Industry Division in Indonesian Professor Association. |
2000 – present | Chairman of The Advisory Board Indonesia China Friendship Association. |
2010 – 2018 | Rector, Perbanas Institute. |
2005 – 2010 | Pro-Rector, Swiss German University Asia. |
1998 – 2004 | Rector Deputy, Universitas Paramadina. |
Ahmad Fikri Assegaf
Commissioner
Born | : Jakarta, June 14, 1968 |
Age | : 52 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
Chelor of L | |
1991 | Bachelor degree in Law, Universitas Indonesia, Indonesia. |
1994 | Master degree in Law, Cornell Law School, United States. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on June 19, 2020, Letter of Decree Number: SR-409/MBU/06/ 2020 regarding Correction of the 6th (six) Agenda Decision of the AGMS of PT Telekomunikasi Indonesia (Persero) Tbk for Financial Year 2019.
Work Experiences
2015 – present | Lecturer, Sekolah Tinggi Hukum Indonesia (STHI) Jentera. |
2001 – present | Co-founder, Assegaf Hamzah & Partners. |
1999 – present | Co-founder and Shareholder, PT Justika Siar Publika. |
2017 – 2020 | Independent Commissioner, PT Bank BNI (Persero) Tbk. |
2015 – 2017 | Supervisory Board, Kemayoran Complex Management Center. |
Wawan Iriawan
Independent Commissioner
May 31, | |
---|---|
Born | : Jakarta, May 31, 1963 |
Age | : 57 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
47
Educations
Gister in Law | |
---|---|
1987 | Bachelor degree in Law, Universitas Jenderal Soedirman, Indonesia. |
2005 | Master degree in Law, Universitas Padjadjaran, Indonesia. |
2018 | Doctoral degree in Law, Universitas Padjadjaran, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on June 19, 2020.
Work Experiences
1999 – 2020 | Managing Partner, Iriawan & Co. |
---|
Chandra Arie Setiawan
Independent Commissioner
Born | : Jakarta, September 4, 1970 |
Age | : 50 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
Ba | |
1999 | Bachelor degree in Economics, Universitas Indonesia, Indonesia. |
2005 | Master degree in Management, Universitas Indonesia, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on June 19, 2020.
Work Experiences
2011 – 2020 | Chief Executive Officer (CEO), PT Sarana Global Indonesia. |
2004 – 2011 | Director, PT Ketrosden Triasmitra. |
1999 – 2004 | Vice President (VP) Marketing, PT Sanatel. |
Marcelino Rumambo Pandin
Commissioner
Age | : 54 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
1991 | Bachelor degree in Architecture, Institut Teknologi Bandung, Indonesia. |
1999 | Master of Philosophy, Judge Business School, University of Cambridge, United Kingdom. |
2003 | Diploma in Company Direction (Chartered Director Level II), The Institute of Directors (IoD), United Kingdom. |
2005 | Graduate diploma degree in Company Director Course, Australian Institute of Company Director (GAICD), Australia. |
2007 | Ph.D. of Technology and Innovation, the University of Queensland, Australia. |
48
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on May 24, 2019.
Work Experiences
2018 – 2019 | Committee, World Observatory on Subnational Government Finance and Investment OECD Paris, France. |
---|---|
2017 – 2019 | Senior Policy Advisor on City Finance, United City and Local Government (UCLG) Asia Pacific. |
Ismail
Commissioner
Born | : Mataram, August 10, 1969 |
Age | : 51 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
1993 | Bachelor degree in Physics Engineering, Institut Teknologi Bandung, Indonesia. |
1999 | Master degree in Electrical Engineering, Universitas Indonesia, Indonesia. |
2010 | Doctoral degree in Electrical and Informatics Engineering, Institut Teknologi Bandung, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on May 24, 2019.
Work Experiences
| |
2016 – present | Director General of Post and Information Technology Devices Resources, Ministry of Communication and Information Technology of Republic Indonesia. |
2018 - 2019 | Chairman, Badan Regulasi Telekomunikasi Indonesia (BRTI). |
2016 - 2018 | Deputy Chairman, Badan Regulasi Telekomunikasi Indonesia (BRTI). |
2014 - 2016 | Director of Broadband Development (previously known as Special Telecommunications), Ministry of Communication and Information, Republic of Indonesia. |
2012 – 2014 | Director of Telecommunications, Ministry of Communication and Information Technology of Republic of Indonesia. |
2008 – 2012 | Director of IT System Operations, Financial Transaction Reports and Analysis Center, Ministry of Communication and Information Technology of Republic of Indonesia. |
Alex Denni
Commissioner
Born | : Tanah Datar, December 27, 1968 |
---|---|
Age | : 52 years old |
Citizenship | : Indonesian |
Domicile | : Depok, Indonesia |
Educations
1990 | Bachelor degree in Agro Industry Management, Institut Pertanian Bogor, Indonesia. |
1997 | Master degree in Management, Universitas Atmajaya, Indonesia. |
2011 | Doctoral degree in Capital Law, Institut Pertanian Bogor, Indonesia. |
49
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on June 19, 2020.
Work Experiences
2020 | Deputy for IT HR, Ministry of BUMN. |
2018 – 2020 | Director of HC & Transformation, PT Jasa Marga. |
2014 – 2018 | Chief Human Capital Officer, PT Bank Negara Indonesia (BNI). |
Rizal Malarangeng
Commissioner
Born | : Makassar, October 29, 1964 |
Age | : 56 years old |
Citizenship | : Indonesia |
Domicile | : Jakarta, Indonesia |
Educations
1990 | Bachelor degree in Communication Science, Universitas Gadjah Mada, Indonesia. |
1994 | Master degree in Comparative Politics, Ohio State University, United States of America. |
2000 | Doctoral degree in Comparative Politics, Ohio State University, United States of America. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on June 19, 2020.
Work Experiences
2001 – 2020 | Executive Director, Freedom Institute. |
2016 | Founder, Freedom Corp. |
2009 | Founder, Fox Indonesia. |
MEMBER OF THE BOARD OF COMMISSIONERS WHO TERMINATE IN 2020
Margiyono Darsasumarja
Independent Commissioner
, Indo | |
Born | : Klaten, September 14, 1976 |
Age | : 44 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
2008 | Bachelor degree in Law, Universitas Indonesia. |
---|---|
2012 | Master degree in Cyber Law, University of Leeds, United Kingdom. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on April 17, 2015.
50
Work Experiences
e | |
2012 – 2015 | Coordinator of Advocacy and Partnership for Government of the Bureaucracy Reform Project. |
2012 – 2014 | Lecturer in Law and Media Ethics, Universitas Bakrie, Indonesia. |
2001 – 2011 | Media Development Manager at Voice of Human Rights (VHR) Media. |
Cahyana Ahmadjayadi
Independent Commissioner
Born | : Garut, July 12, 1955 |
---|---|
Age | : 65 years old |
Citizenship | : Indonesian |
Domicile | : Bandung and Jakarta, Indonesia |
Educations
1980 | Bachelor degree in Industrial Engineering, Institut Teknologi Bandung, Indonesia. |
2004 | Master degree in Law of Technology/Business, Universitas Padjadjaran, Indonesia. |
2010 | Doctoral degree in Cyber Law, Universitas Padjadjaran, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholder (AGMS) of Telkom on April 21, 2017.
Work Experiences
PT | |
2010 – 2013 | Commissioner, PT Bank Mandiri (Persero) Tbk. |
2011 | Expert staff, Ministry of Communication and Informatics. |
2006 | Founder, Pengelola Nama Domain Internet Indonesia (PANDI). |
2005 | Director General of Telematics Application, Ministry of Communication and Informatics. |
2002 | Deputy for Communication & Infrormation Network, Ministry of Communication and Informatics. |
1993 | Head of Regional V Division West Java, PT Telkom Indonesia (Persero), Tbk. |
51
EDUCATION, TRAINING, SEMINAR, AND CONGRESS
To improve the competence of the members of the Board of Commissioners, Telkom provided opportunities for the Board of Commissioners to attend education and training in 2020.
These are the education and/or training that have been participated by members of the Board of Commissioners in improving competence in the 2020 financial year.
No. | Program | Date | Location | Commissioner |
---|---|---|---|---|
1. | 4th Annual Global Artificial Intelligence Conference | January 21-23, 2020 | California, USA | Rhenald Kasali |
| Sharing Session of ISO 37001 Implementation | February 26, 2020 | Jakarta | |
| Sharing Session Alignment of CSS Documents | February 28, 2020 | Jakarta | |
| Digital Capacity Building Benchmark | March 2-3, 2020 | Singapore | |
| CSS Workshop: Strategic Insight for The New Normal | June 10, 2020 | Jakarta (online) | |
| CSS Workshop: sharing and discussion on Telco Industry & Strategy Update by A.T.Kearny Consultants | July 24, 2020 | Jakarta | |
| TKDN Sharing Session with BPKP | August 11, 2020 | Jakarta (online) | |
| OJK socialization | September 1, 2020 | Jakarta (online) | |
| CSS Rolling Finalization Workshop 2021-2025 | September 11, 2020 | Jakarta (online) | |
| Tech Session: 5G Update (Huawei and Nokia) | October 6, 2020 | Jakarta (online) | |
| Technology & Business Update: 5G (Ericsson and ZTE) | October 7, 2020 | Jakarta (online) | |
| Open RAN Tech Session | October 12, 2020 | Jakarta (online) | |
| Update PSAK and SEC | October 14, 2020 | Jakarta (online) | |
| QualComm Tech Session | November 13, 2020 | Jakarta (online) | |
2. | Sharing Session of ISO 37001 Implementation | February 26, 2020 | Jakarta | Marsudi Wahyu Kisworo |
| Sharing Session Alignment of CSS Documents | February 28, 2020 | Jakarta | |
| KNKG webinar: "Preventing Corruption through Strengthening a Culture of Governance, Risk Management and Compliance." | June 2, 2020 | Jakarta (online) | |
| CSS Workshop: Strategic Insight for The New Normal | June 10, 2020 | Jakarta (online) | |
| CSS Workshop: sharing and discussion on Telco Industry & Strategy Update by A.T.Kearny Consultants | July 24, 2020 | Jakarta | |
| TKDN Sharing Session with BPKP | August 11, 2020 | Jakarta (online) | |
| OJK socialization | September 1, 2020 | Jakarta (online) | |
| IPMI - Training Ecosystem Edge | September 10, 2020 | Jakarta (online) | |
| CSS Rolling Finalization Workshop 2021-2025 | September 11, 2020 | Jakarta (online) | |
| Tech Session: 5G Update (Huawei and Nokia) | October 6, 2020 | Jakarta (online) | |
| Technology & Business Update: 5G (Ericsson and ZTE) | October 7, 2020 | Jakarta (online) | |
| Open RAN Tech Session | October 12, 2020 | Jakarta (online) | |
| Update PSAK and SEC | October 14, 2020 | Jakarta (online) | |
| QualComm Tech Session | November 13, 2020 | Jakarta (online) | |
3. | CSS Workshop: sharing and discussion on Telco Industry & Strategy Update by A.T.Kearny Consultants | July 24, 2020 | Jakarta | Ahmad Fikri Assegaf(2) |
| TKDN Sharing Session with BPKP | August 11, 2020 | Jakarta (online) | |
| OJK socialization | September 1, 2020 | Jakarta (online) | |
| CSS Rolling Finalization Workshop 2021-2025 | September 11, 2020 | Jakarta (online) | |
| Tech Session: 5G Update (Huawei and Nokia) | October 6, 2020 | Jakarta (online) | |
| Technology & Business Update: 5G (Ericsson and ZTE) | October 7, 2020 | Jakarta (online) | |
| Open RAN Tech Session | October 12, 2020 | Jakarta (online) | |
| Update PSAK and SEC | October 14, 2020 | Jakarta (online) | |
| QualComm Tech Session | November 13, 2020 | Jakarta (online) |
52
No. | Program | Date | Location | Commissioner |
---|---|---|---|---|
4. | CSS Workshop: sharing and discussion on Telco Industry & Strategy Update by A.T.Kearny Consultants | July 24, 2020 | Jakarta | Wawan Iriawan(2) |
| TKDN Sharing Session with BPKP | August 11, 2020 | Jakarta (online) | |
| OJK socialization | September 1, 2020 | Jakarta (online) | |
| CSS Rolling Finalization Workshop 2021-2025 | September 11, 2020 | Jakarta (online) | |
| Tech Session: 5G Update (Huawei and Nokia) | October 6, 2020 | Jakarta (online) | |
| Technology & Business Update: 5G (Ericsson and ZTE) | October 7, 2020 | Jakarta (online) | |
| Open RAN Tech Session | October 12, 2020 | Jakarta (online) | |
| Update PSAK and SEC | October 14, 2020 | Jakarta (online) | |
| QualComm Tech Session | November 13, 2020 | Jakarta (online) | |
5. | CSS Workshop: sharing and discussion on Telco Industry & Strategy Update by A.T.Kearny Consultants | July 24, 2020 | Jakarta | Chandra Arie Setiawan(2) |
| TKDN Sharing Session with BPKP | August 11, 2020 | Jakarta (online) | |
| OJK socialization | September 1, 2020 | Jakarta (online) | |
| CSS Rolling Finalization Workshop 2021-2025 | September 11, 2020 | Jakarta (online) | |
| Tech Session: 5G Update (Huawei and Nokia) | October 6, 2020 | Jakarta (online) | |
| Technology & Business Update: 5G (Ericsson and ZTE) | October 7, 2020 | Jakarta (online) | |
| Open RAN Tech Session | October 12, 2020 | Jakarta (online) | |
| Update PSAK and SEC | October 14, 2020 | Jakarta (online) | |
| QualComm Tech Session | November 13, 2020 | Jakarta (online) | |
6. | Monitoring the Development of Metra Digital Innovation | January 16-17, 2020 | Singapore | Marcelino Rumambo Pandin |
| Sharing Session of ISO 37001 Implementation | February 26, 2020 | Jakarta | |
| Sharing Session Alignment of CSS Documents | February 28, 2020 | Jakarta | |
| ICION 8th Annual Bali Conference & Exhibition ASEAN Digital Economic, 2020 | March 3-5, 2020 | Bali, Indonesia | |
| Galilee International Management Institite Conference | June 1, 2020 | Israel (online) | |
| CSS Workshop: Strategic Insight for The New Normal | June 10, 2020 | Jakarta (online) | |
| CSS Workshop: sharing and discussion on Telco Industry & Strategy Update by A.T.Kearny Consultants | July 24, 2020 | Jakarta | |
| TKDN Sharing Session with BPKP | August 11, 2020 | Jakarta (online) | |
| OJK socialization | September 1, 2020 | Jakarta (online) | |
| IPMI - Training Ecosystem Edge | September 10, 2020 | Jakarta (online) | |
| CSS Rolling Finalization Workshop 2021-2025 | September 11, 2020 | Jakarta (online) | |
| Tech Session: 5G Update (Huawei and Nokia) | October 6, 2020 | Jakarta (online) | |
| Technology & Business Update: 5G (Ericsson and ZTE) | October 7, 2020 | Jakarta (online) | |
| Open RAN Tech Session | October 12, 2020 | Jakarta (online) | |
| Update PSAK and SEC | October 14, 2020 | Jakarta (online) | |
| QualComm Tech Session | November 13, 2020 | Jakarta (online) |
53
No. | Program | Date | Location | Commissioner |
---|---|---|---|---|
7. | Sharing Session of ISO 37001 Implementation | February 26, 2020 | Jakarta | Ismail |
| Sharing Session Alignment of CSS Documents | February 28, 2020 | Jakarta | |
| KNKG webinar: "Preventing Corruption through Strengthening a Culture of Governance, Risk Management and Compliance." | June 2, 2020 | Jakarta (online) | |
| CSS Workshop: Strategic Insight for The New Normal | June 10, 2020 | Jakarta (online) | |
| WSIS Forum, 2020 High-Level Interactive Policy Sessions | July 23, 2020 | Online | |
| CSS Workshop: sharing and discussion on Telco Industry & Strategy Update by A.T.Kearny Consultants | July 24, 2020 | Jakarta | |
| TKDN Sharing Session with BPKP | August 11, 2020 | Jakarta (online) | |
| OJK socialization | September 1, 2020 | Jakarta (online) | |
| CSS Rolling Finalization Workshop 2021-2025 | September 11, 2020 | Jakarta (online) | |
| Tech Session: 5G Update (Huawei and Nokia) | October 6, 2020 | Jakarta (online) | |
| Technology & Business Update: 5G (Ericsson and ZTE) | October 7, 2020 | Jakarta (online) | |
| Open RAN Tech Session | October 12, 2020 | Jakarta (online) | |
| Update PSAK and SEC | October 14, 2020 | Jakarta (online) | |
| ITU Virtual Digital World Ministrial Roundtable, 2020 | October 21, 2020 | Online | |
| GSMA Thrive APAC Policy Forum | November 4, 2020 | Online | |
| QualComm Tech Session | November 13, 2020 | Jakarta (online) | |
8. | SNI ISO 37001 - Roadmap of Strengthening Integrity in Organizations | June 30, 2020 | Jakarta (online) | Alex Denni(2) |
| CSS Workshop: sharing and discussion on Telco Industry & Strategy Update by A.T.Kearny Consultants | July 24, 2020 | Jakarta | |
| TKDN Sharing Session with BPKP | August 11, 2020 | Jakarta (online) | |
| OJK socialization | September 1, 2020 | Jakarta (online) | |
| CSS Rolling Finalization Workshop 2021-2025 | September 11, 2020 | Jakarta (online) | |
| Tech Session: 5G Update (Huawei and Nokia) | October 6, 2020 | Jakarta (online) | |
| Technology & Business Update: 5G (Ericsson and ZTE) | October 7, 2020 | Jakarta (online) | |
| Open RAN Tech Session | October 12, 2020 | Jakarta (online) | |
| Update PSAK and SEC | October 14, 2020 | Jakarta (online) | |
| QualComm Tech Session | November 13, 2020 | Jakarta (online) | |
9. | CSS Workshop: sharing and discussion on Telco Industry & Strategy Update by A.T.Kearny Consultants | July 24, 2020 | Jakarta | Rizal Mallarangeng |
| TKDN Sharing Session with BPKP | August 11, 2020 | Jakarta (online) | |
| OJK socialization | September 1, 2020 | Jakarta (online) | |
| CSS Rolling Finalization Workshop 2021-2025 | September 11, 2020 | Jakarta (online) | |
| Tech Session: 5G Update (Huawei and Nokia) | October 6, 2020 | Jakarta (online) | |
| Technology & Business Update: 5G (Ericsson and ZTE) | October 7, 2020 | Jakarta (online) | |
| Open RAN Tech Session | October 12, 2020 | Jakarta (online) | |
| Update PSAK and SEC | October 14, 2020 | Jakarta (online) | |
| QualComm Tech Session | November 13, 2020 | Jakarta (online) | |
10. | Sharing Session of ISO 37001 Implementation | February 26, 2020 | Jakarta | Margiyono Darsasumarja(3) |
| Sharing Session Alignment of CSS Documents | February 28, 2020 | Jakarta | |
| CSS Workshop: Strategic Insight for The New Normal | June 10, 2020 | Jakarta (online) | |
| HARVARD PDP Online - Leading the Way Back from Crisis: Charting a Path to New Norms for Your Organizations | June 16, 2020 | Cambridge, USA (online) |
54
No. | Program | Date | Location | Commissioner |
---|---|---|---|---|
11. | Sharing Session of ISO 37001 Implementation | February 26, 2020 | Jakarta | Cahyana Ahmadjayadi(3) |
| Sharing Session Alignment of CSS Documents | February 28, 2020 | Jakarta | |
| CSS Workshop: Strategic Insight for The New Normal | June 10, 2020 | Jakarta (online) | |
| HARVARD PDP Online - Leading the Way Back from Crisis: Charting a Path to New Norms for Your Organizations | June 16, 2020 | Cambridge, USA (online) |
COMMISSIONER AFFILIATION RELATIONSHIPS
Telkom discloses the affiliation of members of the Board of Commissioners with fellow Commissioners, Directors and major and controlling shareholders, including the names of affiliated parties, in accordance with the principle of transparency in the implementation of good corporate governance or GCG.
| | |||||||
---|---|---|---|---|---|---|---|---|
No. | Name | Position | Financial Affiliation with | Family Affiliation with | ||||
| | BOC | BOD | Major & Controlling Shareholder(1) | BOC | BOD | Major & Controlling Shareholder(1) | |
1. | Rhenald Kasali | President Commissioner/ | No | No | No | No | No | No |
2. | Marsudi Wahyu Kisworo | Independent Commissioner | No | No | No | No | No | No |
3. | Ahmad Fikri Assegaf(2) | Commissioner | No | No | No | No | No | No |
4. | Wawan Iriawan(2) | Independent Commissioner | No | No | No | No | No | No |
5. | Chandra Arie Setiawan(2) | Independent Commissioner | No | No | No | No | No | No |
6. | Marcelino Rumambo Pandin | Commissioner | No | No | No | No | No | No |
7. | Ismail | Commissioner | No | No | No | No | No | No |
8. | Alex Denni(2) | Commissioner | No | No | No | No | No | No |
9. | Rizal Mallarangeng | Commissioner | No | No | No | No | No | No |
10. | Margiyono Darsasumarja(3) | Independent Commissioner | No | No | No | No | No | No |
11. | Cahyana Ahmadjayadi(3) | Independent Commissioner | No | No | No | No | No | No |
Remarks:
(1) | The controlling shareholder in this matter is the Government of Indonesia represented by the Minister of SOE as a primary shareholder. |
(2) | Served since June 19, 2020 according to the SOE Minister's Letter read at the Telkom AGMS. |
(3) | Has not served again since June 19, 2020 according to the Letter of the Minister of BUMN read at the AGMS of Telkom. |
STATEMENT OF INDEPENDENCE
Enforcement of the Good Corporate Governance (GCG) is carried out by Telkom by requiring all Independent Commissioner to sign the Independence Statement, especially for Independent Commissioners who had served more than 2 (two) periods.
As of the time of this Report, Telkom's Independent Commissioner has only been in office since 2019 and 2020 so that he has not held office for more than 2 (two) periods. However, Telkom's current Independent Commissioners, such as Rhenald Kasali, Marsudi Wahyu Kisworo, Wawan Iriawan, and Chandra Arie Setiawan still signed the statement of independence.
55
PROFILE OF THE BOARD OF DIRECTORS
THE BOARD OF DIRECTORS WHO OFFICIATE AS OF DECEMBER 31, 2020
Ririek Adriansyah
President Director
Born | : Yogyakarta, September 2, 1963 |
Age | : 57 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
| |
1989 | Bachelor of Electrical Engineering, Institut Teknologi Bandung |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on May 24, 2019.
Work Experiences
| |
2019 – 2021 | President Commissioner, PT Telekomunikasi Selular (Telkomsel). |
2015 – 2019 | President Director, PT Telekomunikasi Selular (Telkomsel). |
2014 | Director of Wholesale & International Service, PT Telkom Indonesia (Persero), Tbk. |
2012 – 2013 | Director of Compliance & Risk Management, PT Telkom Indonesia (Persero), Tbk. |
2011 – 2012 | President Director, PT Telekomunikasi Indonesia International. |
2010 – 2011 | Director of Marketing & Sales, PT Telekomunikasi Indonesia International. |
2008 – 2010 | Director of International Carrier Service, PT Telekomunikasi Indonesia International. |
Dian Rachmawan
Director of Wholesale & International Service (WINS)
Born | : Surabaya, May 14, 1964 |
---|---|
Age | : 56 years old |
Citizenship | : Indonesian |
Domicile | : Bogor, Indonesia |
Educations
1987 | Bachelor degree in Electrical Engineering, Institut Teknologi Sepuluh Nopember, Indonesia. |
1994 | Master of Science in Telecommunication and Real Time System, Telecommunications Engineering University of Bradford, United Kingdom. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on June 19, 2020.
56
Work Experiences
| |
---|---|
2020 – present | President Commissioner, PT Telkom Internationa (Telin). |
2020 – present | President Commissioner, PT Telkom Infrastruktur (Telkom Infra). |
2019 – 2020 | President Director, PT Pelabuhan Indonesia I. |
2017 – 2019 | Director of Enterprise & Business Service, PT Telkom Indonesia (Persero), Tbk. |
2014 – 2017 | Director of Consumer Service, PT Telkom Indonesia (Persero), Tbk. |
2011 – 2014 | President Director, Telekomunikasi Indonesia International Ltd. (Hong Kong). |
2007 – 2011 | Director of Network Operation & Engineering, PT Telekomunikasi Indonesia International. |
2005 – 2007 | Executive General Manager of the Fixed Wireless Network Division, PT Telkom Indonesia (Persero), Tbk. |
2004 – 2005 | General Manager of Telkom South Jakarta, PT Telkom Indonesia (Persero), Tbk. |
2001 – 2004 | General Manager of Interconnection & Partnership Regional II Jakarta, PT Telkom Indonesia (Persero), Tbk. |
Afriwandi
Director of Human Capital Management (HCM)
Born | : Bukittinggi, March 3, 1971 |
Age | : 50 years old |
Citizenship | : Indonesian |
Domicile | : Bekasi, Indonesia |
Educations
1995 | Bachelor degree in Industrial Engineering, Sekolah Tinggi Teknologi Telkom, Indonesia. |
2011 | Master degree in Management, Universitas Islam Sumatera Utara, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on June 19, 2020.
Work Experiences
2020 – present | President Commissioner, Infomedia. |
2020 – present | Commissioner, Finnet. |
2015 – 2020 | SVP Corporate Secretary, PT Telkom Indonesia (Persero), Tbk. |
2015 – 2015 | Advisor to the CEO. |
2014 – 2015 | Executive General Manager Regional VII, PT Telkom Indonesia (Persero), Tbk. |
2013 – 2014 | Deputy EGM Divisi Business Service, PT Telkom Indonesia (Persero), Tbk. |
2012 – 2013 | General Manager of National Segment of Welfare Service Unit, PT Telkom Indonesia (Persero), Tbk. |
2012 - 2012 | General Manager Enterprise West Regional. |
2011 - 2012 | General Manager Enterprise Regional 2. |
2008 - 2011 | General Manager Enterprise Regional 1. |
57
Heri Supriadi
Director of Finance (KEU)
Born | : Muara Aman, January 2, 1965 |
---|---|
Age | : 55 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
1991 | Bachelor degree in Industrial Engineering, Institut Teknologi Bandung, Indonesia. |
---|---|
1997 | Master degree in Business Administration (MBA), Saint Mary’s University, Canada. |
2013 | Doctoral degree in Business Management, Universitas Padjadjaran, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on June 19, 2020.
Work Experiences
Jul 2020 - present | President Commissioner, PT Graha Sarana Duta (Telkom Property). |
Feb 2019 - Dec 2020 | President Commissioner, PT Fintech Karya Nusantara (LinkAja). |
Jun 2020 - Oct 2020 | Commissioner, PT Telekomunikasi Selular (Telkomsel). |
Mar 2019 - Jul 2020 | President Commissioner, PT Telkomsel Mitra Inovasi. |
Apr 2012 - Jun 2020 | Director of Finance, PT Telkomunikasi Selular (Telkomsel). |
2010 - 2012 | President Director, PT Graha Sarana Duta (Telkom Property). |
Jan 2008 - Jan 2011 | Commissioner, PT Multimedia Nusantara (Metra). |
Sept 2007 - May 2010 | Vice President Subsidiary Performance, PT Telkom Indonesia (Persero) Tbk. |
Jan 2009 - Oct 2009 | Acting VP Investor Relation and Corporate Secretary, PT Telkom Indonesia (Persero) Tbk. |
FM Venusiana R.
Director of Consumer Service (CONS)
Born | : Manokwari, July 8, 1966 |
Age | : 54 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
degr | |
1992 | Bachelor degree in Electrical Engineering, Universitas Diponegoro, Indonesia. |
2004 | Master degree in Management, Universitas Hasanuddin, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on June 19, 2020.
58
Work Experiences
President Commissioner, PT Telkom Akses. | |
---|---|
2020 – 2020 | Director of Network, PT Telekomunikasi Selular (Telkomsel). |
2017 – 2020 | Senior Vice President Procurement, PT Telekomunikasi Selular (Telkomsel). |
2016 – 2017 | Senior Vice President Consumer Marketing, PT Telekomunikasi Selular (Telkomsel). |
2013 – 2016 | Executive Vice President Area Jabodetabek Jawa Barat, PT Telekomunikasi Selular (Telkomsel). |
May 2010 – 2013 | Vice President Area Jabodetabek Jawa Barat, PT Telekomunikasi Selular (Telkomsel). |
Mar 2010 – May 2010 | Vice President Customer Lifecycle Management, PT Telekomunikasi Selular (Telkomsel). |
Jan 2008 – Mar 2010 | Vice President Radio Access Engineering Java-Bali, PT Telekomunikasi Selular (Telkomsel). |
Feb 2005 – Jan 2008 | Vice President Network Operations, PT Telekomunikasi Selular (Telkomsel). |
Edi Witjara
Director of Enterprise & Business Service (EBIS)
Born | : Kediri, November 17, 1972 |
Age | : 48 years old |
Citizenship | : Indonesian |
Domicile | : Bandung, Indonesia |
Educations
8 | |
---|---|
1995 | Bachelor degree in Electrical Engineering, Universitas Islam Sumatera Utara, Indonesia. |
2009 | Master degree in Business Law, Universitas Padjajaran, Indonesia. |
2018 | Doctoral degree in Strategic Business Management, Universitas Padjajaran, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on May 24, 2019.
Work Experiences
2020 – present | President Commissioner, PT Telkom Satelit Indonesia. |
---|---|
2020 – present | President Commissioner, PT PINS Indonesia. |
2019 – present | President Commissioner, PT Multimedia Nusantara. |
2019 - 2020 | Director of Human Capital Management, PT Telkom Indonesia (Persero), Tbk. |
2019 – 2020 | Presiden Commissioner, PT Infomedia Nusantara. |
2019 - 2020 | Board of Supervisor, Global Council of Corporate University. |
2018 - 2019 | SVP Group Financial Planning Analysis and Control, PT Telkom Indonesia (Persero), Tbk. |
2017 - 2018 | Head of the Shared Service Organization Business Program, PT Telkom Indonesia (Persero), Tbk. |
2016 - 2018 | SVP Financial Planning & Analysis, PT Telkom Indonesia (Persero), Tbk. |
2013 - 2016 | Commissioner, PT Telkom Akses. |
2013 - 2016 | VP Management Accounting, PT Telkom Indonesia (Persero), Tbk. |
Herlan Wijanarko
Director of Network & IT Solution (NITS)
Born | : Solo, February 19, 1965 |
Age | : 55 years old |
Citizenship | : Indonesian |
Domicile | : Bandung, Indonesia |
59
Educations
1989 | Bachelor degree in Electrical Engineering, Institut Teknologi Bandung, Indonesia. |
2005 | Master degree in Management, Sekolah Tinggi Manajemen Bisnis Telkom, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on June 19, 2020.
Work Experiences
2020 – present | President Commissioner, PT Dayamitra Telekomunikasi. |
2018 – 2020 | President Director, PT Dayamitra Telekomunikasi. |
2016 – 2018 | EGM Service Operations Division, PT Telkom Indonesia (Persero), Tbk. |
2015 – 2016 | Deputy EGM Infra Operations & Maintenance, PT Telkom Indonesia (Persero), Tbk. |
2014 – 2015 | Deputy EGM Network Infrastructure & Access, PT Telkom Indonesia (Persero), Tbk. |
2014 – 2014 | Deputy EGM IP Network & Operation, PT Telkom Indonesia (Persero), Tbk. |
2013 – 2014 | GM North West West Java (Bekasi), PT Telkom Indonesia (Persero), Tbk. |
2010 – 2013 | GM Network Regional West Java Region, PT Telkom Indonesia (Persero), Tbk. |
2009 – 2010 | GM Network Regional Central Java Region, PT Telkom Indonesia (Persero), Tbk. |
2007 – 2009 | GM Regional Network for Eastern Indonesia, PT Telkom Indonesia (Persero), Tbk. |
Muhamad Fajrin Rasyid
Director of Digital Business (DB)
Born | : Jakarta, September 11, 1986 |
---|---|
Age | : 34 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
2008 | Student Exchange Program, Daejeon University, South Korea. |
---|---|
2009 | Bachelor degree in Information Technology, Institut Teknologi Bandung, Indonesia. |
2018 | Executive Educations in Scaling Entrepreneurial Ventures, Harvard Business School, United States of America. |
2019 | Executive Educations in Innovations and Growth, Stanford University of Business, United States of America. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on June 19, 2020.
Riwayat Jabatan
2020 – present | President Commissioner, PT Metranet. |
2020 – present | President Commissioner PT MDI. |
2020 – present | Commissioner, PT Sigma Cipta Caraka. |
2011 – 2020 | CO-Founder & President, Bukalapak. |
2011 – 2014 | President Director, Suitmedia. |
2009 – 2011 | Consultant, The Boston Consulting Group (BCG). |
60
Budi Setyawan Wijaya
Director of Strategic Portfolio (SP)
Born | : Yogyakarta, October 28, 1972 |
Age | : 48 years old |
Citizenship | : Indonesian |
Domicile | : Bandung, Indonesia |
Educations
1996 | Bachelor degree in Industrial Engineering and Management, Sekolah Tinggi Teknologi Telkom, Indonesia. |
2003 | Master of Management, Sekolah Tinggi Manajemen Bisnis Telkom, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on June 19, 2020.
Work Experiences
2020 – present | President Commissioner, PT Sigma Cipta Caraka. |
2020 – present | President Commissioner, PT Teltranet Aplikasi Solusi. |
2020 – present | President Commissioner, PT Jalin Pembayaran Nusantara. |
2017 – 2020 | President Director, PT ADMEDIKA. |
2015 – 2017 | President Director, PT MD Media. |
2013 – 2015 | President Director, PT Melon Indonesia. |
MEMBER OF THE BOARD OF DIRECTORS WHO TERMINATE IN 2020
Harry Mozarta Zen
Director of Finance
Born | : Tanjung Pinang, January 9, 1969 |
Age | : 51 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
1993 | Bachelor degree in Metallurgy of Faculty of Engineering, Universitas Indonesia, Indonesia. |
1996 | Master of Business and Administration, Corporate Finance and Financial Institutions & Market, State University of New York, United States of America. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on April 22, 2016.
Work Experiences
2008 – 2015 | President Director, PT Credit Suisse Securities Indonesia. |
2007 – 2008 | Director, PT Barclays Capital. |
2001 – 2007 | Co-Head Investment Banking, PT Bahana Sekuritas. |
1996 – 2001 | Assistant Vice President Global Corporate Banking, PT Citibank. |
1993 – 1994 | Official Assistant Global Consumer Banking, PT Citibank. |
61
Zulhelfi Abidin
Director of Network & IT Solution
Born | : Bukittinggi, January 1, 1962 |
Age | : 58 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
1987 | Bachelor degree in Informatics Engineering from Institut Teknologi Bandung, Indonesia. |
1996 | Master degree in Computer Science from University of Wollongong, Australia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on April 21, 2017.
Work Experience
2017 – 2020 | Director of Network & IT Solution, PT Telkom Indonesia (Persero), Tbk. |
2018 – 2019 | President Commissioner, PT Sigma Cipta Caraka. |
2015 – 2017 | Director, PT Bank Rakyat Indonesia (BRI). |
2014 – 2015 | Senior Executive Vice President, PT Bank Rakyat Indonesia (BRI). |
2012 – 2015 | Commissioner, PT Bank Rakyat Indonesia Syariah (BRI Syariah). |
2007 – 2014 | Head of Information Systems Technology Division, PT Bank Rakyat Indonesia (BRI). |
Siti Choiriana
Director of Consumer Service
Born | : Magetan, May 28, 1970 |
Age | : 50 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
1993 | Bachelor degree in Electrical Engineering, Institut Teknologi Sepuluh Nopember, Indonesia. |
---|---|
2005 | Magister Manajemen Teknologi, Institut Teknologi Sepuluh Nopember, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on April 27, 2018.
Work Experiences
2018 – 2020 | Director of Consumer Service, PT Telkom Indonesia (Persero), Tbk. |
2017 – 2018 | Commissioner, PT Telkom Sigma. |
2013 – 2018 | Executive Vice President of Enterprise Service Division, PT Telkom Indonesia (Persero), Tbk. |
2016 – 2017 | President Commissioner, PT Patrakom. |
2016 | Commissioner, PT Admedika. |
2013 – 2015 | Commissioner, PT Finnet Indonesia. |
2012 – 2013 | Deputy Executive Vice President of Enterprise Service Division, PT Telkom Indonesia (Persero), Tbk. |
62
Faizal Rochmad Djoemadi
Director of Digital Business
Born | : Blitar, December 12, 1967 |
Age | : 53 years old |
Citizenship | : Indonesian |
Domicile | : Bandung, Indonesia |
Educations
1991 | Bachelor degree in Electrical-Telecommunication Engineering, Institut Teknologi Sepuluh Nopember, Indonesia. |
1998 | Master degree in Electrical Engineering, University of Sasakatchewan, Canada. |
2019 | Doctoral degree in Management, Universitas Brawijaya, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on May 24, 2019.
Work Experiences
PT | |
2016 – 2019 | President Director, PT Telekomunikasi Indonesia Internasional. |
2015 – 2016 | EVP Wholesale Service Division, PT Telkom Indonesia (Persero) Tbk.. |
2012 – 2014 | Deputy Executive General Manager of Wholesale Service Division, PT Telkom Indonesia (Persero) Tbk. |
Achmad Sugiarto
Director of Strategic Portfolio
Born | : Jakarta, August 22, 1965 |
Age | : 55 years old |
Citizenship | : Indonesian |
Domicile | : Jakarta, Indonesia |
Educations
1984 | Bachelor degree in Industrial Technology Faculty, Universitas Trisakti, Indonesia. |
1998 | Master degree in Management, Universitas Airlangga, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on May 24, 2019.
Work Experience
2017 – 2019 | Director, PT Sigma Cipta Caraka. |
2015 – 2017 | SVP Synergy & Portfolio, PT Telkom Indonesia (Persero) Tbk. |
2014 – 2015 | EGM Divisi Digital Business, PT Telkom Indonesia (Persero) Tbk. |
Edwin Aristiawan
Director of Wholesale & International Service
Born | : Surabaya, October 14, 1969 |
Age | : 51 years old |
Citizenship | : Indonesian |
63
Domicile | : Surabaya, Indonesia |
Educations
p | |
1993 | Bachelor degree in Electrical Engineering, Institut Teknologi Sepuluh Nopember, Indonesia. |
2002 | Master degree in Management, Sekolah Tinggi Manajemen Bisnis, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on May 24, 2019.
Work Experiences
2019 | Executive Vice President Regional III West Java, PT Telkom Indonesia (Persero) Tbk. |
2016 – 2019 | Executive Vice President Regional VI Kalimantan, PT Telkom Indonesia (Persero) Tbk. |
2015 – 2016 | Deputy EVP Regional Infrastructure II Jabodetabek & Serang, PT Telkom Indonesia (Persero) Tbk. |
2014 – 2015 | Deputy Executive General Manager for Regional IV Central Java & DIY, PT Telkom Indonesia (Persero) Tbk. |
Bogi Witjaksono
Director of Enterprise & Business Service
Born | : Surabaya, February 8, 1967 |
Age | : 53 years old |
Citizenship | : Indonesian |
Domicile | : Bogor, Indonesia |
Educations
1989 | Bachelor degree in Electrical Engineering, Institut Teknologi Sepuluh Nopember, Indonesia. |
1995 | Master degree in Telecommunication Engineering (Mobile Communication), Institut Teknologi Bandung, Indonesia. |
Basis of Appointment
Annual General Meeting of Shareholders (AGMS) of Telkom on May 24, 2019.
Work Experiences
2018 – 2019 | Deputy President Director (COO), PT Telkom Satelite. |
2015 – 2019 | President Director, PT Patrakom. |
2012 – 2019 | Managing Director, PT Metrasat. |
64
EDUCATION, TRAINING, SEMINAR, AND CONGRESS
Telkom provides opportunities for the Board of Directors to improve their competencies through education, training, seminars, congresses, and other activities that can develop knowledge and expertise in 2020.
These are the education and/or training that have been participated by members of the Board of Directors in improving competence in the 2020 financial year.
No. | Occasion | Date | Institution | Location | Directors Who Attended |
---|---|---|---|---|---|
1. | Keynote Speaker on CNBC Indonesia Outlook 2020 “Digitalization as a Lever for the Nation’s Economy Growth” | February 26, 2020 | CNBC Indonesia | Ritz Carlton Jakarta | President Director |
2. | Keynote Speaker on Webinar Sekolah Politik Indonesia “Peran Sektor Telekomunikasi dalam Pemulihan Ekonomi Nasional” | September 11, 2020 | Sekolah Politik Indonesia | Webinar | President Director |
3. | Keynote Speaker on Webinar Transformasi Digital - BUMN and Industri Penghela Transformasi Digital Nasional “Telkom Indonesia Digital Transformation Acceleration Strategy” | October 9, 2020 | PIKKC ITB | Webinar | President Director |
4. | Keynote Speaker on Indonesia AI Summit 2020 “Infrastructure and Data Preparation for the Use of Artificial Intelligence Technology in Indonesia” | November 12, 2020 | BPPT | Webinar | President Director |
5. | Kick Andy: Pemberdayaan UMKM dalam mendukung Percepatan Pemulihan Ekonomi Nasional | December 13, 2020 | Metro TV | Studio Metro TV | President Director |
6. | Keynote Speaker on IEEE Indonesia Student Congress 2020 | October 17, 2020 | IEEE Indonesia | Online Jakarta | WINS |
7. | Keynote Speaker on FGD of The Coordinating Ministry for Political, Legal and Security Affairs regarding the challenges and opportunities of deploying a foreign SKKL in Indonesian territory towards the security and sovereignty of the State | November 19, 2020 | Coordinating Ministry for Political, Legal and Security Affairs | Online Jakarta | WINS |
8. | Keynote Speaker on Indonesia Cloud & Data Center Digital Summit | December 9, 2020 | w.media | Online Jakarta | WINS |
9. | Keynote Speaker on Webinar Nasional: Peran Pelaku Usaha dalam Perubahan Perilaku Adaptasi Kebiasaan Baru Melawan COVID-19 | November 5, 2020 | Badan Nasional Penanggulangan Bencana | Video Conference | HCM |
10. | Keynote Speaker on Indonesia Best Companies in Creating Leaders from Within 2020 | December 7, 2020 | SWA Network | Video Conference | HCM |
11. | Keynote Speaker on Provocative Mindset MetroTV Topic: Hobi Sekolah Apa Gunanya? | January 19, 2020 | Metro TV | Jakarta | KEU |
12. | Keynote Speaker on Webinar Transformasi dan Strategi BUMN | August 8, 2020 | SBM ITB | Jakarta | KEU |
13. | Public Expose Live 2020 | August 27, 2020 | Telkom | Jakarta | KEU |
14. | Prime Talk “Telkom Menjaga Momentum di Tengah Pandemi” | October 23, 2020 | Metro TV | Jakarta | KEU |
15. | Keynote Speaker on “Inovasi Pelayanan Pelanggan di Era New Normal” | August 19, 2020 | Hari Pelanggan Nasional | Video Conference | CONS |
65
No. | Occasion | Date | Institution | Location | Directors Who Attended |
---|---|---|---|---|---|
16. | Keynote Speaker on “Indonesia Industry Outlook [IIO] 2020: It’s Time to Win – Back After Pandemic” | November 5, 2020 | Indonesia Industry Outlook 2020 | Video Conference | CONS |
17. | Keynote Speaker on FGD BPKN “Transparansi Pemakaian Data Internet” | November 19, 2020 | BPKN RI | Video Conference | CONS |
18. | Keynote Speaker on FGD MPR RI “Peran Produksi Film & Konten oleh Negara dalam Rangka Pembentukan Karakter Bangsa untuk Mewujudkan Ketahanan Negara” | December 10, 2020 | MPR RI | Gedung Nusantara IV MPR RI, Jakarta | CONS |
19. | Directorship Program | December 15 - 18, 2020 | Pertamina Training & Consulting | Live Streaming | EBIS |
20. | Keynote Speaker on “Corporate Law for Executive” | December 15 - 18, 2020 | Pertamina Training & Consulting | Live Streaming | EBIS |
21. | Keynote Speaker on SBM-ITB Webinar Series: Arah dan Strategy Digital Transformation di Indonesia | August 20, 2020 | ITB | Video Conference | NITS |
22. | Technology Sharing Session 5G and Wifi Technology with Huawei | October 6, 2020 | Huawei | Video Conference | NITS |
23. | Technology Sharing Session 5G Wifi with Ericsson | October 7, 2020 | Ericsson | Video Conference | NITS |
24. | Technology Sharing Session implementation open RAN in 5G era | October 12, 2020 | Telkomsel | Video Conference | NITS |
25. | ASKALSI 2020 Munaslub as Chair of the Supervisory Board | December 17, 2020 | ASKALSI | Hotel JW Luwansa | NITS |
26. | Keynote Speaker on Ganesha Student Innovation Summit | December 19, 2020 | ITB | Video Conference | NITS |
27. | Leadership Speaker Series with Vice Minister of Ministry of SOE | July 16, 2020 | Ministry of SOE | Video Conference | DB |
28. | Keynote Speaker on Gerakan Nasional 1000 Start Up | September 12, 2020 | Ministry of Communication and Information Technology | Video Conference | DB |
29. | Keynote Speaker on GSMA Thrive Asia Pacific | November 4, 2020 | GSMA | Video Conference | DB |
30. | Keynote Speaker on “Webinar CNN 3rd Series: Cegah Rugi Selama Pandemi” | November 6, 2020 | CNN | Video Conference | SP |
66
DIRECTORS AFFILIATIONS AND RELATIONSHIPS
In accordance with the principle of transparency in the implementation of good corporate governance or GCG, Telkom discloses the affiliation of members of the Board of Directors with fellow Directors, Commissioners and major and controlling shareholders, including the names of affiliated parties.
No. | Name | Position | Financial Affiliation with | Family Affiliation with | ||||
---|---|---|---|---|---|---|---|---|
| BOC | BOD | Major & Controlling Shareholder(1) | BOC | BOD | Major & Controlling Shareholder(1) | ||
1. | Ririek Adriansyah* | President Director | No | No | No | No | No | No |
2. | Dian Rachmawan | Director of Wholesale & International Service | No | No | No | No | No | No |
3. | Afriwandi | Director of Human Capital Management | No | No | No | No | No | No |
4. | Heri Supriadi | Director of Finance | No | No | No | No | No | No |
5. | FM Venusiana R. | Director of Consumer Service | No | No | No | No | No | No |
6. | Edi Witjara | Director of Enterprise & Business Service | No | No | No | No | No | No |
7. | Herlan Wijanarko | Director of Network & IT Solution | No | No | No | No | No | No |
8. | Muhamad Fajrin Rasyid | Director of Digital Business | No | No | No | No | No | No |
9. | Budi Setyawan Wijaya | Director of Strategic Portfolio | No | No | No | No | No | No |
10. | Harry Mozarta Zen* | Director of Finance | No | No | No | No | No | No |
11. | Zulhelfi Abidin* | Director of Network & IT Solution | No | No | No | No | No | No |
12. | Siti Choiriana* | Director of Consumer Service | No | No | No | No | No | No |
13. | Faizal Rochmad Djoemadi* | Director of Digital Business | No | No | No | No | No | No |
14. | Achmad Sugiarto* | Director of Strategic Portfolio | No | No | No | No | No | No |
15. | Edwin Aristiawan* | Director of Wholesale & International Service | No | No | No | No | No | No |
16. | Bogi Witjaksono* | Director of Enterprise & Business Service | No | No | No | No | No | No |
Remarks:
(1) | Controlling Shareholder in this matter is the Indonesian government represented by the Ministry of State-Owned Enterprises as the primary shareholder. |
* | Not in position since June 19, 2020. |
67
TELKOM EMPLOYEES
TelkomGroup employees are one of the key stakeholders that contribute to the successful realization of the company's vision and mission. To that end, TelkomGroup continually conducts strategic employee engagement. This has been a vital concern, particularly as TelkomGroup continued to make its transition into a digital telecommunications company throughout the pandemic. TelkomGroup employees are encouraged to have agility at work, by involving and forming cross-functional and cross-expertise tribes and squads the development of service products.
Throughout 2020, the direction of TelkomGroup management’s strategy has been followed by its employees, both at the parent company and subsidiary companies. TelkomGroup management always ensures a professional, safe, comfortable, and prosperous work environment. Additionally, TelkomGroup guarantees a non-discriminative diversity in the workplace, in conformity with human rights. Without doubt this creates an environment where TelkomGroup employees able to work wholeheartedly without feeling disquieted or concerned about unequitable opportunities.
68
EMPLOYEE PROFILE
As of December 31, 2020, Telkom was recorded as having 25,348 employees. Of the total number of employees, 9,745 employees worked at Telkom, the parent company, and 15,603 employees worked for its subsidiaries. Compared to the number of employees in 2019, there has been an increase in the number of employees by 1,076 people or 4.4 percent. Although TelkomGroup also experienced constraints due to the pandemic, it did not let any employees go before retirement.
Number of Employees - Telkom and Subsidiaries per 31 December 2018-2020
| | | |
| 2020 | 2019 | 2018 |
Telkom Employee | 9,745 | 11,059 | 12,765 |
Subsidiary Employee | 15,603 | 13,213 | 11,306 |
Total | 25,348 | 24,272 | 24,071 |
NUMBER OF EMPLOYEES BASED ON EDUCATION LEVEL AND AGE DISTRIBUTION
Based on their educational background, Telkom employees’ educational backgrounds range from pre-university to postgraduate. Data as of December 31, 2020, 3,090 Telkom employees have pre-university education. Of these, 1,434 people work for Telkom's parent company and 1,656 work for its subsidiaries. At a diploma level, 1,060 people work for the parent company and the 2,583 work for the subsidiaries. At an undergraduate level, the majority of employees with a degree work for Telkom’s subsidiaries - 10,063 people -, with the parent company employing 5,470 people. Lastly, at postgraduate level, 1,781 people work for the parent company and 1,301 people work for the subsidiaries.
Compared to 2019, the number of employees in 2020 with undergraduate and postgraduate degrees increased significantly, by 1,655 people.
The following is the employee data based on education from 2018 to 2020.
Telkom and Subsidiaries Employees Based on Education per December 31, 2018-2020
| | | | | | | | |
---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2018 | |||||
| Telkom | Subsidiary | Total | % | Total | % | Total | % |
Pre-University | 1,434 | 1,656 | 3,090 | 12.2 | 5,285 | 21.8 | 3,630 | 15.1 |
Diploma | 1,060 | 2,583 | 3,643 | 14.4 | 2,027 | 8.4 | 3,851 | 16.0 |
Undergraduate | 5,470 | 10,063 | 15,533 | 61.3 | 13,988 | 57.6 | 13,609 | 56.5 |
Postgraduate (Master and Doctorate) | 1,781 | 1,301 | 3,082 | 12.1 | 2,972 | 12.2 | 2,981 | 12.4 |
Total | 9,745 | 15,603 | 25,348 | 100.0 | 24,272 | 100.0 | 24,071 | 100.0 |
Furthermore, in terms of age, at the end of 2020 a majority of 69.4% or 17,335 TelkomGroup employees were aged 45 years or under. This is an increase of 15.9%, or 2,376 people, compared to the previous year. With this composition, TelkomGroup guarantees a good regeneration process to counterbalance the number of employees who will end their work period.
The following table provides data on the number of people employed by Telkom and its subsidiaries by age in the last three years.
Telkom and Subsidiaries Employees by Age per December 31, 2018-2020
| | | | | | | | |
| 2020 | 2019 | 2018 | |||||
| Telkom | Subsidiary | Total | % | Total | % | Total | % |
< 30 years | 2,660 | 4,573 | 7,233 | 28.5 | 5,784 | 23.8 | 5,548 | 23.0 |
30-45 years | 1,628 | 8,474 | 10,102 | 39.9 | 9,175 | 37.8 | 8,514 | 35.4 |
> 45 years | 5,457 | 2,556 | 8,013 | 31.6 | 9,313 | 38.4 | 10,009 | 41.6 |
Total | 9,745 | 15,603 | 25,348 | 100.0 | 24,272 | 100.0 | 24,071 | 100.0 |
69
NUMBER OF EMPLOYEES BY POSITION AND EMPLOYMENT STATUS
TelkomGroup has several levels of positions such as senior management, middle management, supervisors, and other positions below supervisory level. In 2020, the highest total number of employees at Telkom and its subsidiaries comprised of Supervisory positions: 12,480 people or a decrease of 3.6% or 470 people compared to the previous year. This was followed by Other positions, a total of 6,442 people, and by Middle Management positions, a total of 6,130 people.
The following table presents data on the number of employees at Telkom and its subsidiaries based on their position at the end of 2018, 2019 and 2020.
Number of Telkom and Subsidiary Employees Based on Position as of December 31, 2018-2020
| | | | | | | | |
| 2020 | 2019 | 2018 | |||||
| Telkom | Subsidiary | Total | % | Total | % | Total | % |
Senior Management | 129 | 167 | 296 | 1.2 | 310 | 1.3 | 403 | 1.7 |
Middle Management | 3,143 | 2,987 | 6,130 | 24.2 | 6,377 | 26.3 | 6,093 | 25.3 |
Supervisor | 4,928 | 7,552 | 12,480 | 49.2 | 12,950 | 53.3 | 11,050 | 45.9 |
Others | 1,545 | 4,897 | 6,442 | 25.4 | 4,635 | 19.1 | 6,525 | 27.1 |
Total | 9,745 | 15,603 | 25,348 | 100.0 | 24,272 | 100.0 | 24,071 | 100.0 |
Regarding employment status, as of 31 December 2020, a total of 21,336 people or 84.2% were permanent employees of Telkom and its subsidiaries and 4,012 people or 15.8% were non-permanent employees. Of that total, 8,568 permanent employees worked at Telkom whilst subsidiaries employed 12,768 permanent employees. Telkom employed 1,177 non-permanent employees, and 2,835 non-permanent worked were employed by the subsidiaries. When compared to the previous year, the composition of total non-permanent employees compared to total employees increased by 15.8% in 2020 compared to 6.8% in 2019.
Attached is a more detailed data regarding the number of employees based on employment status as of December 31, 2018, 2019 and 2020.
Telkom and Subsidiaries – Number of Employees Based on Employment Status as of December 31, 2018-2020
| | | | | | | | |
| 2020 | 2019 | 2018 | |||||
| Telkom | Subsidiary | Total | % | Total | % | Total | % |
Permanent Employee | 8,568 | 12,768 | 21,336 | 84.2 | 22,624 | 93.2 | 22,970 | 95.5 |
Professional | 673 | 2,780 | 3,453 | 13.6 | 895 | 3.7 | 538 | 2.2 |
Rehire | 362 | 31 | 393 | 1.5 | 474 | 2.0 | 115 | 0.5 |
Retirement Preparation Period | 97 | 23 | 120 | 0.5 | 222 | 0.9 | 368 | 1.5 |
Study Assignment | 45 | 1 | 46 | 0.2 | 57 | 0.2 | 80 | 0.3 |
Total | 9,745 | 15,603 | 25,348 | 100.0 | 24,272 | 100.0 | 24,071 | 100.0 |
70
GENDER EQUALITY ASSURANCE AND NUMBER OF EMPLOYEES BASED ON GENDER
As stated in the Resolution of the Board of Directors PD.201.01/r.00/PS150/COP-B0400000/2014 dated 6 May 2014 concerning Business Ethics within the TelkomGroup, the business practices of Telkom and its subsidiaries guarantee gender equality in the company's working environment.
At the end of December 2020, the number of TelkomGroup employees, grouped by gender, consisted of 17,787 male employees and 7,561 female employees or a comparison of 70.2% to 29.8%. Telkom and its subsidiaries do not have policies in place setting quotas for the number of employees based on gender nor does it practice gender discrimination in the workplace. However, TelkomGroup has noted that based on the characteristics of the industry, more men are interested in working in the telecommunications sector than women.
The number of employees of Telkom and its subsidiaries, by gender, as of December 31, 2020, can be seen in the following table.
Telkom and Subsidiaries - Number of Employees by Gender as of December 31, 2018-2020
| | | | | | | | |
| 2020 | 2019 | 2018 | |||||
| Telkom | Subsidiary | Total | % | Total | % | Total | % |
Male | 6,926 | 10,861 | 17,787 | 70.2 | 17,987 | 74.1 | 18,021 | 74.9 |
Female | 2,819 | 4,742 | 7,561 | 29.8 | 6,285 | 25.9 | 6,050 | 25.1 |
Total | 9,745 | 15,603 | 25,348 | 100.0 | 24,272 | 100.0 | 24,071 | 100.0 |
Furthermore, based on position, Telkom and its subsidiaries also do not differentiate by gender. All positions are open to both male and female employees. Employee placement depends on each employee’s ability and competence of as well as the results of their assessment. At this time, 25 women hold senior management positions in the TelkomGroup followed by 1,104 and 3,305 women in middle management and supervisory positions.
The following table provides an overview of the distribution of male and female employees working at Telkom and its subsidiaries in various positions as of December 31, 2020.
Number of Telkom and Subsidiary Employees Based on Position and Gender as of December 31, 2020
| | | | | | | | | |
| Telkom | Subsidiary | Total | ||||||
| Male | Female | Total | Male | Female | Total | Male | Female | Total |
Senior Management | 122 | 7 | 129 | 149 | 18 | 167 | 271 | 25 | 296 |
Middle Management | 2,478 | 665 | 3,143 | 2,548 | 439 | 2,987 | 5,026 | 1,104 | 6,130 |
Supervisor | 3,478 | 1,450 | 4,928 | 5,697 | 1,855 | 7,552 | 9,175 | 3,305 | 12,480 |
Others | 848 | 697 | 1,545 | 2,467 | 2,430 | 4,897 | 3,315 | 3,127 | 6,442 |
Total | 6,926 | 2,819 | 9,745 | 10,861 | 4,742 | 15,603 | 17,787 | 7,561 | 25,348 |
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EQUAL OPPORTUNITIES IN COMPETENCY DEVELOPMENT
In line with its vision and mission, Telkom provides opportunities for all employees to improve their competence and creativity regardless of ethnicity, religion, race, class and gender. In developing employee competencies, Telkom and its subsidiaries ensure equal opportunities for each individual to participate in the designated education and training programs.
Throughout 2020, a total of Rp94,459 billion had been disbursed by TelkomGroup for its employee competency development, excluding scholarship funds. This is lower than the Rp127.4 billion competency development funds disbursed in 2019 as the pandemic forced a switch to online learning. A total of 15,128 employees participated in various training programs in 2020, while 1,917 employees took part in certification programs. The number of training participants in 2020 was higher than in 2019 due to the change to online learning, which meant that more employees could take part.
The following table presents data for the TelkomGroup’s competency development program for the last three years.
Competency Development for Telkom and Subsidiaries Employees 2018-2020
| | | | | | | | |
---|---|---|---|---|---|---|---|---|
Competency Development Program | 2020 | 2019 | 2018 | |||||
| Telkom | Subsidiary | Total | % | Total | % | Total | % |
Training | 11,190 | 3,938 | 15,128 | 88.7 | 12,775 | 87.7 | 15,282 | 91.5 |
Certification | 1,814 | 103 | 1,917 | 11.2 | 1,784 | 12.2 | 1,340 | 8.0 |
Educationl Scholarship | 20 | 0 | 20 | 0.1 | 16 | 0.1 | 72 | 0.4 |
Total | 13,024 | 4,041 | 17,065 | 100.0 | 14,575 | 100.0 | 16,694 | 100.0 |
In practice, employee training organized by Telkom and its Subsidiaries are for the most part routine training programs and leadership development programs to obtain a certification. Training programs are open to all employees who meet requirements regardless of ethnicity, race, religion, and gender. Regular training programs consist of operational technical training as well as management training. Additionally, TelkomGroup also provides scholarships to employees as part of its employee development program.
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SHAREHOLDERS COMPOSITION
Telkom's shareholder structure as of December 31, 2020 can be seen in the following diagram.
Telkom's shares consist of 1 Series A Dwiwarna share which is only owned by the Government of the Republic of Indonesia and 99,062,216,599 Series B shares (common stock). The issued and fully paid-up capital is 99,062,216,600 shares. The Government of the Republic of Indonesia has a total share ownership percentage of 52.09%, which makes it the main and controlling shareholder. The following is a table of Telkom's shareholder composition as of the end of 2020.
Composition of Shareholders Telkom on December 31, 2020
| | | | | |
| Series A | | Series B | | % |
| Dwiwarna | | (Common Stock) | | |
The Government of the Republic of Indonesia | 1 | | 51,602,353,559 | | 52.09 |
Public | | | 47,459,863,040 | | 47.91 |
Total | 1 | | 99,062,216,599 | | 100.0 |
The following is more detailed data and information regarding the composition of Telkom's shareholders as of December 31, 2020.
| |
1. | Shareholders with More than 5% Ownership (Major/Controlling Shareholders) |
| | | |
Type of Share | Individual or Group Identity | Total Shares | % |
Series A | The Government of the Republic of Indonesia | 1 | 0 |
Series B | The Government of the Republic of Indonesia | 51,602,353,559 | 52.09 |
2. | Ownership of Shares by Directors and Commissioners |
| On December 31, 2020 there are no Commissioner or Director which has more than 1.0% of Telkom shares. |
| | | | |
| BOC and BOD | Total Shares | | % |
Board of Commisioners | – | – | | – |
Board of Directors | Ririek Adriansyah | 1,156,955 | | <0.01 |
| Budi Setyawan Wijaya | 275,000 | | <0.01 |
| Dian Rachmawan | 120,222 | | <0.01 |
| Afriwandi | 42,500 | | <0.01 |
| Herlan Wijanarko | 42,500 | | <0.01 |
| Edi Witjara | 32,500 | | <0.01 |
Total | | 1,669,677 | | <0.01 |
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3. | Shareholders with Less than 5% Ownership |
---|---|
| Telkom Shareholders with Individual Ownership Less than 5%, on December 31, 2020. |
| | | |
| Group | Total Shares | % |
| | | |
Foreign | Business/Institution | 32,979,585,012 | 33.29 |
| Individual | 38,918,500 | 0.04 |
Local | Business/Institution | | |
| Pensions Funds | 4,878,552,950 | 4.92 |
| Mutual Fund | 3,522,211,883 | 3.56 |
| Insurance Company | 3,146,793,160 | 3.18 |
| Limited Liability | 355,271,522 | 0.36 |
| Others | 112,869,550 | 0.11 |
| Individual | 2,425,660,463 | 2.45 |
Total | | 47,459,863,040 | 47.91 |
4. | Percentage of Shares Owned Domestic and Foreign As of December 31, 2020, as many as 191,972 shareholders (including the Government of the Republic of Indonesia), were registered as common shareholders. This includes 33,018,503,512 common shares owned by 2,237 shareholders abroad. Thus 33.33% of Telkom's shares are owned by foreign shareholders and the rest is controlled by domestic shareholders. On the same date there were 75 ADS shareholders who owned 38,393,803 ADSs (1 ADS is equivalent to 100 ordinary shares). |
5. | List of 20 Largest Public Shareholders Here is a list of the 20 largest public shareholders until December 31, 2020. |
| No. | Institution | % |
| 1. | DJS KETENAGAKERJAAN PROGRAM JHT | 2.79 |
| 2. | GIC S/A GOVERNMENT OF SINGAPORE | 2.58 |
| 3. | BNYM RE BNYMLB RE EMPLOYEES PROVIDENTFD | 1.14 |
| 4. | JPMCB NA RE-VANGUARD TOTAL INTERNATIONAL | 0.68 |
| 5. | RBC S/A VONTOBEL FUND - MTX SUITANABLE E | 0.68 |
| 6. | JPMCB NA RE - VANGUARD EMERGING MARKETS | 0.60 |
| 7. | GIC S/A MONETARY AUTHORITY OF SINGAPORE | 0.53 |
| 8. | PT. PRUDENTIAL LIFE ASSURANCE - REF | 0.53 |
| 9. | BNYM RE VIRTUS VONTOBEL EMERGING MARKETS | 0.51 |
| 10. | PT AXA MANDIRI FINANCIAL SERVICES S/A MA | 0.49 |
| 11. | DJS KETENAGAKERJAAN PROGRAM JP | 0.44 |
| 12. | BNYMSANV RE BNYM RE PEOPLE'S BANK OF CHI | 0.43 |
| 13. | RBC S/A COMGEST GROWTH PLC COMGEST GROWT | 0.42 |
| 14. | PT. TASPEN | 0.40 |
| 15. | SSB 2Q27 S/A ISHARES CORE MSCI EMERGING | 0.39 |
| 16. | PT TASPEN (ASURANSI) - AFS | 0.35 |
| 17. | HSBC BK PLC S/A THE PRUDENTIAL ASSURANCE | 0.33 |
| 18. | RD SCHRODER D PRESTASI PLUS-908294000 | 0.32 |
| 19. | JPMBL SA UCITS CLT RE-NORDEA 1 SICAV | 0.30 |
| 20. | HSBC BANK PLC S/A KUWAIT INVESTMENT AUTH | 0.30 |
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SUBSIDIARIES, ASSOCIATED COMPANIES, AND JOINT VENTURES
As of December 31, 2020, TelkomGroup has a total of 34 subsidiaries with direct and indirect ownership that are actively operating with with share ownership more than 50%. In addition, there are 10 unconsolidated (affiliated) subsidiaries. One of the subsidiaries, namely Telkomtelstra, has not consolidated its financial statements even though the indirect share ownership reaches 51%.
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As of December 31, 2020, Telkom has consolidated its 2020 Financial Statements for all subsidiaries that are owned directly or indirectly, as follows:
SUBSIDIARIES WITH DIRECT OWNERSHIP
Company | Share | Business Field | Operational | Total Asset (Rp billion) | Address |
---|---|---|---|---|---|
PT Telekomunikasi Selular Jakarta, Indonesia | 65% | Telecommunication - provides telecommunication facilities and mobile cellular services using Global Systems for Mobile Communication (GSM) technology | Operating | 103,652 | Telkomsel Smart Office Telkom Landmark Tower 1st -20th floor, The Telkom Hub, Jl, Jend Gatot Subroto Kav, 52 Jakarta, 12710, Indonesia |
PT Dayamitra Telekomunikasi Jakarta, Indonesia | 100% | Leasing telecommunication towers and other telecommunications services | Operating | 25,368 | Telkom Landmark Tower 25th-27th floor, The Telkom Hub, Jl, Jend Gatot Subroto Kav, 52 Jakarta, 12710, Indonesia |
PT Multimedia Nusantara Jakarta, Indonesia | 100% | Network telecommunication services and multimedia | Operating | 17,708 | Telkom Landmark Tower 22nd & 41st floor, The Telkom Hub, Jl, Jend Gatot Subroto Kav, 52 Jakarta, 12710, Indonesia |
PT Telekomunikasi Indonesia International Jakarta, Indonesia | 100% | Telecommunication | Operating | 12,187 | Telkom Landmark Tower 16th-17th floor, The Telkom Hub, Jl, Jend Gatot Subroto Kav, 52 Jakarta, 12710, Indonesia |
PT Graha Sarana Duta Jakarta, Indonesia | 100% | Leasing of offices and providing building management and maintenance services, civil consultant and developer | Operating | 6,163 | Graha Telkom Property, Jl, Kebon Sirih No, 10, Central Jakarta, 10110, Indonesia |
PT Telkom Satelit Indonesia Jakarta, Indonesia | 100% | Telecommunication-provide satellite communication system, services and facilities | Operating | 4,484 | Telkom Landmark Tower 21st floor, The Telkom Hub, Jl, Jend Gatot Subroto Kav, 52 Jakarta, 12710, Indonesia |
PT Telkom Akses Jakarta, Indonesia | 100% | Construction, service and trade in the field of telecommunication | Operating | 4,154 | Telkom Building, West Jakarta, Jl, S, Parman Kav, 8 West Jakarta, 11440, Indonesia |
PT PINS Indonesia Jakarta, Indonesia | 100% | Telecommunication construction and services | Operating | 1,868 | Telkom Landmark Tower 42nd floor, The Telkom Hub, Jl, Jend Gatot Subroto Kav, 52 Jakarta, 12710, Indonesia |
PT Metra-Net Jakarta, Indonesia | 100% | Multimedia portal service | Operating | 1,320 | Mulia Business Park, J Building, Jl, Letjen MT Haryono Kav, 58 – 60 Pancoran, Jakarta, 12780, Indonesia |
PT Infrastruktur Telekomunikasi Indonesia Jakarta, Indonesia | 100% | Construction, service and trade in the field of telecommunication | Operating | 1,074 | Telkom Landmark Tower 19th floor, The Telkom Hub, Jl, Jend Gatot Subroto Kav, 52 Jakarta, 12710, Indonesia |
PT Napsindo Primatel Internasional Jakarta, Indonesia | 60% | Telecommunication – provides Network Access Point (NAP), Voice Over Data (VOD) and other related services | Ceased operations on January 13, 2006 | 5 | - |
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SUBSIDIARIES WITH INDIRECT OWNERSHIP
Company | Share | Business Field | Operational | Total Asset (Rp billion) | Address |
---|---|---|---|---|---|
PT Sigma Cipta Caraka Tangerang, Indonesia | 100% | Information technology service-system implementation and integration service, outsourcing and software license maintenance | Operating | 6,031 | Telkom Landmark Tower 23rd floor, The Telkom Hub, Jl, Jend Gatot Subroto Kav, 52 Jakarta, 12710, Indonesia |
PT Metra Digital Investama Jakarta, Indonesia | 100% | Trading and/or providing services related to information and technology, multimedia, entertainment and investment | Operating | 3,461 | Telkom Landmark Tower 21st floor, Jl, Jend Gatot Subroto Kav, 52 Jakarta, 12710, Indonesia |
Telekomunikasi Indonesia International Pte, Ltd, Singapore | 100% | Telecommunication | Operating | 3,320 | Maritime Square, #09-63 Harbour Front Centre, 099253, Singapore |
Telekomunikasi Indonesia International Ltd, Hong Kong | 100% | Telecommunication | Operating | 2,652 | Suite 905, 9/F, Ocean Centre, 5 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong |
PT Infomedia Nusantara Jakarta, Indonesia | 100% | Data and information service-provide telecommunication information service and other information services in the form of print and electronic media and call center service | Operating | 2,390 | PT Infomedia Nusantara Head Office, Jl, RS, Fatmawati 77-81 Jakarta, 12150, Indonesia |
PT Telkom Landmark Tower Jakarta, Indonesia | 55% | Service for property development and management | Operating | 2,204 | Telkom Landmark Tower, The Telkom Hub, Jl, Jend Gatot Subroto Kav, 52 Jakarta, 12710, Indonesia |
PT Finnet Indonesia Jakarta, Indonesia | 60% | Information technology services | Operating | 1,371 | Telkom Landmark Tower 18th floor, The Telkom Hub, Jl, Jend Gatot Subroto Kav, 52, Jakarta 12710, Indonesia |
PT Metra Digital Media Jakarta, Indonesia | 100% | Directory information services | Operating | 1,115 | Telkom Landmark Tower 18th floor, The Telkom Hub, Jl, Jend Gatot Subroto Kav, 52 Jakarta, 12710, Indonesia |
PT Melon Indonesia Jakarta, Indonesia | 100% | Digital content exchange hub services | Operating | 848 | Telkom Landmark Tower 45th floor, The Telkom Hub, Jl, Jend Gatot Subroto Kav, 52 Jakarta, 12710, Indonesia |
PT Persada Sokka Tama, Jakarta, Indonesia | 95% | Providing telecommunication network infrastructure | Operating | 824 | Graha Persada 2 1st floor, Jalan Kyai Haji Noor Alie No, 89, Kalimalang, Kota Bekasi, Jawa Barat 17148, Indonesia |
Telekomunikasi Indonesia International S,A, Dili, Timor Leste | 100% | Telecommunication | Operating | 719 | Timor Plaza 4th Floor, Rua Presidente Nicolao Lobato, Comoro, Dili Timor Leste |
TS Global Network Sdn, Bhd, Petaling Jaya, Malaysia | 70% | Satellite service | Operating | 669 | Teknorat ½ street, Cyber 3, 6300 Cyberjaya, Selangor Darul Ehsan, Malaysia |
PT Telkomsel Mitra Inovasi Jakarta, Indonesia | 100% | Business management consulting and capital venture services | Operating | 594 | Telkomsel Smart Office 8th Floor, Jl Gatot Subroto Kav 52 RT 6/RW 1, Kuningan, Mampang Prapatan, Jakarta Selatan 1270 Indonesia |
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Company | Share | Business Field | Operational | Total Asset (Rp billion) | Address |
---|---|---|---|---|---|
PT Swadharma Sarana Informatika Jakarta, Indonesia | 51% | Cash Replenishment services and ATM maintenance | Operating | 577 | St Arteri JORR, No, 70, Jati Melati, Pondok Melati, Bekasi, Indonesia, |
PT Administrasi Medika Jakarta, Indonesia | 100% | Health insurance administration services | Operating | 480 | STO Telkom Gambir C Building 3rd floor, Jl, Medan Merdeka Selatan No, 12, Central Jakarta, 10110, Indonesia |
PT Nusantara Sukses Investasi Jakarta, Indonesia | 100% | Service and trading | Operating | 316 | Multimedia Tower, Annex Building 2nd floor, Jl, Kebon Sirih No, 10-12, Central Jakarta, Indonesia |
PT Graha Yasa Selaras Jakarta, Indonesia | 51% | Tourism service | Operating | 289 | Jl, Cimanuk No, 33 Bandung, Indonesia |
PT Metraplasa Jakarta, Indonesia | 60% | Network & e-commerce services | Operating | 260 | Mulia Business Park, J Building, Jl, Letjen MT Haryono Kav, 58 – 60 Pancoran, Jakarta 12780, Indonesia |
PT Nutech Integrasi Jakarta, Indonesia | 60% | System integrator | Operating | 137 | Jl, Tanjung Barat Raya, No, 17, Pasar Minggu, South Jakarta, 12510, Indonesia |
Telekomunikasi Indonesia International Inc., Los Angeles, USA | 100% | Telecommunication | Operating | 115 | 800 Wilshire Boulevard, Suite 620 Los Angeles, California 90017, USA |
Telekomunikasi Indonesia International Australia Pty, Ltd., Sydney, Australia | 100% | Telecommunication | Operating | 88 | Level 4, 241 Commonwealth Street Surry Hills NSW 2010, Australia |
Telekomunikasi Indonesia International (Malaysia) Sdn, Bhd, Kuala Lumpur, Malaysia | 70% | Telecommunication | Operating | 39 | Suite 7-3, Level 7, Wisma UOA II No, 21, Jalan Pinang, KLCC, 50450, Kuala Lumpur, Malaysia, |
PT Satelit Multimedia Indonesia Jakarta, Indonesia | 100% | Satellite service | Operating | 14 | Telkom Landmark Tower 41st floor, The Telkom Hub, Jl, Jend Gatot Subroto Kav, 52 Jakarta, 12710, Indonesia |
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CHRONOLOGY OF STOCKS REGISTRATION
Since November 14, 1995, Telkom shares have been listed and traded in Indonesia Stock Exchange (IDX) and New York Stock Exchange (NYSE) with tickers of TLKM and TLK.
Date | Corporate Actions | Composition of Share Ownership | |
---|---|---|---|
| | Government of | Public |
13/11/1995 | Pre Initial Public Offering | 8,400,000,000 | - |
| Sale of Shares Held By Government | (933,334,000) | 933,334,000 |
| Telkom Right Issue | - | 933,333,000 |
| Composition of Share Ownership | 7,466,666,000 | 1,866,667,000 |
11/12/1996 | Government Shares Block Sale | (388,000,000) | 388,000,000 |
| Composition of Share Ownership | 7,078,666,000 | 2,254,667,000 |
15/05/1997 | Government Distributes Incentive Shares to All Public Shareholders | (2,670,300) | 2,670,300 |
| Composition of Share Ownership | 7,075,995,700 | 2,257,337,300 |
07/05/1999 | Government Shares Block Sale | (898,000,000) | 898,000,000 |
| Composition of Share Ownership | 6,177,995,700 | 3,155,337,300 |
02/08/1999 | Distribution of Shares Bonus (Issuance) (Each 50 Shares Gets 4 Shares) | 494,239,656 | 252,426,984 |
| Composition of Share Ownership | 6,672,235,356 | 3,407,764,284 |
07/12/2001 | Government Shares Block Sale | (1,200,000,000) | 1,200,000,000 |
| Composition of Share Ownership | 5,472,235,356 | 4,607,764,284 |
16/07/2002 | Government Shares Block Sale | (312,000,000) | 312,000,000 |
| Composition of Share Ownership | 5,160,235,356 | 4,919,764,284 |
01/10/2004 | Stock Split with Ratio 1:2 | 10,320,470,712 | 9,839,528,568 |
21/12/2005 | Shares Buy Back Program (I)(1) | - | (211,290,500) |
| Composition of Share Ownership | 10,320,470,712 | 9,628,238,068 |
29/06/2007 | Shares Buy Back Program (II)(2) | - | (215,000,000) |
| Composition of Share Ownership | 10,320,470,712 | 9,413,238,068 |
20/06/2008 | Shares Buy Back Program (III)(3) | - | (64,284,000) |
| Composition of Share Ownership | 10,320,470,712 | 9,348,954,068 |
19/05/2011 | Shares Buy Back Program (IV)(4) | - | (520,355,960) |
| Composition of Share Ownership | 10,320,470,712 | 8,828,598,108 |
14/06/2013 | Transfer of Shares Buy Back Program III to Employees through ESOP Program | - | 59,811,400 |
| Composition of Share Ownership | 10,320,470,712 | 8,888,409,508 |
30/07/2013 | Transfer of Shares Buy Back Program I through Private Placement | - | 211,290,500 |
| Composition of Share Ownership | 10,320,470,712 | 9,099,700,008 |
02/09/2013 | Stock Split with Ratio 1:5 | 51,602,353,560 | 45,498,500,040 |
13/06/2014 | Transfer of Shares Buy Back Program II through Private Placement | - | 1,075,000,000 |
| Composition of Share Ownership | 51,602,353,560 | 46,573,500,040 |
21/12/2015 | Transfer of Remaining Shares Buy Back Program III through Private Placement | - | 22,363,000 |
| Composition of Share Ownership | 51,602,353,560 | 46,595,863,040 |
29/06/2016 | Transfer of Remaining Shares Buy Back Program IV through Private Placement | - | 864,000,000 |
| Composition of Share Ownership | 51,602,353,560 | 47,459,863,040 |
2017 | No corporate action | - | - |
| Composition of Share Ownership | 51,602,353,560 | 47,459,863,040 |
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Date | Corporate Actions | Composition of Share Ownership | |
---|---|---|---|
02/07/2018 | Transfer of Treasury Stock throught Withdrawal by way of Capital Reduction | - | 1,737,779,800 |
| Composition of Share Ownership | 51,602,353,560 | 47,459,863,040 |
2019 | No corporate action | - | - |
| Composition of Share Ownership | 51,602,353,560 | 47,459,863,040 |
2020 | No corporate action | - | - |
| Composition of Share Ownership | 51,602,353,560 | 47,459,863,040 |
Remarks:
First shares buy back program began on December 21, 2005 (simultaneously with the EGMS when the program was approved) and ended in June 2007. | |
(2) | Second shares buy back program began on June 29, 2007 (simultaneously with the EGMS when the program was approved) and ended in June 2008. |
(3) | Third shares buy back program began on June 20, 2008 (simultaneously with the EGMS when the program was approved) and ended in December 2009. |
(4) | Fourth shares buy back program began on May 19, 2011 (simultaneously with the AGMS when the program was approved) and ended in November 2012. |
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CHRONOLOGY OF OTHER SECURITIES REGISTRATION
For the first time, Telkom issued bonds with a nominal value of Rp1,000 billion on July 16, 2002. The bonds have a term of 5 (five) years and are traded on the Surabaya Stock Exchange. On the maturity date, which is July 16, 2007, Telkom has fulfilled all obligations on the bonds payable.
Telkom's second bonds, consisting of Series A and Series B, were issued on June 25, 2010. The bonds traded on the Indonesia Stock Exchange (IDX) amounted to Rp1,005 billion respectively for Series A with a term of 5 (five) years and Rp1,995 billion for Series B with a tenor of 10 (ten) years. Telkom has fulfilled the obligations for the issuance of Bonds II Series A and B when due on July 6, 2015 and July 6, 2020.
Furthermore, on June 16, 2015 Telkom again issued Telkom’s sustainable bonds I Phase I. The bonds consist of bonds worth Rp2,200 billion for Series A with a maturity of 7 (seven) years, Rp2,100 billion for Series B with a term of 10. (ten) years, Rp1,200 billion for Series C with a maturity of 15 (fifteen) years, and Rp1,500 billion for Series D with a period of 30 (thirty) years. All of these bonds have been listed and traded on the Indonesia Stock Exchange. Based on the decision of Telkom's Second General Meeting of Shareholders in 2010, on September 26 2018, Telkom changed the Bond Trustee from PT Bank CIMB Niaga Tbk to PT Bank Tabungan Negara (Persero) Tbk until now.
| | | | | | | | |
Bond | Amount | Issuance | Maturity | Period | Interest | Underwriter | Trustee | Settlement |
Telkom Bond I 2002 | 1,000,000 | July 16, 2002 | July 16, 2007 | 5 | 17.00% | PT Danareksa Sekuritas | PT BNI Tbk, PT BRI Tbk | July 16, 2007 |
Telkom Bond II 2010 Series A | 1,005,000 | June 25, 2010 | July 6, 2015 | 5 | 9.60% | PT Bahana Sekuritas; PT Danareksa Sekuritas; PT Mandiri Sekuritas | PT Bank CIMB Niaga Tbk | July 6, 2015 |
Telkom Bond II 2010 Series B | 1,995,000 | June 25, 2010 | July 6, 2020 | 10 | 10.20% | PT Bahana Sekuritas; PT Danareksa Sekuritas; PT Mandiri Sekuritas | PT Bank Tabungan Negara (Persero) Tbk | July 6, 2020 |
Telkom Shelf Registered Bond I 2015 Series A | 2,200,000 | June 23, 2015(1) | June 23, 2022 | 7 | 9.93% | PT Bahana Sekuritas; PT Danareksa Sekuritas; PT Mandiri Sekuritas; PT Trimegah Sekuritas Indonesia (Tbk). | PT Bank Permata Tbk | - |
Telkom Shelf Registered Bond I 2015 Series B | 2,100,000 | June 23, 2015(1) | June 23, 2025 | 10 | 10.25% | | | |
Telkom Shelf Registered Bond I 2015 Series C | 1,200,000 | June 23, 2015(1) | June 23, 2030 | 15 | 10.60% | | | |
Telkom Shelf Registered Bond I 2015 Series D | 1,500,000 | June 23, 2015(1) | June 23, 2045 | 30 | 11.00% | | | |
Remark:
| |
1) | Telkom Shelf Registered Bonds 1 Telkom 2015 Series A was issued June 16, 2015 but the official sale transaction was on June 23, 2015 |
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On September 4, 2018, Telkom has issued Telkom's Medium Term Notes I in 2018. The notes have a principal value of Rp758,000,000,000 (seven hundred and fifty-eight billion Rupiah). In addition, Telkom issued Telkom's 2018 Sharia Ijarah I Medium Term Notes with the remaining ijarah reward of Rp742,000,000,000 (seven hundred and forty-two billion Rupiah). The two notes were each published in three series. Telkom appointed PT Bank Tabungan Negara (Persero) Tbk as Monitoring Agent. In 2020, Telkom has paid Telkom’s 2018 MTN I series B and MTN Telkom’s 2018 Syariah Ijarah I series B which were due on September 4, 2020.
Medium | Currency | Issuance | Maturity | Term | Interest Rate per Annum (Rp million) | Arranger | Monitoring | Settlement |
Telkom’s 2018 MTN I A Series | 262,000 | September 4, 2018 | September 14, 2019 | 1 | 7.25% | PT Bahana Sekuritas, PT BNI Sekuritas, PT CGS-CIMB Sekuritas Indonesia, PT Danareksa Sekuritas and PT Mandiri Sekuritas | PT Bank Tabungan Negara (Persero) Tbk | September 14, 2019 |
Telkom’s 2018 MTN I B Series | 200,000 | September 4, 2018 | September 4, 2020 | 2 | 8.00% | September 4, 2020 | ||
Telkom’s 2018 MTN I C Series | 296,000 | September 4, 2018 | September 4, 2021 | 3 | 8.35% | | | |
Telkom’s 2018 MTN Syariah Ijarah I A Series | 264,000 | September 4, 2018 | September 14, 2019 | 2 | Rp19,000 | | | September 14, 2019 |
Telkom’s 2018 MTN Syariah Ijarah I B Series | 296,000 | September 4, 2018 | September 4, 2020 | 2 | Rp24,000 | | | September 4, 2020 |
Telkom’s 2018 MTN Syariah Ijarah I C Series | 182,000 | September 4, 2018 | September 4, 2021 | 2 | Rp15,000 | | | |
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NAME AND ADDRESS OF INSTITUTIONS AND/OR SUPPORTING CAPITAL MARKET PROFESSION
.5 | ||||||
---|---|---|---|---|---|---|
| Supporting Capital Market Profession | Address | Service | 2020 | Assignment Period | |
External Auditor/ Public Accountant | KAP Purwantono, Sungkoro & Surja (A member firm of Ernst & Young Global Limited). | Bursa Efek Indonesia Building, 2nd Tower, 7th floor Jl. Jend. Sudirman Kav. 52-53 Jakarta - 12190 | ● | Conducting integrated audit of consolidated financial statements in accordance with Indonesian Financial Accounting Standards (“IFAS”) and International Financial Reporting Standards ("IFRS") | Rp65.4 billion | 2020 2019 2018 2017 2016 2015* 2014 2013 2012 |
| | | ● | Auditing the fund use of Partnership and Community Development Program. | | |
| | | ● | To perform an audit and report on, based on Standards on Auditing of State Finance (“SPKN”) established by the Audit Board of the Republic of Indonesia (“BPK”), the Company’s compliance with the applicable laws and regulations and internal controls (PSA 62 Audit). | | |
| | | ● | Agreed Upon Procedures Services on the Activity Report of Implementation of Prudent Principles (KPPK Report). | | |
| | | ● | Agreed upon Procedures services engagement on the measurement and assessment of achievement of Key Performance Index (KPI). | | |
Securities Administration Bureau | PT Datindo Entrycom | Wisma Sudirman Jl. Jend. Sudirman Kav. 34-35 Jakarta - 10220 | Acting as a depository institution (Custodian) of Telkom’s common stock traded on the Indonesia Stock Exchange. | Rp136 million | Since 1995 | |
Trustee | PT Bank Tabungan Negara (Persero) Tbk. | Bank BTN Tower Jl. Gajah Mada No. 1 Jakarta 10130 | Representing the interests of bond holders with the Company for Bond II Telkom. | Rp75 million | Since September 2018 | |
| | | Representing the interests of bond holders with the Company for MTN & Sukuk Ijarah I Telkom 2018. | Rp75 million | | |
| PT Bank Permata Tbk. | WTC II Building 28th floor Jl. Jend Sudirman Kav. 29-31 Jakarta 12920 | Representing the interests of Bond holders with the Company for Telkom Shelf Registered Bond I. | Rp75 million | Since 2015 | |
Central Custodian | PT Kustodian Sentral Efek Indonesia | Bursa Efek Indonesia Building, Tower 1, 5th floor Jl. Jend. Sudirman Kav. 52-53 Jakarta - 12190 | ● | Providing a central depository and settlement of stock transactions on the Indonesia Stock Exchange. | Rp125 million | Since 1995 |
| | | ● | Storage services and settlement of securities transactions, distribution of corporate action results. | | |
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.5 | ||||||
---|---|---|---|---|---|---|
| Supporting Capital Market Profession | Address | Service | 2020 | Assignment Period | |
Rating Agency | PT Pemeringkat Efek Indonesia | Equity Tower, 30th floor Sudirman Central Business District Lot. 9 Jl. Jenderal Sudirman Kav. 52-53 Jakarta 12190 | Providing rating on credit risk of Telkom bond issuance. | Rp175 million | Since 2012 | |
| Moody’s | Moody’s Investors Service Singapore Pte. Ltd, 50 Raffles Place #23-06, Singapore Land Tower, Singapore - 048623 | Provides ratings on Telkom credit risk. | US$74,500 | Since 2018 | |
| Fitch | Fitch (Hong Kong) Limited 19/F Man Yee Building 68 Des Voeux Road Central, Hong Kong + 852 2263 9963 | Provides ratings on Telkom credit risk. | US$65,000 | Since 2018 | |
ADS Custodian Bank | The Bank of New York Mellon Corporation | Corporate Headquarters 240 Greenwich Street | Acting as a depository institution (Custodian) of ADS shares traded on the NYSE. | US$68,750 | Since 1995 | |
Legal Counsel | Baker & McKenzie. Wong & Leow | 8 Marina Boulevard #05-01 Marina Bay Financial Centre Tower 1 Singapore 018981 | Acting as US capital market legal counsel | US$225,000 | Since 2013 | |
| Hadiputranto, Hadinoto & Partners | Pacific Century Place, Level 35 Sudirman Central Business District Lot. 10 Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190 | Acting as capital market legal counsel | Since 1995 | ||
Notary | Notaries/PPAT Ashoya Ratam, SH, MKn | Jl. Suryo No. 54, Kebayoran Baru, Jakarta 12180 | Acting as notary | Rp46.5 million | Since 2012 |
Remark:
* | In 2015, Public Accounting Firm Purwantono, Suherman & Surja has changed into Public Accounting Firm Purwantono, Suherman & Surja due to the changes on composition of Partners. |
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In the past five years, Telkom has conducted an audit of the Consolidated Financial Statements. The incurred fees for other service would never exceed the fees for audit services. The following details the fees of public accountants for the last five years:
No. | Audited | Public Accounting Firm | Certified Public Accountant | Fee | ||
Auditing Service | Other Service | Total | ||||
1 | 2020 | KAP Purwantono, Sungkoro & Surja | Handri Tjendra | 63,461 | 1,925 | 65,386 |
2 | 2019 | KAP Purwantono, Sungkoro & Surja | Handri Tjendra | 57,070 | 2,055 | 59,125 |
3 | 2018 | KAP Purwantono, Sungkoro & Surja | David Sungkoro | 51,826 | 2,819 | 54,645 |
4 | 2017 | KAP Purwantono, Sungkoro & Surja | David Sungkoro | 41,618 | 2,042 | 43,660 |
5 | 2016 | KAP Purwantono, Sungkoro & Surja | Feniwati Chendana | 36,655 | 1,405 | 38,060 |
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MANAGEMENT DISCUSSION AND ANALYSIS
| |
87 | Business Environment Overview 2020 |
91 | Operational Overview by Business Segment |
107 | Marketing Overview |
121 | Comprehensive Financial Performance |
134 | Solvency |
135 | Capital Structure and the Management Policies for Capital Structure |
137 | Realization of Capital Expenditure |
138 | Material Commitment for Capital Expenditure |
139 | Receivables Collectability |
140 | Material Information and Fact After Accountant Reporting Date |
141 | Business Prospects and Sustainability of The Company |
143 | Comparison of Initial Year Target and Realization |
144 | Target or Projections for the Following Year |
145 | Dividend |
146 | Realization of Public Offering Fund |
147 | Material Information regarding Transaction with Conflict of Interest, Transaction with Affiliated Parties, Investment, Divestment and Acquisition |
148 | Changes in Regulation |
149 | Changes in Accounting Policy |
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BUSINESS ENVIRONMENT OVERVIEW 2020
The outbreak of the COVID-19 pandemic in 2020 impacted the performance of various industrial sectors around the world. Following the stipulation of COVID-19 as a global pandemic, uncertainty has increased so that investors have tended to withdraw their funds from financial markets in several developing countries. Investors then divert it to other assets that are considered safe, such as gold. The trade war between America and China that continued until 2020 also impacted the economic downturn in several countries including Indonesia, particularly in export performance.
Based on the Indonesian Central Statistics Agency, the COVID-19 pandemic affected Indonesia's Gross Domestic Product (GDP), which contracted 2.07% throughout 2020. In terms of Business Fields or Lapangan Usaha (LU), growth contraction occurred in almost all LUs, except for those in particular related to anticipation and measures to overcome COVID-19 and natural resources. LU for Information and Communication continues to grow in line with the increasing broadband services need for homes and the digital technology use to support the implementation of work from home (WFH) and school from home (SFH). In 2020, LU for Information and Communication experienced a growth of 10.58%.
Furthermore, from the point of view of the main macro indicators, the Rupiah exchange rate to the USD in 2020 has fluctuated slightly. The Bank Indonesia transaction rate was Rp13,895 per USD on January 2, 2020, and the exchange rate on December 31, 2020, was closed slightly lower at a value of Rp14,105. The Bank Indonesia benchmark interest rate (BI 7-day Repo Rate) decreased in January 2020 by 5% to 3.75% in December 2020. Compared to the previous year, all countries experienced a significant economic slowdown. The international rating agency Fitch Rating maintains Indonesia's Sovereign Credit Rating at BBB (investment grade) with a stable outlook on August 10, 2020. Then, Standard & Poor's gave a BBB (Negative) rating on April 17, 2020.
From a political perspective, the Regional Election (Pilkada) in December 2020 was successfully carried out smoothly, safely, and peacefully with the applicable health protocol. It gives confidence to the investors and business people to rebuild and realize the delayed business plans due to the Large-Scale Social Restrictions (PSBB) implementation.
INDONESIA’S TELECOMMUNICATION INDUSTRY
Nowadays, the Indonesian telecommunications industry grow rapidly, driven by the increase of fixed and mobile broadband subscribers. The shift from legacy services to data services, which is supported by the availability of smartphones at affordable prices, has attracted the youth segment to contribute to this growth. The increasing number of broadband subscribers has made data service prices more affordable and significantly reduced the SMS and voice services demand. On the other hand, data services keep improving and become inseparable from people's economic activities.
In 2020, there were an increase in demand for fixed broadband services in some large, medium, and small cities. The geographical challenges did not lessen the Company's interest to keep improving fixed broadband services by developing investment in fiber-optic networks. The national fixed broadband market condition currently is still dominated by several companies because it requires a high cost and takes a long time to build a fiber-optic network.
In the Mobile segment, there is still intense operator competition. Various promotions were carried out, such as offering bonus data to attract new customers and retain existing customers. The more easily accessed promo information has made the competition between the telecommunications industry even tighter. Despite pressure from OTT services in 2020, the cellular industry in Indonesia, which refers to the three largest cellular operators, increased by 0.6 million subscribers instead.
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The SIM card penetration in the Indonesian cellular industry is high over 100%, based on internal calculations and available public data, which makes limited growth room. The subscribers of the three largest cellular operators in Indonesia are Telkomsel, Indosat, and XL Axiata contributed more than 80% of the market share as of December 31, 2020. Telkomsel remains the largest cellular provider in Indonesia with 169.5 million subscribers, decreased by around 0.9% with a market share of around 58.9%.
Data consumption in the Mobile segment still increases and encourages Company revenue from data services in the current digitalization era. It is in line with the data traffic volume increase from data communication services, streaming video, games, content, applications, and the increasing devices connected to the network. On the other hand, capital expenditure also should increase the capacity to support the data services growth.
The Government by the Ministry of Communication and Information has announced the new spectrum allocation plan for telecommunications operators including to facilitate the new technology development of 5G. The analog to digital TV migration, which expects to complete at the latest by 2022, will provide a digital dividend of 112 MHz in 700 MHz frequency suitable for 5G services. In line with the Government's initiative, the Company continues to invest in the construction of BTS, core network, and towers, both macro and micro towers, to meet the growing needs for mobile data services. The measures to increase capacity, expand the 4G services coverage, and initiate a precise and measurable 5G services development strategy expected to increase subscribers' satisfaction with the digital service experience.
Throughout 2020, there was a demand increase for fixed broadband services in some capital, medium, and small cities. It is mainly due to increased consumption driven by the home broadband need since the COVID-19 pandemic and work from home (WFH) and learn from home (LFH) activities. Geographical conditions, especially in the suburban and rural area, is a challenge for fixed broadband services improvement through the development of fiber optic networks. The current national fixed broadband market is still dominated by several companies, due to the high investment cost for the deployment of fiber optic network infrastructure. As of December 31, 2020, Telkom had more than 8 million fixed broadband subscribers, even though the penetration of fixed broadband services is still relatively low in Indonesia. Operators offer pay-TV, TV on-demand bundles, and other value-added service packages, such as home security and smart home to attract new customers. On the other hand, the Enterprise segment was under pressure during the COVID-19 pandemic. It is in line with declining economic conditions so that companies or businesses tighten the budgets or postpone spending to survive the recession period.
COMPETITION IN THE TELECOMMUNICATIONS INDUSTRY
The rise of the digital economy has penetrated across the socio-economic spectrum. It is found by the Indonesian people, especially in the many changes in market behavior in economic activities. The pace of change continues to increase and accelerates in 2020 due to the COVID-19 pandemic. To anticipate competition, TelkomGroup continues to provide various products and services according to customer needs, such as cellular services, fixed broadband, and fixed voice, enterprise, interconnection, and satellite services.
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Mobile Business
As of December 31, 2020, Telkomsel remains the most cellular provider in Indonesia with 169.5 million subscribers and a market share of approximately 58.9% of the total subscribers. Furthermore, the next position of the largest providers is Indosat and XL Axiata based on the internal analysis. Then, it follows by several other operators that also provide cellular services in Indonesia, such as Hutchison under the Tri brand and Sinar Mas Group under the Fren brand.
As of the end of December 2020, SIM card penetration growth in the cellular industry was above 100%, with a total of 356.6 million subscribers, increased by 4.6% from 341.1 million subscribers as of December 31, 2019. Data traffic shows significant growth, while service traffic continues to decline due to lower voice usage. This declining trend continued in 2020 and is predicted to continue for the next few years due to the increase in smartphones that replaced traditional voice and SMS services with Over The Top services.
Fixed Voice & Broadband Business (Fixed Business)
In the fixed broadband industry, TelkomGroup has several main competitors of PT Supra Primatama Nusantara ("BizNet Networks"), PT MNC Kabel Mediacom ("MNC Vision"), and PT Eka Mas Republik (an affiliate of Smartfren Telecom, which operates under the brand "MyRepublic"). These brands have different target markets, such as MNC Vision and MyRepublic have well-established household target markets in the Jabodetabek area. Then, BizNet has a target market in the corporate and business segments in Java and Bali.
With its infrastructure, TelkomGroup is still superior in terms of coverage throughout Indonesia. During the last three years, TelkomGroup has been trying to migrate DSL technology to fiber-based broadband to improve service quality and expand digital services. The presence of newcomers since 2019, namely a subsidiary of the state-owned electricity company PT Perusahaan Listrik Negara (PLN) with the ICON+ brand and the State Gas Company (PGN) with the Gasnet brand, has increasingly enlivened the competition in the commercial internet and TV services. These competitors receive strong support from their parent Company in their distribution network that certainly will strengthen their position.
Data Center
TelkomGroup is committed to providing the best service to customers in Indonesia and Southeast Asia with the availability of data centers supported by submarine cable networks and a comprehensive co-location service designed to be flexible, modular, seamless, and scalable. Telkom's subsidiary, Telin, competes in the international market with other major data center providers such as Equinix, Global Switch, SGX, and Epsilon in Singapore. In Hong Kong, Telin competes with SUNeVision, Equinix, OneAsia Network, HKCOLO, and HK Exchange and Clearing. Several competing companies, including DCI Indonesia, Indosat Ooredoo, Moratelindo, IDC Indonesia, NTT Communication, Global Axcess System, Biznet, Centrin Online, Cyber TechTonic Pratama, and Jup1terDC have also established data centers in Indonesia.
International Traffic and Interconnection Business
For traditional IDD (non-VoIP) international traffic business, in Indonesia, there are only Telkom and Indosat. However, the existence of OTT or digital communication services such as Line, Whatsapp, and Skype create a tighter competition because the VoIP services can open international access. It caused a decrease in Telkom's revenue contribution from traditional IDD (non-VoIP) international traffic.
With the intense competition in the COVID-19 pandemic, TelkomGroup prefers to provide a platform for OTT services. Thus, TelkomGroup can increase broadband usage with a digital hub and Content Delivery Network (CDN) that can generate revenue and profit for the Company.
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Network and Satellite Infrastructure Business
In the infrastructure business, especially towers, Telkom has several main competitors, including Tower Bersama Infrastructure, Tunas Pratama Solution, PT Profesional Telekomunikasi Indonesia, and telecommunication operators Indosat and XL Axiata. Telkom's subsidiaries that run tower businesses are Mitratel and Telkomsel. The construction of new towers or co-location by leasing towers by cellular operators is one of the strategies applied to this business line.
The market share of TelkomGroup customers spread across the Asia Pacific region, especially in Southeast Asia, which has an archipelagic geographical condition, requires satellites as telecommunications and broadcasting infrastructure. These satellite service capabilities include broadband backhaul, cellular backhaul, TV on demand, enterprise network, video distribution, military and government networks, DTH television, aviation communications, and disaster recovery.
In satellite business management, TelkomGroup competes with other operators which already have satellites and operators, and in the process of satellite development in Southeast Asia and South Asia. Some of the Telkom satellites include the Telkom-3S Satellite operates in the 118 E orbital slot, the Telkom-2 Satellite in the 157 E orbital slot, and the Merah Putih Satellite in the 108E orbital slot.
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OPERATIONAL OVERVIEW BY BUSINESS SEGMENT
MOBILE | • | Providing high mobility for TelkomGroup customers by utilizing mobile voice services, SMS, mobile data services, and mobile digital services, which is the largest cellular network operator in Indonesia with national coverage that reaches more than 90% population and is supported by 231,172 total BTS. |
CONSUMER | • | Providing the best connectivity for customers by utilizing high-speed internet, namely fixed voice, fixed broadband, IP-TV, and digital |
• | As of December 31, 2020, it had 8.0 million IndiHome subscribers, increased by 14.5% from the previous year. | |
ENTERPRISE | • | Provides enterprise connectivity, satellite, and digital platform system services for corporate, institutional and business customers. Market leaders who have served clients of 1,703 companies, 339,182 SMEs and 935 Government institutions as of the end of 2020 |
WHOLESALE & INTERNATIONAL BUSINESS | • | Provides wholesale telecommunication carrier services, tower, infrastructure & network management services as well as international business. |
• | Services in 10 countries with 1 headquarter in Indonesia and 9 global offices of Telin operating overseas. | |
OTHERS | • | Provides various services related to digital payment solutions, big data & smart platforms, digital advertising, music, gaming, and e-commerce. |
• | Operate venture capital funds through MDI to invest in digital startups. |
PT Graha Sarana Duta (Telkom Property) performs asset leverage and increase the income with the services of property developer, leasing, facility, and management.
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SEGMENT PERFORMANCE HIGHLIGHTS
In 2020, COVID-19 restricted the business dynamic and suppressed the global economy. On the other hand, the activity restriction stimulated the digitalization growth. Work from home and online school policy promoted telecommunication demand specifically for broadband service.
Financial performance in 2020 was negatively affected by the stagnant economic activities. The enterprise segment was the most pressured segment by the pandemic. However, it positively impacted TelkomGroup’s financial performance by the digital service and connectivity demand from personal and residential customers.
The highest contribution of Telkom and its subsidiaries' revenue in 2020 was still from the Mobile segment of 61.5% or Rp83,720 billion. The second highest contribution was from Consumer segment of 15.4% or Rp20,957 billion, followed by the Enterprise segment of 13.0% or Rp17,729 billion, and Wholesale segment of 9.9% or Rp13,501 billion. Other segment gave the lowest contribution of Rp219 billion or 0.2% from the aggregate revenue of Telkom and its subsidiaries.
| | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Telkom's Results of Operation by Segment | | Growth | | Years ended December 31, | ||||||
|
| 2020-2019 | | 2020 | | 2019 | | 2018 | ||
| | (%) | (Rp billion) | (US$ million) |
| (Rp billion) |
| (Rp billion) | ||
Mobile | | | | | | | | | | |
Revenues | | | | | | | | | | |
External revenues | | (4.8) | | 83,720 | | 5,959 | | 87,897 | 85,338 | |
Inter-segment revenues | | 4.2 | | 3,297 | | 235 | | 3,163 | 3,880 | |
Total segment revenues | | (4.4) | | 87,017 | | 6,194 | | 91,060 | 89,218 | |
Total segment expenses | | (4.9) | | (54,051) | | (3,847) | | (56,864) | (55,449) | |
Segment results | | (3.6) | | 32,966 | | 2,347 | | 34,196 | 33,769 | |
Consumer | | | | | | | | | | |
Revenues |
| | | | | | | | | |
External revenues |
| 18.4 | | 20,957 | | 1,492 | | 17,706 | 13,891 | |
Inter-segment revenues |
| 46.1 | | 1,148 | | 82 | | 786 | 2,290 | |
Total segment revenues |
| 19.5 | | 22,105 | | 1,574 | | 18,492 | 16,181 | |
Total segment expenses |
| 10.3 | | (17,544) | | (1,249) | | (15,904) | (15,531) | |
Segment results |
| 76.2 | | 4,561 | | 325 | | 2,588 | 650 | |
Enterprise |
| | | | | | | | | |
Revenues |
| | | | | | | | | |
External revenues |
| (5.2) | | 17,729 | | 1,262 | | 18,701 | | 21,054 |
Inter-segment revenues |
| 10.4 | | 18,591 | | 1,323 | 16,834 | | 17,995 | |
Total segment revenues |
| 2.2 | | 36,320 | | 2,585 | 35,535 | | 39,049 | |
Total segment expenses |
| 0.3 | | (36,864) | | (2,624) | (36,768) | | (37,833) | |
Segment results |
| 55.9 | | (544) | | (39) | (1,233) | | 1,216 | |
WIB |
| | | | | | | | | |
Revenues |
| | | | | | | | | |
External revenues |
| 27.3 | | 13,501 | | 961 | 10,609 | | 10,084 | |
Inter-segment revenues |
| (0.8) | | 16,139 | | 1,149 | 16,265 | | 16,678 | |
Total segment revenues |
| 10.3 | | 29,640 | | 2,110 | 26,874 | | 26,762 | |
Total segment expenses |
| 9.6 | | (23,143) | | (1,647) | (21,111) | | (20,634) | |
Segment results |
| 12.7 | | 6,497 | | 463 | 5,763 | | 6,128 | |
Other |
| | | | | | | | | |
Revenues |
| | | | | | | | | |
External Revenues |
| 11.2 | | 219 | | 16 | 197 | | 130 | |
Inter-segment revenues |
| 20.2 | | 1,550 | | 110 | 1,289 | | 886 | |
Total segment revenues |
| 19.0 | | 1,769 | | 126 | 1,486 | | 1,016 | |
Total segment expenses |
| 7.5 | | (1,662) | | (118) | (1,546) | | (1,073) | |
Segment results |
| 278.3 | | 107 | | 8 | (60) | | (57) |
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OPERATIONAL HIGHLIGHT
From the operational side, TelkomGroup experienced negative growth in cellular subscribers from 171.1 million subscribers in 2019 to 169.5 million subscribers in 2020. Broadband subscribers grew positively from 117.3 million subscribers in 2019 to 123.9 million subscribers at the end of the reporting period. On the other hand, fixed-line subscribers experienced a decline from 9.3 million subscribers to 9.1 million subscribers. The decline in fixed-line subscribers indicates a change in market behavior towards broadband digital connectivity that accelerated during the COVID-19 pandemic.
Amid the pandemic that occurred during 2020, TelkomGroup still developed infrastructure. There was the addition of BTS, towers, and fiber optic backbone network for the domestic market. TelkomGroup also added access points to provide Wi-Fi services that are accessible to the public. Regarding customer service, TelkomGroup reduced the PlasaTelkom and GraPARI networks to empower our digital touchpoint services further.
| | |||
---|---|---|---|---|
| Unit | Year Ended on December, 31 | ||
| | 2020 | 2019 | 2018 |
SUBSCRIBERS | | | | |
Cellular Subscribers | (000) subscribers | 169,542 | 171,105 | 162,987 |
Postpaid (kartuHalo) | (000) subscribers | 6,496 | 6,376 | 5,400 |
Prepaid (simPATI, Kartu As, Loop, by.U) | (000) subscribers | 163,046 | 164,729 | 157,587 |
Broadband Subscribers | (000) subscribers | 123,954 | 117,256 | 113,813 |
Fixed broadband IndiHome 1) | (000) subscribers | 8,016 | 7,003 | 5,104 |
Mobile broadband 2) | (000) subscribers | 115,938 | 110,253 | 106,553 |
Fixed Line Subscribers | (000) subscribers | 9,119 | 9,369 | 11,111 |
Fixed wireline (POTS) | (000) subscribers | 9,119 | 9,369 | 11,111 |
INFRASTRUCTURE | | | | |
Satellite Capacity | TPE | 133 | 133 | 133 |
Point of Presence | PoP | 117 | 119 | 118 |
Domestic | PoP | 59 | 56 | 46 |
International | PoP | 58 | 63 | 72 |
BTS | unit | 231,172 | 212,235 | 189,081 |
BTS 2G | unit | 50,252 | 50,297 | 50,310 |
BTS 3G | unit | 73,397 | 82,104 | 82,118 |
BTS 4G | unit | 107,523 | 79,834 | 56,653 |
Tower | unit | 35,822 | 33,892 | 30,485 |
Fiber Optic Backbone Network | km | 167.935 | 164,769 | 161,652 |
Domestic | km | 103.235 | 100,069 | 96,952 |
International | km | 64.700 | 64,700 | 64,700 |
Wi-Fi Services | access point | 386,856 | 386,420 | 382,361 |
CUSTOMER SERVICE | | | | |
PlasaTelkom 3) | location | 383 | 408 | 422 |
GraPARI TelkomGroup | location | 9 | 9 | 7 |
Plasa Telkom Digital | location | 16 | 11 | 10 |
GraPARI | location | 422 | 427 | 440 |
International | location | 19 | 5 | 11 |
Domestic | location | 403 | 422 | 429 |
GraPARI Mobile | unit | 365 | 324 | 761 |
IndiHome Sales Car | unit | 896 | 1,078 | 1,142 |
EMPLOYEES | people | 25,348 | 24,272 | 24,071 |
Remarks:
1) | Fixed broadband IndiHome is a product that allows customers to choose one or more of Consumer segment portfolio such as fixed voice, fixed broadband services, and IPTV including consumer digital services |
---|---|
2) | Mobile broadband includes Flash user, Blackberry user, PAYU, and Home LTE. |
3) | PlasaTelkom outlet is a face-to-face customer service points consists of GraPARI TelkomGroup, Plasa Telkom Digital and, other Plasa across Indonesia. |
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MOBILE SEGMENT
Data traffic 2020 increased by 43.8% to 9.7 million TB | 231K total BTS with 180.9K 3G/4G BTS, increased 18.9K BTS. |
During the reporting period, TelkomGroup remains to transform in the Mobile segment. One of Telkom’s priorities is the initiative for building a decent synergy with the internal or external party. Moreover, TelkomGroup also remains widening its digital business opportunity on this segment supported by 5G technology development in the future.
TelkomGroup has varied portfolio of its products and services in the Mobile segment consisting of mobile voice and SMS, mobile data services, and mobile digital services. Specifically for cellular services, TelkomGroup through its subsidiary Telkomsel currently carries GSM, 3G, and 4G/LTE technology. The following are various products and services available to the public offered by Telkomsel:
1. | simPATI, is a prepaid product and service for middle-class users that provides high-quality telecommunications services through the innovative and attractive service packages and promotions. |
---|---|
2. | Kartu As, is a prepaid product and service for subscribers who look for affordable price with varied excellences. |
3. | Loop, is a prepaid product and service for young users with a variety of attractive data and digital service options that are tailored to the needs of today's young generation. |
4. | By.U, is an end-to-end digital prepaid product and service for all telecommunications needs for Gen Z segment users who carry out their daily lives with a digital lifestyle. An end-to-end digital experience that is presented through the digital by.U application that is installed on a smartphone covers the entire process of using services, ranging from the selection of delivery options, by.U telephone numbers, internet quota, additional quota (topping) to payment. |
5. | kartuHalo, is a postpaid cellular telecommunications product and service for premium, professional, and corporate users. kartuHalo offers a variety of comprehensive package with exclusive excellences. |
As of December 31, 2020, TelkomGroup successfully achieved the cellular basis of 169.5 million subscribers. It recorded 96.2% prepaid subscribers and 3.8% postpaid subscribers. During 2020, there was a decrease of prepaid subscribers from 164.7 million to 163.0 million subscribers, while postpaid subscribers increased from 6.4 million to 6.5 million subscribers. The decrease of prepaid subscribers was due to the lower people’s purchasing power of the COVID-19 pandemic with the ongoing competitiveness. Therefore, TelkomGroup made strategies to establish a strong foundation and increase more subscribers’ engagement supported by the reliable network capacity.
For mobile broadband service as the end of 2020, it recorded of 115.9 million subscribers, increased 5.7 million subscribers or 5.2% with the data traffic increase from 6.7 million TB in 2019 to 9.7 million TB in 2020. The increase was due to the subscriber’s engagement implementation by providing more add-on products with affordable price, specifically in the COVID-19 pandemic to increase the subscriber’s productivity. Besides the cellular connectivity service, we also launched Orbit in 2020, a fixed wireless access service with the 4G network, targeting the subscribers who do not have access to fiber infrastructure.
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Furthermore, for digital mobile services, Telkomsel explores many opportunities in new digital initiatives to meet customer needs to complement network connectivity. Digital mobile services are enriched through the various initiatives of video, music, games, and fintech content which will ultimately enhance the digital customers' ecosystem. Telkomsel strengthens MAXstream's position in the video streaming industry with the addition of HBO Go and Disney+ to complement video content. Telkomsel provides the streaming service LangitMusik and Telkomsel Dunia Games for music and game enthusiast, which provides the end-to-end game ecosystem combining the media content, distribution, payment, e-sport, and game publishing. We have launched online games and started developing the game community to broaden the subscriber's experiences. In 2020, we launched the third game of Rise of Nowlin, the fourth game of Kolak Express 3, and the fifth game of Three Kingdoms: Quest of Infinity. Besides, TelkomGroup also provides electronic money service LinkAja managed by its subsidiaries of PT Fintek Karya Nusantara (Finarya). As the payment service, LinkAja has been collaborating with numerous partners such as taxi services, gas stations, food and beverages, and toll and tax payment.
To strengthen its future digital mobile service, Telkomsel made a strategic investment to PT Aplikasi Karya Anak Bangsa (Gojek) in November 2020. Telkomsel is confident the collaboration with Gojek would create better service and solutions to the community in developing the digital ecosystem. Telkomsel expects to create synergy for both parties by platform-apps integration, product diversification, increase the data traffic and revenue, widen the market share, and decrease the customer churn with this collaboration. Not only with external parties, but internal synergy also has been developed as the synergy of Telkomsel and IndiHome to complement the market gap.
To establish its position as the leader of networks provider Telkom added 18.9 thousand new BTS to support 4G/LTE services in many cities and acquired 18.3 million 4G/LTE new subscribers in 2020. Telkom had total of 107.5 thousand 4G BTS covered more than 90% area in Indonesia as of end December 2020.
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The COVID-19 remains to inflict uncertainty impact that created economic slowdown and lower people’s purchasing power. In this situation, Telkomsel has supported the community by giving the community the optimal service and affordable price as a response to the COVID-19 crisis, including the supportive program of the Government subsidy data package for students and school teachers across Indonesia.
Mobile Segment Financial Performance
Even though it experienced a decline in 2020, Mobile segment revenue was still the main contributor of Rp83,720 billion or 61.5% of the TelkomGroup’s consolidated revenue. The performance of the Mobile segment for the past three years presents below:
Mobile Segment | | 2020-2019 | | 2020 | | 2019 | | 2018 | ||
| | (%) | | (Rp billion) | | (US$ million) | | (Rp billion) | | (Rp billion) |
Revenues | | (4.8) |
| 83,720 |
| 5,959 | | 87,897 |
| 85,338 |
Expenses | | (1.7) |
| (40,335) |
| (2,871) | | (41,019) |
| (40,041) |
Result | | (7.5) |
| 43,385 |
| 3,088 | | 46,878 |
| 45,297 |
In 2020, the Mobile segment from the subsidiary of Telkomsel, successfully recorded the revenue of Rp83,720 billion decreased by Rp4,177 billion or 4.8%. Meanwhile, its expense decreased by Rp684 billion or 1.7% than the previous year into Rp40,335 billion.
The revenue decreased from the previous year triggered by the decrease in cellular voice revenues by Rp5,551 billion or 22.2% and SMS revenues by Rp2,287 billion or 34.3%. It was the impact of customer behavior transformation from voice to data services and the impact of using OTT services. On the other hand, internet and cellular data revenues increased by Rp3,827 billion or 6.9% as a result of an effective marketing strategy, with attractive data package programs at competitive prices, especially to accommodate the lower people's purchasing power during the COVID-19 pandemic. Overall, the Mobile segment still recorded a segment profit of Rp43,385 billion.
Telkomsel can maintain its position as the largest cellular operator in Indonesia with its national coverage, serving 169.5 million subscribers with 115.9 million mobile data users. Telkomsel Digital Business revenue grew by 7% YoY to Rp62.32 trillion.
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| | |
1,703 corporate customers 339,182 SME customers 935 government institution customers | 3 satellites with 133 TPE capacity | 3 data centers with a specification of tier 3 and 4 (domestic) |
In the Enterprise segment, TelkomGroup serves customers of corporate, SMEs, and Government institutions. The services are enterprise grade connectivity services (including satellite), data center & cloud, IT services, business process outsourcing, and other adjacent services to provide the end-to-end solution and IT ecosystem.
During the pandemic, the Enterprise segment performed in the most under pressure due to the pandemic faced by TelkomGroup. Enterprise segment seeks to make fundamental improvements and increase consultative selling to overcome it. The COVID-19 negatively impacted several customers’ business and operations, so they requested to get deferred payment of completed projects in 2020. But it did not significantly impact our cash flow and operating revenue in 2020. We also continue the business policy that began in 2019, focusing on the higher profitability and recurring business lines, specifically on enterprise solutions services such as enterprise connectivity, data center, and cloud, and selectively reduce and not prioritize non-recurring business solutions that have a relatively low margin level. In line with this strategy, although the Enterprise segment revenue has decreased, revenue from connectivity and Data Center & Cloud services can still grow positively.
In general, connectivity services of TelkomGroup’s Enterprise segment are fixed broadband, Wi-Fi, ethernet, and data communication including leased channels, namely metro ethernet, VPN-IP; and network solution of high-capacity data which provide point-to-point connection and fixed voice service. As of the end of December 2020, TelkomGroup has provided bandwidth in service of the total 2,998 Gbps, which consist of 1,339 Gbps for corporate internet and 1,659 Gbps data communication customers. It was higher by 0.1% than the previous year.
Telkom through its subsidiary of Telkomsat strives to integrate satellite service, provide transponder capacity leasing, and other support services as a part of the connectivity services. The satellite operations include the leasing of satellite transponder capacity for broadcasting and VSAT operators, cell phone, ISP, and up-link and down-link of earth station satellite for domestic and international users. In 2020, the total used transponder capacity was from 3 Telkom’s satellites with the 133 TPE capacity and the third-party leasing with the capacity around 52 TPE. Telkom has the plan to launch the High Throughput Satellite (HTS) in the future. This technology is suitable to serve the satellite broadband customers. This new satellite expects to get Telkomsat to lead the regional satellite service providers.
Moreover, Telkom remains to improve data center and cloud service to enhance the service for Enterprise customers. Telkom delivers the enterprise data center, collocation, hosting, disaster recovery center, managed operation services, and various cloud services such as private cloud, cloud hybrid, and cloud public. Telkom subsidiary of Telkomsigma currently has three data centers in Indonesia with 73% used capacity. In 2020, we through Telkomsigma launched the FLOU cloud service that provides a cloud hybrid targeting customers for MSME/SME, startup to enterprise segments with package offers that can be tailored to their needs.
Telkom also delivers financial services such as bill payment aggregator, electronic payment platform services, online payment solutions, and switching services. In 2020, there were 22,583 ATMs managed well by its subsidiary of Swadharma Sarana Informatika (SSI) across Indonesia. TelkomGroup provides business process management, business process as-a-service, and customer relationship management for system integration and IT service management service. TelkomGroup consistently improves the IT capacity and performs digitalization to fulfill future needs. One of them is TelkomGroup's digital advertising agency with media placement dan integrated digital media such as mobile advertising, online advertising, and digital printing. TelkomGroup has the platform for suggesting insights in costumers' behavior analysis and creating the marketing campaign based on big data and data analytics for supporting those services.
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TelkomGroup provides varied services related to hardware & software sales, including its IT supports service for the adjacent services. TelkomGroup also delivers Internet of Things (IoT) solutions for building and develops IoT applications for smart energy monitoring management, fleet management, IT security services, unified communication, and collaboration services.
TelkomGroup’s service excellence in the Enterprise segment is the broad coverage of the fiberoptic infrastructure network. The increasing demands of this segment create an opportunity for TelkomGroup to manage various products and services then combine them into total solutions. In 2020, the Enterprise segment customers were 341,820 customers, consist of 1,703 corporates, 339,182 SMEs, and 935 Government institutions. The SMEs' customers increased due to the COVID-19 pandemic that indirectly encourages SMEs to use the technology as the connectivity and digital solution before the pandemic was low. It is an opportunity for Telkom to deliver digital products and services as the SMEs' necessity.
Enterprise Segment Financial Performance
Enterprise segment revenue contributed 13.0% of the total consolidated revenue in 2020. The performance of Enterprise segment for the past three years can be seen in the following table:
Enterprise Segment |
| 2020-2019 | | 2020 | | 2019 | | 2018 | |||
| | (%) |
| (Rp billion) |
| (US$ million) |
| (Rp billion) | | (Rp billion) | |
Revenues | | (5.2) |
| 17,729 |
| 1,262 | | 18,701 |
| 21,054 | |
Expenses | | (6.3) |
| (19,464) |
| (1,385) | | (20,782) |
| (21,717) | |
Result |
| 16.6 |
| (1,735) |
| (123) | | (2,081) |
| (663) |
In 2020, revenue for the Enterprise segment decreased from Rp18,701 billion in the previous year to Rp17,729 billion in 2020. The revenue decreased by 5.2% or Rp972 billion due to the decrease in other telecommunication revenue by Rp1,483 billion or 25.7%, which was caused by a decrease in peripheral revenue by Rp1,109 billion and manage service and terminal revenue by Rp440 billion due to several project delays in the COVID-19 pandemic and a strategy change to reduce low margin income. The decrease was compensated by the revenue increase in data, internet, and information technology services of Rp835 billion or 9.7%, mainly from the data center and cloud business growth managed by Telkomsigma. Meanwhile, expenses in 2020 were recorded at Rp19,464 billion, decreased by Rp1,318 billion or 6.3% from Rp20,782 billion in 2019. It resulted that the Enterprise segment recorded a segment loss of Rp1,735 billion.
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CONSUMER SEGMENT
8.0 million IndiHome subscribers, increased 14.5% from the previous year | 12.7 million optical ports as broadband access based on optical fiber |
TelkomGroup’s primary portfolios of product and service in the Consumer segment were fixed voice, fixed broadband, IP-TV, and digital services under the brand of IndiHome. During the COVID-19 pandemic, IndiHome is one of the people who need to do their activity at home. It stimulates revenue growth and positively impacts the overall TelkomGroup’s performance. As the end of December 2020, the IndiHome subscribers were 8.0 million subscribers, growing by 14.5% or 1.0 million subscribers from the previous year. The ARPU in 2020 was 249 thousand, lower than the last year of Rp257 thousand due to marketing program to optimize idle network at the low affordability area in the beginning of the year. The marketing program was successfully implemented to increase the ARPU with the customer leveraging program, presented by the ARPU increase on Q4 2020 of Rp262 thousand from the Q4 2019 and ARPU increased in each 2020 quartal. Besides, data traffic also increased from 13.7 million terabytes to 24.5 million terabytes.
In 2020, TelkomGroup developed the IndiHome to become the featured product and service with the More for Less program, a continuation of the previous years' program. It was by the bundling offer combining the internet broadband, IP-TV, and fixed telephone. The product was offered in the sales channel of digital channels and promotions. The promotions in 2020 were Wujudkan Rumah Ceria 2020, Semangat Kemerdekaan, and Semua Bisa Berubah Maju. Telkom also launched packages that were specifically designed for helping people in online learning activities with the Paket Learning from Home and Paket Guru dan Dosen. Telkom also offers special package of Rumah Ibadah to support online worship during the pandemic.
Besides, Telkom has been developing products and technology to fulfill the customers’ aspirations and need. In 2020, Telkom launched IndiHome Gamer 2.0 with speed ratio improvement. Telkom was also partnering with game publishers to launch new games as service add-on value, improve cloud storage service with new features, and encourage the customers to increase their internet speed. In 2020, 1.4 million subscribers upgraded their internet speed.
Telkom offers IndiHome TV with Android TV Box devices connected to Google Ecosystem for IPTV services. The IPTV services include TV linear, TV-on-demand, video-on-demand (VOD) channels, and OTT service extension with UseeTV Go and UseeTV.com to have TV multi-screening and content access experience anywhere. Telkom remains to enhance IndiHome’s TV channels of Standard Definition, High Definition to High Definition with Dolby Support, which subscribers would experience watching movies in the home feels like in cinema. To get more differentiation, IndiHome presents 7 in-house channels whose broadcast quality is constantly improving. One of them is the revamp of the idKU channel to SEA Today, a news and live-style channel in English that provides Indonesia and Southeast Asia news as an accurate news reference. The SEA Today channel expects to open worldwide exposure about Indonesia, including socio-culture, natural potential, tourism, lifestyle, and other things in an attractive event format.
IndiHome still maintains its position as the largest and most comprehensive TV channels provider in Indonesia with HD quality and several channels with Dolby audio. The diversity of video content maintains through cooperation with various leading OTT video streaming providers. IndiHome provides a choice of diverse minipacks that can be easily activated to meet customer preferences and capabilities, reflected in the add-on minipack transactions that reached 3 million transactions in 2020.
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Telkom also offers partners’ OTT content such as iflix, Catchplay+, Vidio, and Mola TV to improve customer experience, we are open for partnerships with the OTT video so IndiHome would be a platform with content varietry. Besides, Telkom released new VOD and game cloud GameQoo for IndiBox subscribers. The OTT service is based on the past-released Android TV Box device in 2019 so the subscribers may access TV streaming, music, game, applications, and VOD. We also offer an add-on of WiFi.id service for IndiHome subscribers to access unlimited internet in all WiFi.id access points across Indonesia. WiFi.id stands for Indonesia Wi-Fi, our public wireless internet network that provides facilities to enjoy high-speed internet and other multimedia services.
TelkomGroup’s challenge in 2020 was increasing the quality of IndiHome’s services. With the increasing subscribers, then there would be more intense demands to deliver the best customer experience. Another challenge was increasing the average revenue per user (ARPU) and decreasing the churn. Network infrastructure reliability is a significant aspect. Telkom currently has 12.7 million optical ports with a fiber optic-based network of fixed broadband access. STO modernization into fiber optic node (T-Cloud) is still ongoing to provide better service quality for customers. Until 2020, TelkomGroup already had 960 T-Clouds. Mean Time To Install (MTTI) and Mean Time To Repair (MTTR) is still improving by enhancing the technician capacity and business process. Through its subsidiary of Telkom Akses, Telkom announced Telkom Akses Command Center as an access network management center with digital integrated control. It can detect potential disruption fast in a certain area so it could handle immediately. The automatic predictive ticket would instruct the technician to have a proactive measure to the customers. Then, agents would track technician completion of the disruption tickets.
Consumer Segment Financial Performance
Consumer segment revenue was Rp20,956 billion contributing to TelkomGroup’s total consolidated revenue by 15.4% in 2020. The following table is the performance of Consumer segment for the past three years:
| | | | | | | | | | |
Consumer Segment |
| 2020-2019 | | 2020 | | 2019 | | 2018 | ||
| | (%) |
| (Rp billion) |
| (US$ million) |
| (Rp billion) | | (Rp billion) |
Revenues | | 18.4 |
| 20,957 |
| 1,492 | | 17,706 |
| 13,891 |
Expenses | | 1.2 |
| (11,721) |
| (834) | | (11,577) |
| (11,739) |
Result |
| 50.7 |
| 9,236 |
| 658 | | 6,129 |
| 2,152 |
In 2020, revenue from the Consumer segment was Rp20,957 billion. It increased by Rp3,251 billion or 18.4% from the previous year. It was due to an increase in IndiHome revenue by Rp3,744 billion or 23.3%, which was driven by the growth of IndiHome subscribers by 14.5% to 8 million subscribers. The increase was compensated by a decrease in telephone revenue by Rp.476 billion or 30.9%. For expenses in 2020, it recorded that the Consumer segment expenses were Rp11,721 billion, slightly higher than the previous year. With the increase in revenue and the successful expense controlling, the Consumer segment recorded a profit of Rp9,235 billion in 2020, an increase of 50.7% compared to the previous year. IndiHome profitability also improved with the EBITDA margin of 38.9%, significantly increased than the previous year of 33.9%.
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WHOLESALE AND INTERNATIONAL BUSINESS SEGMENT (WIB)
| | ||
167.9K km total optical fiber backbone network (103.2K km domestic and 64.7K km international) | 117 Point of Presence (PoP) (58 international PoP & 59 domestic PoP) | 5 data centers (overseas) & 18 neuCentrIX data centers (domestic) | 35.8K towers (18.5K Mitratel towers, 1.3K Telkom towers, and 16K Telkomsel towers) |
In the Wholesale and International Business (WIB) segment, TelkomGroup serves Other Licensed Operators (OLO), Service Providers, Digital Players domestically and overseas. The Wholesale and International Business (WIB) segment currently has several business lines, namely carrier, tower, infrastructure, and international business services. In 2020, the Wholesale segment was relatively stable though there were several project delays from customers. But Telkom should prepare new business initiatives to maintain its profitability.
1. | Carrier Service |
| In this business line, the main services are network, data and internet, and interconnection. Besides the interconnection, TelkomGroup also provides value-added, signaling, voice dubbing, data center, platforms, and solutions services. In 2020, carrier services recorded positive growth driven by the increase in the domestic A2P revenue trend compared to last year. |
| |
| TelkomGroup’s initiative of Global Digital Hub that has started in 2018 continued until 2020. TelkomGroup successfully connected submarine cable of SEA-ME-WE 5 with SEA-US to provide the direct broadband connectivity for Europe, Asia, America region, which made Telkom the digital connectivity main gate presenting traffic from domestic to global, global to domestic, and as a hubbing among the countries for voice or A2P (application-to-person) SMS traffic. We notice an increasing demand in 2020 for SMS A2P due to the consumption habits changes of the COVID-19 pandemic. It increased the digital activity at home, such as work from home or online learning from home by accessing applications. These applications frequently require user notification and authentication that raise our SMS A2P usages. |
| |
| As of the end of December 2020, TelkomGroup had 18 neuCentrIX data centers in 12 cities across Indonesia, adding 4 locations than the previous year. Telin has 5 overseas data centers located in Singapore (Telin-1, Telin-2, and Telin-3), Timor Leste (1 location), and Hong Kong (1 location) to deliver maximal services. The neuCentrIX data center occupancy rate was 50.83% of total capacity while the average occupancy of overseas data centers was around 84.70% of total capacity in 2020. The data center capacity in Singapore increased due to the higher enterprise business demand. Telkom has been building Telkom HyperScale Data Center tier 3 and 4 since July 2020, which would complement the operated data centers and support Indonesia's digital transformation. |
| |
| Currently, TelkomGroup has 117 Points of Presence (PoP), consisting of 58 Global PoPs in 28 countries and 59 Domestic PoPs in 49 cities. In 2020, the declining 5 PoPs was from the cost efficiency evaluation result. TelkomGroup’s other services are Content Delivery Network (CDN) operation with a capacity of 10,546 Gbps higher 61.6% than the previous year. It works in collaboration with Google, Facebook, Akamai, Edgecast, Level3, ChinaNet, Yahoo, and video content providers such as iflix and HOOQ. The higher traffic was due to the COVID-19 pandemic impact. |
| |
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2. | Tower Service |
| TelkomGroup serves the procurement and installation of telecommunication devices for other operators with a leasing system. As of the end of 2020, TelkomGroup has around 35,822 towers, consist of 18,473 Mitratel towers, 1,349 Telkom towers, and 16,000 Telkomsel towers. TelkomGroup through Mitratel offers for operator colocation and tower reseller businesses. In 2020, Mitratel managed 30,570 tenants and 3,887 tower resellers. |
| |
| In October 2020, Mitratel signed a Conditional Sale and Purchase Agreement with Telkomsel to strengthen its position in the Indonesian telecommunication tower industry. With this agreement, Mitratel purchased 6,050 Telkomsel towers valued at Rp10.3 trillion. Previously, Mitratel also purchased 2,100 towers valued at Rp4.4 trillion from PT Indosat Ooredoo Tbk. In 2019, Mitratel has acquired 95% share capital of PT Persada Sokka Tama, which operates in the telecommunication tower business, and will continue operating to get 100% share capital in 2021. This asset acquisition was Telkom’s strategic policy to centralize the tower service to Mitratel for increasing tower leasing revenue and operation and maintenance efficiency. |
| |
3. | Infrastructure Services and Network Management |
| TelkomGroup also provides and manages infrastructure and network services as a telco company, such as network construction and maintenance. There are the installation and maintenance of submarine cables and providing energy solutions for the telecommunications infrastructure ecosystem. |
| |
| At the end of 2020, TelkomGroup had a fiberoptic backbone network of 167,935 km, consisting of 64,700 km of international networks and 103,235 km of domestic networks with a total capacity of 129,600 Gbps. TelkomGroup has the connection network to Europe, Asia, and America, which consists of Thailand-Indonesia-Singapore (TIS), Batam-Singapore Cable System (BSCS), Dumai-Malacca Cable System (DMCS), Asia-America Gateway (AAG), Southeast Asia-Japan Cable System (SJC), South East Asia-Middle East-Western Europe 5 (SEA-ME-WE 5), and Southeast Asia-United States (SEA-US), and Indonesia Global Gateway (IGG) that connect major cities in Indonesia with Asia, Europe, and America with SEA-ME-WE 5 and SEA-US. Telkom also operates and has usage rights for a fiber optic-based backbone network totaling 134,040 km under permanent telecommunications lease agreements, together with other global submarine cable operators/consortia. |
| |
| Currently, Telkom is working in two domestic submarine cable networks of PATARA-2 (Papua Utara-2) with a total of 1,126 km, which connects Sarmi and Waisei; and LUMORI (Luwuk-Morowali-Kendari) with a total of 436 km, which connects Luwuk, Bonepute, Kolaka, and Kendari. PATARA-2 and LUMORI are expected to be ready for in-service at second semester of 2021. Telkom has also negotiated usage rights for 3,250 km of submarine cables with the Southeast Asia-Japan Cable 2 (SJC2) consortium for the international submarine cable network. This additional submarine cable will increase Telkom's network capacity in serving customers. |
| |
| Telkom with its subsidiary of Infratel cooperates with State-Owned Enterprises (SOEs) to maintain diesel engines until 2021 for energy solutions. It started with the diesel power plant construction for telecommunications networks in 2018 located in Kalimantan and Sulawesi. |
| |
4. | International Business |
| PT Telekomunikasi Indonesia International (Telin) is a Telkom subsidiary that develops its business activities in Singapore, Hong Kong, Timor Leste, Australia, Myanmar, Malaysia, Taiwan, United States, New Zealand. Its services are wholesale, cloud and connectivity, data center and managed services, satellite transponder services, retail mobile services (MVNO), IP Transit, and business process outsourcing services. Telkom regularly reviews its overseas operation for the profitability, prospect, and strategic position to optimize its portfolio structure. Therefore, it would follow up or cancel the investments based on the reviews. |
| |
| Telin plans to use the new capacity of neuCentrIX data center and improve CPaaS based on NeuAPIX cloud with communication features of omnichannel (bots and live chat, real-time voice capabilities, SMS, emails, video call, and messaging service). Telin also launched NeuTrafIX, a web-based public sharing platform to connect the buyer and seller conveniently and transparently for wholesale voice, SMS, and virtual numbers trading. |
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Wholesale and International Business Segment Financial Performance
WIB segment obtains external revenue by providing various services such as network, interconnection, internet, submarine cable, data center, tower, and infrastructure. WIB has a role as an enabler and catalyst of other business segments to create the best value for the TelkomGroup. It made the WIB external revenue smaller than internal revenue. The contribution of WIB segment revenue in 2020 to the total consolidated revenue was 9.9% with the WIB revenue of Rp13,501 billion.
| | |||||||||
WIB Segment | | 2020-2019 | | 2020 | | 2019 | | 2018 | ||
|
| (%) |
| (Rp billion) |
| (US$ million) | | (Rp billion) |
| (Rp billion) |
Revenues | | 27.3 |
| 13,501 |
| 961 | | 10,609 |
| 10,084 |
Expenses | | 10.7 |
| (17,370) |
| (1,236) | | (15,691) |
| (14,624) |
Results |
| 23.9 |
| (3,869) |
| (275) | | (5,082) |
| (4,540) |
The WIB segment revenue grew by Rp2,892 billion or 27.3% valued at Rp13,501 billion in 2020. The revenue growth in the WIB segment was due to the interconnection revenue increase by Rp1,566 billion or 27.4% caused by the A2P's revenue increase. Besides, the services revenue of data, internet, and information technology also increased by Rp577 billion or 33.5% due to growth in Telin's data center revenue.
Furthermore, the total expense of the WIB segment was Rp17,370 billion in 2020, increased by Rp1,679 billion or 10.7% compared to the previous year. The expense increase was caused by additional infrastructure. Thus, the WIB segment created a segment loss of Rp3,869 billion.
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OTHERS SEGMENT
| |
| 41.7 million Digital Music active users 25.2 million Digital Games paid users |
The Digital segment offers digital products and services based on big data, smart platforms, digital advertising, digital entertainment (music & games), and e-commerce. Telkom via PT Metra Digital Innovation (known as MDI Ventures) invested in digital startup companies with the future growth potential to manage venture capital funds in 2020 and investing in companies that can support TelkomGroup's business performance.
Telkom offers a platform called BigBox and Internet of Things (IoT) platform services of Antares for the big data and smart platforms to the Enterprise customer segment. BigBox is a big data service platform that provides various services, such as analytics, data & business solutions, to API provider platforms to help developers and startup companies build their business. In 2020, Telkom launched the One Data Management Platform program as a Company's commitment to supporting the government in realizing the Satu Data Indonesia program. Telkom has worked on various projects for the smart IoT platform, that enables device connectivity of Smart Manufacturing, Air Pollution Monitoring, Smart Electricity, Waste Management, and others to increase productivity and quality of life of the community.
Telkom provides advertising media solutions in the digital advertising business line to support marketing activities through the UZone.id news portal. Apart from news portals, Telkom provides an ad exchange service platform called UAds that functions to gather publishers, advertisers, and agencies so that digital advertising activities would be effective and efficient.
In digital entertainment, Telkom Indonesia by its subsidiary PT Melon Indonesia provides digital music services through ring-back tones with the Nada Sambung Pribadi (NSP) and the Langit Musik music streaming and game services of UPoint. By the end of 2020, digital music services had 41.7 million active users with 217 million transactions through the online digital music content application MelOn. In the game publishing business, Melon Indonesia launched 6 games by the end of 2020, such as 3 games where MelOn acts as publisher and 3 games in which MelOn acts as co-publisher. Digital games service has around 25.2 Digital Games paid users.
In September 2020, Telkom officially discontinued the e-commerce platform operation of BLANJA.com as a form of the Company's strategy to get more efficient and healthier digital portfolio management. However, Telkom's business in e-commerce did not stop with the discontinued of the BLANJA.com platform. Telkom continues to be committed to providing the best service for the community by launching a B2B commerce platform called Pasar Digital (PaDi) UMKM which aims to expand the business ecosystem and micro, small, and medium enterprises (MSMEs). PaDi UMKM is Telkom's sincere form of supporting Government programs through the Ministry of SOE to connect the SOEs contribution to MSMEs across Indonesia. It expects local supply chain resilience can be maintained with this platform, especially in the COVID-19 pandemic. Besides, in 2020 Telkom will continue to improve the service and quality of another B2B commerce platform called Xooply for the non-SOE Enterprise segment with more diverse suppliers. Regarding the COVID-19 pandemic outbreak in 2020, Telkom provided maximum support to the government through the Ministry of Communication and Information by the PeduliLindungi application development and a platform with features of the COVID-19 pandemic. These features include contact tracking, zone identification, transportation & distribution systems, and dashboards to monitor vaccine distribution.
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Related to MDI Venture, a Telkom subsidiary, is in charge of corporate venture capital with its business activities consisting of investing - synergy - portfolio management - value creation, and fundraising. MDI as a Telkom venture capital initiative is in Jakarta with operations in Singapore and Silicon Valley. MDI combines the Venture Capital model by providing startups with synergy access in the TelkomGroup after making a financial investment. The focus of this investment is high growth business verticals to enhance the digital experience and provide the best service that leads to customer experiences, such as logistics, financial technology, cloud computing, agrotech/food, deep tech, digital life, health tech, new retail, and the Internet of Things.
In 2020, MDI Ventures invested in 15 new startups spread across 4 countries, such as Indonesia, India, Singapore, and the United States, where 2 startups of namely Observeit and Sonar exited through acquisitions. MDI Ventures has invested in more than 50 startups of 12 countries since 2016, with a total of 8 startups that exited and 2 of them through IPOs. Currently, MDI has managed three funds, apart from fund management from Telkom. The three funds are:
• | TMI Fund from Telkomsel Mitra Inovasi focuses on funding startups that provide synergy value for Telkomsel. |
• | Centauri Fund, in collaboration with KB Financial Group (Kook Min Bank) from South Korea, focuses on growth-stage startups. The goal is to support Indonesian and regional startups, especially in technology startups, including financial technology, e-commerce infrastructure, Software as a Service (SaaS), and big data. |
• | Arise Fund, launched in 2020 where MDI collaborates with Finch Capital Netherlands, focuses primarily on early-stage startups for Indonesian technology startups. |
Other Segment Financial Performance
Other segment revenue in 2020 contributed 0.2% of TelkomGroup's total revenue. The performance of Other segment for the last three years can be seen in the following table:
Other Segment |
| 2020-2019 | | 2020 | | 2019 | | 2018 | ||
| | (%) |
| (Rp billion) |
| (US$ million) |
| (Rp billion) | | (Rp billion) |
Revenues | | 11.2 |
| 219 |
| 16 | | 197 |
| 130 |
Expenses | | 11.4 |
| (1,653) |
| (118) | | (1,484) |
| (1,042) |
Result |
| (11.4) |
| (1,434) |
| (102) | | (1,287) |
| (912) |
Other segment revenue in 2020 recorded at Rp219 billion, increased by 11.2% or Rp22 billion from the previous year. There was an increase in terms of expenses of 11.4% or Rp169 billion, from Rp1,484 billion in 2019 to Rp1,653 billion in 2020. Overall, the Other segment recorded a segment loss of Rp1,434 billion.
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LEVERAGE ASSET PROGRAM
In line with our Company's strategy to accelerate the digital ecosystem creation, Telkom prioritizes increasing asset utilization while leveraging a sizeable portfolio of property assets through external partnerships and collaborations, particularly through the "Go Digital Telkom" program focusing on expanding digital capacity and data center networks. Telkom also remains to provide efficient space allocation for our legacy network equipment and a pleasant office experience for employees. Telkom carries out this leveraging process through its subsidiary, PT Graha Sarana Duta (Telkom Property), which offers services such as property development (planning, development, and construction of property areas), property leasing (property rent and leasing), property facilities (moving business lines). in retail and leasing, transportation management systems) and property management (building management, malls, apartments, and security services). This service contributes to increased utilization of property assets and diversification of the digital ecosystem.
In 2020 we will focus on converting buildings/spaces into data centers to support the acceleration of customer digitization, especially for customers who offer ICT services and solutions and are in areas with high data traffic. Meanwhile, commercial projects launched during 2020 include minimart retail outlets throughout Indonesia, the Telkom Landmark Tower Surabaya Office Building Complex in East Java through retail projects and strategic partnerships, Telkom University (Tel-U) in Surabaya that using existed regional offices, and capsule hotels in Semarang. Central Java.
Despite the challenging environment due to the COVID-19 pandemic, Telkom continues to seek opportunities to increase revenue by leveraging its property portfolio, particularly through tenant income. In the short term, there will be food and beverage (F&B) retail openings. Telkom also opens collaboration with educational institutions by providing vacant land or buildings to use as campuses and for rent to universities and schools. Our strategy also includes leveraging the captive market of state-owned enterprises and other government institutions to facilitate the opening of branches or sales offices throughout Indonesia. Apart from utilizing idle property through the partnerships described above, Telkom also incorporates digital competence and product solutions into its offering. For example, providing network connectivity or internet access to tenants or customers as additional facilities.
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MARKETING OVERVIEW
MARKET SHARE
TelkomGroup constantly monitors technological developments and responds to market dynamics. To maintain a competitive advantage and dominance in the industry, TelkomGroup continues to create products, services, standards, and business models that are in line with the latest developments. To make this happen, Telkom and its subsidiaries continue to invest in technology and infrastructure to increase value and provide the best digital experience for customers.
Mobile Segment Market Share
In 2020, TelkomGroup will strengthen the digital ecosystem and expand its customer network through collaboration with PT Aplikasi Anak Bangsa of the super app Gojek. One of the collaboration initiatives between Telkom and Gojek is by launching an affordable data package for Gojek drivers, the Telkomsel Swadaya Package.
Telkomsel as the spearhead of the TelkomGroup Mobile segment has two main competitors of Indosat and XL Axiata. Besides, other competitors that should consider are PT Hutchison 3 Indonesia of the Hutchison Asia Telecom Group operates under Tri brand and Smartfren Telecom from Sinar Mas Group business group of PT Smartfren Telecom Tbk. In 2020 there were no new or additional licenses issued for mobile operators.
As part of the TelkomGroup family, Telkomsel has 169.5 million cellular subscribers in 2020, including 115.9 million mobile broadband subscribers. It decreased from 171.1 million cellular subscribers in 2019. Based on the number of subscribers, Telkomsel's market share among in the most 3 operators in Indonesia for 2020 was 58.9% for the Mobile Segment, decreased from 59.6% compared to the previous year.
In general, the cellular data need has increased during the COVID-19 pandemic. However, the increase in demand is not proportional to the revenue received by mobile operators due to intensive competition between mobile operators as well as a shift in customer behavior from using mobile broadband to fixed broadband, specifically to support Work From Home (WFH) and Learn From Home (LFH) activities during this pandemic. Providers compete to provide maximum network access at affordable prices. Therefore, Telkomsel implemented a pre-planned marketing program aiming to not losing market share and maintaining decent profitability.
Another factor affecting the Mobile segment market share is the competition with Over-The-Top (OTT) services. OTT services can provide low-cost voice, text services, and data with an extensive network with the current digital technology. The massive penetration of smartphone use in Indonesia also supports OTT services, thus putting pressure on TelkomGroup's business and finances for Telkomsel in particular.
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Consumer Segment Market Share
The Consumer segment was positively affected by changes in customer habits during the COVID-19 pandemic. Limited mobility has forced people to get used to working and school from home using communication network facilities. It made all telecommunication providers compete to provide maximum network access at affordable prices.
TelkomGroup has a primary product and service of IndiHome to meet the community's digital connectivity needs. These products and services are one of the factors for TelkomGroup's business growth and have a role as new engine of growth to increase revenue very well.
Furthermore, IndiHome competes with other major fixed broadband service providers such as First Media, BizNetHome, MNC Play, and MyRepublic. Among these main competitors, First Media has the highest subscribers. In recent years, IndiHome's competitors for middle and upper-class household customers in Jabodetabek are MNC Play and MyRepublic. As for corporate customers, BizNet is IndiHome's competitor in Java and Bali. IndiHome has also faced increasingly fierce competition since 2019, including newcomers, a subsidiary of PT Perusahaan Listrik Negara (PLN) Persero, which began offering internet and TV services through its subsidiary ICON+. Besides, XL Axiata and Indosat have developed home services through XL Home and Indosat GIG products.
At the end of 2020, IndiHome fixed broadband had an additional 1.0 million new subscribers, which made the total number of IndiHome subscribers 8.0 million. With this number, IndiHome becomes the dominant market share in fiber-based fixed broadband services. Its dominance shows from the IndiHome network covers 96.5% of districts/cities or 496 districts/cities across Indonesia.
We no longer disclose the number of copper-based internet subscribers in this 2020 Annual Report because we no longer marketed it and more focused on developing fiber-based fixed broadband, which can serve various applications according to the people's needs that do their most activity at home during the pandemic. With the absence of copper-based internet, IndiHome's market share in 2020 will be 82.3%.
For fixed voice products and services, TelkomGroup recorded negative growth in 2020. The number of fixed wireline (POTS) subscribers decreased by 2.7% or 0.2 million subscribers in 2020. Over the past few years, TelkomGroup has attempted to migrate subscribers from home legacy to IndiHome products and services. It aims to integrate fixed voice to fixed broadband and IP-TV based on the digital connection with fiberoptic cable into one product and service.
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Enterprise Segment Market Share
In the Enterprise Segment, TelkomGroup encourages the growth of digital services such as the internet of things (IoT), cybersecurity, big data, and digital ads. They complement various types of connectivity, satellite, IT services, data center & cloud products and services according to the Enterprise segment customers’ needs. Telkom also offers solutions, analysis, and in-depth understanding through the BigData and BigBox platforms for companies' business needs. The platform helps companies with decision-making, governance, strategy formulation, and various future insights that are useful for the Company.
For broadband subscribers in 2020, TelkomGroup successfully provided the bandwidth of 2,998 Gbps, which increased 0.1% from 2019. TelkomGroup had the bandwidth in service market share of 74.5% in 2020, which increased from the previous year by 0, 7%.
Then, the market share of TelkomGroup system integration reached 22.2% in 2020 through Telkomsigma, a Telkom subsidiary, which decreased by 5.8% from 2019. For the market share of Business Process Outsourcing (BPO), Infomedia, a Telkom subsidiary, its business experienced positive business growth of 6.8% to 55.4% in 2020 compared to the previous year. Regarding satellite products and services, as of December 31, 2020, TelkomGroup dominated 29.4% of the satellite business market share, which declined from the reporting period in 2019.
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Wholesale & International Business Segment Market Share
TelkomGroup serves other license operators (OLO), service providers, global digital player wholesalers, and carriers in the Wholesale and International Business segment. TelkomGroup also provides other companies such as international data centers or international private leased circuits (IPLC), international mobile network operator (MNO), and mobile virtual network operator (MVNO) retail customers.
The Wholesale & International Business (WIB) segment market share includes carrier traffic, carrier network, tower, and managed infrastructure services business. For Wholesale, in 2020, it was relatively stable despite the COVID-19 pandemic. However, TelkomGroup still prepares new business portfolios to support the Company's position. TelkomGroup increased the data center capacity in Singapore for the International Business segment, in line with the higher data center demand on the market.
Currently, TelkomGroup is still the leader of the carrier traffic market with the control of voice interconnection by 80%. TelkomGroup has a wholesale network market share of 64% supported by Metro E and leased lines products. TelkomGroup's market share in wholesale domestic for IP Transit products recorded of 14.4%, which increased from 2019 by 36%.
In the wireless telecommunications tower business, TelkomGroup has a subsidiary of Mitratel, which operates these business activities. Mitratel's market share in 2020 was 26.9%, increased from 23.9% the previous year. Mitratel has several competitors including PT Tower Bersama Infrastructure Tbk, PT Profesional Telekomunikasi Indonesia, PT Solusi Tunas Pratama Tbk, PT Inti Bangun Sejahtera Tbk, PT Centratama Telekomunikasi Indonesia Tbk, PT Gihon Telekomunikasi Indonesia Tbk, and PT Bali Towerindo Sentra Tbk.
TelkomGroup strengthens Mitratel's business fundamentals by transferring ownership of Telkomsel's towers to Mitratel. It is a form of Telkom portfolio structuring to provide optimal value for shareholders by optimizing Telkom's business and assets. On the other hand, tower transfer is also a value creation effort of tower business to ensures the subsidiaries can focus on developing and strengthening their respective business lines. The 6,050 telecommunication towers were transferred from Telkomsel to Mitratel so that Mitratel is one of the largest tower providers in Indonesia. The tower ownership transfer is also one of Mitratel's preparations for the IPO. The transfer of tower ownership will be carried out gradually and targeted to complete in the first quarter of 2021.
By the COVID-19 pandemic that increased the public's need for telecommunications facilities, the new towers and co-location need has also increased. Mitratel leases towers to meet the other operator's needs to place their telecommunications equipment.
Currently, regulations require telecommunications companies to share network infrastructure and capacity. This policy is a challenge for TelkomGroup because Telkom already has the most network infrastructure in Indonesia, and competitors can use them with more affordable capital and expenses.
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Digital and Other Segments Market Share
Other segments, especially digital services, have a diverse portfolio grouped into smart platforms and provide access to digital content and e-commerce. Besides, Telkom also manages venture capital funds through its subsidiary MDI in investing in digital startups.
TelkomGroup's smart platform business line consists of digital advertising, intelligent application, big data, IoT, and financial services. LinkAja is an electronic money service by Telkomsel, which provides a digital solution that allows Telkomsel subscribers to have safe, convenient, and simple banking activities. Currently, Telkomsel owns 25% equity ownership in Finarya, owner of LinkAja. On the other hand, investment and strategic partnerships with Gojek allow TelkomGroup to expand the digital ecosystem, use the co-branding benefit, join promotion activities, and get closer to digital service customers.
In the digital content portfolio consisting of music and games, Telkom focuses on providing entertainment experiences to cellular subscribers. The services offered include music applications (such as Langit Musik and ringtones applications) and GameMax, which combines game content data for several games and game vouchers.
For e-commerce, following the Company's digitization program, Telkom will focus on B2B e-commerce opportunities through PaDi UMKM to expand the MSME business ecosystem and Xooply for the non-BUMN enterprise segment with more diverse suppliers. Besides, customers can sell and buy products through their TV by accessing IndiHome Stores and Alfamidi@IndiHome, from partnerships between Alfa retail stores and IndiHome.
Telkom manages venture capital funds to invest in digital startups through MDI based in Jakarta and operates in Singapore and Silicon Valley. MDI focuses on investing in high-growth business verticals that provide the best digital experiences and services for customers, such as financial technology, cloud computing, big data, health technology, e-commerce, IoT, and other services. In 2020, MDI invested in 15 new startups in Indonesia, India, Singapore, and the United States. Since 2016, MDI has invested in more than 50 startups in 12 countries.
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MARKETING STRATEGY
TelkomGroup operates its business supported by very competitive, strategic, and comprehensive distribution channels for products and services. TelkomGroup presents its commitment to providing added value and customer experience of the products and services by brand and sales growth strengthening to maintain position and dominate the market competition, especially when in the digital disruption. Besides, TelkomGroup notices the offering price based on the market capacity, so it remains in a decent price range by considering the network utilization, traffic load, and revenue aspects.
One of Telkom's strategies to expand the market is by strengthening the digital ecosystem. One of them is investing US$150 million to PT Anak Bangsa Application, the Gojek super app owner, through Telkomsel. This collaboration will provide better services and solutions for the community in building an integrated and sustainable digital ecosystem. It aims to create exclusive co-branding, joint promotion, and data leverage, which strengthen the customer database of both parties.
Furthermore, TelkomGroup's strategy in 2020 was maintaining the network to provide optimal service to customers. It is related to the condition of the COVID-19 pandemic, which causes high traffic data for digital products and services use. TelkomGroup measures include:
• | Upgrade and add adequate capacity to maintain good services. |
• | Monitor network reliability with an integrated command center (TIOC). |
• | Have a maintenance team that conducts regular control to prevent disturbances or intrusions, equipped with applications so that the team can handle end-to-end problems. |
In 2020, TelkomGroup encountered challenges in product and service disruptions. Due to pandemic conditions, the allowed technicians to work in the field was limited, preventing mobility, and the recovery process slower than usual. It disrupted customer satisfaction and made a negative impact on marketing strategies. TelkomGroup applied priority policies based on the area to overcome this.
Furthermore, the COVID-19 pandemic is expected to accelerate digital transformation in Indonesia and started opportunities for the 5G network implementation. Currently, the regulatory requirements are still in the final stage by the Government and stakeholders. The 5G developments include the collaboration technology of TelkomGroup with Cisco and ZTE by building minilab facilities for research purposes. Cisco collaboration is 100% ready because it does not require a spectrum license. On the other hand, ZTE collaboration is still 60% due to spectrum licensing constraints.
Regarding the 5G network, TelkomGroup still needs a feasibility study concerning customer demand, pricing capabilities, and a home environment that is more suitable for fixed networks than mobile networks. The 5G network also requires high capital expenditures, so that it will have an impact on the high selling price. Currently, the 5G implementation required time has not been determined because it depends on the in-designing business scheme.
We continue to actively communicate with the government to ensure that the implementation of 5G in Indonesia can provide optimal results. We also focus on developing other telecommunication infrastructure including applications and devices ecosystems supports, which the 5G backbone and foundation in Indonesia would be solid to get the quality of the 5G network fully accepted by the public and industry.
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Mobile
In the Mobile Segment, there are several TelkomGroup market development strategies. They are continuing the transformation program, implementing synergies with Gojek, and increasing digital business. TelkomGroup also explores new opportunities by the coming-soon 5G technology and enhances internal partnerships, such as improving the synergy between Telkomsel and IndiHome to the maximum.
Telkom, via Telkomsel, is working with PT Aplikasi Anak Bangsa to strengthen the digital ecosystem by expanding mobile subscribers. Therefore, Gojek drivers from PT Aplikasi Anak Bangsa expect to use Telkomsel in their activities because Telkom provides a special data package for Gojek drivers. On the other hand, the ease of transactions expected to increase the subscribers, which makes it easier for Gojek users to purchase various Telkomsel service products directly from reseller/outlet partners, such as starter packs, vouchers cards, and bundling device programs.
In 2020, the Telkom subsidiary of Telkomsel presented Mobile Segment products and services with a marketing strategy targeting specific customer segments and personalized offers through digital channels for efficient implementation. Telkomsel focused on finding the right balance between market share, revenue, and profitability growth. Besides, Telkomsel focused on increasing payload growth and acquiring new data users while supporting the existing product use. Telkomsel partners with other parties for the higher data usage and digital products, to enrich the content on the existing platform and continues to offer a “More for More” program, in which customers who subscribe more data packages will get more interesting add-ons and features, henceforth it will encourage value creation and uplift the ARPU.
To strengthen market share, TelkomGroup constantly launches several new products to improve customer experience. The by.U is a digital-based prepaid service targeting the younger generation that offers a customer-centric experience. With these products and services, subscribers can access delivery messages, telephone numbers, internet quota, additional quota, and payments. Besides, Telkom has LangitMusik aiming at Gen Z as a music streaming service. Telkom has LinkAja for digital wallets, which has collaborated with additional partners such as taxis, gas stations, food and beverage merchants, and payment services.
In 2020, we launched the Ketengan package (small batch) for subscribers who wish to select data services for the specific application and unlimited packages for strong network capabilities; considered subscribers need in the macro-economic environment amid the COVID-19 outbreak; and provided valuable products and services to increase customer engagement and loyalty.
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Consumer
The Consumer segment has benefited from customer habits changes due to a pandemic that forces them to do their activity at home. Several TelkomGroup strategies in increasing Consumer segment revenue are encouraging higher quality sales and improves service to reduce churn. TelkomGroup also improvises sales, anticipates competitors in fixed broadband operators and other platforms, increases add-on revenue, and performs operational expense efficiency.
There is IndiHome that combines fixed voice, fixed broadband, and digital-based IP-TV for TelkomGroup primary products and services in the Consumer segment. Various marketing strategies such as discounts and service benefits are utilized to provide IndiHome products that are attractive to customers. Marketing is carried out on diverse channels, including digital channels, and applied throughout the year, especially during special festival periods. The campaigns and promotions in 2020 including:
• | Wujudkan Rumah Ceria 2020. It is the IndiHome Campaign to celebrate the New Year 2020. IndiHome conducts a series of promotional activities such as giving a 10% discount to customers who subscribe to IndiKorea, Dynasty 2, and IndiJapan minipacks, along with lucky draws. |
---|---|
• | Berkah dari Rumah. It is the IndiHome Campaign to celebrate the month of Ramadhan and support people who work, study, or do other activities from home due to the COVID-19 outbreak. IndiHome conducts various promotional activities, such as providing 20% discount for customers who upgrade their internet speed, free access to certain content for one month (30 Minutes Can Read Al-Quran), and lucky draws. |
• | Semangat Kemerdekaan. It is the IndiHome Campaign to celebrate Indonesia's Independence Day. IndiHome provides various discounts such as 17% discount for 8 minipacks and a top-up of LinkAja balances. Customers also could take part in a lucky draw. |
In 2020, the sales strategy remained the “more for less” program, which provides benefits variety at competitive prices through product bundling that provides added value to IndiHome customers. Besides, there is a dynamic application of product and service prices so that selling prices can better reflect local conditions in various regions in Indonesia while providing customers with superior products and faster service.
IndiHome's marketing strategy in the pandemic is launching packages specifically designed to help people who are or still must learn from home or are involved in distance learning activities such as the Paket Learning from Home and the Paket Guru dan Dosen. Telkom also offers a special package of Houses of Worship or Rumah Ibadah to support online worship activities during the pandemic.
At the end of 2020, we set a minimum contract policy for 1 (one) year subscription and sold IndiHome packages with a minimum speed of 20 Mbps from the previous 10 Mbps to improve customer experience. In line with this, especially for our selected loyal customers, we provide a loyalty program in the form of an increase in speed from 10 Mbps to 20 Mbps at no additional cost.
Strategically and sustainably, TelkomGroup strengthens the marketing of IndiHome products and services for residential customers, including apartment and premium cluster customers. The strategy undertaken is through intensive marketing, various promotions, and products with added value to customers.
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Enterprise
The Enterprise segment consistently makes continuous fundamental improvements, enhances and improvises consultative selling, and strengthens strategies to encourage products and services to enter the market. Besides, Telkom implements strategic key account management to attract high-end market customers, which improves Telkom's business relations with customers. It is by Telkom collaborative process in designing services that can be tailored to the customers' needs.
In 2020, Telkom and its subsidiaries performed several digital transformation marketing strategy programs for the Enterprise segment, which consist of the following activities:
• | Government Initiatives: TelkomGroup is the partner of the Government in providing information and communication (ICT) technology and services with ICT strategic project collaborations that focus on digital customers experience. |
• | End to End Digital Ecosystem Initiatives: TelkomGroup markets end-to-end digital ICT solutions to corporate customers by providing custom and segmented solutions for each customer. |
• | Build the Nation Digital SME Initiatives: TelkomGroup provides and offers ICT basic solutions of connectivity services, and other solution packages to SMEs in Indonesia by optimizing the domestic digital ecosystem, useful applications, and content; and provides the best experience for SME customers. |
In 2020, TelkomGroup's applied various marketing strategies to create the best value for all segment customers. Telkom provides an Account Manager as the primary channel end-to-end services to after-sales services interaction for corporate customers. To serve Government customers, TelkomGroup has the Government Relationship Officer (GRO) which responsible for managing relations with Government institutions, and renewing employment contracts. For Small and Medium Enterprises (SME) customers, TelkomGroup has a Business Account Manager (BAM) and Tele Account Management (TAM) for small businesses, as well as a value-added reseller mechanism for micro-businesses.
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Wholesale and International Business
The Wholesale and International Business segment strategies consist of increasing the effectiveness and efficiency of the cost structure, developing new opportunities, and supporting the Ministry's program of BUMN Go Global.
Regarding overseas business, TelkomGroup remains to conduct reviews for ongoing businesses. It was to examine the possibility of building a better portfolio structure. With a good portfolio structure, TelkomGroup expects to be able to maximize value in this segment. Various opportunities are also being reviewed, including the possibility of divestment for the less potential business portfolio.
In 2020, the TelkomGroup implemented marketing strategies such as:
• | Offer an attractive business scheme for the voice traffic portfolio with the products and services bundling of voice traffic at competitive prices in line with the service quality. |
• | Improve the service quality and coverage for international data centers and customer connectivity. |
• | Offer end-to-end tower solutions to customers, such as built-to-suit (a tailored tower leasing according to the location and specifications), co-location, maintenance of adjacent towers, and other services. |
• | Explore regional markets by providing submarine cable installation and maintenance services. |
Furthermore, one of TelkomGroup's tower market development strategies is the tower operations transfer from Telkomsel to Mitratel. The policy aims to increase the tenancy ratio value. By being under Mitratel, the tower business can optimize to compete with other competitors.
Furthermore, Telkom and its subsidiaries use various approaches in marketing strategies implementation for Wholesale and International Business customers. It provides account manager, wholesale digital touchpoint Apps, and 24-hour customer care support. TelkomGroup keeps developing the team capabilities and competencies in providing the best service and strong engagement with customers. To get a better understanding of customer needs and feedback, TelkomGroup conducts regular surveys with digital touchpoints and interviews. The results of this survey generally presented in new service improvement programs.
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Digital and Other Services
In the Digital and Other segments in 2020, TelkomGroup implemented tailored strategies according to customer characteristics and needs, especially during the COVID-19 pandemic. One of them is improving the customer database through cooperation with PT Aplikasi Anak Bangsa. By improving the database, Telkom has a stronger capital to cooperate with Biofarma.
In 2021, TelkomGroup will collaborate with Biofarma to help the Government build an information center for COVID-19 vaccination data. The Biofarma cooperation is strategic to support the Government's efforts to overcome COVID-19, considering that TelkomGroup has a reliable database.
TelkomGroup has the contact center, dedicated account management, customer care, channel management, website, and social media as the communication channels in serving customers. In this segment, TelkomGroup's strategy emphasizes relevant digital verticals, including the development of business to business (B2B) and business to customer (B2C). B2B development could apply to the logistics and transportation sectors, agriculture, healthcare, energy & mining, financial services, and government services.
On the other hand, B2C development could apply to video, music, gaming, financial services, and collaboration. One of them is a digital content service for the music database of MelOn. MelOn, an online digital music content application, is expected to answer the customers' entertainment needs.
Currently, TelkomGroup is starting the agricultural and fisheries ecosystem in the context of digital transformation. TelkomGroup makes applications to support businesses in agriculture and fisheries. TelkomGroup will also expand B2B e-commerce such as the Digital Market (PaDi) for MSMEs with several other SOEs collaboration. With PaDi, MSMEs will be helped in expanding their business.
Our digital service program also focuses on utilizing IndiHome services, for example promoting the MyIndiHomeX application as a digital touchpoint for IndiHome and IndiBox customers, as value-added source service (such as video content, games, and other Google applications). GameQoo is a cloud gaming and additional benefits for IndiHome services. IndiHome Smart is an IoT home service that provides consumer digital services for IndiHome subscribers.
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DISTRIBUTION CHANNEL
Digital Touch Point
TelkomGroup provides a digital touchpoint distribution network for IndiHome and corporate customers based on web and mobile applications to support the expansion of the distribution network. MyIndiHome is a digital touchpoint that serves as a self-care service mobile application for IndiHome to make subscribers easier to request new pairs and manage bills and payments. Then, Telkomsel provides MyTelkomsel as a self-care mobile application that presents information on package and product purchase services for subscribers.
For Enterprise segment customers, Telkom provides My Telkom Digital Solution (MyTDS), a digital touchpoint that simplifies business processes to increase productivity and service performance to customers. MyTDS presents easy access to product catalogs, generates digital quotes, tracks delivery tickets, and allows customers to have quickly report service disruptions due to a release ticket that acts as a disruption log.
To measure customer experience, TelkomGroup uses digital touchpoints with the Net Promoter Score (NPS) method. With this method, Telkom and its subsidiaries have accurate data and information to improve quality to customers, both from products, services, and future customer experiences.
Currently, 5.7 million total IndiHome subscribers have registered on the myIndiHome application. Then, 58.7 million subscribers have downloaded MyTelkomsel and have taken advantage of the various features of the application.
Customer Service Point
TelkomGroup provides customer service points, such as Plasa Telkom and GraPARI, to provide service solutions and products for Telkom and its subsidiaries. As of December 2020, TelkomGroup had 383 Plasa Telkom and 403 GraPARI Centers in Indonesia. There were 19 GraPARI overseas, in Hong Kong, Taiwan, and Timor Leste. Telkom and its subsidiaries also operated 365 units of mobile GraPARI and 896 units of IndiHome sales cars.
Authorized Dealers, Retail Outlets and Modern Channels
TelkomGroup has a non-exclusive distribution network of authorized dealers and retail outlets operating across Indonesia. This distribution network provides various Telkomsel products such as starter packs, prepaid SIM cards, and voucher cards with diverse discounts for marketed products.
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Partnership Stores
TelkomGroup collaborates with various third-party marketing outlets to expand its distribution network. These third parties include computer and electronic stores, ATM banking networks, and other business networks.
In 2020 there is a channel shift from Traditional Channels to Modern Channels. During this year, following the COVID-19 outbreak, people changed their recharging behavior, reduced physical interaction, by preferring to transact in modern channels (banking, applications, online, etc.) than at traditional outlets. Therefore, some adjustments and improvements have been made to Traditional Channels and Modern Channels to suit the current situation.
Modern Channels have implemented the Digital Transformation and Destructive Competitive Era 2020 strategy, related to the rapid increase in digital channels (e-commerce, fintech, e-money, and fleet transportation) and shifting customer behavior from Traditional channels to Modern channels.
Telkomsel is changing and refining the KPI model and reward concept for partners to optimize the business model on Traditional channels. For KPIs, there are improvements to strengthen retail sales fundamentals. At the outlet level, Telkomsel increases incentives to be able to compete with competitors and increases outlet engagement to increase outlet advocacy.
Contact Centers
TelkomGroup has a contact center service that operates 24 hours in Semarang, Bandung, and Malang. This contact center facilitates customers in registering, submitting complaints, and obtaining information on IndiHome services and other Telkom products.
Account Management Team
TelkomGroup has account management teams that is responsible for managing customer relationships, portfolios, and customer satisfaction. The account management team serves corporate, SME, government institutions, and Wholesale & International customers. Our account management team that manages our Wholesale & International customer relationships and portfolio currently has 154 members.
Sales Specialist
TelkomGroup has sales specialists who work with account managers to identify and design customer technical needs.
Channel Partner
TelkomGroup collaborates with other parties to increase revenue, both for sales and marketing activities, including organizing events for Enterprise customers. TelkomGroup also works with VAR (Value Added Reseller) to fulfill Enterprise customer demand and reach retail customers.
Website
TelkomGroup has prepared various pages that customers can access according to their needs, including www.telkom.co.id, www.telkomsel.com, and www.telin.net. These pages make customers more convenient to access information, submit complaints, and get several services such as e-billing, registration, and collective billing information.
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Social Media
TelkomGroup manages social media to increase customer reach in the digital era. TelkomGroup communicates to customers and gets feedback on products and services fast via Facebook, Instagram, and Twitter.
LinkAja
LinkAja is a digital wallet application that provides bill payment features and purchases of certain products and services from Telkom and its subsidiaries. In managing the LinkAja application, Telkomsel collaborates with state-owned enterprises (SOEs). One of them is digital payment for fuel purchases via MyPertamina.
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
The TelkomGroup strategy in consumer engagement is by implementing customer relationship management. The TelkomGroup customer relationship management implementation is to identify services that are attractive and following consumer interests with the compilation of data usage to personalize services. One of customer relationship management implements in the IndiHome service. The implementation of customer relationship management can identify and solve problems proactively, which will increase the convenience of IndiHome subscribers. IndiHome can provide more attractive service quality with a strong customer database for each customer's characteristics to improve customer experience.
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COMPREHENSIVE FINANCIAL PERFORMANCE
FINANCIAL POSITION OVERVIEW
At the end of 2020, TelkomGroup had total assets of Rp246,943 billion (US$17,576 million), increased 11.6% from Rp221,208 billion at the end of the previous reporting period. The increase in total assets was due to increases in use rights assets, property and equipment, cash and cash equivalents, and long-term investments in debt and equity instruments.
In terms of liabilities, the total liabilities of TelkomGroup were Rp126,054 billion (US$8,972 million), increased by 21.3% from total liabilities in 2019 of Rp103,958 billion. It was due to the increase in lease liability, pension benefits and other post-employment benefits obligations and trade payables.
Telkom and Its Subsidiaries Financial Position 2018-2020
| | |||||||||
| | Growth | | Years ended December 31, | ||||||
| | 2020-2019 | | 2020 | | 2019 | | 2018 | ||
|
| (%) |
| (Rp billion) | | (US$ million) |
| (Rp billion) |
| (Rp billion) |
Total Current Assets |
| 11.5 | | 46,503 | | 3,310 |
| 41,722 |
| 43,268 |
Total Non-Current Assets |
| 11.7 | | 200,440 | | 14,266 |
| 179,486 |
| 162,928 |
Total Assets |
| 11.6 | | 246,943 | | 17,576 |
| 221,208 |
| 206,196 |
Total Current Liabilities |
| 18.4 | | 69,093 | | 4,918 |
| 58,369 |
| 46,261 |
Total Non-Current Liabilities |
| 24.9 | | 56,961 | | 4,054 |
| 45,589 |
| 42,632 |
Total Liabilities |
| 21.3 | | 126,054 | | 8,972 |
| 103,958 |
| 88,893 |
Total Equity attributable to owners of the parent company |
| 3.0 | | 102,527 | | 7,297 |
| 99,561 |
| 98,910 |
Financial Position Comparison
In terms of financial position comparisons, the percentage of current asset and non-current asset was 18.8% and 81.2%. Its composition did not have any significant difference compared to the previous year. For the liabilities, TelkomGroup had 54.8% current liabilities and 45.2% non current liabilities.
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Comparison of Financial Position as of December 31, 2020 Compared to as of December 31, 2019
| | ||
1. | Assets | ||
| In the 2020, TelkomGroup total asset was Rp246,943 billion (US$17,576 million), increased by 11.6%, or Rp25,735 billion compared to Rp221,208 billion in 2019. The causes of these changes are: | ||
| a. | Current Assets | |
| | Current assets as of 31 December 2020 recorded at Rp46,503 billion (US$3,310 million), increased by 11.5% or Rp4,781 billion from Rp41,722 billion in the last year. It was due to: | |
| | • | An increase in cash and cash equivalents of Rp2,347 billion or 12.9% due to a decrease in cash disbursements for operating and investing activities, |
| | • | An increase in contract assets by Rp1,036 billion due to the implementation of PSAK 72 related to Telkomsel postpaid customer service, |
| | • | An increase in other current financial assets by Rp749 billion or 135.2% due to the increase in time deposits by Rp1,031 billion, |
| | • | An increase in prepaid taxes of Rp601 billion or 23.4% due to an increase in prepaid taxes for Telkom and Subsidiaries' Income Tax, and |
| | • | An increase in inventories by Rp398 billion or 68.0% due to an increase in inventories for components, SIM cards and blank prepaid vouchers. |
| | | |
| | The increases were compensated by the trade receivables of Rp458 billion or 3.9% due to a decrease in trade receivables from third parties. | |
| | | |
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| b. | Non-Current Assets | |
| | At the end of 2020, TelkomGroup recorded non-current asset of Rp200,440 billion (US$14,266 million), increased by 11.7% or Rp20,954 billion from Rp179,486 billion in 2019. The changes were due to: | |
| | • | An increase in right of use assets by Rp18,566 billion due to the implementation of PSAK 73 related to asset leases used in Company operations, |
| | • | An increase in property and equipment by Rp3,950 billion or 2.5% in line with the infrastructure development improvements, especially cable and transmission networks, |
| | • | An increase in long-term investments in financial instruments by Rp2,992 billion or 284.1% due to Telkomsel investment in PT Aplikasi Karya Anak Bangsa (Gojek) in interest-free convertible bonds of US$150 million, |
| | • | An increase in contract costs by Rp1,254 billion due to the implementation of PSAK 72. |
| | • | An increase in deferred tax assets – net Rp680 billion or 23.5% due to the increase of Telkom deferred tax assets, and |
| | • | An increase in intangible assets of Rp400 billion or 6.2% due to the increase of software. |
| | | |
| | The increases were compensated by: | |
| | • | A decrease in other non-current assets of Rp6.073 billion or 55,7% due to a decrease in prepaid leases of Rp3,170 billion and claim for tax refund of Rp2,284 billion, and |
| | • | A decrease in long-term investments in associate of Rp1,018 billion or 84.1% due to a decrease in investment value of TiPhone and Indonusa of Rp526 billion and Rp210 billion, respectively. |
| | | |
2. | Liabilities | ||
| TelkomGroup's total liabilities as of December 31, 2020 was Rp126,054 billion (US$8,972 million), increased by 21.3% or Rp22,096 billion, compared to 2019 of Rp103,958 billion. Changes in liabilities in 2020 were influenced by the following. | ||
| a. | Current Liabilities | |
| | Telkom's and its subsidiaries' current liabilities were Rp69,093 billion (US$4,918 million) at the end of 2020. It increased by Rp10,724 billion or 18.4% compared to the last year of Rp58,369 billion. The TelkomGroup's current liabilities dynamic were mainly due to: | |
| | • | An increase in contract liabilities by Rp7,834 billion due to the implementation of PSAK 72 related to Telkomsel prepaid customer service, |
| | • | An increase in current maturities of lease liability of Rp4,632 billion or 606.3% due to the implementation of PSAK 73, |
| | • | An increase in trade payables by Rp3,102 billion or 22.3% due to an increase in trade payables from third parties, |
| | • | An increase in short-term bank loans by Rp1,229 billion or 14.1% due to additional bank loans from MUFG Bank, HSBC, and Mandiri for working capital purposes of Telkom and its subsidiaries, |
| | • | An increase in customers deposits by Rp735 billion or 57.0% due to the down payment program for new IndiHome subscribers, |
| | • | An increase in current maturities of long-term borrowings of Rp604 billion or 6.9% due to an increase in current maturities for 2021 of Rp2,214 billion and other borrowings of Rp413 billion. It was compensated by the decrease in bonds and notes of Rp2,013 billion, and |
| | • | An increase in accrued expenses of Rp529 billion or 3.9% for the expense in salaries and related benefits. |
| | | |
| | The increases were compensated by: | |
| | • | A decrease in unearned income - current of Rp7,352 billion or 100.0% due to the implementation of PSAK 72. |
| | • | A decrease in taxes payables by Rp718 billion or 20.9% mainly due to the decrease in VAT payable of Telkom and its subsidiaries. |
| | | |
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| b. | Non-Current Liabilities | |
| | At the end of 2020, TelkomGroup non-current liabilities was Rp56,961 billion (US$4,054 million), increased by 24.9% or Rp11,372 billion from total non-current liabilities in 2019 of Rp45,589 billion. The increase in non-current liabilities was due to: | |
| | • | An increase in lease liability of Rp8,645 billion or 548.5% due to the implementation of PSAK 73, |
| | • | An increase in the pension benefits and other post-employment benefits obligations amounted to Rp4,898 billion or 60.6% due to an increase in Telkom's defined pension benefits of Rp3,219 billion, Telkomsel pension benefits of Rp1,643 billion, and post-employment health care benefits of Rp411 billion, and |
| | • | An increase in contract liabilities by Rp1,004 billion due to the implementation of PSAK 72. |
| | | |
| | The increase was compensated by: | |
| | • | A decrease in long-term borrowings and other borrowings of Rp1,732 billion or 5.4% due to the decrease in bank loans of Rp590 billion, other borrowings of Rp508 billion, bonds and notes of Rp476 billion, and two-step loans of Rp158 billion, |
| | • | A decrease in unearned income - net off current portion of Rp803 billion due to the implementation of PSAK 72, and |
| | • | A decrease in deferred tax liabilities – net of Rp669 billion or 54.4% mainly due to the decrease in deferred tax liabilities of Telkomsel. |
| | | |
3. | Equity | ||
| In line with profit and dividend payments that affect the Company's equity, Telkom and its subsidiaries recorded total equity 2020 of Rp120,889 billion (US$8,604 million), increased by Rp3,639 billion or 3.1% from the 2019 equity of Rp117,250 billion. |
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PROFIT AND LOSS OVERVIEW
At the end of 2020, Telkom recorded consolidated revenues was Rp136,462 billion (US$9,713 million), or positively grew by 0.7% from the last year of Rp135,567 billion in 2019. It was due to the revenue growth of IndiHome revenues, data, internet, and information technology services revenues as well as interconnection revenues.
The total expense of Telkom and its subsidiaries in 2020 was Rp93,274 billion (US$6,639 million), decreased by 0.7% compared to the previous year of Rp93,913 billion in 2019. It was due to the expense decrease in operation, maintenance, and telecommunication services expense as well as marketing expenses.
From the performances, Telkom resulted in a net profit of Rp20,804 billion (US$1,481 million), positively grew by 11.5%, and EBITDA of Rp72,080 billion that positively grew from the previous year. Telkom and its subsidiaries Comprehensive Profit and Loss Report in the last three years of 2018-2020 is in the following table.
Telkom and Its Subsidiaries Consolidated Profit and Loss in 2018-2020
| | | | | | | | |||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
| Growth | | Years ended December 31, | |||||||||
| | 2020-2019 | | 2020 | | | 2019 | | 2018 | | ||
| | (%) | | (Rp billion) | | (US$ million) | | | (Rp billion) | | (Rp billion) | |
Revenues | | 0.7 | | 136,462 | | 9,713 | | | 135,567 | | 130,784 | |
Telephone revenues | | (22.8) | | 21,610 | | 1,538 | | | 27,978 | | 33,626 | |
Cellular | | (22.2) | | 19,427 | | 1,383 | | | 24,978 | | 30,431 | |
Fixed Line | | (27.2) | | 2,183 | | 155 | | | 3,000 | | 3,195 | |
Interconnection revenues | | 22.3 | | 7,686 | | 547 | | | 6,286 | | 5,463 | |
Data, internet, and information technology service revenues | | 4.2 | | 75,816 | | 5,396 | | | 72,788 | | 65,552 | |
Celluler internet and data | | 6.9 | | 59,502 | | 4,235 | | | 55,675 | | 45,154 | |
Internet, data communication and information technology services | | 7.9 | | 9,744 | | 694 | | | 9,027 | | 10,386 | |
Short Messaging Service (SMS) | | (31.8) | | 4,817 | | 343 | | | 7,063 | | 9,185 | |
Others | | 71.4 | | 1,753 | | 125 | | | 1,023 | | 827 | |
Network revenues | | (8.6) | | 1,689 | | 120 | | | 1,848 | | 1,707 | |
IndiHome revenues | | 21.2 | | 22,214 | | 1,581 | | | 18,325 | | 14,310 | |
Other services revenues | | (38.0) | | 5,170 | | 368 | | | 8,342 | | 10,126 | |
Manage service and terminal | | (25.4) | | 1,292 | | 92 | | | 1,732 | | 1,851 | |
Call center service | | 5.6 | | 845 | | 60 | | | 800 | | 1,052 | |
E-health | | 5.0 | | 549 | | 39 | | | 523 | | 563 | |
E-payment | | (11.8) | | 499 | | 36 | | | 566 | | 449 | |
Telecommunication tower leases | | (100) | | - | | - | | | 1,239 | | 909 | |
Sales of peripherals | | (100) | | 0 | | 0 | | | 1,109 | | 1,450 | |
Others | | (16.4) | | 1,985 | | 141 | | | 2,373 | | 3,852 | |
Revenues from lessor transaction | | 100 | | 2,277 | | 162 | | | - | | - | |
Expenses | | (0.7) | | 93,274 | | 6,639 | | | 93,913 | | 93,009 | |
Depreciation and amortization expenses | | 24.7 | | 28,892 | | 2,056 | | | 23,178 | | 21,406 | |
Operations, maintenance, and telecommunication services expenses | | (18.1) | | 34,593 | | 2,462 | | | 42,226 | | 43,791 | |
Operations and maintenance | | (18.4) | | 19,930 | | 1,419 | | | 24,410 | | 25,214 | |
Radio frequency usage charges | | 3.4 | | 5,930 | | 422 | | | 5,736 | | 5,473 | |
Leased lines and CPE | | (29.7) | | 3,371 | | 240 | | | 4,793 | | 5,125 | |
Concession fees and USO charges | | 1.7 | | 2,411 | | 172 | | | 2,370 | | 2,297 | |
Electricity, gas, and water | | (14.2) | | 946 | | 67 | | | 1,102 | | 1,051 | |
Project management | | 16.2 | | 538 | | 38 | | | 463 | | - | |
Cost of SIM cards and vouchers | | (21.2) | | 487 | | 35 | | | 618 | | 765 | |
Insurance | | 53.7 | | 378 | | 27 | | | 246 | | 193 | |
Vehicles rental and supporting facilities | | (26.4) | | 343 | | 24 | | | 466 | | 413 | |
Cost of sales of peripheral | | (94.9) | | 57 | | 4 | | | 1,109 | | 1,860 | |
Tower leases | | (97.3) | | 17 | | 1 | | | 641 | | 480 | |
Others | | (32.0) | | 185 | | 13 | | | 272 | | 920 | |
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| | | | | | | | |||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
| Growth | | Years ended December 31, | |||||||||
| | 2020-2019 | | 2020 | | | 2019 | | 2018 | | ||
| | (%) | | (Rp billion) | | (US$ million) | | | (Rp billion) | | (Rp billion) | |
Personnel expenses | | 10.6 | | 14,390 | | 1,024 | | | 13,012 | | 13,178 | |
Salaries and related benefits | | 4.1 | | 8,272 | | 589 | | | 7,945 | | 8,077 | |
Vacation pay, incentives and other benefits | | 22.1 | | 4,321 | | 308 | | | 3,538 | | 3,292 | |
Pension benefit cost | | (4.3) | | 804 | | 57 | | | 840 | | 1,120 | |
Long Service Award (LSA) expense | | 0 | | 290 | | 21 | | | 290 | | 161 | |
Obligation under the Labor Law | | 89.7 | | 258 | | 18 | | | 136 | | 113 | |
Net periodic post-employment health care benefits cost | | 51.5 | | 253 | | 18 | | | 167 | | 335 | |
Other post-employment benefit cost | | 145.5 | | 81 | | 6 | | | 33 | | 32 | |
Long service employee benefit | | 100 | | 53 | | 4 | | | - | | - | |
Others | | (7.9) | | 58 | | 4 | | | 63 | | 48 | |
Interconnection expenses | | 6.5 | | 5,406 | | 385 | | | 5,077 | | 4,283 | |
Marketing expenses | | (6.5) | | 3,482 | | 248 | | | 3,724 | | 4,214 | |
General and administrative expenses | | (2.8) | | 6,511 | | 463 | | | 6,696 | | 6,137 | |
Allowance for expected credit losses | | 0.7 | | 2,267 | | 161 | | | 2,283 | | 1,724 | |
General Expenses | | 9.2 | | 1,805 | | 128 | | | 1,653 | | 1,792 | |
Professional fees | | 23.7 | | 981 | | 70 | | | 793 | | 823 | |
Training, education, and recruitment | | (33.2) | | 308 | | 22 | | | 461 | | 463 | |
Travelling | | (32.9) | | 275 | | 20 | | | 410 | | 415 | |
Social contribution | | 11.5 | | 223 | | 16 | | | 200 | | 181 | |
Collection expenses | | 9.7 | | 193 | | 14 | | | 176 | | 157 | |
Meeting | | (33.3) | | 184 | | 13 | | | 276 | | 233 | |
Others | | (38.1) | | 275 | | 20 | | | 444 | | 349 | |
Gain (loss) on foreign exchange-net | | 0 | | (86) | | (6) | | | (86) | | 68 | |
Other Income - net | | (51.2) | | 403 | | 29 | | | 826 | | 1,002 | |
Operating Profit | | 2.6 | | 43,505 | | 3,096 | | | 42,394 | | 38,845 | |
Finance income | | (26.8) | | 799 | | 57 | | | 1,092 | | 1,014 | |
Finance costs | | 6.6 | | (4,520) | | (323) | | | (4,240) | | (3,507) | |
Share of profit (loss) of associated companies | | 48.2 | | (246) | | (18) | | | (166) | | 53 | |
Impairment of long-term investment in associated companies | | (34.9) | | (763) | | (54) | | | (1,172) | | - | |
Profit Before Income Tax | | 2.3 | | 38,775 | | 2,760 | | | 37,908 | | 36,405 | |
Income Tax (Expense) Benefit | | (10.7) | | (9,212) | | (656) | | | (10,316) | | (9,426) | |
Profit for the Year | | 7.1 | | 29,563 | | 2,104 | | | 27,592 | | 26,979 | |
Other comprehensive income (loss) | | (63.2) | | (3,577) | | (255) | | | (2,192) | | 4,942 | |
Net comprehensive income for the year | | 2.3 | | 25,986 | | 1,850 | | | 25,400 | | 31,921 | |
Profit for the year attributable to owners of the parent company | | | 20,804 | | 1,481 | �� | | 18,663 | | 18,032 | | |
Profit for the year attributable to non-controlling interest | | | 8,759 | | 624 | | | 8,929 | | 8,947 | | |
Net comprehensive income attributable to owner of the parent company | |
| | 17,595 | | 1,252 | | | 16,624 | | 22,844 | |
Net comprehensive income for the year attributable to non-controlling interest | |
| | 8,391 | | 598 | | | 8,776 | | 9,077 | |
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Profit and Loss Comparison
In 2020, TelkomGroup recorded the highest composition revenue was from data, internet, and information technology service revenues of 55.6%, followed by IndiHome revenue by 16.3% and telephone revenue by 15.8%.
For the recorded expense in 2020, TelkomGroup's highest composition expense was the operation, maintenance, and telecommunication services expense of 37.1% and depreciation and amortization expenses of 31.0% of the total Company’s expense due to property and equipment, software, hardware, and technology infrastructure use. The lowest expense was the marketing expense with a percentage of 3.7%.
Comparison of Profit and Loss for The Year Ended December 31, 2020 Compared to Year Ended December 31, 2019
| | | |
1. | Revenues | ||
| Telkom and its subsidiaries recorded revenues in 2020 of Rp136,462 billion (US$9,713 million), increased by 0.7% or Rp895 billion, from Rp135,567 billion in 2019. The increase was mainly due to the higher data, internet, and information technology services revenues, as well as IndiHome revenues. |
127
| a. | Cellular Telephone Revenues | |
| | The cellular voice revenue decreased in 2020 by 22.2% to Rp19,427 billion (US$1,383 million) compared to the last year of Rp24,978 billion. The decrease was in line with the people transformation behavior to use Over The Top (OTT) services for communication. | |
| | | |
| b. | Fixed Lines Telephone Revenues | |
| | Fixed lines telephone revenues negatively grew by 27.2% in 2020 to Rp2,183 billion (US$155 million), compared to the 2019 of Rp3,000 billion. It was impacted by the more mobile people behavior. | |
| | | |
| c. | Data, Internet, and Information Technology Services Revenues | |
| | At the end of 2020, TelkomGroup recorded data, internet, and information technology services revenue of Rp75,816 billion (US$5,396 million), increased by 4.2% or Rp3,028 billion compared to the 2019 revenue of Rp72,788 billion. | |
| | | |
| | The increase revenue of data, internet, and data cellular was due to: | |
| | • | An increase revenue in cellular internet and data, that positively grow by Rp3,827 billion or 6.9% due to growth in mobile data usage from 6.7 million terabytes to 9.7 million terabytes, |
| | • | An increase in others revenue of Rp730 billion or 71.4%, which was due to the growth of data center and cloud, and |
| | • | An increase revenue in Internet, data communication, and information technology services of Rp717 billion or 7.9% by IT service growth. |
| | | |
| | The increase was compensated by the decrease in SMS revenue by Rp2,246 billion or 31.8% due to the transformation usage from SMS to over the top (OTT) services. | |
| | | |
| d. | Interconnection Revenues | |
| | TelkomGroup interconnection revenue from Telkom fixed line telephone, including from international direct services from IDD 007, and Telkomsel cellular network. In 2020, Telkom reported interconnection revenues of Rp7,686 billion (US$547 million), increased from the last year by Rp1,400 billion or 22.3% from Rp6,286 billion in 2019. The growth was due to the traffic increase across countries, significantly for A2P (application to person) SMS service. | |
| | | |
| e. | Network Revenues | |
| | In 2020, TelkomGroup recorded a negative growth in network revenues by 8.6% or Rp159 billion, from Rp1,848 billion in 2019 to Rp1,689 billion (US$120 million). The decrease was due to a decrease in leased line and satellite revenues. | |
| | | |
| f. | IndiHome Revenues | |
| | IndiHome revenues positively increased in 2020 by 21.2% to Rp22,214 billion (US$1,581 million), compared to 2019 of Rp18,325 billion. It was due to the higher IndiHome subscribers by 14.5% to 8.0 million subscribers, with the higher data traffic from 13,7 million terabytes to 24,5 million terabytes. Besides, there were 3 million add-on minipack transactions by IndiHome subscribers in 2020. | |
| | | |
| g. | Other Services Revenues | |
| | In the other services revenues, Telkom recorded 2020 revenue of Rp5,170 billion (US$368 million), decreased by 38.0% or Rp3,172 billion compared to the 2019 revenues of Rp8,342 billion. The decrease was due to: | |
| | • | A decrease in tower lease revenue of Rp1,239 in line with the implementation of PSAK 72, it is transferred to revenues from lessor transactions, |
| | • | A decrease in sales of peripherals by Rp1,109 billion or 100%, mainly due to the revenue decrease in sales of peripherals of PT PIN, |
128
| | • | A decrease in manage service and terminal revenue by Rp440 billion or 25.4%, in line with enterprise business strategy to reduce low margin services, and |
| | • | A decrease in others revenue by Rp388 billion or 16.4%, mainly due to decrease revenue from Telkom Infra construction. |
| | | |
| h. | Revenues from Lessor Transactions | |
| | Revenues from lessor transactions was Rp2,277 billion in 2020 that resulted from the adoption of PSAK 72. Under PSAK 72, we require to disclose revenues from lessor transactions, such as leases, separately from contracts with customers revenues. Revenues from lessor transactions previously classified as data, internet and information technology revenue, and other revenue. | |
| | | |
2. | Expense | ||
| In the 2020 reporting period, Telkom recorded total expenses decreased by 0.7% or Rp639 billion from Rp93,913 billion in 2019 to Rp93,274 billion (US$6,639 million) in 2020. These changes were due to: | ||
| a. | Operation, Maintenance and Telecommunication Service Expense | |
| | TelkomGroup recorded operating, maintenance, and telecommunications services expenses in 2020 of Rp34,593 billion (US$2,462 million), decreased by 18.1% or Rp7,633 billion compared to the last year of Rp42,226 billion. The decrease of the operating, maintenance, and telecommunications services expenses were due to: | |
| | • | A decrease in operation and maintenance expenses by Rp4,480 billion or 18.4%. It was mainly due to the implementation impact of PSAK 73 related to the Amortization of Use Rights Assets, |
| | • | A decrease in leased line and CPE expenses by Rp1,422 billion or 29.7%, in line with the decrease in Enterprise segment revenue in providing end-to-end IT Solutions, |
| | • | A decrease in cost of sales of peripherals by Rp1,052 billion or 94.9%, in line with the decrease in sales of peripherals, and |
| | • | A decrease tower leases expense of Rp624 billion or 97.3% due to Telkomsel tower lease expense efficiency after selling part of its towers to Mitratel. |
| | | |
| b. | Depreciation and Amortization Expense | |
| | At the end of 2020, TelkomGroup recorded depreciation and amortization expenses of Rp28,892 billion (US$2,056 million), increased by 24.7% or Rp5,714 billion compared to the last year of Rp23,178 billion. This increase was due to the implementation impact of PSAK 73 related to the Amortization of Use Rights Assets. | |
| | | |
| c. | Personnel Expense | |
| | Personnel expenses in 2020 increased by 10.6% or Rp1,378 billion to Rp14,390 billion (US$1,024 million) if compared to the last year expense of Rp13,012 billion. This increase was due to the expense increase in vacations pay, incentives and other benefits of Rp783 billion and expense increase in salaries and related benefits of Rp 327 billion. It is in line with the increase of TelkomGroup employees. | |
| | | |
| d. | Interconnection Expense | |
| | TelkomGroup recorded interconnection expenses in 2020 increased by Rp329 billion or 6.5%. Therefore, interconnection expenses increased from Rp5,077 billion in 2019 to Rp5,406 billion (US$385 million) in 2020 in line with the increase of interconnection revenue. | |
| | | |
| e. | Marketing Expense | |
| | TelkomGroup marketing expenses in 2020 was Rp3,482 billion (US$248 million), decreased by 6.5% or Rp242 billion, if compared to the last year of Rp3,724 billion. The decrease was in line with more selective marketing programs implementation. | |
| | | |
| f. | General and Administrative Expense |
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| | General and administrative expenses was Rp6,511 billion (US$463 million) in 2020, decreased by 2.8% or Rp185 billion if compared to the 2019 reporting period of Rp6,696 billion. The decrease was due to a decrease in training, education, and recruitment costs by Rp153 billion. | |
| | | |
3. | Gain (Losses) on Foreign Exchange-net | ||
| TelkomGroup's business includes various transactions, including transactions in foreign currencies. Therefore, fluctuations in exchange rates that occur throughout the year may have a positive or negative impact on the Company's financial transactions. | ||
| | ||
| In the reporting period, TelkomGroup recorded losses on foreign exchange - net of Rp86 billion (US$6 million), which is the same as 2019. | ||
| | | |
4. | Other Income - net | ||
| In the other income - net, TelkomGroup recorded other income of Rp403 billion (US$29 million) in 2020. It indicated a decrease by 51.2% or Rp423 billion if compared to the last year Rp826 billion. | ||
| | | |
5. | Operating Profit and Operating Profit Margin | ||
| Amid the COVID-19 pandemic, TelkomGroup recorded operating profit in 2020 of Rp43,505 billion (US$3,096 million). If compared to the operating profit in 2019 of Rp42,394 billion, it increased by 2.6%. Operating profit margin in 2020 increased by 31.9% from the previous year of 31.3%. | ||
| | | |
6. | Profit Before Income Tax and Pre-Tax Margin | ||
| TelkomGroup profit before income tax in 2020 grew by 2.3% or Rp867 billion, from Rp37,908 billion in 2019 to Rp38,775 billion (US$2,760 million). Pre-tax margin increased from 28.0% in 2019 to 28.4%. | ||
| | | |
7. | Income Tax (Expense) Benefit | ||
| Income tax expense decreased by Rp1,104 billion or 10.7%, from Rp10.316 billion in 2019 to Rp9,212 billion (US$656 million) in 2020. The decrease was the result of the provision of tax stimulus from the Government during the COVID-19 pandemic. | ||
| | | |
8. | Other Comprehensive Income (Losses) | ||
| In 2020, Telkom recorded other comprehensive losses of Rp3,577 billion (US$255 million), compared to other comprehensive losses of Rp2,192 billion in 2019. The other comprehensive losses were caused by defined benefit actuarial losses - net of Rp3,596 billion. | ||
| | | |
9. | Profit for The Year Attributable to Owners of The Parent Company | ||
| Profit for the year attributable to owners of the parent company increased by Rp2,141 billion or 11.5%, from Rp18,663 billion in 2019 to Rp20,804 billion (US$1,481 million) in 2020. | ||
| | | |
10. | Profit for The Year Attributable to Non-Controlling Interest | ||
| Profit for the year attributable to non-controlling interests decreased to Rp8,759 billion (US$624 million) with the decline of 1.9%, if compared to Rp8,929 billion in 2019. | ||
| | | |
11. | Total Comprehensive Income for The Year | ||
| In 2020, total comprehensive income for the year was Rp25,986 billion (US$1,850 million), increased by 2.3% or Rp586 billion from Rp25,400 billion in 2019. | ||
| | | |
12. | Net Income per Share | ||
| TelkomGroup recorded net income per share in 2020 of Rp210.01, increased by 11.5% or Rp21.61, compared to the last year of Rp188.40 per share. |
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CASHFLOW OVERVIEW
In general, TelkomGroup cash and cash equivalent was decent valued at Rp20,589 billion (US$1,466 million). The highest net cash provided by operating activities of Rp65,317 billion, while net cash used in investing activities was minus Rp35,256 billion that mostly used for investment in property and equipment, infrastructure, and other investment. Net cash used in financing activities was minus Rp27,753 billion, that used for dividend and loan payment during 2020.
TelkomGroup Cashflow 2018-2020
| | | ||||||||
| | Growth | | Years ended December 31, | ||||||
| | 2020-2019 | | 2020 | | 2019 | | 2018 | ||
|
| (%) | | (Rp billion) | | (US$ million) |
| (Rp billion) |
| (Rp billion) |
Net Cash |
| | | | | |
| |
|
|
provided by operating activities |
| 18.9 | | 65,317 | | 4,649 |
| 54,949 |
| 45,671 |
used in investing activities |
| (1.5) | | (35,256) | | (2,509) |
| (35,791) |
| (35,090) |
used in financing activities |
| 52.1 | | (27,753) | | (1,975) |
| (18,247) |
| (18,458) |
Net increase in cash and cash equivalents |
| 153.3 | | 2,308 | | 165 |
| 911 |
| (7,877) |
Effect of exchange rate changes on cash and cash equivalents |
| (136.1) | | 39 | | 3 |
| (108) |
| 171 |
Cash and cash equivalents at beginning of year |
| 4.6 | | 18,242 | | 1,298 |
| 17,439 |
| 25,145 |
Cash and cash equivalents at end of year |
| 12.9 | | 20,589 | | 1,466 |
| 18,242 |
| 17,439 |
Cashflow Comparison
The composition of TelkomGroup cash receipt in 2020 indicated that the highest cash receipt was of operating activities of 84.8%, followed by the cash receipt of financing activities of 14.9%. This composition indicated that TelkomGroup operational activities was supported by the Company’s internal and external funds.
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Comparison of Cash Flow for Year Ended December 31, 2020 Compared to Year Ended December 31, 2019
As of December 31, 2020, TelkomGroup recorded total cash and cash equivalents of Rp20,589 billion (US$1,466 million). When compared to the previous year's total cash and cash equivalents of Rp18,242 billion, it increased by Rp2,347 billion or 12.9%.
The highest cash receipts in 2020 was operating activities of Rp139,451 billion or 84.8%, followed by financing activities of Rp24,469 billion which contributed 14.9% to the total cash receipts. The least cash receipts were investing activities of Rp475 billion or 0.3%.
In terms of cash disbursements, Rp74,134 billion or 45.7% of the total cash disbursements was used for operational activities. Other cash disbursements were for financing activities of Rp52,222 billion or 32.3% and investment activities of Rp35,731 billion or 22.0% of total cash disbursements.
| | | |
1. | Cash Flow from Operating Activities | ||
| Net cash provided by operating activities recorded of Rp65,317 billion (US$4,649 million) in 2020, it increased if compared to 2019 of Rp54,949 billion. | ||
| | ||
| In cash receipts from operating activities, TelkomGroup recorded of Rp139,451 billion in 2020, it increased if compared to the last year of Rp138,673 billion, with the inclining rate of 0.6% or Rp778 billion. The cash receipts were obtained from: | ||
| • | Cash receipts from customers and other operators of Rp133,610 billion, | |
| • | Cash receipts from tax refund of Rp4,687 billion, | |
| • | Cash receipt from finance income of Rp806 billion, and | |
| • | Cash receipts from (payments for) others - net of Rp348 billion. | |
| | | |
| On the other hand, cash disbursements for operating activities in 2020 recorded of Rp74,134 billion, it decreased if compared to cash disbursements in 2019 of Rp83,724 billion. The cash disbursement was used for: | ||
| • | Cash payment for expenses of Rp40,533 billion, | |
| • | Cash payment for corporate and final income taxes of Rp11,452 billion, | |
| • | Cash payments to employees of Rp11,057 billion, | |
| • | Cash payments for finance costs of Rp4,768 billion, | |
| • | Cash payments for short-term and low-value lease assets of Rp3,731 billion, and | |
| • | Cash payments for value added taxes - net of Rp2,593 billion. | |
| | | |
132
2. | Cash Flow from Investing Activities | ||
| Net cash used in investment activities in 2020 was minus Rp35,256 billion (US$2,509 million), compared to the previous year of minus Rp35,791 billion in 2019. | ||
| | ||
| Cash receipts from investment activities were Rp475 billion, decreased by 85.4% or Rp2,771 billion compared to 2019 of Rp3,246 billion. Cash receipts were from: | ||
| • | Proceeds from the sale of property and equipment of Rp236 billion, | |
| • | Proceeds from insurance claims of Rp234 billion, and | |
| • | Dividend received from associated company of Rp5 billion. | |
| | | |
| For investment activity cash disbursements in 2020, Telkom recorded of Rp35,731 billion, decreased by 8.5% or Rp3,306 billion from Rp39,037 billion in 2019. The cash disbursement was used for: | ||
| • | Purchase of property and equipment of Rp29,560 billion, | |
| • | Purchase of long-term investment in financial instrument of Rp2,809 billion, | |
| • | Purchase of intangible assets of Rp2,538 billion, | |
| • | Placement in proceeds from other current financial assets - net of Rp769 billion, and | |
| • | Additional contribution on long-term investments in associates of Rp28 billion. | |
| | | |
3. | Cash Flows from Financing Activities | ||
| At the end of 2020, TelkomGroup's net cash used in financing activities was minus Rp27,753 billion (US$1,975 million), compared to minus Rp18,247 billion in 2019. | ||
| | ||
| Cash receipts from financing activities in 2020 were recorded at Rp24,469 billion, decreased by 8.0% compared to the last year of Rp26,583 billion. The cash receipts came from the proceeds from loans and other borrowings of Rp24,469 billion. | ||
| | | |
| TelkomGroup cash disbursement for financing activities were of Rp52,222 billion, increased by 16.5% or Rp7,392 billion from Rp44,830 billion in 2019. Cash disbursement was used for: | ||
| • | Cash dividends paid to the Company's stockholder and non-controlling interest of subsidiaries of Rp15,262 billion and Rp7,778 billion respectively, | |
| • | Repayments of loan and other borrowings of Rp24,380 billion, and | |
| • | Payment of principal portion of lease liabilities of Rp4,802 billion. |
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SOLVENCY
TelkomGroup's 2020 consolidated financial statements show the Company's decent liquidity and solvency, with the ability to pay the positive short and long-term liabilities. In general, TelkomGroup's debt repayment efforts originate from cash inflows from operational activities. Telkom's management can manage its operations in maintaining liquidity without relying on non-operating cash flow funds.
SHORT-TERM LIABILITY
TelkomGroup monitors the current ratio, quick ratio, and cash ratio as a basis for measuring the Company's ability to pay its short-term liabilities. TelkomGroup always monitors these three ratios to maintain liquidity and ensure the availability of funds to pay for short-term liabilities that are due. Supervision of liquidity levels is necessary so that TelkomGroup can utilize assets optimally and productively.
In the 2020 period, Telkom has a strategy to maintain its ability to pay the short-term liabilities by keeping the current ratio percentage above the industry average current ratio. Other than that, TelkomGroup maintains the availability of loan facilities that can be withdrawn if needed.
TelkomGroup Liquidity Ratio 2018-2020
| | ||||||
Ratio | | 2020 |
| 2019 | | 2018 |
|
Current Ratio | | 67.3 | % | 71.5 | % | 93.5 | % |
Quick Ratio | | 48.4 | % | 52.9 | % | 66.8 | % |
Cash Ratio | | 31.7 | % | 32.2 | % | 40.5 | % |
LONG-TERM LIABILITY
TelkomGroup closely monitors the Debt to Equity Ratio, the debt to EBITDA ratio, and the EBITDA to interest expense ratio to measure the ability to pay the long-term liabilities. Telkom's consolidated financial statements as of December 31, 2020, show a Debt to Equity Ratio of 0.54 times and the debt to EBITDA ratio of 0.91 times. The EBITDA to interest expense ratio is 15.9 times. It demonstrates the ability of Telkom and its subsidiaries to pay long-term liabilities with a low risk defaulted.
TelkomGroup optimizes the internal funds to meet the Company's funding to maintain financial quality and stability. TelkomGroup also implements a debt reprofiling strategy. The reprofiling effort is an improvement to the debt profile by changing several of the debt with floating interest to fixed interest. The main objective of this process is to reduce interest expense and exposure to future interest rate fluctuations.
The following data table shows the Debt to Equity Ratio, debt to EBITDA ratio, and the EBITDA to interest expense ratio for the last three years.
Ratio | | 2020 |
| 2019 | | 2018 |
|
Debt To Equity Ratio | | 0.54 | X | 0.44 | X | 0.38 | X |
Debt To EBITDA | | 0.91 | X | 0.80 | X | 0.74 | X |
EBITDA to interest expense | | 15.9 | X | 15.3 | X | 16.9 | X |
For further information regarding liquidity related to the discussion of Telkom and its subsidiaries liabilities, see Notes 19 and 20 in TelkomGroup's 2020 Consolidated Financial Statements.
134
CAPITAL STRUCTURE AND THE MANAGEMENT POLICIES FOR CAPITAL STRUCTURE
CAPITAL STRUCTURE
Currently, TelkomGroup has a capital structure policy, which emphasize the funding sources use from short-term debt, long-term debt, and equity. The largest composition of TelkomGroup's capital structure was equity and then followed by long-term debt as of December 31, 2020. There was no significant change in the equity and capital composition in 2020 compared to the previous reporting year.
The following diagram and table illustrate the composition and structure of Telkom's capital over the past three years.
| ||||||||
Capital Structure | | 2020 | | 2019 | | 2018 | ||
|
| (Rp billion) |
| (US$ million) |
| (Rp billion) |
| (Rp billion) |
Debt |
| 65,462 | | 4,659 |
| 52,084 |
| 44,087 |
Short Term Debt |
| 9,934 | | 707 |
| 8,705 |
| 4,043 |
Long Term Debt |
| 55,528 | | 3,952 |
| 43,379 |
| 40,044 |
Equity |
| 102,527 | | 7,297 |
| 99,561 |
| 98,910 |
Total |
| 167,989 | | 11,956 |
| 151,645 |
| 142,997 |
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MANAGEMENT POLICY FOR CAPITAL STRUCTURE
TelkomGroup must maintain creditworthiness as a public company, which reflect in its credit rating and capital structure. The TelkomGroup capital structure in 2020 was maintained by referring to the debt level below the industry average. It shows in the Debt to Equity Ratio and the Debt to EBITDA Ratio.
In 2020, TelkomGroup optimized the capital cost (weighted average cost of capital), tax benefits and maintained a balance of capital structure by monitoring financial ratios. It supported the Company's policy on the capital structure to determine the optimal funding composition from capital and debt. This policy was also the basis for making decisions to add or pay for short and long-term debt. TelkomGroup can renew the financing scheme if it is considered more efficient and profitable.
In 2020, TelkomGroup recorded the Debt to Equity ratio (DER) of 0.54 times, while in 2019, it was 0.44 times. Telkom's debt service coverage ratio as of the end of 2020 was 2.5 times, while in 2019, it was 2.8 times. More detailed information regarding management policies on the capital structure can be seen in Note 39 of Capital Management in TelkomGroup's 2020 Consolidated Financial Statements.
136
REALIZATION OF CAPITAL EXPENDITURE
In 2020, TelkomGroup has realized investment in capital expenditure based on the Company's needs and strategies. Investments also aim to anticipate changes in technology that occur dynamically. The denomination of investment in capital expenditure used by TelkomGroup presents in two currencies, namely Rupiah and US Dollars.
STRATEGY AND OBJECTIVES OF INVESTMENT IN CAPITAL EXPENDITURE
The Company's business strategy in building infrastructure and enhancing business portfolios was the basis for Telkom's investment strategy and objectives for capital expenditure in 2020. Telkom focused on increasing business in the current digital era to maintain business growth based on digital connectivity, digital platform, and digital services.
TYPES OF INVESTMENT IN CAPITAL EXPENDITURE
Capital expenditure carried out by Telkom and its subsidiaries can be categorized as follows:
Broadband services, comprising of mobile (4G) and fixed broadband access; | |
• | Network infrastructure, comprising of the transmission network, metro ethernet and Regional Metro Junction (RMJ), and IP backbone; |
• | Data Center, IT, applications and content, as well as service node; and |
• | Other supporting capital expenditures, for example tower. |
AMOUNT OF INVESTMENT IN CAPITAL EXPENDITURE
In 2020, the total investment realization of Telkom and its subsidiaries capital expenditure was Rp29,436 billion or US$2,096 million. It decreased by 19.5% from the previous year of Rp36,585 billion. The following are some of Telkom and its subsidiaries capital expenditure in 2020:
• | Constructed Telkomsel BTS. |
•• | Constructed submarine cable projects of Luwuk-Morowali-Kendari, Sarmi-Wasai-Manokwari-Supiori, Gili Lombok and Labuan Bajo submarine cable. |
•• | Building neuCentrix and hyperscale data center. |
The following table present data and information regarding the investment value of Telkom and its subsidiaries capital expenditure in the last three years.
TelkomGroup’s Capital Expenditure Investment 2018-2020
| ||||||||
| | Years ended December 31, | ||||||
| | 2020 | | 2019 | | 2018 | ||
|
| (Rp billion) |
| (US$ million) |
| (Rp billion) |
| (Rp billion) |
Total Investment in Capital Expenditure |
| 29,436 | | 2,096 |
| 36,585 |
| 33,620 |
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MATERIAL COMMITMENT FOR CAPITAL EXPENDITURE
OBJECTIVES OF MATERIAL COMMITMENT FOR CAPITAL EXPENDITURE
The objective of material commitment for Telkom investment in capital expenditures made as a digital telecommunications company includes transmission and network equipment and other digital infrastructure. Therefore, in 2020 there were material commitments between Telkom and its subsidiaries with other parties in the project agreements, which the further information is in Note 36 regarding Significant Commitment and Agreement in TelkomGroup's 2020 Consolidated Financial Statements.
SOURCES OF FUNDS TO FULFILL OF MATERIAL COMMITMENT FOR CAPITAL EXPENDITURE
TelkomGroup's leverage level in 2020 was in good condition to funding its capital expenditure. TelkomGroup has other funding alternatives, namely internal and external sources of funds such as bank funding, debt instruments, or additional share capital for investment in capital expenditure under predetermined business plans.
DENOMINATED CURRENCIES OF MATERIAL COMMITMENT FOR CAPITAL EXPENDITURE
Telkom has its investment characteristics, namely using several currency denominations in material commitment for investment in capital expenditure. This denomination consists of Rupiah and several foreign currencies, namely US Dollar and HK Dollar. The highest material commitment is in the Rupiah currency of Rp10,727 billion.
The following table is the composition of the value of the material commitment for the investment of capital expenditure in Rupiah and foreign currencies as of December 31, 2020:
| | |||
Table of Material Commitment based on Currencies | | Amounts in Foreign Currencies | | Equivalent in Rupiah |
|
| (in million) |
| (in billion) |
IDR | | - | | 9,789 |
USD |
| 66.05 | | 929 |
HKD | | 0.24 | | 0 |
Total |
| | | 10,727 |
FOREIGN CURRENCY RISK MITIGATION OF MATERIAL CONTRACTS FOR CAPITAL EXPENDITURE
Currency rate fluctuations can increase the risk of material commitment of capital expenditure using foreign currencies. Therefore, TelkomGroup determines time deposits and receivables in foreign currencies with a minimum amount of 25% of the outstanding foreign currency short-term liabilities. With this policy, TelkomGroup can compensate for the loss of exchange rate fluctuations with the advantage of time deposits and receivables so that the risk of exchange rate fluctuations can be minimized.
A more detailed explanation regarding material commitments for investment in capital expenditure and foreign currency exchange rate risk can be seen in Note 36 Significant Commitment and Agreements and Notes 38 Financial Instruments in TelkomGroup's 2020 Consolidated Financial Statements.
138
RECEIVABLES COLLECTABILITY
In 2020, TelkomGroup had a decent receivables collectability level with consolidated maturity receivables as of December 31 for 2020 and 2019, which are not impaired or collectible of Rp4,217 billion and Rp3,942 billion. The accounts receivable turnover ratio was recorded at 11.8%, while the average collection time ratio was 30.9 days.
To minimize customer credit risk, TelkomGroup always monitors receivables and collection balances regularly. Telkom has made various attempts in collecting accounts receivable, such as by conducting visits and direct collection processes to the customer; cooperating with partners regarding account receivable collection service; and actively contacting customers via telephone, letter, or email.
TelkomGroup Receivables Collectability Table 2018-2020
| |||||
Average Collection Duration Ratio (%) | |||||
| 2020 |
| 2019 |
| 2018 |
Average collection ratio (days) | 30.9 |
| 31.2 |
| 28.8 |
Receivables turnover ratio (%) | 11.8 |
| 11.7 |
| 12.7 |
ANALYSIS AND EXPLANATION OF RECEIVABLES COLLECTABILITY
In analyzing accounts receivable based on the age of accounts receivable, TelkomGroup classifies receivables as follows.
Analysis of TelkomGroup Accounts Receivables by Age Period 2018-2020
| | | | | |
Analysis of Accounts Receivable By Age | 2020 |
| 2019 |
| 2018 |
| Rp (billion) | ||||
Not past due | 7,818 |
| 8,250 |
| 7,512 |
0 – 3 months | 2,300 | | 2,583 | | 2,244 |
3 – 6 months | 1,274 | | 1,314 | | 1,797 |
> 6 months | 8,307 | | 5,853 | | 4,890 |
Total receivables before provision | 19,699 | | 18,000 | | 16,443 |
Provision for impairment of receivables | (8,360) | | (6,203) | | (5,029) |
Net receivables after provision | 11,339 |
| 11,797 |
| 11,414 |
TelkomGroup establishes a provision for impairment of trade receivables based on the collective historical impairment rate and individual customer credit historical rates. Provision for impairment of receivables in 2020 was Rp8,360 billion, higher than the provision for 2019 of Rp6,203 billion. Further discussion of TelkomGroup's receivables can be seen in Note 5 Accounts Receivable in TelkomGroup's 2020 Consolidated Financial Statements.
139
MATERIAL INFORMATION AND FACT AFTER ACCOUNTANT REPORTING DATE
Following the principles of transparency and accountability in carrying out Good Corporate Governance, TelkomGroup requires to convey material information and facts after the date of financial reporting. Some material information and facts that occurred after the date of the accountant's report as of December 31, 2020, are as follows:
Material Information and Fact After Accountant Reporting Date for 2020 Reporting Period
| |||
No | Material Information and Facts | ||
---|---|---|---|
1. | On February 2, 2021, the Government enforced Government Regulation Number 35 of 2021 (PP 35/2021) to implement the provisions of Article 81 and Article 185 (b) of Law no. 11/2020 concerning Job Creation which aims to create the widest possible job opportunities. | ||
| PP 35/2021 regulates work agreements for a certain period of time (non-permanent employees), outsourcing, working time, rest periods and termination of employment, which can affect the minimum benefits that must be given to employees. | ||
| At the date the consolidated financial statements were authorized, the Group was still evaluating the potential impact of implementing the implementing regulations PP 35/2021, including the impact on the Group's consolidated financial statements for the next reporting period. | ||
2. | On February 3, 2021, Dayamitra purchased 134,999 shares of PST from Ibu Rahina Dewayani amounting to Rp58 billion causing Dayamitra has 99.99% ownership of PST. | ||
3. | Based on Board of Commisioner’s Decree No. 02/KEP/DK/2021 dated February 26, 2021, the composition of Audit Committee were changed to as follows: | ||
| Independent Commissioner | : Chandra Arie Setiawan | |
| Independent Commissioner | : Marsudi Wahyu Kisworo | |
| Independent Commissioner | : Wawan Iriawan | |
| Commissioner | : Marcelino Rumambo Pandin | |
| Commissioner | : Ahmad Fikri Assegaf | |
| Financial Expert | : Emmanuel Bambang Suyitno | |
4. | In February, March, and April 2021, the Group make repayment and withdrawn several credit facilities, as follows: | ||
| i. | On February 25 and 26, 2021, Dayamitra withdrawn facilities from BCA, Bank Mandiri, Bank Permata, and Syndication Bank Mandiri and BNI amounting to Rp1,750 billion, Rp1,600 billion, Rp500 billion, and Rp424 billion, respectively. | |
| ii. | On March 8, 2021, the Company withdrawn credit facilities from BCA, Bank Mandiri, Bank of China, and HSBC amounting to Rp500 billion, Rp2,000 billion, Rp1,000 billion (which fully repaid on April 8, 2021), and Rp500 billion. | |
| iii. | On March 17, 2021, Telkomsel repaid its loan to Bank Mandiri amounting Rp2,000 billion and on March 31, 2021, Telkomsel withdrawn the facility amounting Rp1,000 billion. | |
| iv. | On April 23, 2021, Telkomsel withdrawn facilities from MUFG Bank amounting to Rp1,500 billion. |
Detailed explanations regarding the above transactions can be found in TelkomGroup's 2020 Consolidated Financial Statements., particularly in Note 41 Subsequent Event.
140
BUSINESS PROSPECTS AND SUSTAINABILITY OF THE COMPANY
The COVID-19 pandemic has weakened various industrial sectors and put heavy pressure on the national economy. The Government's decision to implement measurable social restrictions through large-scale social restrictions (PSBB) worked well to suppress the spread of the pandemic and with a series of fiscal and monetary policies and stimuli to promote economic growth. Indonesia only recorded a decline in Gross Domestic Product (GDP) of -2.07% in 2020, better than the economic decline of other countries such as Singapore -5.4%, Malaysia -5.6%, and Thailand -6.1%.
In terms of the significant macro indicators, the Rupiah exchange rate against the USD in 2020 slightly declined but was within a controlled range. Based on data from Bank Indonesia, on January 2, 2020, the USD exchange rate was at Rp13,895 per USD, and the USD exchange rate on December 31, 2020, was closed at Rp14,105. Meanwhile, the Bank Indonesia benchmark interest rate (BI 7 Days Repo Rate), which was at 5% in early 2020, was lowered to 3.75% at the end of December 2020, as BI's effort to support economic growth during the COVID-19 pandemic.
Changes in people's behavior in 2020 make digital services even more significant. TelkomGroup has anticipated and fulfilled the community needs by keep providing and develop digital services optimally. The COVID-19 pandemic situation has indirectly encouraged Telkom to accelerate its transformation to a digital telecommunication company.
The Government's consistency in maintaining sustainable economic growth, including the potential for the digital economy, opens opportunities for TelkomGroup business development. The Government's efforts to develop a sustainable economy currently emphasizes several aspects, including the development of reliable human resources (HR), infrastructure development to connect economic resources for supporting tourism development, simplification of regulations with the issuance of the Omnibus Law Cipta Lapangan Kerja, simplification of the bureaucracy, and transforming the economy from natural resources to modern manufacturing and high value-added services.
Even though macroeconomic conditions are entering a difficult period in general, TelkomGroup remains involved in the vision and mission of national development. TelkomGroup considers the current challenges as opportunities to be the economic digitization leader with its three business pillars of digital connectivity, digital platforms, and digital services. Amid a depressed national economy, the telecommunications and information industry in 2020 grew by 10.58%, in line with the development of the digital economy, which is increasingly needed to support people activities. Meanwhile, the competition between operators expected to be healthier with more focus on the quality and variety of services according to customer needs and growing market potential.
Throughout 2020, TelkomGroup still implemented the main program to deliver the best quality of digital connectivity services with improved customer experience, develop digital talent and establish digital platform business leveraging group collaboration & synergy, and drive portfolio optimization along with cost leadership and lean organization. TelkomGroup believes that the transformation consistency to be a digital telecommunication company will make TelkomGroup a leading company in Asia. In line with TelkomGroup's efforts to provide the best digital customer experience, Telkom is strengthening its leadership position in its core businesses, such as digital connectivity, building and developing digital talent to accelerate digital platform growth, and encouraging increased business value through portfolio optimization and lean organization.
141
Regarding the TelkomGroup business segment prospects in the ongoing COVID-19 pandemic, the increasing digital services and technology usage provides opportunities for the Company to support the digital economy growth in Indonesia. The transformation from legacy to data services encourages the telecommunications industry to become the spearhead in fulfilling the national digital connectivity and service needs. Telkom commits to providing reliable and high-quality fixed and mobile broadband along with digital platforms and services across the country so that it can support people's productive and creative activities.
Telkom continues to focus on 3 (three) areas for the Mobile segment, such as increasing the potential for growth in high-value customers, mobile solution services for the Enterprise segment, and developing various digital services such as mobile financial services, games, and videos. For the B2B segment, Telkomsel continues to penetrate digital solutions such as Digital Advertising (MyADS Telkomsel), Big Data (Telkomsel MSight), and the Internet of Things (Telkomsel IoT) to be able to create cross-industry breakthroughs. And for the B2C segment, based on customer-centricity, Telkom through Telkomsel develops digital products according to customer needs. Telkomsel's portfolio in its own digital services includes Digital Lifestyle (MAXstream, LangitMusik, Dunia Games), Mobile Financial Services (LinkAja), and Digital Banking (mBanking Telkomsel).
For the Consumer segment, Telkom has a great opportunity in competition for fixed broadband service providers. Telkom focuses on delivering high-quality fixed broadband services to meet internet needs while at the same time supporting a variety of attractive digital services. The penetration of fixed broadband services in Indonesia is still relatively low at around 15% and the need for high-quality internet to homes increasingly needed, in line with the working and studying at home trend, and other activities such as shopping via e-commerce or entertainment. To increase coverage of broadband services for Indonesian, Telkom also explores building synergies between the Mobile and Consumer segments with innovative fixed wireless product development that can complement one another.
In the Enterprise segment, data center development is one of the business lines that Telkom will develop in the future. The data center business has high potential demand along with the development of digital services such as e-commerce and various other digital solutions and provides good profitability.
In the Wholesale and International Business segment Telkom will continue to focus on increasing the telecommunications tower and Voice Wholesale business, provide telecommunications services and networks, data centers, infrastructure management services, and power solutions for telecommunications network/service providers and digital ecosystems, both domestic and regional. Besides, the Global Digital Hub development, which provides direct broadband connectivity between Europe, Asia, and America, will continue to develop. The Indonesia Global Gateway (IGG) submarine cable supports the development that connects the SEA-ME-WE 5 submarine cable with the SEA-US submarine cable. Telkom will be the main gateway for digital connectivity as an enabler, which brings domestic to global traffic, global traffic to domestic and also brings traffic between countries (hubbing), both for voice traffic and A2P (Application-to-person) SMS.
142
COMPARISON OF INITIAL YEAR TARGET AND THE REALIZATION
Until the end of 2020, Telkom experienced revenue growth of 0.7% to Rp136,462 billion compared to the previous reporting period. Telkom's EBITDA was recorded at Rp72,080 billion and Net Profit of Rp20,804 billion. The EBITDA margin and Net Profit margin recorded at 52.8% and 15.2%, respectively.
To realize the business strategy to strengthen the digital business, Telkom used Rp29,436 billion for capital expenditures during 2020. It was 21,6% of total revenue.
Comparison of TelkomGroup Targets and Realizations in 2020
| |||
Indicator | Realization In 2020 | | Targets In Initial 2020 |
Revenue Growth | Revenues grew by 0.7%. | | With COVID-19 impacts, we estimated the Company could create slightly positive growth, that we were convinced in IndiHome’s double-digit growth, the mobile segment with Telkomsel’s single-digit growth, meanwhile the enterprise segment would encounter a growth pressure. |
EBITDA Margin and Net Income Margin | EBITDA Margin increased to 52.8% while Net Income Margin increased to 15.2%. | | EBITDA Margin and Net Income Margins were projected to slightly decline in line with the development of broadband infrastructure, both for mobile and cellular, accompanied by an increase in the revenue share of digital business. |
Capital Expenditure | The realization of Capital Expenditures is to Rp29,436 billion, or 21.6% of revenue with focused investment in digital business infrastructure. | | Capital Expenditure was planned around 25% of revenue with an investment focus on digital business infrastructure. |
143
TARGET OR PROJECTIONS FOR THE FOLLOWING YEAR
TelkomGroup is currently striving to achieve sustainable company growth following the 2021-2025 Framework as the foundation for a corporate strategy that emphasizes the development of three main pillars, such as digital connectivity, digital platform, and digital services. The three pillars become a value proposition or portfolio direction supported by seven other pillars as a delivery direction. They are portfolio optimization, technology, organization, synergy and operational excellence, individual and corporate culture, inorganic, and governance.
In 2021, with excellent growth, IndiHome as one of the foremost digital products and services can increase its contribution to TelkomGroup's revenue. IndiHome expects to continue to grow in the future and sustain TelkomGroup's legacy products and services revenue, which has declined along with the society's digitalization transformation. It expects that Telkom's current dominance in the cellular market would support this.
TelkomGroup will continue to build broadband infrastructure in both the cellular and fixed-line segments in realizing this transformation. With a capital expenditure allocation of around 24-27% of revenue for infrastructure in the coming year, TelkomGroup expects to increase the Company's marketing, revenue, production, and profit.
TelkonGroup Target or Projections for The Following Year
Indicator | Target in 2021 |
Revenue Growth | We predict that the impact of the COVID-19 pandemic will still affect the Company, especially in the first half. Overall, the Company expects to grow positively in the low to mid single digit range. |
EBITDA Margin and Net Income Margin | EBITDA margin and Net Income Margin project to decline slightly in line with the decline in legacy businesses switching to digital businesses. |
Capital Expenditure | We plan our 24%-27% revenue for capital expenditure, focussing on digital business infrastructure development. |
144
DIVIDEND
TelkomGroup is committed to optimizing value for shareholders through a dividend distribution yearly. The implementation is carried out through a process of determination and approval from shareholders at the Annual General Meeting of Shareholders (AGMS).
For the last five years, Telkom has set a dividend payout ratio range of 60% to 90%. Dividends paid in 2020 for business performance in 2019 amounted to Rp15,262,338 million, including cash dividends and special cash dividends. With this dividend payment, the dividend payout ratio for 2019 operating performance reach 81.78 percent.
For 2020 performance, Telkom determined the payout ratio, dividend amount, and total final dividend at the AGMS, which will hold in the following year of 2021.
Telkom's Dividend Payment for the Year 2015-2019 Operational Performance
| | | | | | | | | | |
| | | | Date of Dividend | | | | | | Dividend |
| | | | Payment in Cash | | | | | | Amount per |
| | | | and/or Date of | | | | Dividend | | Share (cash |
| | | | Dividend | | Payment Ratio | | Amount paid | | and/or non- |
Dividend | | | | Distribution in | | / Payout ratio | | per year | | cash) after Stock |
Year |
| Dividend Policy |
| Non-Cash |
| (%) 1 |
| (Million Rp) |
| Split (Rp) |
2015 | | AGMS, April 22, 2016 | | May 26, 2016 | | 60 | | 9,293,184 | 2 | 94.64 |
2016 |
| AGMS, April 21, 2017 | | May 26, 2017 |
| 70 |
| 13,546,411 | 3 | 136.75 |
2017 |
| AGMS, April 27, 2018 | | May 31, 2018 |
| 75 |
| 16,608,751 | 4 | 167.66 |
2018 |
| AGMS, May 24, 2019 | | June 27, 2019 | | 90 | | 16,228,619 | 5 | 163.82 |
2019 |
| AGMS, June 19, 2020 | | July 23, 2020 | | 81.78 | | 15,262,338 | 6 | 154.07 |
Remarks:
1 | Represents the percentage of profit attributable to owners of the parent paid to shareholders in dividends. |
2 | Consists of cash dividend amounting to Rp7,744,304 million and special cash dividend amounting to Rp1,548,880 million. |
3 | Consists of cash dividend amounting to Rp11,611,211 million and special cash dividend amounting to Rp1,935,200 million. |
4 | Consists of cash dividend amounting to Rp13,286,997 million and special cash dividend amounting to Rp3,321,754 million |
5 | Consists of cash dividend amounting to Rp10.819,080 million and special cash dividend amounting to Rp5,409,540 million. |
6 | Consists of cash dividend amounting to Rp11,197,606 million and special cash dividend amounting to Rp4,064,730 million. |
145
REALIZATION OF PUBLIC OFFERING FUND
As of December 31, 2020, several Telkom bonds were still outstanding and owned by investors. The underwriters for Telkom's bond issuance are PT Bahana Sekuritas, PT Danareksa Sekuritas, PT Mandiri Sekuritas, and PT Trimegah Sekuritas Tbk, while PT Bank Permata Tbk appointed as Trustee. Telkom guarantees all bonds with assets, and PEFINDO assigns the idAAA rating to all of Telkom's bonds.
Currently, Telkom has realized all the proceeds obtained from public offerings, with the remaining funds recorded as nil. There were no changes regarding the realization of the previously planned use of funds. Details related to bond information can be seen in Note 19 Short-Term Bank Loans and Current Maturities of Long-Term Borrowings and Notes 20 Long-Term Loans and Other Borrowings in TelkomGroup's 2020 Consolidated Financial Statements.
Realization of Telkom's Public Offering Funds as of December 31, 2020
|
| |
| |
| |
| Time | | Realization of Funds | ||
| | Amount | | | | Maturity | | Periode | | Balance | | Year |
Name of the Bond | | (Rp million) | | Date of Issue | | Date | | (year) | | (Rp million) | | |
The Shelf Registered Bonds I Telkom 2015 series A |
| 2,200,000 | | June 23, 2015 | | June 23, 2022 |
| 7 | | 0 | | 2016 |
The Shelf Registered Bonds I Telkom 2015 series B |
| 2,100,000 | | June 23, 2015 | | June 23, 2025 |
| 10 | | 0 | | 2016 |
The Shelf Registered Bonds I Telkom 2015 series C |
| 1,200,000 | | June 23, 2015 | | June 23, 2030 |
| 15 | | 0 | | 2016 |
The Shelf Registered Bonds I Telkom 2015 series D |
| 1,500,000 | | June 23, 2015 | | June 23, 2045 |
| 30 | | 0 | | 2016 |
146
MATERIAL INFORMATION REGARDING TRANSACTION WITH CONFLICT OF INTEREST, TRANSACTION WITH AFFILIATED PARTIES, INVESTMENT, DIVESTMENT AND ACQUISITION
TelkomGroup has implemented various policies regarding the implementation of reviews following the Financial Services Authority Regulation No.31/POJK.04/2015 regarding Disclosure of Material Information or Facts by Issuers or Public Companies and POJK No.42/2020 regarding Affiliated Transactions and Conflict of Interest. The review is also in line with POJK No.17/2020 regarding Material Transactions and Business Changes and Resolution of the Board of Directors of the Jakarta Stock Exchange No.Kep-06/BEJ/07-2004 dated 19 July 2004 regarding Rule Number I-E of Obligations to Submit Information. We also have internal policies related to the Main Procedures for Affiliated Transactions and Conflict of Interest Transactions that are listed in the Official Note from the President Director.
Based on the review, Telkom stated that all affiliated transactions have gone through adequate internal procedures to ensure that these transactions have been implemented under generally accepted business practices and following the regulation of POJK No.42/2020. In 2020, there were no transactions containing conflict of interest whereas transaction with related parties have been carried out with the principle of business fairness and custom.
The following transactions contain material information for 2020:
Transaction | Transaction Type | Cause of Transaction |
---|---|---|
In October 2020, a purchase agreement was signed between PT Multimedia Nusantara ("Telkom Metra") and PT Pelabuhan Indonesia II for 49% of the shares of PT Integrasi Logistik Cipta Solusi ("ILCS"). | Divestment | The portfolio structuring of subsidiaries to be more focused on their respective business lines. |
On October 14, 2020 in Jakarta, a Conditional Sale and Purchase Agreement (CSPA) was signed between PT Dayamitra Telekomunikasi (“Mitratel”) and PT Telekomunikasi Selular (“Telkomsel”). Under this Conditional Sale and Purchase Agreement, Mitratel will buy 6,050 Telkomsel telecommunication towers for Rp10.3 trillion. | Affiliation | The portfolio structuring of subsidiaries to be more focused on their respective business lines. |
On November 16, 2020 in Jakarta, PT Telekomunikasi Selular (“Telkomsel”), a subsidiary of PT Telkom Indonesia (Persero) Tbk (“Telkom”) and PT Aplikasi Karya Anak Bangsa (“AKAB”) have signed an agreement for an investment of US$150 million. | Investment | The investment in AKAB is carried out as a form of Telkomsel's commitment as a digital telecommunications company to provide beyond connectivity services. Telkom believes this collaboration can deliver better services and solutions to the community in creating an inclusive and sustainable digital ecosystem. |
The list of affiliated transactions that must be disclosed in the Annual Report for the 2020 financial year in more detail, can be seen in Note 33 regarding Transaction with Affiliated Parties in TelkomGroup's 2020 Consolidated Financial Statements and Appendix 4 in Annual Report for 2020 Reporting Period.
147
CHANGES IN REGULATION
In line with the implementation of Good Corporate Governance (GCG), TelkomGroup conducts a thorough study of any changes in provisions or regulations that are expected to affect operational activities. On November 2, 2020, the Government passed Law Number 11 of 2020 regarding Cipta Kerja or Job Creation (Job Creation Law or Omnibus Law). The telecommunications sector in the Job Creation Law is regulated in Article 71. The regulation amends several conditions in Law Number 36 Year 1999 regarding Telecommunications (Telecommunications Law) that intends to improve the industry with various business conveniences. Currently, the Rancangan Peraturan Pemerintah (RPP) or Government Regulation Draft is being drafted for the implementation of the Job Creation Law, which must be stipulated 3 months since Job Creation Law is passed. The Government Regulation Draft on the implementation of the Work Creation Law in Post, Telecommunication, and Broadcasting was reviewed by the public on November 14, 2020, to obtain input from the society, industry, and other stakeholders. The implementation impact may still change depending on the applicable regulations later in the telecommunications industry. Telkom's review in general shows that there is not any significant impact from the regulation implementation, that could impact on Telkom's business strategy.
From the workforce regulations perspective, the Job Creation Law indicates a relaxation of the outsourcing condition and the workers' conditions with time work agreement (contract workers). It generally supports Telkom's to be more agile and nimble in responding to various changes and needs in Telkom's business. On the other hand, there are several arrangements regarding additional benefits for contract workers regulated in the Job Creation Law. Telkom should wait for the government regulation regarding the workforce, which is a derivative of the Job Creation Law to determine the right strategy and measures in responding to the workforce policy changes, both for the condition relaxation and additional obligations.
148
CHANGES IN ACCOUNTING POLICY
In preparing the Consolidated Financial Statements, TelkomGroup refers to the Financial Accounting Standards or Standar Akuntansi Keuangan (SAK) issued by the Indonesian Institute of Accountants (IAI) and international accounting standards. Besides, Telkom complies with the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) Regulation Number VIII.G.7 regarding "Presentation and Disclosure of Financial Statements of Issuers or Public Companies," which attach in the letter KEP 347/BL/2012. As a company listed on the New York Stock Exchange, TelkomGroup applies the International Financial Reporting Standard (IFRS) accounting standards based on the Securities and Exchange Commission (SEC) regulation.
In the 2020 financial year, there was a change in IFRS accounting policies, as the impact of the IFRS 9, IAS 39, and IFRS 7 amendments regarding Interest Rate Benchmark Reform, IAS 1 and IAS 8 amendments regarding Material Definitions, IFRS 3 amendments regarding Business Definitions and IFRS 16 amendments regarding COVID-19-Related Rent Concessions. The changes Financial Accounting Standards Statement (PSAK) are PSAK 71 regarding Financial Instruments, PSAK 72 regarding Revenue from Contracts with Customers, PSAK 73 regarding Leases, amendments to PSAK 1 and PSAK 25 regarding The Definition of Materiality, amendments to PSAK 1 regarding The Presentation of Financial Statements, amendments PSAK 15 regarding Long-Term Interests in Associates and Joint Ventures, amendments to PSAK 71, PSAK 55 and PSAK 60 regarding Interest Rate Reference Reforms, ISAK 36 regarding Land Rights in PSAK 16: Fixed Assets and PSAK 73: Leases. Issuance of accounting standards, amendments, and interpretations of financial accounting standards was effective from January 1, 2020 and has fully been adopted in the preparation of Telkom's consolidated report for the 2020 reporting period.
In general, the implementation of the new PSAK has an impact on the equity opening balance as of January 1, 2020.
Implementation and Changes of Accounting Policies in TelkomGroup in 2020
No. | Accounting Policy | Reason for Change | Impact on Financial Statements for Financial Year 2020 | |
---|---|---|---|---|
SAK Financial Report | IFRS Financial Report | |||
1. | IFRS 9, IAS 39, IFRS 7 | IASB issued the amendment to accounting standards related to the Interest Rate Benchmark Reform. | No impact on the SAK financial statements. | No impact on IFRS financial statements. |
2. | IAS 1, IAS 8 | IASB issued amendments to accounting standards regarding the definition of material and its application. | No impact on the SAK financial statements. | No impact on IFRS financial statements. |
3. | IFRS 3 | IASB issued amendments to accounting standards to clarify the definition of business. | No impact on the SAK financial statements. | No impact on IFRS financial statements. |
4. | IFRS 16 | IASB issued amendments to IFRS 16 COVID-19-Related Rent Concessions. | No impact on the SAK financial statements. | No impact on IFRS financial statements. |
5. | PSAK 71 | DSAK issued PSAK 71 as an adoption of IFRS 9. | Recognize the cumulative impact of the initial adoption of PSAK 71 as an adjustment to the opening balance of equity on January 1, 2020. | No impact on IFRS financial statements. |
6. | PSAK 72 | DSAK issued PSAK 72 as an adoption of IFRS 15. | Recognize the cumulative impact of the initial adoption of PSAK 72 as an adjustment to the opening balance of equity on January 1, 2020. | No impact on IFRS financial statements. |
7. | PSAK 73 | DSAK issued PSAK 73 as an adoption of IFRS 16. | Recognize the cumulative impact of the initial adoption of PSAK 73 as an adjustment to the opening balance of equity on January 1, 2020. | No impact on IFRS financial statements. |
8. | PSAK 1 and PSAK 25 | DSAK issued the amendments to accounting standards as an adoption of IAS 1 and IAS 8. | No impact on the SAK financial statements. | No impact on IFRS financial statements. |
149
No. | Accounting Policy | Reason for Change | Impact on Financial Statements for Financial Year 2020 | |
---|---|---|---|---|
SAK Financial Report | IFRS Financial Report | |||
9. | PSAK 15 | DSAK issued the amendment to accounting standards as an adoption of IAS 28. | No impact on the SAK financial statements. | No impact on IFRS financial statements. |
10. | PSAK 71, PSAK 55, and PSAK 60 | DSAK issued those amendments to accounting standards as an adoption of IFRS 9, IAS 39, and IFRS 7. | No impact on the SAK financial statements. | No impact on IFRS financial statements. |
11. | ISAK 36 | DSAK issued this interpretation of accounting standards in line with the enactment of PSAK 73, significantly the impact of secondary accounting treatment of land rights in Indonesia. | No impact on the SAK financial statements. | No impact on IFRS financial statements. |
Further details of the changes in accounting policies in Telkom's financial statements for the current year is disclosed in Note 2 Summary Of Significant Accounting Policies of TelkomGroup's 2020 Consolidated Financial Statements.
150
CORPORATE GOVERNANCE
| |
152 | Corporate Governance Principle and Platform |
159 | Corporate Governance Structure |
160 | Corporate Governance Assessment |
161 | General Meeting of Shareholders (GMS) |
171 | Board of Commissioners |
187 | Audit Committee |
194 | Committee for Nomination and Remuneration |
199 | Committee for Planning and Risk Evaluation and Monitoring |
203 | Board of Directors |
219 | Corporate Secretary |
222 | Internal Audit Unit |
226 | Internal Control System |
229 | Risk Management System |
237 | Whistleblowing System |
240 | The Policy of Reporting Share Ownership of Directors and Commissioners |
241 | Employee Stock Ownership Program |
242 | Significant Legal Disputes |
243 | Information Regarding Administrative Sanctions |
244 | Information Access and Company’s Public Data |
245 | Corporate Code of Conduct |
247 | Corporate Culture |
151
CORPORATE GOVERNANCE PRINCIPLE AND PLATFORM
Consistently, Telkom strives to apply the principles of Good Corporate Governance (GCG) to meet the following objectives:
| |
1. | Supporting Telkom's Purpose, namely "To build a more prosperous and competitive nation as well as deliver the best value to our stakeholders." |
2. | Supporting Telkom's vision of "To be the most preferred digital telco to empower the society". |
3. | Advance rapid build out of sustainable intelligent digital infrastructure and platforms that is affordable and accessible to all; nurture best-in-class digital talent that helps develop nation’s digital capabilities and increase digital adoption; and orchestrate digital ecosystem to deliver superior customer experience. |
4. | Providing added value and benefits for shareholders and stakeholders. |
5. | Maintain and improve long-term healthy and competitive business continuity. |
6. | Increase the trust of shareholders and stakeholders in Telkom. |
Telkom always committed to implement corporate governance refers to various relevant regulations. The laws and regulations that are used as a reference for the formulation of Good Corporate Governance policies in Telkom, include:
| |
1. | Law No. 40 Year 2007 regarding Limited Liability Companies; |
2. | Law No. 8 Year 1995 regarding Capital Market; |
3. | Financial Services Authority Regulation No. 33/POJK.04/2014 regarding Directors and Commissioners of Issuers or Public Companies; |
4. | Financial Services Authority Regulation No. 34/POJK.04/2014 regarding Nomination and Remuneration Committee of Issuers or Public Companies; |
5. | Financial Services Authority Regulation No. 55/POJK.04/2015 regarding Establishment and Guidelines for Work Implementation of Audit Committee; |
6. | Financial Services Authority Regulation No. 60/POJK.04/2015 regarding Information Disclosure of Certain Shareholders; |
7. | Financial Services Authority Regulation No. 8/POJK.04/2015 regarding Website of Issuers or Public Companies; |
8. | Financial Services Authority Regulation No. 29/POJK.04/2016 regarding Annual Report of Issuers or Public Companies; |
9. | Financial Services Authority Regulation No. 21/POJK.04/2015 regarding Implementation of Governance Guidelines for Public Companies; |
10. | Financial Services Authority Circular Letter No. 32/SEOJK.04/2015 regarding Governance Guidelines for Public Companies; |
11. | Financial Services Authority Circular Letter No. 30/SEOJK.04/2016 regarding Form and Content of Annual Report of Issuers or Public Companies. |
Besides, Telkom has built a strong foundation to implement GCG not only for the parent company, but also for its subsidiaries. This is stated in Resolution of the Board of Directors regarding GCG Group Guidelines No. 602/2011 as a guide for Telkom and its subsidiaries to operate and transact according to the ethics and principles of GCG.
152
IMPLEMENTATION OF GCG BASIC PRINCIPLES
In carrying out its business processes, Telkom implemented 5 (five) principles of Good Corporate Governance, as follows:
| ||
---|---|---|
1. | Transparency | |
| a. | The publication of financial statements and annual reports and other material information such as the decision making process as a means for investors to access important information easily. |
| b. | Information access in the form of company website, print, and press releases, direct meeting with investor, public expose, and press gathering. |
| ||
2. | Accountability | |
| a. | The availability of charter, guide, or manual that contains the clear functions, implementation, and accountability of shareholders, Board of Commissioners, Directors, committees, and corporate secretary. |
| b. | Implement the mechanism of check and balances of authority and role in the management of the Company. |
| c. | Have a clear Key Performance Indicator (KPI) and operational targets. |
| ||
3. | Responsibility | |
| a. | Comply with laws and/or tax regulations, fair competition, industrial relations, occupational health and safety, payroll standards, and other relevant regulations. |
| b. | Have mechanisms and procedures that regulate and evaluate compliance with applicable laws and regulations, and apply good corporate principles. |
| c. | Having a VP Legal and Compliance function for ensuring the fulfillment of all rules and regulations. |
| ||
4. | Independency | |
| a. | To carry out professionalism within the Company without a conflict of interest and free from the influence of pressures from other parties that are not appropriate with regulations and contrary to right corporate principles. |
| b. | Include rules/authority for corporate decision making in the Board Charters and Company's Articles of Association which emphasizes independency. |
| c. | Have additional policies in the Corporate Governance Guidelines oriented towards the principle of independency, such as conflict of interest transaction policies, the prohibition of donations from political parties, and prohibitions on affiliation. |
| ||
5. | Fairness | |
| a. | Apply the principle of equality and fairness in fulfilling the rights of stakeholders that arise based on agreements and applicable laws and regulations. |
| b. | Respect the rights of minority shareholders. |
| c. | Prohibit insider trading. |
| d. | Implement performance management based on a balanced scorecard. |
| e. | Conducting open auctions in the procurement of goods/services and implementing e-procurement. |
153
IMPLEMENTATION OF GCG MANAGEMENT PRINCIPAL - FINANCIAL SERVICES AUTHORITY
Telkom has implemented 8 (eight) principles of corporate management in accordance with the Corporate Governance Guidelines for Public Companies from the Financial Services Authority (OJK), as follows:
Principle | Recommendation | Implementation | Status | |
---|---|---|---|---|
Principle 1 | | | | |
Improving The Value of General Meeting Shareholders (GMS). | 1. | Technical methods or procedures for open and closed voting that prioritize independence and interest of the shareholders. | Telkom already has technical procedures for voting set out in the procedures for the General Meeting of Shareholders. | Comply |
| 2. | Members of the Board of Directors and the Board of Commissioners attend the Annual GMS. | All of the members of the Board of Directors and the Board of Commissioners attended the GMS. | Comply |
| 3. | A summary of minutes of GMS is available at the Website at least 1 year. | Telkom provided a Summary of Minutes of GMS at the Company’s Website under Investor Relations. | Comply |
Principle 2 | | | | |
Improving The Public Listed Company Communication Quality with Shareholders or Investors. | 1. | To have a policy on communications between Public Company and shareholders or investors. | Telkom has a policy on communications with investor through Non-Deal Roadshow, One on One Meeting, Earnings Call, Public Expose, Conference, and Investor Summit. | Comply |
| 2. | Posted the communications policy of a Public Company at the Website. | Telkom has made available materials of each Earnings Call, Conference and materials of presentation to investor at the Company’s website to provide equality for shareholders and investor regarding the implementation of Communications with the Company. | Comply |
Principle 3 | | | | |
Strengthening The Membership and Composition of Board of Commissioners. | 1. | Determination of the numbers of the Board of Commissioners members should take into account the Company’s Conditions. | Telkom has complied with the provision applicable to the Company as Public Company as set out in Article 20 of Regulation of Financial Services Authority No. 33/POJK.04/2014 that the number of members of the Board of Commissioners must be more than 2 (two) persons. | Comply |
| 2. | Determination of the composition of members of the Board of Commissioners takes into account the required variety of skills, knowledge, and experience. | At the Shareholders’ discretion, members of the Board of Commissioners have been appointed by taking into account a variety of skills, knowledge, experiences and Telkom’s business conditions and complexity. | Comply |
154
Principle | Recommendation | Implementation | Status | |
---|---|---|---|---|
Principle 4 | | | | |
Improving The Quality of Duty and Responsibility of Board of Commissioners. | 1. | The Board of Commissioners has a policy to self-assess the performance of the Board of Commissioners. | Based on the Joint Regulation of the Board of Commissioners and Directors PD.620.00/r.00/HK200/COP-M4000000/2020 there is a policy to assess the performance of Company's Board of Commissioners carried out by Series A Dwiwarna shareholders through the General Meeting of Shareholders mechanism. | Comply |
| 2. | The self-assessment policy is reported in the Annual Report. | Based on the Joint Regulation of the Board of Commissioners and Directors PD.620.00/r.00/HK200/COP-M4000000/2020 there is a policy for self-assessment which is disclosed in the Annual Report. | Comply |
| 3. | The Board of Commissioners has a policy of resignation in the event of involvement in any financial crimes. | In accordance with Telkom’s Articles of Association, jo. Regulation of Financial Services Authority No. 33/POJK.04/2014 any member of the Board of Commissioners who does not meet any requirements to be a member of the Board of Commissioners as set out in the Articles of Association and Regulation of Financial Services Authority No. 33/POJK.04/2014 including any involvement in any financial crimes, consequently his/her position will be null and void. In the event that the members of the Board of Commissioners resigns, it will be resolved at the GMS. | Comply |
| 4. | The Board of Commissioners or KNR sets out a provision of succession in the Nomination Process of a members of the Board of Directors. | The Committee for Nomination and Remuneration sets out in the Committee for Nomination and Remuneration Charter that among its duties is to give recommendations to the Board of Commissioners which will inform Series A Dwiwarna Shareholders about the Planning of Succession of Members of Board of Directors. In addition, as a SOE, the provision of succession of the Board of Directors refers to Regulation of Minister of SOE No. PER-03/MBU/02/2015 on the requirements, procedures for the appointment and dismissal of a member of the Board of Directors of SOE. | Comply |
155
Principle | Recommendation | Implementation | Status | |
---|---|---|---|---|
Principle 5 | | | | |
Strengthening Membership and Compositions of Board of Directors. | 1. | Determination of the number of members of the Board of Directors takes into account the Company’s conditions and effectiveness in decision-making. | Determination of the number of members of the Board of Directors of the Company refers to the Article 2 paragraph (1) and paragraph (2) Regulation of Financial Services Authority No. 33/POJK.04/2014 regarding the Board of Directors and the Board of Commissioners of listed Company which provides that Board of Directors of Listed Companies or Public Companies must consist of at least 2 (two) members which 1 (one) of them have to be appointed as the President Director. | Comply |
| 2. | Determination of the composition of members of the Board of Directors takes into account a variety of skills, knowledges and experiences as required. | At the shareholders’ discretion, members of the Board of Directors of the Company have been appointed by taking into account a variety of skills, knowledges, experiences, and the Company’s conditions and business complexity. | Comply |
| 3. | Members of the Board of Directors in charge of accounting and finance have skills and/or knowledge in accounting. | The members of the Board of Directors in charge of accounting and finance in the company is the Finance Director who has sufficient accounting and financial knowledge and experience as can be seen in the position and education history of the Board of Directors under the section of Profiles of the Board of Directors. | Comply |
Principle 6 | | | | |
Improving The Quality of Task execution and Responsibility of Board of Directors. | 1. | The Board of Directors has a policy to self-assess the performance of the Board of Directors. | The Board of Directors has a self-assessment policy as set out in the section of Performance Assessment of the Board of Commissioners and the Board of Directors. | Comply |
| 2. | The self-assessment policy is reported in an Annual Report. | Results of the self-assessment of the Board of Directors are reported in the Company’s Annual Report under the section of Corporate Governance. | Comply |
| 3. | The Board of Directors has a policy of resignation in the event of involvement in any financial crimes. | In accordance with our Articles of Association jo. Regulation of Financial Services Authority No. 33/POJK.04/2014, any member of the Board of Directors who does not meet any requirements to be a member of the Board of Directors as set out in the Articles of Association including any involvement in any financial crimes, consequently his/her position will be null and void. In the event that the members of the Board of Directors resigns, it will be resolved at the GMS. | Comply |
156
Principle | Recommendation | Implementation | Status | |
---|---|---|---|---|
Principle 7 | | | | |
Improving Corporate Governance Aspect Through Stakeholders Participation. | 1. | To have a Policy to prevent Insider Trading. | Based on Regulation of the Director of Human Capital Management No. PR 209.05/r.01/ K250/COP-A4000000/2020 regarding Employee Discipline, the policy to prevent Insider Trading is contained in Article 7 regarding Serious Violations, one of which is abuse of authority or position. | Comply |
| 2. | To have a Policy of Anti Corruption and Anti Fraud. | Telkom always committed to preventing corruption in our company. This is realized through the existence of integrity pact completed by all Employees of Telkom and the existence of a separate website as an integrity portal for all employees of Telkom, called myintegrity.telkom.co.id. | Comply |
| 3. | To have a Policy on the selection and capacity building of Suppliers and Vendors. | Telkom selects our Vendors and Suppliers in accordance with our internal procurement policy managed through the Share Service Operation Procurement Department and implemented by reference to Regulation of Finance Director No.PR.301.08/r.03/COP-A00110000/2020 on Procurement Implementation Guidelines. | Comply |
| 4. | To have a Policy on the fulfillment of Creditors’ rights. | Telkom has a policy to fulfill the rights of our Creditors through the Corporate Finance Unit that sets out and manages the rights of Telkom’s Creditors. | Comply |
| 5. | To have a Policy on Whistleblowing system. | Pursuant to Decision of the Board of Commissioners No. 08/KEP/DK/2016 dated June 8, 2016, on the Provision of Complaint Handling Procedures (Whistleblowers) at PT Telkom Indonesia, Tbk and its consolidated subsidiaries which then ratified by the Board of Directors through Regulation of the Board of Directors No. PD.618.00/r.00/HK200/COP-C0000000/2016 dated December 21, 2016, Telkom guarantees and ensures the protection of identity of the Whistleblowers, whether the employees or third parties filing any complaints or reports of alleged violations. | Comply |
| 6. | To have a Policy on the granting of long-term incentives to the Board of Directors and Employees. | In determining the incentives to be earned by the Board of Directors, Telkom guided by Regulation of Minister of SOE No. PER-01/MBU/05/2019 on the Setup Guidelines on Income Allocation Guidance for Board of Directors, Board of Commissioners, and Board of Trustees of State-Owned Enterprises, as for the incentives for employees, it is set out in the Collective Labor Agreement Chapter VI on compensations and benefits. In addition, Telkom also provides long-term incentives in the form of Employee Stock Option Plan (ESOP), which was last done in 2013. | Comply |
157
Principle | Recommendation | Implementation | Status | |
---|---|---|---|---|
Principle 8 | | | | |
Improving The Implementation of Information Disclosure. | 1. | To use information technology more widely other than a Website as a medium of information disclosure. | Telkom also active in various social media as medium for information disclosure and product promotion. In addition, Telkom also use the mailing list system as medium for information disclosure and communication with investor. | Comply |
| 2. | The Annual Reports of Public Companies disclose the most current beneficial owners of the company’s ownership, at least 5% other than major shareholders and controllers. | Telkom discloses the most current beneficial owners of the Company’s ownership with 5% or more in our Annual Report under the section of shareholders’ composition and ownership. | Comply |
158
CORPORATE GOVERNANCE STRUCTURE
In accordance with the provisions in the capital market and Law of the Republic of Indonesia No. 40 Year 2007 regarding Limited Liability Companies, Telkom has governance which consists of:
1. | Main Organs, which consist of General Meeting of Shareholders (GMS), Board of Commissioners, and Directors. |
2. | Supporting Organs, which consist of Audit Committee, Nomination and Remuneration Committee, Planning and Risk Evaluation and Monitoring Committee, Corporate Secretary, and Internal Auditor. |
The following diagram explains Telkom's governance structure.
159
CORPORATE GOVERNANCE ASSESSMENT
The implementation of Good Corporate Governance is a form of Telkom's commitment to increasing business success and accountability. In the long term, it is expected that Good Corporate Governance can increase the corporate value and create a superior corporate image. In order to measure the implementation of Good Corporate Governance within Telkom, we conduct assessments carried out by external parties.
In 2020, there are an assessment from an external party, which is Indonesian Institute of Corporate Directorship (IICD). IICD has conducted Corporate Governance assessments of hundreds of issuers since 2005, using the Corporate Governance Scorecard method developed by Organization for Economic Co-operation and Development (OECD), which is the principle of Corporate Governance with international standards and has been implemented globally and ASEAN regional, including Indonesia. In 2020 IICD conducted an assessment of hundreds of issuers with the largest market capitalization listed in Indonesia Stock Exchange, where the issuers were divided into 2 groups, which are 100 issuers with the largest market capitalization (BigCap) and 100 issuers with medium market capitalization (MidCap). The assessment uses the ASEAN Corporate Governance Scorecard (ACGS) methodology with the following instruments:
1. | Shareholders' rights; |
2. | Equal treatment of shareholders; |
3. | The role of stakeholders; |
4. | Disclosure and transparency; and |
5. | Board of Commissioners’ responsibility. |
Based on the results of assessment, Telkom won "The Best State Owned Enterprise" in the BigCap category. Telkom is considered a SOE that is considered to have implemented Good Corporate Governance properly, transparent, and can explain and provide accountability to the public regarding public decisions.
In addition, in 2021 Telkom was able to win 1st The Best Indonesia GCG Award 2021 in category of Public Telecommunication Company in the Indonesia GCG Award VI 2021 (IGCGA-VI-2021) event. This event is an initiation of Economic Review and Indonesia-Asia Institute as a token of appreciation to companies that have been able to implement Good Corporate Governance. The initial screening was carried out with an assessment of approximately 1,000 Tbk and non Tbk public companies which were further categorized into 46 industrial subsectors as well as their ownership and assets.
The methodology used in GCG assessment in both events is to review information available in the public and accessible to the general public. This information includes information contained in the annual report, website, articles of association, announcements, and other relevant public information made by Telkom. The appreciation from this national institution shows Telkom's consistency in implementing GCG.
160
GENERAL MEETING OF SHAREHOLDERS (GMS)
General Meeting of Shareholders (GMS) is Telkom’s highest governance organs. GMS is an organ to facilitate shareholders to make important and strategic decisions. In accordance with the provisions of Telkom's Articles of Association and laws and regulations, the Annual GMS (AGM) is held once a year with the routine agenda as follows:
| |
1. | Approval of the Company’s Annual Report, including Board of Commissioners Supervisory Task Report. |
2. | Ratification of the Company’s Financial Statement and Annual Partnership and Community Development Program Report, as well as the Exemption of Liabilities of the members of the Board of Directors and Commissioners. |
3. | Determination of Company’s Net Income, including dividend payment in the Fiscal Year. |
4. | The determination of remuneration for the members of the Board of Directors and Commissioners. |
5. | The appointment of Public Accounting Firm to audit the Company’s Financial Statements, including Audit of Internal Control over Financial Reporting and Appointment of a Public Accounting Firm to audit Financial Statements of Partnership and Community Development Programs. |
6. | Any other agenda proposed by one or more shareholders that represent 1/20 or more of all shares that have a voting right. |
AGMS RESOLUTION FOR 2018 FINANCIAL YEAR
In addition, Telkom has held an AGMS on May 24, 2019, for the performance of 2018 Financial Year with detailed agenda and realization of the resolutions of 2018 Financial Year as follows:
Agenda | AGMS Resolution | Status of the AGMS Resolution | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
1. | To approve the Annual Report of the Company including the Board of Commissioners’ Supervision Task Report for 2018 Financial Year, as long as it is not a criminal offense and is reflected in the Company’s report books. | Resolution effective immediately. | |||||||||
2. | 1. | To ratify the Company’s Consolidated Financial Statements for the 2018 Financial Year which has been audited by the Public Accounting Firm Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited) according to its report number 00910/2.1032/AU.1/06/0691-2/1/IV/2019 dated April 29, 2019 stated with opinion the accompanying consolidated financial statements report present fairly, in all material respects, and as long as it is not a criminal offense and is reflected in the Company’s report books. | Resolution effective immediately. | ||||||||
| 2. | To approve and ratify Partnership and Community Development Annual Report for the 2018 Fiscal Year and Financial Report on Partnership and Community Development Program for the 2018 Fiscal Year, which compiled pursuant to Minister of State Owned Enterprise’s Regulation which is a comprehensive accounting basis in addition to Indonesian Financial Accounting Principle that generally accepted in Indonesia and have been audited by the Public Accounting Firm Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited) according to its report number 00046/2.1032/AU.2/11/0687-2/2/1/I/2019 dated January 24, 2019 stated with opinion the accompanying financial statements present fairly, in all material respects, and as long as it is not a criminal offense and is reflected in the Company’s report books. | | ||||||||
| 3. | Give a full acquittal and discharge (volledig acquit et de charge) to members of the Board of Directors dan the Board of Commissioners who serves in the Financial Year 2018 consecutively for the managerial and supervisory actions of the Company as long as those actions are not criminal act and those actions are reflected in the Company’s Report Books. | |
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Agenda | AGMS Resolution | Status of the AGMS Resolution | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
3. | 1. | To approve and determine the appropriation of the Company’s net profit for the 2018 Financial Year in the amount of Rp18,031,796,084,638,- (eighteen trillion thirty one billion seven hundred ninety six million eighty four thousand and six hundred thirty eight Rupiah) as follows: | ● | Dividend distribution was conducted on June 27, 2019. | |||||||
● | The decision on reserve effective immediately. | ||||||||||
| | a. | Cash Dividend amounting to 60% of the net profit or in the amount of Rp10,819,079,985,969,- (ten trillion eight hundred nineteen billion seventy nine million nine hundred eighty five thousand and nine hundred sixty nine Rupiah) or amounting to Rp109.2150,- (one hundred and nine point two one five zero Rupiah) per share, based on issued shares on the date of the meeting, in the amount of 99,062,216,600 (ninety nine billion sixty two million two hundred sixteen thousand six hundred) shares; | | |||||||
| | b. | Special Dividend amounting to 30% of the net profit or in the amount of Rp5,409,539,992,984.50,- (five trillion four hundred nine billion five hundred thirty nine million nine hundred ninety two thousand and nine hundred eighty four point five zero Rupiah) or amounting to Rp54.6075 (fifty four point six zero seven five Rupiah) per shares based on issued shares on the date of the meeting, amounting to 99,062,216,600 (ninety nine billion sixty two million two hundred sixteen thousand six hundred) shares; | | |||||||
| | c. | Recorded as Retained Earning in the amount of 10% from net profit or amounting to Rp1,803,176,105,684.50 (one trillion eight hundred three billion one hundred seventy six million one hundred five thousand and six hundred eighty four point five zero Rupiah) which will be used for the development of the Company. | | |||||||
| 2. | The distribution of Cash Dividend and Special Dividend for the 2018 Financial Year will be conducted with the following conditions: | | ||||||||
| | a. | Those who are entitled to receive Cash Dividend and Special Dividend are shareholders whose names are recorded in the Company’s shareholders on June 13, 2019 up to 16.15 WIB; | | |||||||
| | b. | Cash Dividend and Special Dividend shall be paid all at the latest on June 27, 2019. | | |||||||
| 3. | To grant the power and authority to the Board of Directors with the right of substitution to regulate further the procedure of dividend distribution and to announce the same with due regard to the prevailing laws and regulations in the stock exchange where the Company’s shares are listed. | | ||||||||
4. | 1. | To grant power and authority to Series A Dwiwarna shareholder to determine the amount of tantiem for 2018 Financial Year and to determine honorarium allowance, facility and other incentive to members of the Board of Commissioners for Year 2019. | Already implemented. | ||||||||
| 2. | To grant power and authority to the Board of Commissioners which previously has obtained written approval from Series A Dwiwarna shareholder to determine the amount of tantieme for 2018 Financial Year and also to determine salary, allowance, facility and other incentive to members of the Board of Directors for Year 2019. | |
162
Agenda | AGMS Resolution | Status of the AGMS Resolution | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
5. | 1. | To appoint the Public Accounting Firm Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited) to conduct an integrated audit of the Company which include the audit of the Consolidated Financial Statements of the Company, including the Internal Control Audit over Financial Reporting and to audit the Financial Statements of Partnership and Community Development Program for the Financial Year ending on December 31, 2019; | KAP’s approval is effective immediately. | ||||||||
| 2. | To grant authority to the Board of Commissioners of the Company to determine the appropriate audit fee, addition of the scope of work required and other terms and conditions of the relevant Public Accounting Firm. | | ||||||||
| 3. | To grant power and authority to the Board of Commissioners which previously has obtained written approval from Series A Dwiwarna shareholder to determine the substitute Public Accounting Firm in Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited), in the event can not complete its duty for any reason to audit of Financial Reporting and the Financial Statements of Partnership and Community Development Program for the 2018 Financial Year. | | ||||||||
6. | 1. | To approve the amendment of Article 3 concerning Objectives-Purposes and Business Activities of the Company’s, Article 12 paragraph 7 i letter b concerning the limitation of authority for Actions of Directors that should be approval by the Board of Commissioners in terms of cooperation, Article 12 paragraph 7i letter g concerning the limitation of authority for Actions of Directors that should be approval by the Board of Commissioners in the case of the nomination of representatives to become a candidate members of the Board of Directors and the Board of Commissioners of subsidiaries; | Resolution effective immediately. | ||||||||
2. | To approved to reconstitute the entire provisions of the Articles of Association in connection with the changes referred to in paragraph 1 (a) of the above decision; | | |||||||||
3. | To grant power and authority to the Board of Directors of the Company with rights of substitution to do all necessary actions in relation with the resolutions of the agendas of this meeting, including to compile and restate of all the Articles of Association in a Notarial Deed and to submit to the competent authority to obtain the approval and/or receipt of notification of the amendment of the Articles of Association, to do anything deemed necessary and useful for such purposes with no exceptions, including to add and/or to change the amendments of the Articles of Association if they are required by the competent authority. | |
163
Agenda | AGMS Resolution | Status of the AGMS Resolution | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
7. | A1. | To honorably dismiss the following members of the Board of Directors of the Company: | Resolution effective immediately. | ||||||||
| | 1) | Mr. Alex J. Sinaga | as President Director | | ||||||
| | 2) | Mr. David Bangun | as Director of Digital & Strategic Portfolio | | ||||||
| | 3) | Mr. Abdus Somad Arief | as Director of Wholesale & International Service | | ||||||
| | 4) | Mr. Herdy Rosadi Harman | as Director of Human Capital Management | | ||||||
| | 5) | Mr. Dian Rachmawan | as Director of Enterprise & Business Service | | ||||||
| 2. | To change the nomenclature of positions of the members of the Board of Directors of the Company as follows. | | ||||||||
| | No. | Previously | To become | | ||||||
| | 1. | Director of Digital & Strategic Portfolio | Director of Digital Business | | ||||||
| | 2. | - | Director of Strategic Portfolio | | ||||||
| 3. | To appoint the names below as members of the Board of Directors of the Company: | | ||||||||
| | 1) | Mr. Ririek Adriansyah | as President Director | | ||||||
| | 2) | Mr. Edwin Aristiawan | as Director of Wholesale & International Service | | ||||||
| | 3) | Mr. Edi Witjara | as Director of Human Capital Management | | ||||||
| | 4) | Mr. Faizal R. Djoemadi | as Director of Digital Business | | ||||||
| | 5) | Mr. Achmad Sugiarto | as Director of Strategic Portfolio | | ||||||
| | 6) | Mr. Bogi Witjaksono | as Director of Enterprise & Business Service | | ||||||
| 4. | Term of offices of members of the Board of Directors who are appointed as number 3 shall be in accordance with the provisions of the Articles of Association of the Company with due regard to the provisions of laws and regulations in Capital Market sector and without prejudice to the right of the GMS to dismiss such members at any time. | | ||||||||
| 5. | With the dismissal, change of position nomenclature, and the appointment of members of the Board of Directors of the Company as referred to in number 1, number 2, and number 3, therefore the composition of the Board of Directors of the Company shall be as follows. | | ||||||||
| | No. | Name | Position | | ||||||
| | 1 | Ririek Adriansyah | President Director | | ||||||
| | 2 | Harry Mozarta Zen | Director of Finance | | ||||||
| | 3 | Siti Choiriana | Director of Consumer Service | | ||||||
| | 4 | Bogi Witjaksono | Director of Enterprise & Business Service | | ||||||
| | 5 | Zulhelfi Abidin | Director of Network & IT Solution | | ||||||
| | 6 | Edwin Aristiawan | Director of Wholesale & International Service | | ||||||
| | 7 | Edi Witjara | Director of Human Capital Management | | ||||||
| | 8 | Faizal Rochmad Djoemadi | Director of Digital Business | | ||||||
| | 9 | Achmad Sugiarto | Director of Strategic Portfolio | |
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Agenda | AGMS Resolution | Status of the AGMS Resolution | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
| 6. | Members of the Board of Directors, who are appointed as referred to in number 3 however still in other positions that are prohibited, based on laws and regulations, to be concurrent with the position of members of the Board of Directors of a State-Owned Enterprise, must resign or be dismissed from such position. | | ||||||||
| 7. | To grant power and authority to the Board of Directors of the Company, with the right of substitution, to carry out all necessary actions related to the resolution as adopted in this agenda in accordance with the applicable laws and regulations, including to declare such resolution in a separate Notary Deed and notify the composition of the Board of Directors and the Board of Commissioners of the Company to the Ministry of Law and Human Rights. | | ||||||||
B1. | To confirm the honorably dismissal of Mister Dolfie Othniel Fredric Palit as Independent Commissioner of the Company, from September 20, 2018. | | |||||||||
| 2. | To honorably dismiss the following members of the Board of Commissioners: | | ||||||||
| | 1) | Ms. Hendri Saparini | as President Commissioner | | ||||||
| | 2) | Ms. Pamijati Pamela Johanna Waluyo | as Independent Commissioner | | ||||||
| | 3) | Mr. Rinaldi Firmansyah | as Commissioner | | ||||||
| 3. | To appoint the names below as members of the Board of Commissioners of the Company: | | ||||||||
| | 1) | Mr. Rhenald Kasali | as President Commissioner and concurrently as Independent Commissioner | | ||||||
| | 2) | Mr. Marsudi Wahyu Kisworo | as Independent Commissioner | | ||||||
| | 3) | Mr. Ismail | as Commissioner | | ||||||
| | 4) | Mr. Marcelino Pandin | as Commissioner | | ||||||
| 4. | Term of offices of members of the Board of Commissioners who are appointed as number 3 shall be in accordance with the provisions of the Articles of Association of the Company with due regard to the provisions of laws and regulations in Capital Market sector and without prejudice to the right of the GMS to dismiss such members at any time. | | ||||||||
| 5. | With the confirmation of dismissal, the dismissal, and the appointment of members of the Board of Commissioners of the Company as referred to in number 1, number 2, and number 3, the composition of members of the Board of Commissioners of the Company shall be as follows: | | ||||||||
| | No. | Name | Position | | ||||||
| | 1 | Rhenald Kasali | President Commissioner / Independent Commissioner | | ||||||
| | 2 | Marsudi Wahyu Kisworo | Independent Commissioner | | ||||||
| | 3 | Margiyono Darsasumarja | Independent Commissioner | | ||||||
| | 4 | Cahyana Ahmadjayadi | Independent Commissioner | | ||||||
| | 5 | Edwin Hidayat Abdullah | Commissioner | | ||||||
| | 6 | Isa Rachmatarwata | Commissioner | | ||||||
| | 7 | Ismail | Commissioner | | ||||||
| | 8 | Marcelino Pandin | Commissioner | | ||||||
| 6. | Members of Board of Commissioners, who are appointed as referred to in number 3 however still in other positions that are prohibited, based on laws and regulations, to be concurrent with the position of members of the Board of Directors of a State-Owned Enterprise, must resign or be dismissed from such position. | | ||||||||
| 7. | To grant power and authority to the Board of Commissioners of the Company, with the right of substitution, to carry out all necessary actions related to the resolution as adopted in this agenda in accordance with the applicable laws and regulations, including to declare such resolution in a separate Notary Deed and notify the composition of the Board of Directors and the Board of Commissioners of the Company to the Ministry of Law and Human Rights. | |
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Note: All of the above AGMS resolutions are in line with the adopted agenda and is reflected in the AGMS invitation
AGMS RESOLUTION FOR 2019 FINANCIAL YEAR
Telkom has held an AGMS on June 19, 2020, for the performance of the 2019 Financial Year with detailed agenda and realization of the resolutions of the 2019 Financial Year as follows:
Agenda | AGMS Resolution | Status of the AGMS Resolution | ||||||
---|---|---|---|---|---|---|---|---|
1. | To approve the Annual Report of the Company including the Board of Commissioners’ Supervision Task Report for the 2019 Financial Year, as long as it is not a criminal offense and is reflected in the Company’s report books. | Resolution effective immediately. | ||||||
2. | 1. | To ratify The Company’s Consolidated Financial Statements for the 2019 Financial Year which has been audited by the Public Accounting Firm Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited) according to its report number 01105/2.1032/AU.1/06/1007-1/1/V/2020 dated May 25, 2020 stated with opinion the accompanying consolidated financial statements report present fairly, in all material respects, and as long as it is not a criminal offense and is reflected in the Company’s report books. | Resolution effective immediately. | |||||
| 2. | To approve and ratify Partnership and Community Development Annual Report for the 2019 Financial Year and Financial Report on Partnership and Community Development Program for the 2019 Financial Year, which compiled pursuant to Minister of State Owned Enterprise’s Regulation which is a comprehensive accounting basis in addition to Indonesian Financial Accounting Principle that generally accepted in Indonesia and have been audited by the Public Accounting Firm Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited) according to its report number 00073/2.1032/AU.2/11/0687-3/2/1/I/2020 dated January 29, 2020 stated with opinion the accompanying financial statements present fairly, in all material respects, and as long as it is not a criminal offense and is reflected in the Company’s report books. | | |||||
| 3. | Give a full acquittal and discharge (volledig acquit et de charge) to members of the Board of Directors and the Board of Commissioners who serves in the 2019 Financial Year consecutively for the managerial and supervisory actions of the Company as long as those actions are not criminal act and those actions are reflected in the Company’s report books. | |
166
167
Agenda | AGMS Resolution | Status of the AGMS Resolution | ||||||
---|---|---|---|---|---|---|---|---|
4. | 1. | To grant power and authority to Series A Dwiwarna shareholder to determine the amount of tantiem for 2019 Financial Year and to determine honorarium allowance, facility and other incentive to members of the Board of Commissioners for Year 2020. | Resolution effective immediately. | |||||
| 2. | To grant power and authority to the Board of Commissioners which previously has obtained written approval from Series A Dwiwarna shareholders to determine the amount of tantiem for 2019 Financial Year and also to determine salary, allowance, facility and other incentive to members of the Board of Directors for Year 2020. | | |||||
5. | 1. | To appoint the Public Accounting Firm Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited) to conduct an integrated audit of the Company which include the audit of the Consolidated Financial Statements of the Company, including the Internal Control Audit over Financial Reporting and to audit the Financial Statements of Partnership and Community Development Program for the Financial Year ending on December 31, 2020. | KAP’s approval is effective immediately. | |||||
| 2. | To grant authority to the Board of Commissioners of the Company to determine the appropriate audit fee, addition of the scope of work required and other terms and conditions of the relevant Public Accounting Firm. | | |||||
| 3. | To grant power and authority to the Board of Commissioners which previously has obtained written approval from Series A Dwiwarna shareholder to determine the substitute Public Accounting Firm in Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited), in the event can not complete its duty for any reason to audit of Financial Reporting and the Financial Statements of Partnership and Community Development Program for the 2020 Financial Year. | | |||||
6. | 1. | To honorably dismiss the following members of the Board of Directors of the Company. | Resolution effective immediately. | |||||
| | No. | Name | Position | | |||
| | 1) | Mr. Harry Mozarta Zen | Director of Finance | | |||
| | 2) | Ms. Siti Choiriana | Director of Consumer Service | | |||
| | 3) | Mr. Zulhelfi Abidin | Director of Network & IT Solution | | |||
| | 4) | Mr. Achmad Sugiarto | Director of Strategic Portfolio | | |||
| | 5) | Mr. Bogi Witjaksono | Director of Enterprise & Business Service | | |||
| | 6) | Mr. Edwin Aristiawan | Director of Wholesale & International Service | | |||
| | 7) | Mr. Faizal R. Djoemadi | Director of Digital Business | | |||
| 2. | Transferring Mr. Edi Witjara, who was appointed based on the resolution of the 2018 Annual General Meeting of Shareholders, was originally Director of Human Capital Management to become Director of Enterprise and Business Service, with a term of office continuing the remaining term of office as referred to in the AGM decision. | | |||||
| 3. | To appoint the names below as members of the Board of Directors of the Company. | | |||||
| | No. | Name | Position | | |||
| | 1) | Mr. Heri Supriadi | Director of Finance | | |||
| | 2) | Ms. FM Venusiana R. | Director of Consumer Service | | |||
| | 3) | Mr.Herlan Wijanarko | Director of Network & IT Solution | | |||
| | 4) | Mr. Budi Setyawan Wijaya | Director of Strategic Portfolio | | |||
| | 5) | Mr. Dian Rachmawan | Director of Wholesale & International Service | | |||
| | 6) | Mr. Muhamad Fajrin Rasyid | Director of Digital Business | | |||
| | 7) | Mr. Afriwandi | Director of Human Capital Management | |
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Agenda | AGMS Resolution | Status of the AGMS Resolution | ||||||
---|---|---|---|---|---|---|---|---|
| 4. | To confirm the honorably dismissal of the names below as members of the Board of Commissioners of the Company. | | |||||
| | No. | Name | Position | | |||
| | 1) | Mr. Edwin Hidayat Abdullah | Commissioner | | |||
| | 2) | Mr. Isa Rachmatarwata | Commissioner | | |||
| 5. | To honorably dismiss the following names as members of the Board of Commissioners of the Company. | | |||||
| | No. | Name | Position | | |||
| | 1 | Mr. Margiyono Darsasumarja | Independent Commissioner | | |||
| | 2 | Mr. Cahyana Ahmadjayadi | Independent Commissioner | | |||
| 6. | To appoint the following names as members of the Board of Commissioners of the Company. | | |||||
| | No. | Name | Position | | |||
| | 1) | Mr. Alex Denni | Commissioner | | |||
| | 2) | Mr. Rizal Mallarangeng | Commissioner | | |||
| | 3) | Mr. Ahmad Fikri Assegaf | Independent Commissioner | | |||
| | 4) | Mr. Wawan Iriawan | Independent Commissioner | | |||
| | 5) | Mr. Chandra Arie Setiawan | Independent Commissioner | | |||
| 7. | With the confirmation of dismissal, transferring and appointment of members of the Board of Directors as referred to in number 1, number 2 and number 3, as well as the confirmation of dismissal, dismissal and appointment of members of the Board of Commissioners as referred to in number 4, number 5, and number 6, the composition of the management of the Company shall be as follows: | | |||||
| | a. | Board of Directors | | | |||
| | | No. | Name | Position | | ||
| | | 1) | Mr. Ririek Adriansyah | President Director | | ||
| | | 2) | Mr. Dian Rachmawan | Director of Wholesale & International Service | | ||
| | | 3) | Mr. Afriwandi | Director of Human Capital Management | | ||
| | | 4) | Mr. Heri Supriadi | Director of Finance | | ||
| | | 5) | Ms. FM Venusiana R. | Director of Consumer Service | | ||
| | | 6) | Mr. Edi Witjara | Director of Enterprise and Business Services | | ||
| | | 7) | Mr. Herlan Wijanarko | Director of Network & IT Solution | | ||
| | | 8) | Mr. Muhamad Fajrin Rasyid | Director of Digital Business | | ||
| | | 9) | Mr. Budi Setyawan Wijaya | Director of Strategic Portfolio | | ||
| | b. | Board of Commissioners | | | |||
| | | No. | Name | Position | | ||
| | | 1) | Mr. Rhenald Kasali | President Commissioner | | ||
| | | 2) | Mr. Marsudi Wahyu Kisworo | Independent Commissioner | | ||
| | | 3) | Mr. Ahmad Fikri Assegaf | Independent Commissioner | | ||
| | | 4) | Mr. Wawan Iriawan | Independent Commissioner | | ||
| | | 5) | Mr. Chandra Arie Setiawan | Independent Commissioner | | ||
| | | 6) | Mr. Marcelino Rumambo Pandin | Commissioner | | ||
| | | 7) | Mr. Ismail | Commissioner | | ||
| | | 8) | Mr. Alex Denni | Commissioner | | ||
| | | 9) | Mr. Rizal Mallarangeng | Commissioner | |
169
Agenda | AGMS Resolution | Status of the AGMS Resolution | ||||||
---|---|---|---|---|---|---|---|---|
| 8. | Members of the Board of Commissioners, who are appointed as referred to in number 3 and number 6 however still in other positions that are prohibited, based on laws and regulations, to be concurrent with the position of members of the Board of Directors of a State-Owned Enterprise, must resign or be dismissed from such position. | | |||||
| 9. | To grant power with substitution rights to the Board of Directors of the Company to declare that the GMS has decided in the form of a Notary Deed and appear before the Notary or authorized official, and make adjustments or corrections as required by the competent authority for the purposes of implementing the contents of the meeting resolutions. | |
In the implementation, AGMS decision of 2019 Financial Year has undergone one correction in accordance with the Information Disclosure that we have done through Letter No. TEL. 9/LP 000/COP-I5000000/2020 dated June 25, 2020 regarding Information Disclosure regarding Correction on Resolution of the 6th Agenda of AGMS decision of 2019 Financial Year of PT Telkom Indonesia (Persero) Tbk, which basically is:
“Based on the Letter from the Minister of State-Owned Enterprises No. SR-409/MBU/06/2020, dated June 22, 2020 concerning the Correction of the 6th (6th) Agenda Decision of the 2019 Financial Year of PT Telekomunikasi Indonesia (Persero) Tbk, we conclude that there was a correction that occurred on the 6th AGMS decision The Annual Fiscal Year 2019 of Telkom as follows:
Then
| |
1. | Mr. Rhenald Kasali as President Commissioner; |
2. | Mr. Ahmad Fikri Assegaf as Independent Commissioner. |
Become
| |
1. | Mr. Rhenald Kasali as President Commissioner/Independent Commissioner; |
2. | Mr. Ahmad Fikri Assegaf as Commissioner.” |
170
BOARD OF COMMISSIONERS
Based on Law No. 40 Year 2007 regarding Limited Liability Companies, the Board of Commissioners is one of the Company’s organs who has collective duties and responsibilities to oversee the running of the Company and provide advice to the Directors. The Board of Commissioners is also tasked to ensure the principles of Good Corporate Governance (GCG) are applied in every business practice of Telkom.
BOARD OF COMMISSIONERS’ CHARTER
Telkom has a Board of Commissioners Charter which is ratified and signed by the Board of Commissioners through Resolution of the Board of Commissioners No. 08/KEP/DK/2020 dated June 18, 2020. Various provisions which serve as guidelines for the Board of Commissioners are regulated in the Charter. There are regulation about the responsibilities, obligations and division of duties of the Board of Commissioners.
In addition, the Board of Commissioners Charter also includes provisions on meetings, conflicts of interest, share ownership, and the relationship between the Board of Commissioners and the Board of Directors and the GMS. Apart from the Charter or Board Charter, duties and responsibilities of the members of the Board of Commissioners are also regulated in the Company's Articles of Association and a Joint Decision Letter between the Board of Commissioners and the Board of Directors.
BOARD OF COMMISSIONERS’ AUTHORITIES, DUTIES, AND RESPONSIBILITIES
Telkom's Articles of Association stipulates the Board of Commissioners' obligations to:
1. | Provide advice to the Board of Directors in performing the Company’s Management; |
2. | Provide opinion and give approval over the Annual Work Plan and Budget of the Company as well as other work plans which have been prepared by the Board of Directors, in accordance with the provisions of this Articles of Association; |
3. | Keep up with Company’s activities progress, provide opinions and advice to the GMS concerning every issue considered important for the Company’s Management; |
4. | Report to Series A Dwiwarna shareholder if there is any indication of decreasing performance of the Company; |
5. | Propose to the GMS for the appointment of Public Accountant who will perform the audit over the Company’s book; |
6. | Review and analyze the periodic reports and the annual report prepared by the Board of Directors as well as execute the annual report; |
7. | Provide explanation, opinion, and advice to the GMS concerning the annual report, if requested; |
8. | Draw up the minutes of the meeting of the Board of Commissioners and keep their copies; |
9. | Report to the Company with regard to their and/or their families share ownership in the Company aforesaid and in other companies; |
10. | Provide report regarding the supervisory duties which have been performed during the recently passed Financial Year to the GMS; |
11. | Provide explanation regarding any matters inquired about or requested by Series A Dwiwarna shareholder with due observance of the statutory regulations, particularly those prevailing in the Capital Market sector; |
12. | Perform other obligations in the framework of supervisory duties and advice provision, to the extent, it does not contradict the statutory regulations, the Articles of Association and/or the resolutions of the GMS. |
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The authority of the Board of Commissioners is as follows:
1. | Examine books, letters, as well as other documents, examine cash position for verification purposes and other securities and examine the assets of the Company; |
---|---|
2. | Enter the yards, buildings, and offices used by the Company; |
3. | Demand explanation from the Board of Directors and/or other officials concerning any issues concerning the Company’s management; |
4. | Be informed of any policy and actions which have been and which will be taken by the Board of Directors; |
5. | Demand the Board of Directors and/or other officials under the level of the Board of Directors, with the knowledge of the Board of Directors, to attend the meeting of the Board of Commissioners; |
6. | Appoint and dismiss a secretary of the Board of Commissioners; |
7. | Suspend the members of the Board of Directors in accordance with the provisions of this Articles of Association; |
8. | Form the Audit Committee, the Remuneration and Nomination Committee, the Risk Monitoring Committee, and other committees, if considered necessary, with due observance of the capability of the company; |
9. | Utilize experts for certain matters and within a certain period on the account of the Company, if considered necessary; |
10. | Perform the management actions over the Company in certain conditions for a certain period under the provisions of this Articles of Association; |
11. | Approve the appointment and dismissal of the Corporate Secretary and/or the Head of Internal Supervisory Unit; |
12. | Examine and review the annual reports prepared by the Board of Directors and sign the annual reports; |
13. | Attend the meeting of the Board of Directors and give viewpoint towards the matters being discussed; |
14. | Perform other supervisory authorities as long it does not contradict with the statutory regulations, the Articles of Association and/or the resolutions of the GMS; |
15. | In order to carry out their supervisory function, members of the Board of Commissioners at agreed working hours or other times, jointly or individually, with or without prior notification to the Board of Directors, by taking into account professionalism, the interests of the Company, the public and organs, have rights access but not limited to buildings and locations from or other places that are used to be controlled by the Company's subsidiaries and have rights to check books, documents, reports, and inventory of goods, and check cash positions (for verification purposes) and other guarantees and to find out all actions taken by the Directors of the subsidiary which are based on the principle of disclosure of information by taking into account the confidentiality of the Company, and can provide advice to subsidiaries regarding policies/actions that have been decided or will be taken by the Directors of the subsidiaries either requested or not. |
In the event of a company loss, members of the Board of Commissioners have a collective responsibility for mistakes or omissions in carrying out their duties, unless proven:
| |
1. | Such loss is not caused by their mistake or negligence; |
2. | They have performed in good faith, full responsibility, and prudentially for the interest and based on the purpose and objective of the Company; |
3. | They do not have any conflict of interest either directly or indirectly with the management activities causing the loss; and |
4. | They have taken the action to prevent the occurrence or continuation of such loss. |
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BOARD OF COMMISSIONERS’ COMPOSITION
In 2020, composition of the Board of Commissioners changed because the Annual General Meeting of Shareholders (AGMS) on June 19, 2020 decided to honorably dismiss the following members of the Board of Commissioners:
1. | The dismissal of Mr. Isa Rachmatarwata as Commissioner of the Company who is no longer serving as Telkom's Board of Commissioners because he was appointed as Commissioner of Pertamina based on the Resolution of State-Owned Enterprise Number SK 327/MBU/12/2019 dated December 23, 2019 regarding Dismissal and Appointment of the Board of Commissioner Members of Perusahaan Perseroan (Persero) PT Pertamina; |
2. | Mr. Margiyono Darsasumarja from the position of Independent Commissioner; and |
3. | Mr. Cahyana Ahmadjayadi from the Position of Independent Commissioner. |
The AGMS held on June 19, 2020 along with its correction as disclosed by our disclosure No. TEL. 9/LP 000/COP-I5000000/2020 dated June 25, 2020 has decided to appoint the following names:
u | |
1. | Mr. Rizal Mallarangeng as Commissioner; |
2. | Mr. Alex Denni as Commissioner; |
3. | Mr. Ahmad Fikri Assegaf as Commissioner; and |
4. | Mr. Wawan Iriawan as Independent Commissioner; |
5. | Mr. Chandra Arie Setiawan as Independent Commissioner. |
Composition of the Board of Commissioners as of December 31, 2019 and 2020 can be seen as follows.
Board of Commissioners’ Composition as of December 31, 2019
No. | Name | Position | Appointment | End of Period(1) |
---|---|---|---|---|
1. | Rhenald Kasali | President Commissioner/Independent Commissioner | AGMS 2019 | AGMS 2024 |
2. | Marsudi Wahyu Kisworo | Independent Commissioner | AGMS 2019 | AGMS 2024 |
3. | Margiyono Darsasumarja | Independent Commissioner | AGMS 2015 | AGMS 2020 |
4. | Cahyana Ahmadjayadi | Independent Commissioner | AGMS 2017 | AGMS 2020 |
5. | Ismail | Commissioner | AGMS 2019 | AGMS 2024 |
6. | Marcelino Rumambo Pandin | Commissioner | AGMS 2019 | AGMS 2024 |
Remark:
The term of office of the Board of Commissioner is set at 5 (five) years and can be reappointed for 1 (one) more term of office. The GMS may dismiss the Board of Commissioners before the end of the term of office |
Board of Commissioners’ Composition as of December 31, 2020
No. | Name | Position | Appointment | End of Period(1) |
---|---|---|---|---|
1. | Rhenald Kasali | President Commissioner/Independent Commissioner | AGMS 2019 | AGMS 2024 |
2. | Marsudi Wahyu Kisworo | Independent Commissioner | AGMS 2019 | AGMS 2024 |
3. | Ahmad Fikri Assegaf | Commissioner | AGMS 2020 | AGMS 2025 |
4. | Wawan Iriawan | Independent Commissioner | AGMS 2020 | AGMS 2025 |
5. | Chandra Arie Setiawan | Independent Commissioner | AGMS 2020 | AGMS 2025 |
6. | Marcelino Rumambo Pandin | Commissioner | AGMS 2019 | AGMS 2024 |
7. | Ismail | Commissioner | AGMS 2019 | AGMS 2024 |
8. | Alex Denni | Commissioner | AGMS 2020 | AGMS 2025 |
9. | Rizal Mallarangeng | Commissioner | AGMS 2020 | AGMS 2025 |
Remark:
(1) | The term of office of the Board of Commissioner is set at 5 (five) years and can be reappointed for 1 (one) more term of office. The GMS may dismiss the Board of Commissioners before the end of the term of office |
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BOARD OF COMMISSIONERS’ DIVERSITY
The mechanism for selecting and appointing members of Telkom's Board of Commissioners is carried out through the General Meeting of Shareholders (GMS). In general, prospective members are determined by fulfilling the principle of fairness after fulfilling aspects related to diversity, non-discrimination and human rights. The appointment or election of the Board of Commissioners considers the competence and expertise and background required by the Company, as well as an assessment of integrity. Even though there is no written policy regarding this matter, Telkom's main shareholders and controllers, in this case the Government of Indonesia, represented by the Ministry of State-Owned Enterprises (SOE), always pay attention to the application of the principles of GCG and Law No. 39 Year 1999 regarding Human Rights in the mechanism.
Board of Commissioners’ Diversity as of December 31, 2020
No. | Name | Position | Gender | Background of Expertise & Skill | Level of Education |
---|---|---|---|---|---|
1. | Rhenald Kasali | President Commissioner/ | Male | Management | Doctoral |
2. | Marsudi Wahyu Kisworo | Independent Commissioner | Male | Information Technology | Doctoral |
3. | Ahmad Fikri Assegaf | Commissioner | Male | Law | Master |
4. | Wawan Iriawan | Independent Commissioner | Male | Law | Doctoral |
5. | Chandra Arie Setiawan | Independent Commissioner | Male | Business | Master |
6. | Marcelino Rumambo Pandin | Commissioner | Male | Business Management and Technology | Doctoral |
7. | Ismail | Commissioner | Male | Electrical Engineering and Telecommunication Engineering | Doctoral |
8. | Alex Denni | Commissioner | Male | Human Resources | Doctoral |
9. | Rizal Mallarangeng | Commissioner | Male | Public and Political Communication | Doctoral |
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BOARD OF COMMISSIONERS’ DOUBLE POSITION
As part of the application of the principle of transparency, Telkom revealed the concurrent positions of the Board of Commissioners as of December 31, 2020, as follows.
Board of Commissioners’ Double Position as of December 31, 2020
No. | Name | Telkom | Subsidiary | Other Entities | |
---|---|---|---|---|---|
Posotion | Other Position | ||||
1. | Rhenald Kasali | President Commissioner/Independent Commissioner | None | None | None |
2. | Marsudi Wahyu Kisworo | Independent Commissioner | Audit Committee, KNR | None | None |
3. | Ahmad Fikri Assegaf | Commissioner | Audit Committee, KEMPR | None | None |
4. | Wawan Iriawan | Independent Commissioner | Audit Committee, KEMPR | None | None |
5. | Chandra Arie Setiawan | Independent Commissioner | Audit Committee, KNR | None | None |
6. | Marcelino Rumambo Pandin | Commissioner | Audit Committee, KNR | None | None |
7. | Ismail | Commissioner | KNR, KEMPR | None | None |
8. | Alex Denni | Commissioner | KNR, KEMPR | None | None |
9. | Rizal Mallarangeng | Commissioner | KNR, KEMPR | None | Commissioner of PT Visi Media Asia |
BOARD OF COMMISSIONERS’ SELF ASSESSMENT POLICY
Based on the Joint Regulation of the Board of Commissioners and Directors No. 08 KEP/DK/2020 and PD.620.00/r.00/HK200/COP-M4000000/2020 regarding Board Manual of The Board of Commissioners and The Board of Directors of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk the Board of Commissioners needs to have a self-assessment policy to assess the performance of the Board of Commissioners. This policy is a guideline used as a form of accountability for collegially assessing the performance of the Board of Commissioners. The self assessment is carried out by each member of the Board of Commissioners to assess the performance of the Board of Commissioners collegially and not to assess the individual performance of each member of the Board of Commissioners. With this self assessment, it is hoped that each member of the Board of Commissioners can contribute to improving the performance of the Board of Commissioners on an ongoing basis.
Further details regarding the Board of Commissioners' self assessment policy can be seen through Telkom's Board Manual which can be accessed through the GCG menu on Telkom website.
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BOARD OF COMMISSIONERS’ REMUNERATION
The remuneration policy for Telkom's Board of Commissioners is based on Regulation of the State Minister for State-Owned Enterprises No. PER-04/MBU/2014 as lastly amended by Regulation of the Minister of SOE No. PER-12/MBU/11/2020 regarding Fifth Amendment to Regulation of the Minister of State-Owned Enterprises Number PER-04/MBU/2014 regarding Guidelines for Determining the Income of Directors, Board of Commissioners, and Supervisory Board of State-Owned Enterprises. Following these regulations, the Board of Commissioners' remuneration has components which consist of:
| ||
---|---|---|
1. | Salaries; | |
2. | Allowances; consisting of: | |
| a. | Religious holiday allowance |
| b. | Transportation allowance |
| c. | Post-employment insurance |
3. | Facilities; consisting of: | |
| a. | Medical facility |
| b. | Legal facility |
4. | Bonus/Incentive, which can be given in the form of Long Term Incentive (LTI) |
Furthermore, the procedure for proposing up to the determination of the remuneration of Telkom's Board of Commissioners is explained as follows:
| |
---|---|
1. | The Board of Commissioners requests the KNR to draft a remuneration proposal for the Board of Commissioners. |
2. | If needed, Committee for Nomination and Remuneration can request an independent party to draw up a framework on the remuneration of the Board of Commissioner. |
3. | The Committee for Nomination and Remuneration proposes the remuneration framework referred to to the Board of Commissioners. |
4. | The Board of Commissioners proposes remuneration for the Board of Commissioner to GMS. |
5. | The GMS delegates authority and power to the Board of Commissioners, with the prior approval of Series A shareholders to determine the remuneration for Board of Commissioners. |
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For 2020, the total remuneration paid to the entire Board of Commissioners was Rp96.0 billion. The table below sets forth the remuneration paid to our Board of Commissioners received in 2020.
Board of Commissioners’ Recapitulation of Remuneration
No. | Board of Commissioners | Position | Honorarium & Other Allowances | Tantiem(1) | Total |
---|---|---|---|---|---|
| | | Rp million | ||
1. | Rhenald Kasali | President Commissioner/ Independent Commissioner | 3,816 | 6,047 | 9,863 |
2. | Marsudi Wahyu Kisworo | Independent Commissioner | 3,430 | 5,442 | 8,872 |
3. | Ahmad Fikri Assegaf (2) | Commissioner | 1,489 | - | 1,489 |
4. | Wawan Iriawan(2) | Independent Commissioner | 1,489 | - | 1,489 |
5. | Chandra Arie Setiawan(2) | Independent Commissioner | 1,491 | - | 1,491 |
6. | Margiyono Darsasumarja(3) | Independent Commissioner | 1,506 | 9,405 | 10,911 |
7. | Cahyana Ahmadjayadi(3) | Independent Commissioner | 1,906 | 9,405 | 11,311 |
8. | Marcelino Rumambo Pandin | Commissioner | 3,423 | 5,442 | 8,865 |
9. | Ismail | Commissioner | 3,421 | 5,442 | 8,863 |
10. | Alex Denni(2) | Commissioner | 1,491 | - | 1,491 |
11. | Rizal Mallarangeng(2) | Commissioner | 1,493 | - | 1,493 |
12. | Hendri Saparini(4) | | 4,403 | 4,403 | |
13. | Rinaldi Firmansyah(4) | | 3,963 | 3,963 | |
14. | Isa Rachmatarwata(6) | | 9,208 | 9,208 | |
15. | Edwin Hidayat Abdullah(5) | | 8,346 | 8,346 | |
16. | Pamijati Pamela Johanna W.(4) | | 3,963 | 3,963 |
Remarks:
(1) | Tantiem stated as gross tantiem |
(2) | Since June 19, 2020 |
(3) | Up to June 19,2020 |
(4) | Up to May 24, 2019 |
(5) | Up to November 18, 2019 |
(6) | Up to December 23, 2019 |
In addition to providing remuneration, Telkom also includes the Board of Commissioners to become BPJS Kesehatan participants as Telkom's efforts to support the National Health Insurance programs run by the Government.
In order to support the Government's program to eradicate the COVID-19 pandemic, the entire Board of Commissioners provides full support both morally and materially. In 2020, the Board of Commissioners will donate all Tunjangan Hari Raya (THR) or religious holiday allowance to assist the government in implementing programs related to the eradication of the COVID-19 pandemic throughout Indonesia.
INDEPENDENT COMMISSIONER
Following Financial Services Authority Regulation No. 33/POJK.04/2014, Telkom has 4 (four) Independent Commissioners as of December 31, 2020 with 9 (nine) total number of members of the Board of Commissioners, which means exceeding POJK requirements by 30% (thirty percent).
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Criteria for determining Independent Commissioners and appointment at the GMS refers to:
| ||
---|---|---|
1. | Regulation of the Minister of State-Owned Enterprises No. PER-02/MBU/02/2015, which includes Formal Requirements, Material Requirements, and Other Requirements. | |
2. | Financial Services Authority Regulation No. 33/POJK.04/2014 regarding Directors and Board of Commissioners of Issuers or Public Companies, as follows: | |
| a. | Not a person who works or has the authority and responsibility to plan, lead, control, or supervise the activities of the Company in the past 6 (six) months, except for the reappointment as an Independent Commissioner in the following period. |
| b. | Do not have Telkom shares either directly or indirectly. |
| c. | Has no affiliation with Telkom, members of the Board of Commissioners, members of the Board of Directors, or main Shareholders of Telkom. |
| d. | Has no direct or indirect business relationship related to Telkom's business activities. |
INDEPENDENCE STATEMENT
In carrying out their work, the Board of Commissioners must carry out their duties independently without any intervention from other parties. Also, in the composition of the Board of Commissioners, some independent Commissioners have conditions based on the applicable provisions in the Capital Market environment. Referring to Article 25, Regulation of the Financial Services Authority No. 33/POJK.04/2014, Independent Commissioners who have served for two terms of office (twice of five-year terms) can be reappointed by declaring their independence to the GMS and disclosed openly in the company annual report.
As of December 31, 2020, there were none of Telkom Independent Commissioners who fulfilled the provisions above. However, as an effort to implement GCG, Telkom requires every Independent Commissioner to continue to sign a Statement of Independence every year.
BOARD OF COMMISSIONERS’ MEETING
According to Telkom’s Board Manual, the Board of Commissioners must conduct Meetings at least 1 (one) time in 1 (one) month or at any time if necessary. This is carried out in accordance with OJK Regulation No. 33/POJK.04/2014, particularly Article 31. The Board of Commissioners must also hold a Joint Meeting with the Directors at least 1 (one) time in 3 (three) months and at any time if necessary. The Board of Commissioners has held 30 Internal Meetings and 13 Joint Meetings with the Directors in 2020.
Meeting of the Board of Commissioners is considered a quorum if more than half of the members of the Board of Commissioners are present at the Meeting. The Board of Commissioners' Meeting takes decisions by prioritizing deliberation to reach consensus. If consensus cannot be reached, then decision making is based on the majority of the members of the Board of Commissioners present or represented at the Meeting. If there were a balanced number of votes, the decision taken would be following the opinion of the Chairman of the Meeting.
The following table shows the frequency of attendance of each member of the Board Commissioners at the Internal Meeting, and the frequency of attendance of each member of the Board of Commissioners and Directors at the Joint Meeting.
Board of Commissioners’ Attendance and Agenda at Internal Meetings
No. | Date | Meeting’s Agenda | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1. | January 8, 2020 | 1. | Changes in the membership composition of KEMPR | ||||||||||||||||||
| | 2. | Board of Commissioners work program in 2020 | ||||||||||||||||||
| | 3. | Discussion on Inorganic Project proposal | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ |
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No. | Date | Meeting’s Agenda | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2. | January 30, 2020 | 1. | Board Manual update | ||||||||||||||||||
| | 2. | Audit Committee Report on progress of Audit Completion for 2019 Fiscal Year | ||||||||||||||||||
| | 3. | Recommendation from the Committee for Nomination and Remuneration regarding KPI Proposal | ||||||||||||||||||
| | 4. | Limited Agenda | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | |||||||||||
3. | February 7, 2020 | 1. | Discussion on Board of Commissioners' 2020 KPI | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | - | √ | N/A | N/A | √ | √ | |||||||||||
4. | February 12, 2020 | 1. | Streamlining Subsidiary | ||||||||||||||||||
| | 2. | Discussion on Inorganic Project proposal | ||||||||||||||||||
| | 3. | Proposal for Telkom University Medical Study Program discussion | ||||||||||||||||||
| | 4. | Collaboration between Telkom University and Telkomsel discussion | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | |||||||||||
5. | February, 25 2020 | 1. | Audit Committee membership composition reshuffle | ||||||||||||||||||
| | 2. | Submission of Fit and Proper test results for Telkom International Subsidiaries | ||||||||||||||||||
| | 3. | Discussion on Inorganic Project proposal | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | |||||||||||
6. | March 9, 2020 | 1. | Director of Human Capital: Transformation, HCM Issues update | ||||||||||||||||||
| | 2. | Follow up on McKinsey's Strategic Due Diligence and Alignment with Master Plan discussion | ||||||||||||||||||
| | 3. | Discussion on Inorganic Project proposal | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | |||||||||||
7. | March 13, 2020 | 1. | LinkAja | ||||||||||||||||||
| | 2. | Blanja.com | ||||||||||||||||||
| | 3. | Discussion on Inorganic Project proposal | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | - | N/A | N/A | √ | √ | |||||||||||
8. | March 16, 2020 | 1. | Explanation of Share Buyback by the Board of Directors | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | |||||||||||
9. | March 20, 2020 | 1. | Share Buyback discussion | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | - | √ | N/A | N/A | √ | √ | |||||||||||
10. | March 23, 2020 | 1. | Share Buyback implementation consultation | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | |||||||||||
11. | March 24, 2020 | 1. | Share Buyback implementation consultation | ||||||||||||||||||
| | 2. | Tingkat Komponen Dalam Negeri (TKDN) Telkom | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | |||||||||||
12. | March 27, 2020 | 1. | Board of Commissioners decision draft regarding SOPs refers to the process of granting the approval of the Board of Commissioners discussion | ||||||||||||||||||
| | 2. | Streamlining Subsidiaries approval | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | |||||||||||
13. | March 30, 2020 | 1. | TKDN TelkomGroup discussion | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ |
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No. | Date | Meeting’s Agenda | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
14. | April 20, 2020 | 1. | Limited Agenda | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | |||||||||||
15. | April 28, 2020 | 1. | Limited Agenda | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | |||||||||||
16. | April 29, 2020 | 1. | Limited Agenda | ||||||||||||||||||
| | 2. | Allocation of the Board of Commissioners' holiday allowances for COVID-19 handling | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | |||||||||||
17. | May 28, 2020 | 1. | Substantial Procurement Criteria approval | ||||||||||||||||||
| | 2. | Extension of the CSS First Submission deadline approval | ||||||||||||||||||
| | 3. | Limited Agenda | ||||||||||||||||||
| | 4. | KPI Supervision of the Board of Commissioners | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | - | |||||||||||
18. | June 5, 2020 | 1. | Bond Issuance proposal discussion | ||||||||||||||||||
| | 2. | AGMS 2019 Financial Year preparation | ||||||||||||||||||
| | 3. | Other: Telecommunication cluster master plan proposal will be submitted formally to SOE | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | |||||||||||
19. | June 22, 2020 | 1. | Determination of Committee membership | ||||||||||||||||||
| | 2. | Pending Items that need to be completed immediately | ||||||||||||||||||
| | 3. | President Commissioner briefing | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | |||||||||||
20. | July 6, 2020 | 1. | Monitoring the Performance of Subsidiaries (Telkom Metra, PINS, dan Telkom Infra) | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | |||||||||||
21. | July 20, 2020 | 1. | Discussion on Inorganic Project proposal | ||||||||||||||||||
| | 2. | Revisions/Amendments proposal to 2020 RKAP | ||||||||||||||||||
| | 3. | Directors’ Regulation regarding Cooperation SOPs approval | ||||||||||||||||||
| | 4. | Others | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | |||||||||||
22. | August 11, 2020 | 1. | Procedures for filling in the Position of Subsidiary Management | ||||||||||||||||||
| | 2. | Additional Audit fees approval for 2019 | ||||||||||||||||||
| | 3. | Audit Committee’s member selection report | ||||||||||||||||||
| | 4. | Using Privy-Id as a digital signature platform at the Secretariat of the Board of Commissioners | ||||||||||||||||||
| | 5. | Limited Agenda | ||||||||||||||||||
| | 6. | Sharing session with BPKP regarding TKDN | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | |||||||||||
23. | September 4, 2020 | 1. | Board of Commissioners on Subsidiary Performance evaluation | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | |||||||||||
24. | September 16, 2020 | 1. | TKDN discussion | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A |
180
No. | Date | Meeting’s Agenda | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
25. | September 22, 2020 | 1. | Discussion on Inorganic Project proposal | ||||||||||||||||||
| | 2. | Release Commitment Capex part II | ||||||||||||||||||
| | 3. | Company’s Key Performance Indicator for 2020 | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | |||||||||||
26. | October 12, 2020 | 1. | Inorganic Project decision making | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | |||||||||||
27. | November 2, 2020 | 1. | SEA Today | ||||||||||||||||||
| | 2. | Omnibus Law Socialization: Telecommunication Chapter | ||||||||||||||||||
| | 3. | Proposal of Board of Directors' KPI Semester II of 2020 | ||||||||||||||||||
| | 4. | Proposal of Budget for the Board of Commissioners for 2021 | ||||||||||||||||||
| | 5. | Membership of the Board of Commissioners Assistant Team adjustment in the implementation of Subsidiary Streamlining | ||||||||||||||||||
| | 6. | Work Contract continuity of Board of Commissioners' Organ decision | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | |||||||||||
28. | November 9, 2020 | 1. | SEA Today Discussion | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | √ | √ | √ | - | √ | √ | √ | N/A | N/A | |||||||||||
29. | November 12, 2020 | 1. | Subsidiaries Management discussion | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | √ | √ | √ | - | √ | √ | √ | N/A | N/A | |||||||||||
30. | December 7, 2020 | 1. | RKAP discussion in 2020 | ||||||||||||||||||
| Attendance List | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | |||||||||
√ | √ | √ | √ | √ | √ | - | √ | √ | N/A | N/A |
Remarks:
Rhenald Kasali | CAS | Chandra Arie Setiawan | RM | Rizal Mallarangeng | (1) | Since June 19, 2020 | |
MWK | Marsudi Wahyu Kisworo | MRP | Marcelino Rumambo Pandin | MGD | Margiyono Darsasumarja | (2) | Up to June 19, 2020 |
AFA | Ahmad Fikri Assegaf | IS | Ismail | CA | Cahyana Ahmadjayadi | ||
WI | Wawan Iriawan | AD | Alex Denni | | | | |
Board of Commissioners’ Attendance at Internal Meetings
No. | Name | Total Meetings | Total Attendances | Percentage of Attendance |
| | | | % |
1. | Rhenald Kasali | 30 | 30 | 100% |
2. | Marsudi Wahyu Kisworo | 30 | 30 | 100% |
3. | Ahmad Fikri Assegaf(1) | 12 | 12 | 100% |
4. | Wawan Iriawan(1) | 12 | 12 | 100% |
5. | Chandra Arie Setiawan(1) | 12 | 12 | 100% |
6. | Marcelino Rumambo Pandin | 30 | 26 | 87% |
7. | Ismail | 30 | 28 | 93% |
8. | Alex Denni(1) | 12 | 12 | 100% |
9. | Rizal Mallarangeng(1) | 12 | 12 | 100% |
10. | Margiyono Darsasumarja(2) | 18 | 18 | 100% |
11. | Cahyana Ahmadjayadi(2) | 18 | 17 | 94% |
181
Board of Commissioners’ and Board of Directors’ Attendance and Agenda at Joint Meetings
No. | Date | Meeting’s Agenda | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1. | January 30, 2020 | 1. | Company Performance in December 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2. | Special Material: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | a. | Company’s KPI Principles approval in 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | b. | 2020 Board Manual Principles approval | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | c. | Capex Tracking: IndiHome | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOC | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOD | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW(3) | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA(2) | EW(4) | FRD(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | √ | √ | √ | - | √ | √ | √ | √ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2. | February 25, 2020 | 1. | Company Performance in January 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2. | Special Material: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | a. | ISO 37001 socialization | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | b. | Telkomsel: Optimizing New Growth Engine To Compensate Legacy Decline | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | c. | Big Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | d. | Handling MDM Cyber Security Issues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | e. | Subsidiary Streamlining update | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOC | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOD | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW(3) | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA(2) | EW(4) | FRD(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | √ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3. | March 26, 2020 | 1. | Company Performance Ytd February 2020 (including the impact of COVID-19 analysis on the 2020 RKAP and PD revision of logistics management approval) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2. | Special Material: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | a. | Business plan mergers achievement evaluation and acquisitions in the last 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | b. | Telkomsat consolidation evaluation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOC | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOD | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW(3) | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA(2) | EW(4) | FRD(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | √ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4. | April 28, 2020 | 1. | Company Performance Ytd March 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2. | Preparation for the General Meeting of Shareholders (GMS) progress | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 3. | Board of Commissioners follow up/concern discussion: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | a. | UmeetMe improvement progress | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | b. | TelkomGroup synergy in Digital Platform Development and Product Bundling during the COVID-19 outbreak | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | c. | Work From Home evaluation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOC | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOD | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW(3) | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA(2) | EW(4) | FRD(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | √ | √ | √ | N/A | N/A | N/A | √ | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5. | May 28, 2020 | 1. | Company Performance Ytd April 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2. | Preparation for the 2020 AGMS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOC | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | N/A | N/A | N/A | √ | √ | N/A | N/A | √ | √ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOD | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW(3) | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA(2) | EW(4) | FRD(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | √ | √ | √ | N/A | N/A | N/A | - | N/A |
182
No. | Date | Meeting’s Agenda | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6. | June 29, 2020 | 1. | Company Performance Ytd May 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOC | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOD | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW(3) | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA(2) | EW(4) | FRD(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7. | July 27, 2020 | 1. | Company Performance Ytd June 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOC | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOD | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW(3) | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA(2) | EW(4) | FRD(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8. | August 28, 2020 | 1. | Company Performance Ytd July 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOC | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOD | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW(3) | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA(2) | EW(4) | FRD(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9. | September 28, 2020 | 1. | Company Performance Ytd August 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2. | Final Draft CSS 2021-2025 discussion | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOC | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | - | √ | √ | √ | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOD | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW(3) | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA(2) | EW(4) | FRD(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10. | October 26, 2020 | 1. | Company Performance Ytd September 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOC | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | - | √ | √ | √ | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOD | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW(3) | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA(2) | EW(4) | FRD(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11. | November 27, 2020 | 1. | Company Performance Ytd October 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOC | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOD | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW(3) | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA(2) | EW(4) | FRD(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | - | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12. | December 8, 2020 | 1. | 2021 RKAP Final Proposal and Submission of the Board of Commissioners' Decisions regarding the 2021 RKAP discussion | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOC | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOD | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW(3) | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA(2) | EW(4) | FRD(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
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No. | Date | Meeting’s Agenda | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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13. | December 21, 2020 | 1. | Company Performance Ytd November 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOC | RK | MWK | AFA(1) | WI(1) | CAS(1) | MRP | IS(2) | AD(1) | RM(1) | MGD(2) | CA(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | √ | - | √ | √ | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Attendance List of BOD | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW(3) | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA(2) | EW(4) | FRD(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Remarks:
Nce June | |||||||
---|---|---|---|---|---|---|---|
RK | Rhenald Kasali | CA | Cahyana Ahmadjayadi | HMZ | Harry Mozarta Zen | (1) | Since June 19, 2020 |
MWK | Marsudi Wahyu Kisworo | RA | Ririek Adriansyah | SC | Siti Choiriana | (2) | Up to June 19, 2020 |
AFA | Ahmad Fikri Assegaf | DR | Dian Rachmawan | ZA | Zulhelfi Abidin | (3) | Director of EBIS since June 19, 2020 |
WI | Wawan Iriawan | AW | Afriwandi | AS | Achmad Sugiarto | (4) | Director of HCM up to June 19, 2020 |
CAS | Chandra Arie Setiawan | HS | Heri Supriadi | BW | Bogi Witjaksono | | |
MRP | Marcelino Rumambo Pandin | FMV | FM Venusiana R. | EA | Edwin Aristiawan | | |
IS | Ismail | EW | Edi Witjara | FRD | Faizal Rochmad Djoemadi | | |
AD | Alex Denni | HW | Herlan Wijanarko | | | | |
RM | Rizal Mallarangeng | MFR | Muhamad Fajrin Rasyid | | | | |
MGD | Margiyono Darsasumarja | BSW | Budi Setyawan Wijaya | | | | |
Board of Commissioners’ Attendance at Joint Meetings
No. | Name | Total Meetings | Total Attendances | Percentage of Attendance |
| | | | % |
1. | Rhenald Kasali | 13 | 13 | 100% |
2. | Marsudi Wahyu Kisworo | 13 | 13 | 100% |
3. | Ahmad Fikri Assegaf(1) | 8 | 8 | 100% |
4. | Wawan Iriawan(1) | 8 | 8 | 100% |
5. | Chandra Arie Setiawan(1) | 8 | 8 | 100% |
6. | Marcelino Rumambo Pandin | 13 | 11 | 85% |
7. | Ismail | 13 | 12 | 92% |
8. | Alex Denni(1) | 8 | 8 | 100% |
9. | Rizal Mallarangeng(1) | 8 | 8 | 100% |
10. | Margiyono Darsasumarja(2) | 5 | 5 | 100% |
11. | Cahyana Ahmadjayadi(2) | 5 | 5 | 100% |
Remarks:
(1) | Since June 19, 2020 |
(2) | Up to June 19, 2020 |
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Board of Directors’ Attendance at Joint Meetings
No. | Name | Total Meetings | Total Attendances | Percentage of Attendance |
---|---|---|---|---|
| | | | % |
1. | Ririek Adriansyah | 13 | 13 | 100% |
2. | Dian Rachmawan(1) | 8 | 8 | 100% |
3. | Afriwandi(1) | 8 | 8 | 100% |
4. | Heri Supriadi(10 | 8 | 8 | 100% |
5. | FM Venusiana R(1) | 8 | 8 | 100% |
6. | Edi Witjara(3) | 8 | 7 | 88% |
7. | Herlan Wijanarko(1) | 8 | 8 | 100% |
8. | Muhamad Fajrin Rasyid(1) | 8 | 8 | 100% |
9. | Budi Setyawan Wijaya(1) | 8 | 8 | 100% |
10. | Harry Mozarta Zen(2) | 5 | 5 | 100% |
11. | Siti Choiriana(2) | 5 | 5 | 100% |
12. | Zulhelfi Abidin | 5 | 5 | 100% |
13. | Achmad Sugiarto(2) | 5 | 4 | 80% |
14. | Bogi Witjaksono(2) | 5 | 5 | 100% |
15. | Edwin Aristiawan(2) | 5 | 5 | 100% |
16. | Edi Witjara(4) | 5 | 4 | 80% |
17. | Faizal Rochmad Djoemadi(2) | 5 | 5 | 100% |
Remarks:
(1) | Since June 19, 2020 |
(2) | Up to June 19, 2020 |
(3) | Director of EBIS since June 19, 2020 |
(4) | Director of HCM up to June 19, 2020 |
BOARD OF COMMISSIONERS’ PERFORMANCE ASSESSMENT
Through the Annual GMS, Shareholders evaluate the performance of the Board of Commissioners based on the Performance Implementation Report of the Board of Commissioners which is accountable for the current Financial Year. The performance evaluation includes the level of participation of members of the Board of Commissioners in Company meetings and activities, achievement of targets and work targets, both in carrying out their functions as members of the Board of Commissioners and as members of the committee.
In general, it can be said that the Board of Commissioners is in charge of supervising management policies, general management of both the Company and the Company's business carried out by the Board of Directors and providing advice to the Board of Directors including oversight of the implementation of the Company's Long Term Plan, the Company's Annual Work Plan and Budget and provisions Articles of Association and Resolutions of the GMS, as well as laws and regulations, for the benefit of the Company in accordance with the aims and objectives of the Company. In 2020, these tasks have been formulated in the form of Key Performance Indicators (KPI) for Supervision of the Board of Commissioners whose achievements are evaluated every quarter, and the aggregation of evaluation results in 2020 shows that the Board of Commissioners has carried out its supervisory duties properly.
185
COMMITTEE UNDER BOARD OF COMMISSIONERS’ ASSESSMENT
In carrying out its duties, the Board of Commissioners is assisted by Audit Committee, Committee for Nomination and Remuneration, and Committee for Planning and Risk Evaluation and Monitoring. In general, these committees have performed well throughout 2020 and can carry out their duties and responsibilities which are described as follows. The committee's performance assessment is carried out annually by the Board of Commissioners, and for 2020 it is carried out by filling out self-questionnaires and cross assessments.
Committees | 2020 Performance | |
---|---|---|
Audit Committee | 1. | Assist the Board of Commissioners in overseeing the audit process conducted by independent auditors properly. |
2. | Helps to evaluate and provide recommendations on the results of internal and external audits very well. | |
Committee for Nomination and Remuneration | 1. | Assist the Board of Commissioners to provide advice to the Board of Directors in making strategic decisions regarding remuneration policies. |
2. | Help formulate fair and accountable Top Talent proposals. | |
Committee for Planning and Risk Evaluation and Monitoring | 1. | Assist the Board of Commissioners in business planning and monitoring the implementation of risk management. |
2. | Assist the Board of Commissioners in providing good recommendations to the Board of Directors on the long-term course of Telkom, including decisions on corporate action initiatives. |
BOARD OF DIRECTORS’ PERFORMANCE ASSESSMENT
In terms of evaluating the performance of the Board of Directors, one of the measuring tools that can be used is the Key Performance Indicator (KPI). When compared to 2019, there is a difference in the formal basis for evaluating the performance of the Board of Directors due to the issuance of Minister of SOE Regulation Number: PER-11/MBU/11/2020 dated November 12, 2020 regarding Management Contracts and Annual Management Contracts for Directors of State-Owned Enterprises. Based on this regulation, several things are stipulated, namely:
1. | Obligation to sign the Management Contract by the Board of Directors. The Management Contract contains the promise or statement of the prospective members of the Board of Directors, namely that if he/she is reappointed/reappointed as a members of the Board of Directors, he/she promises to fulfill all the targets set by the GMS/Minister, including KPIs that have been previously determined, and apply the principles of Good Corporate Governance. |
2. | Performance appraisal based on KPI is determined collegially for the President Director, and individually for each member of the Board of Directors. |
3. | The establishment of five perspectives in collegial preparation of the KPI for the Board of Directors, namely: economic and social values for Indonesia; business model innovation; technology leadership; increased investment; and talent development. The KPI for the Board of Directors individually consists of Joint/Collegiate KPIs and Directorate KPIs. |
The calculation of the achievement of the Board of Directors KPI is collegially and individually was reviewed by the Public Accountant Office (KAP) which audits the company's financial statements. A collegial report on the achievement of KPIs is presented in another section of this annual report.
186
AUDIT COMMITTEE
Telkom has an Audit Committee that works based on the Decision of the Board of Commissioners No. 10/KEP/DK/2018 regarding Charter of Audit Committee of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk. The duties and functions of Audit Committee are to assist the Board of Commissioners in carrying out the Company's supervisory function following OJK Regulation No. 55/POJK.04/2015 dated December 23, 2015, the provisions of the US SEC Exchange Act 10A-3, the principles of Good Corporate Governance (GCG), and other related regulations.
AUDIT COMMITTEE’S SCOPE, DUTIES, AND RESPONSIBILITIES
The scope, duties, and responsibilities of Audit Committee are:
| |
1. | To assist the Board of Commissioners in the process of selecting independent auditors to conduct the integrated audit for the Company and its consolidated subsidiaries based on independence, the scope of work and service fee. |
2. | To oversee integrated audit process for the Company and audit process of the subsidiaries of which the financial statements are consolidated into the Company’s consolidated financial statements. |
3. | To give independent opinions in the event of any different opinion between management and independent auditors. |
4. | To give pre-approval of non-audit services to be assigned to independent auditors. |
5. | To review any financial information to be published by the Company, such as financial statements, projections, and any other financial information. |
6. | To monitor the adequacy of management’s efforts to build and operate effective internal control, in particular the internal control of financial reporting. |
7. | To analyze inspection done by the internal auditor. |
8. | Supervise internal auditors’ findings follow up by management. |
9. | Providing facilities to receive, study and follow up complaint (Whistleblower) which includes the Company, subsidiaries and its affiliation (affiliate definition based on Article 1 Number 1 Law No. 8 in 1995 regarding Capital Market). |
10. | To monitor the compliance of the Company with the laws and regulations on the Capital Market and any other laws and regulations regarding the Company’s business. |
11. | To analyze risk management policies and implementation made and run by management. |
12. | Analyzing and advising the Board of Commissioners regarding Potential Conflict of Interest Inside the Company. |
13. | Maintain confidentiality of the Company and its consolidated subsidiaries' document, data and information. |
14. | To do other tasks given by the Board of Commissioners. |
Furthermore, in the Resolution of the Board of Commissioners No. 04/KEP/DK/2011 dated March 24, 2011 regarding Charter of Committee for Planning and Risk Evaluation and Monitoring of PT Telekomunikasi Indonesia, Tbk which regulates the division of tasks between Audit Committee and KEMPR, particularly in points 10 and 11 above, as follows:
| |
1. | Audit Committee analyzes and monitors the Company’s compliance to the Capital Market Regulation where the Company’s stock is listed, especially related to the financial reporting risk. |
2. | KEMPR analyze and monitor the Company’s compliance to laws and regulation related to business of the Company. |
187
AUDIT COMMITTEE’S COMPOSITION
In accordance with OJK Regulations and US SEC Regulations, Audit Committee at Telkom has at least three members, chaired by an Independent Commissioner. The other two members of the Audit Committee must be independent parties.
At the AGMS on June 19, 2020, one of the resolutions of the AGMS determined changes in composition of the Board of Commissioners, including the change of members of Independent Commissioners. With these changes, Telkom’s Audit Committee has also undergone changes through Resolution of the Board of Commissioners No. 17/KEP/DK/2020 dated September 1, 2020 regarding Membership Composition of Audit Committee of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk as follows.
Audit Committee’s Composition as of December 31, 2020
Position | Name and Double Position Status | Basis of Appointment | Term of Service |
---|---|---|---|
Chairman | Chandra Arie Setiawan* Independent Commissioner | Resolution of the Board of Commissioners No. 09/KEP/DK/2020, June 29, 2020 then set it back in Resolution of the Board of Commissioners No. 17/KEP/DK/2020, September 1, 2020. | 2020 - Present |
Members | Marcelino Rumambo Pandin* Commissioner | Resolution of the Board of Commissioners No. 04/KEP/DK/ 2019 dated May 29, 2019, as amended several times and re-established and most recently set it back through the Resolution of the Board of Commissioners No. 17/KEP/DK/ 2020 dated September 1, 2020. | 2019 - Present |
Marsudi Wahyu Kisworo* Independent Commissioner | Resolution of the Board of Commissioners No. 01/KEP/DK/2020 January 15, 2020, as amended and re-established, and finally set it back through the Resolution of the Board of Commissioners No. 17/KEP/DK/2020 dated September 1, 2020. | 2020 - Present | |
| Wawan Iriawan* Independent Commissioner | Resolution of the Board of Commissioners No. 09/KEP/DK/2020 June 29, 2020 then set it out in Resolution of the Board of Commissioners No. 17/KEP/DK/2020 September 1, 2020. | 2020 - Present |
| Ahmad Fikri Assegaf* Commissioner | Resolution of the Board of Commissioners No. 09/KEP/DK/2020 June 29, 2020 then set it out in Resolution of the Board of Commissioners No. 17/KEP/DK/2020 September 1, 2020. | 2020 - Present |
| Sarimin Mietra Sardi Independent Commissioner/ Financial Expert | Resolution of the Board of Commissioners No. 04/KEP/DK/2016 dated March 31, 2016, as amended and re-established several times, and most recently set it back by the Resolution of the Board of Commissioners No. 17/KEP/DK/2020 dated September 1, 2020. | 2016 - Present |
| Emmanuel Bambang Suyitno Independent Commissioner/ Financial Expert | Resolution of the Board of Commissioners No. 17/KEP/DK/2020 September 1, 2020. | 2020 - Present |
Remark:
| |
* | Profile of Audit Committee members from the Board of Commissioners can be seen on Profile of the Board of Commissioners |
The last result of AGMS, followed by the decision of the Board of Commissioners on September 1, 2020, are the legal basis for the previous Audit Committee to resign from their position. Several old members were later reappointed and joined the new Audit Committee, namely Mr. Marcelino Rumambo Pandin, and independent member Mr. Sarimin Mietra Sardi.
Audit Committee’s Composition as of December 31, 2019
Position | Name | Double Position Status |
---|---|---|
Chairman | Margiyono Darsasumarja* | Independent Commissioner |
Secretary/Member | Tjatur Purwadi | Independent Member |
Members | Ismail* | Commissioner |
Marcellino Rumambo Pandin* | Commissioner | |
Sarimin Mietra Sardi | Independent Member |
Remark:
| |
* | Profile of Audit Committee members from the Board of Commissioners can be seen on Profile of the Board of Commissioners |
188
AUDIT COMMITTEE MEMBER’S PROFILE WHO ARE NOT BOARD OF COMMISSIONERS’ DOUBLE POSITION
Sarimin Mietra Sardi
Independent Member/Financial Expert
Personal
Born | : Ujung Pandang, September 17, 1958 |
Age | : 62 years old |
Nationality | : Indonesian |
Domicile | : Bandung, Indonesia |
Educations
1993 | Bachelor degree in Accounting, Sekolah Tinggi Akuntansi Negara (STAN), Indonesia. |
---|---|
2008 | Master degree in Management, Universitas Pendidikan Indonesia (UPI), Indonesia. |
Basis of Appointment
Resolution of the Board of Commissioners No. 04/KEP/DK/2016 dated March 31, 2016, as amended and re-established several times, and most recently set it back by the Resolution of the Board of Commissioners No. 17/KEP/DK/2020 dated September 1, 2020.
Term of Service
March 31, 2016 up to present.
Duties and Responsibilities
Served to oversee and monitor the integrated audit process, the process of consolidating financial statements, the effectiveness of internal control over financial reporting.
Career Experiences
| |
2020 - Present | Independent Member/Financial Expert of Audit Committee |
2016 - 2020 | Independent Member of Audit Committee. |
1982 - 2015 | PT Telkom Indonesia (Persero) Tbk. (Held several strategic positions including Director of Finance and Administration of PT Dayamitra Telekomunikasi, Deputy SGM Finance Operation and Director of Finance & HR of Telkom Pension Fund). |
Professional Licenses and Certificates
2017 | Certification in Audit Committee Practices (CACP), Ikatan Komite Audit Indonesia. |
2014 | Certified Financial Consultant, The Institute of Finance Consultants. |
2013 | Certification of Completion the Chief of Financial Officer Leadership Program, School of Business & Management Institut Teknologi Bandung (SBM-ITB). |
2011 | Basic Knowledge Certification in the Field of Pension Funds, Lembaga Standar Profesi Dana Pensiun (LSPDP). |
2008 | Certification in International Tax Law Program, Robert Kennedy College. |
189
Emmanuel Bambang Suyitno
Independent Member/Financial Expert
Personal
Educations
2007 | MBA, Institut Pengembangan Manajemen Indonesia (IPMI) International Business School, Indonesia |
1995 | Bachelor Degree in Accounting, Universitas Indonesia, Indonesia |
Basis of Appointment
Resolution of the Board of Commissioners No. 17/KEP/DK/2020 September 1, 2020.
Term of Service
September 1, 2020 up to present.
Duties and Responsibilities
Served to oversee and monitor the integrated audit process, the process of consolidating financial statements, the effectiveness of internal control over financial reporting.
Career Experiences
Professional Licenses and Certificates
2019 | Certification in Audit Committee Practices (CACP), Indonesian Institute of Audit Committee (IKAI) |
2015 | Indonesia Registered Accountant (RNA) by Ministry of Finance of the Republic of Indonesia |
2014 | Chartered of Accountant by International Federation of Accountants (IFAC), Institute of Indonesia Chartered Accountants (IAI) |
AUDIT COMMITTEE INDEPENDENCE
Audit Committee members are required to always have integrity and act independently in carrying out their duties and responsibilities. As a form of commitment to independence, all members of the Audit Committee are required to sign a pact of integrity and independence so that Telkom can be sure that every decision made through Audit Committee will be free from pressure from other parties.
190
AUDIT COMMITTEE’S PERFORMANCE AND IMPLEMENTATION ACTIVITIES
The performance and implementation of Audit Committee's activities during the reporting period have been summarized in the Audit Committee's Activity Report for 2020, which includes information on:
| ||
1. | Evaluate the Independent Auditors who audit the Company's consolidated financial statements for the 2019 Financial Year and provide recommendations to the Board of Commissioners regarding the appointment of an independent auditor who will audit the Company's consolidated financial statements for the 2020 Financial Year | |
| a. | Audit Committee prepares an evaluation report on the audit of the Company's consolidated financial statements for the 2019 Financial Year submitted to the Board of Commissioners and the Capital Market Authority (OJK). |
| b. | Based on the Audit Committee's report on the results of the evaluation of the audit of the Company's consolidated financial statements for the 2019 Financial Year, the Board of Commissioners proposes an independent auditor to audit consolidated financial statements in 2020 at the 2020 Annual General Meeting of Shareholders of the Company. |
| | |
2. | Supervise the Integrated Audit process for the 2019 Financial Year 2019 and 2020 Financial Year | |
| a. | Audit Committee has conducted discussions with management (VP Financial Policy, SGM Shared Service of Finance), Internal Auditors and Independent Auditors of KAP Purwantono, Sungkoro & Surja a member firm of Ernst & Young Global Limited (KAP PSS/EY) related to the quality and acceptability of accounting standards financial statements applied by the Company, significant accounting estimates and judgments, and the adequacy of disclosures in the consolidated financial statements, and the effectiveness of internal controls implemented by management, so that the quantity and quality of financial statements issued by management are presented fairly and there are no material misstatements. |
| b. | Audit Committee has reviewed and discussed audited consolidated financial statements and notes to the consolidated financial statements in the annual report (Form 20F) with Company management. Regarding the Company's risk management, Audit Committee supervises and monitors fraud risk, and financial reporting risks that may have a material impact on the presentation of financial statements. |
| c. | Audit Committee reviews and discusses with the Independent Auditor (KAP PSS/EY) the management's compliance with the implementation of Capital Market regulations and other regulations relating to the Company's business following PSA 62 standards which began an audit in 2017. |
| d. | Audit Committee discussed with KAP PSS/EY regarding the Integrated Audit plan for the 2020 Financial Year. |
| e. | Audit Committee has discussed developments - the interim Integrated Audit for the 2020 Financial Year as well as the Early Warning Report (EWR). |
| | |
3. | Reviewing and supervising the work plan and implementation of the Internal Auditor Unit for the 2020 Fiscal Year | |
| a. | Audit Committee has conducted a review and discussion of the proposed 2020 Internal Audit Unit work program associated with risks that would occur in 2020 before the work program is determined by management. |
| b. | Audit Committee conducts quarterly discussions of findings and recommendations on the results of the audit process and internal consultations from the Internal Audit unit, including monitoring the follow up completed by management. |
| c. | Audit Committee has discussed significant issues as well as the follow-up development that have been carried out and or will be carried out. |
| |
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4. | Supervise the audit process of the Partnership and Community Development Program (PKBL) carried out by the Community Development Center Unit (CDC) for the 2020 Financial Year | |
| Audit Committee has conducted discussions with CDC Management and Independent Auditors (KAP PSS/EY) related to the implementation of the Partnership and Community Development Program in 2020, the audit process for Partnership and Community Development Program's financial statements for the 2020 Financial Year, and Agreed Upon Procedures (AUP) for compliance with regulations that apply in the management of the Partnership and Community Development Program. | |
| | |
5. | Conducting discussion of the Company's Consolidated Financial Statements Quarterly | |
| Audit Committee has conducted discussions with management regarding the Company's consolidated financial statements quarterly before the financial statements are reported to the Financial Services Authority and the Stock Exchange, so that the quality of financial reports issued by management is presented fairly, has sufficient disclosure and there are no material misstatements. | |
| | |
6. | Conducted a joint study with Committee for Planning and Risk Evaluation and Monitoring (KEMPR) | |
| Audit Committee has conducted joint discussions regarding the implementation of Enterprise Risk Management (ERM) by management. | |
| | |
7. | Prepare the Audit Committee Annual Work Program | |
| Audit Committee has prepared and discussed the annual work program of the Audit Committee together with the Board of Commissioners to ensure that the work program includes all the duties and responsibilities that have been arranged and stipulated in the charter as well as special tasks assigned by the Board of Commissioners. | |
| | |
8. | Reviewing information on complaints that have been submitted through the Whistleblowing System (WBS) program for the 2020 Financial Year | |
| To provide opportunities and convenience to all parties in submitting complaints both by TelkomGroup employees and from outside TelkomGroup (third parties), Audit Committee has prepared a Whistleblower application system so that it can be accessed easily from anywhere via internet access. |
AUDIT COMMITTEE’S MEETING
In accordance with Telkom Audit Committee Charter, it has been determined that Audit Committee holds one meeting per month, which is more intensive than the minimum requirements for Committee meetings as stipulated in OJK Regulation No.55/POJK.04/2015 dated December 23, 2015 regarding Establishment and Audit Committee Charter, particularly in Article 13, states that Audit Committee conducts regular meetings at least once in three months. During 2020, Audit Committee held 29 committee meetings with attendance levels as shown in the following table.
Audit Committee’s Meeting Attendances 2020
No. | Name | Total Meetings | Total Attendances | Percentage of Attendance |
| | | | % |
1. | Chandra Arie Setiawan(1) | 11 | 11 | 100% |
2. | Marcelino Rumambo Pandin | 29 | 25 | 86% |
3. | Marsudi Wahyu Kisworo | 29 | 27 | 93% |
4. | Wawan Iriawan(1) | 11 | 11 | 100% |
5. | Ahmad Fikri Assegaf(1) | 11 | 11 | 100% |
6. | Sarimin Mietra Sardi | 29 | 29 | 100% |
7. | Emmanuel Bambang Suyitno(2) | 8 | 8 | 100% |
8. | Margiyono Darsasumaja(1) | 18 | 18 | 100% |
9. | Tjatur Purwadi(3) | 20 | 20 | 100% |
Remarks:
(1) | Since June 29, 2020 |
(2) | Since September 1, 2020 |
(3) | Up to August 31, 2020 |
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AUDIT COMMITTEE’S EDUCATION AND TRAINING
In order to improve and develop competencies related to the implementation of duties and functions of Audit Committee, members of Audit Committee regularly attend various trainings, seminars and workshops. In 2020, the training that has been attended by members of Audit Committee is presented in the following table.
No. | Name | Training Program | Date | Location | |
1. | Sarimin Mietra Sardi | a. | Three Lines Panel Discussion as a Catalyst for Business Recovery in the New Normal era | June 25, 2020 | Jakarta (Virtual) |
| | b. | The Role of Internal Auditor, Audit Committee and External Auditor in ISO 37001-2016 Anti-Bribery Management System | July 29, 2020 | Jakarta (Virtual) |
| | c. | Tech Session: 5G Update (Huawei and Nokia) | October 6, 2020 | Jakarta (Virtual) |
| | d. | Technology & Business Update: 5G (Ericsson and ZTE) | October 7, 2020 | Jakarta (Virtual) |
| | e. | Tech Session Open RAN | October 12, 2020 | Jakarta (Virtual) |
| | f. | Update PSAK and SEC | October 14, 2020 | Jakarta (Virtual) |
| | g. | Tech Session QualComm | November 13, 2020 | Jakarta (Virtual) |
2. | Emmanuel Bambang Suyitno | a. | Agile Auditing: Audit Committee Partnership with Internal Auditors in Responding to Disruption | June 22, 2020 | Jakarta (Virtual) |
| | b. | Three Lines as a New Normal era's Business Recovery Catalyst | June 25, 2020 | Jakarta (Virtual) |
| | c. | Building Indonesia's Digital Economy & Finance 2025 | July 2, 2020 | Jakarta (Virtual) |
| | d. | Scenario Analysis for Top Management | September 18, 2020 | Jakarta (Virtual) |
| | e. | Tax Incentives in Pandemic Period & Tax Dispute Update | September 24, 2020 | Jakarta (Virtual) |
| | f. | Tech Session: 5G Update (Huawei dan Nokia) | October 6, 2020 | Jakarta (Virtual) |
| | g. | Technology & Business Update: 5G (Ericsson and ZTE) | October 7, 2020 | Jakarta (Virtual) |
| | h. | Tech Session Open RAN | October 12, 2020 | Jakarta (Virtual) |
| | i. | Optimizing the Role of Audit Committee in Supervision and Evaluation of the Provision of Audit Services by Public Accountants or Public Accounting Firms | October 12, 2020 | Jakarta (Virtual) |
| | j. | Update PSAK and SEC | October 14, 2020 | Jakarta (Virtual) |
| | k. | Mandiri Securities - Macro Series: Omnibus Law | October 15, 2020 | Jakarta (Virtual) |
| | l. | The New Path on Digital Talent, Holistic Leadership & Social Fintech | October 27, 2020 | Jakarta (Virtual) |
| | m. | Accounting, Organization & Sustainable Development Relationship | November 13, 2020 | Jakarta (Virtual) |
| | n. | ISO 37001: Beyond Certification-Implementing Effective Anti-Bribery Control in Organization | November 13, 2020 | Jakarta (Virtual) |
| | o. | Tech Session QualComm | November 13, 2020 | Jakarta (Virtual) |
* Education and Training of Audit Committee members who are members of the Board of Commissioners can be seen in the Education and Training of the Board of Commissioners
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COMMITTEE FOR NOMINATION AND REMUNERATION
As a form of implementing Good Corporate Governance (GCG), Telkom has a Committee for Nomination and Remuneration (KNR) which assists the Board of Commissioners in fulfilling its responsibilities regarding remuneration decisions, submitting Top Talent suggestions, and nominating the Directors and Board of Commissioners of Subsidiaries. The existence of Committee for Nomination and Remuneration is one of Telkom's commitments so that in all its business practices it is always based on the principles of GCG, which are openness, accountability, responsibility, independence and fairness.
The formation of the Committee for Nomination and Remuneration (KNR) refers to OJK Regulation No. 34/POJK.04/2015 regarding Committee for Nomination and Remuneration of Issuers or Public Companies. Internally, the provisions regarding KNR are regulated in Committee for Nomination and Remuneration Charter which was stipulated in regarding of the Board of Commissioners No. 13/KEP/DK/2018 dated December 31, 2018 regarding Charter of Committee for Nomination and Remuneration of PT Telekomunikasi Indonesia, Tbk.
The Charter contains the work procedures for KNR which is tasked with assisting the Board of Commissioners in supervising the qualification and nomination process, as well as the remuneration of the Board of Commissioners, the Board of Directors and executive officers. With the existence of KNR, Telkom hopes that the selection process and remuneration policy making can be carried out according to professional and independent considerations without any pressure from other parties.
KNR’S SCOPE, DUTIES, AND RESPONSIBILITIES
Committee for Nomination and Remuneration has the following scope, duties and responsibilities:
| ||
1. | To prepare the policy, criteria, and selection needed for the strategic titles within the Company which is the position one layer below the Director and Executive (a member of Board of Directors and member of Board of Commissioners) of consolidated subsidiaries that refer to the principles of Good Corporate Governance. | |
2. | To assist the Board of Commissioners together with or through the consultation with the Board of Directors to select the candidate for strategic titles within the Company (a member of Board of Directors and member of Board of Commissioners) consolidated subsidiaries. | |
3. | To give recommendations to the Board of Commissioners to be conveyed to Series A Dwiwarna shareholder’s shares regarding: | |
| a. | The composition of the title of members of the Board of Directors. |
| b. | The succession planning of members of the Board of Directors. |
| c. | Assessment based on the parameter that has been prepared as the evaluation material for the capability development of the Board of Directors’ members. |
4. | Provide recommendations to the Board of Commissioners to be submitted to the General Meeting of Shareholders through Series A Dwiwarna shareholder regarding the policies, amount and/or structures for remuneration of the Board of Directors and the Board of Commissioners. | |
5. | Remuneration of the Board of Directors and Board of Commissioners in the form of salary or honorarium, allowances, and facilities that are fixed and variable incentives. | |
6. | Review the employment contract and/or performance statement of each member of the Board of Directors. |
The Chairman of KNR is responsible to coordinating and directing the implementation of the duties and responsibilities of the committee. Then, the position of Secretary in KNR assigned to assist the Chairman in managing administration, documents, and activities. Committee members are parties who accept aspirations and formulate recommendations of the nomination and remuneration of the Board of Directors and the Board of Commissioners, and executive officers.
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Referring to the Letter of SOE Minister number S.675/MBU/10/2018, dated October 18, 2018, regarding Approval of Proposals, limitations and/or criteria for the authority of the Board of Commissioners of PT Telekomunikasi Indonesia (Persero) Tbk, it is stated that there is a division in the authority to propose the Company's representatives in the management of the Company's subsidiary, then:
| ||
---|---|---|
1. | The authority of Series A Dwiwarna shareholder is for: | |
| a. | President Director and President Commissioner of the Company's subsidiaries. |
| b. | Company management (Directors and Commissioners), with total assets ≥ 50% of total parent assets and/or subsidiary revenue ≥ 50% of parent revenue. |
2. | The authority of the Board of Commissioners of PT Telkom Indonesia (Persero) Tbk is for the Director (other than the President Director) and the Board of Commissioners (other than the President Commissioner) in the Company's subsidiary with a total asset ≤ 50% of the total assets of the parent company, and/or a subsidiary with revenue ≤ 50% of the parent company's total revenue. |
As part of the follow up to the Letter of SOE Minister number S.675/MBU/10/2018, on October 18, 2018, in 2020 Committee for Nomination and Remuneration has conducted 19 Feasibility and Compliance Tests, for 22 management positions (position target) with 76 candidates in 11 subsidiaries.
KNR’S COMPOSITION
OJK Regulation No. 34/POJK.04/2015 regarding Committee for Nomination and Remuneration of Issuers or Public Companies stipulates that the number of members of Committee for Nomination and Remuneration is at least 3 (three) people provided that 1 (one) Chair is also an Independent Commissioner and two other members may come from members of the Board of Commissioners, parties from outside the Company, or parties holding managerial positions under the Board of Directors in charge of human resources.
Refers to these regulations, the Board of Commissioners then issued a Resolution of the Board of Commissioners No. 10/KEP/DK/2020 dated June 29, 2020 regarding Membership Composition of Committee for Nomination and Remuneration of PT Telekomunikasi Indonesia, Tbk which stipulates the members of Committee for Nomination and Remuneration as follows.
Committee for Nomination and Remuneration’s Composition as of December 31, 2020
Position | Name and Double Position Status | Duties of Each Member | Term of Service |
Chairman | Marsudi Wahyu Kisworo* Independent Commissioner | To be responsible to give the directions and coordination of the implementation of duty. | May 2019 - Present |
Secretary | Ario Guntoro Committee Secretary | To be responsible to prepare and manage committee administration and documentation. | Dec 2018 - Present |
Members | Alex Denni* Commissioner | To be responsible to coordinate the inputs coming from the parties related to the major controlling shareholders of the issue of nomination and remuneration. | Jun 2020 - Present |
Ismail* Commissioner | May 2019 - Present | ||
Marcelino Rumambo Pandin* Commissioner | May 2019 - Present | ||
Rizal Malarangeng* Commissioner | Jun 2020 - Present | ||
Chandra Arie Setiawan* Independent Commissioner | Jun 2020 - Present |
Remark:
* | Profile of KNR members from the Board of Commissioners can be seen on Profile of the Board of Commissioners |
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The Resolution of the Board of Commissioners No. 1/KEP/ DK/2020 dated June 29, 2020 regarding Membership Composition of Committee for Nomination and Remuneration of PT Telekomunikasi Indonesia, Tbk at the same time revoking the Resolution of the Board of Commissioners No. 14/KEP/DK/2019 dated December 17, 2019 which determines the membership composition of Committee for Nomination and Remuneration as follows:
Committee for Nomination and Remuneration’s Composition as of December 31, 2019
Position | Name | Double Position Status |
Chairman | Cahyana Ahmadjayadi* | Independent Comissioner |
Secretary | Ario Guntoro | |
Members | Ismail* | Commissioner |
| Marcelino Rumambo Pandin* | Commissioner |
| Marsudi Wahyu Kisworo* | Independent Commissioner |
Remark:
* | Profiles of KNR members can be seen on Profile of the Board of Commissioners |
KNR’S INDEPENDENCE
In carrying out their duties, KNR members have acted independently and have fulfilled the aspects of independence in accordance with the terms and conditions stated in the Financial Services Authority Regulation No. 34/POJK.04/2015 regarding Committee for Nomination and Remuneration of Issuers or Public Companies and the Resolution of the Board of Commissioners No. 13/KEP/DK/2018 dated December 31, 2018 regarding Work Implementation Guidelines (Charter) for Committee for Nomination and Remuneration of PT Telekomunikasi Indonesia, Tbk.
KNR’S PERFORMANCE AND IMPLEMENTATION ACTIVITIES
Throughout 2020, Committee for Nomination and Remuneration has assisted the implementation of the duties of the Board of Commissioners in producing decisions, through the implementation of a series of activity agendas, including:
| | ||||||
1. | The implementation of the Fit and Proper Test for the management of the Company's subsidiaries, as follows: | ||||||
| a. | The authority of Series A Dwiwarna Shareholder | |||||
| | No. | Management Position | Subsidiary | Number of Candidates | ||
| | 1. | President Director | PT Telkomsel | 5 Peoples | ||
| | 2. | President Director | PT Multimedia Nusantara | 5 Peoples | ||
| | 3. | President Director | PT Dayamitra Telekomunikasi | 5 Peoples | ||
| | 4. | President Director | PT Graha Sarana Duta | 5 Peoples | ||
| | 5. | President Director | PT Metra-Net | 5 Peoples | ||
| | Total | 25 Peoples |
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| b. | The authority of the Board of Commissioners of PT Telkom Indonesia (Persero) Tbk. | |||||
| | No. | Management Position | Subsidiary | Number of Candidates | ||
| | 1. | Commissioner | PT Telekomunikasi Indonesia International | 3 Peoples | ||
| | 2. | Director of HCM | PT Telkom Akses | 3 Peoples | ||
| | 3. | Director of Operation and Marketing | PT Infrastruktur Telekomunikasi | 3 Peoples | ||
| | 4. | Commissioner | PT Graha Sarana Duta | 3 Peoples | ||
| | 5. | Commissioner | PT Infrastruktur Telekomunikasi | 3 Peoples | ||
| | 6. | Commissioner | PT Telkom Akses | 3 Peoples | ||
| | 7. | Commissioner | PT Dayamitra Telekomunikasi | 3 Peoples | ||
| | 8. | Director of Planning & Performance | PT Infrastruktur Telekomunikasi | 3 Peoples | ||
| | 9. | Commissioner | PT Telkom Satelit Indonesia | 3 Peoples | ||
| | 10. | Director of Finance & Business Partner | PT Telekomunikasi Indonesia International | 3 Peoples | ||
| | 11. | Director of Operation & IT | PT Dayamitra Telekomunikasi | 3 Peoples | ||
| | 12. | Director of Planning & Performance | PT Infrastruktur Telekomunikasi | 3 Peoples | ||
| | 13. | Director of Business | PT Dayamitra Telekomunikasi | 3 Peoples | ||
| | 14. | Commissioner | PT Telkom Akses | 3 Peoples | ||
| | 15. | Commissioner | PT Telkom Akses | 3 Peoples | ||
| | 16. | Director of Business | PT Dayamitra Telekomunikasi | 3 Peoples | ||
| | 17. | Commisioner | PT Dayamitra Telekomunikasi | 3 Peoples | ||
| | Total | 51 Peoples | ||||
| | ||||||
2. | Discussion on TelkomGroup's BOD-1 Top Talent in 2020 | ||||||
| | ||||||
3. | Approval of the Proposed Structure One Level Below the Board of Directors | ||||||
| a. | Establishment of the Corporate Transformation Group. | |||||
| b. | The establishment of the Governance, Risk Management & Compliance Department as well as the organizational structuring of the Strategic Portfolio Directorate. | |||||
| c. | Organizational Changes of Corporate Secretary Department, Corporate Communication & Investor Relations Department, Enterprise Business Directorate, and IT & Solution Network Directorate. | |||||
| | ||||||
4. | Review of the Proposed KPI and Remuneration | ||||||
| During 2020, KNR has reviewed and submitted recommendations to the Board of Commissioners regarding proposals from the Board of Directors relating to KPI, including: | ||||||
| a. | Proposal for the Determination of the Company's KPI and the Board of Directors’ KPI in 2020. | |||||
| b. | Determination of Board of Directors Management Contract in 2020. | |||||
| c. | Proposed changes to the 2020 Company's KPIs that are aligned with the Ministry of SOE Master Plan in 2020-2024. | |||||
| d. | Proposal for Determination of individual KPI for Directors in 2020. | |||||
| e. | Discussion on Achievement of Directors' Management Contracts on Quarterly in 2020. | |||||
| f. | Discussion on Progress of Achievement of Company KPIs and Individual KPIs in 2020. | |||||
| | | |||||
| In addition, KNR also reviews and submits recommendations to the Board of Commissioners regarding remuneration, including: | ||||||
| a. | Discussion on the proposed remuneration draft for the management of PT Telekomunikasi Indonesia, Tbk in 2020. | |||||
| b. | Request for tantiem for the 2019 Financial Year, and remuneration for the Board of Directors and the Board of Commissioners for the 2020 Financial Year. | |||||
| c. | Discussion of Long Term Incentive (LTI) criteria. | |||||
| | |
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5. | Implementation of routine tasks related to the governance of Committee for Nomination and Remuneration as well as follow-up assignments from the Board of Commissioners, including: | ||||||
| a. | Submission of recommendations for the composition of the Committee's membership | |||||
| | Committee for Nomination and Remuneration submitted a proposal for the membership composition of Committee for Nomination and Remuneration of PT Telekomunikasi Indonesia, Tbk which was later stipulated in the Resolution of the Board of Commissioners Number: 10/KEP/DK/2020 dated June 29, 2020. | |||||
| b. | Arrangements for filling out the positions of management of the Subsidiary | |||||
| | Preparation of regulation draft regarding procedures for filling positions of management of Telkom subsidiaries which are then outlined in the Resolution of the Board of Commissioners Number 15/KEP/DK/2020/RHS, dated August 28, 2020, which is in accordance with Regulation of the Minister of SOE Number 04/MBU/06/2020 dated June 26, 2020. | |||||
| c. | Others | |||||
| | 1) | Approval of the use of health facilities for retirees and former Telkom Commissioners. | ||||
| | 2) | Completion of 2019 KNR task implementation report. | ||||
| | 3) | Completion of reports on the implementation of KNR duties submitted per Quarter (Q1, Q2, and Q3) in 2020. | ||||
| | 4) | Discussion of reports on the results of the Ethics, Compliance and Discipline committee meeting. | ||||
| | 5) | Monitoring the progress of Jiwasraya's insurance claim handling. | ||||
| | 6) | Preparation of National KNR Work Plan and Budget for 2021. | ||||
| | 7) | KNR assignment as a member of the Advisory Team for the Board of Commissioners in supervising the implementation of Telkom Governance & Corporate Transformation. |
KNR’S MEETINGS
Telkom is obliged to comply with OJK Regulation No. 34/POJK.04/2014 regarding Committee for Nomination and Remuneration which regulates the minimum number of Committee for Nomination and Remuneration Meetings at least once in four months. In 2020, KNR Telkom has held 127 meetings.
Committee for Nomination and Remuneration’s Meeting Attendance in 2020
No. | Name | Total Meetings | Total Attendances | Percentage of Attendance |
| | | | % |
1. | Marsudi Wahyu Kisworo | 127 | 127 | 100% |
2. | Alex Denni | 84 | 83 | 99% |
3. | Ismail | 127 | 125 | 98% |
4. | Marcelino Rumambo Pandin | 127 | 119 | 94% |
5. | Rizal Mallarangeng | 84 | 84 | 100% |
6. | Chandra Arie Setiawan | 84 | 84 | 100% |
7. | Cahyana Ahmadjayadi(1) | 43 | 43 | 100% |
Remark:
to | |
(1) | Up to June 19, 2020 |
KNR’S EDUCATION AND TRAINING
In order to improve and develop competencies at KNR, the training that KNR Secretary has participated in 2020 is presented in the following table.
No. | Name | Training Program | Date | Location | Organization Institution |
---|---|---|---|---|---|
1. | Ario Guntoro | Leading in Crisis - Preparing for the Rebound | June 15, 2020 | Online | Korn Ferry & IMD |
* Education and Training of KNR members who are members of the Board of Commissioners can be seen in the Education and Training of the Board of Commissioners
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COMMITTEE FOR PLANNING AND RISK EVALUATION AND MONITORING
In carrying out its business activities, Telkom’s highest governance tools must be capable to evaluate and monitor the plan and business risk that its faced. Therefore, Telkom has Committee for Planning and Risk Evaluation and Monitoring (KEMPR) which assigned to assist the Board of Commissioners to supervise and monitor the Company's planning and risk management activities.
KEMPR’S SCOPE, DUTIES, AND RESPONSIBILITIES
The duties and responsibilities of Telkom’s Committee for Planning and Risk Evaluation and Monitoring (KEMPR) were officially stipulated through Regulation of the Board of Commissioners No. 04/KEP/DK/2011 dated March 24, 2011 regarding Charter of Committee for Planning and Risk Evaluation and Monitoring of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk.
Some things are covered in the Charter, among others, as follows:
| |
1. | The establishment and the appointment of its members; |
2. | The structure and requirements of membership, duties, responsibilities, and authority; and |
3. | The scope of works, meetings, reporting, a term of office, and funding. |
Then, the scope, duties, and responsibilities of KEMPR in helping the Board of Commissioners oversee the course of the Company which are:
| |
1. | To conduct a comprehensive evaluation upon the proposal of the Company’s Long Term Plan (RJPP) or CSS and Company’s Budget Activity Plan as submitted by the Board of Directors; |
2. | To evaluate the implementation of RJPP and RKAP to assess whether the implantation is in line with the target of RJPP and RKAP which has been ratified by the Board of Commissioners; and |
3. | To conduct the monitoring of the implementation of enterprise risk management within the Company. |
KEMPR’S COMPOSITION
Based on Regulation of the Board of Commissioners No. 11/KEP/DK/2020 dated June 29, 2020 regarding Membership Composition of Committee for Planning and Risk Evaluation and Monitoring of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk, then the composition of KEMPR members as of the end of 2020 can be seen in the following table.
Committee for Planning and Risk Evaluation and Monitoring’s Composition as of December 31, 2020
Name and | Duties of Each Member | Term of Service | ||
---|---|---|---|---|
Chairman | Ismail* Commissioner | To give the direction, to coordinate and monitor the implementation of duties of all members of the committee. | Jan, 15 2020 - Present | |
Members | Alex Denni* Commissioner | 1. | To conduct the supervision and monitoring towards the implementation of RJPP/CSS, RKAP and enterprise risk management as well as the implementation of the initiative for the non-organic business growth. | Jun 29, 2020 - Present |
| Ahmad Fikri Assegaf* Commissioner | Jun 29, 2020 - Present | ||
| Wawan Iriawan* Independent Commissioner | 2. | To give the review, evaluation, and report in the sector of legal, compliance as well as a risk control to support the implementation of Board of Commissioners' duty to supervise the management of the Company conducted by the Board of Directors. | Jun 29, 2020 - Present |
| Rizal Mallarangeng* Commissioner | Jun 29, 2020 - Present | ||
| Embun Prowanta Independent Member | | | Jan, 9 2020 - Present |
Remark:
v | |
* | Profile of KEMPR members from the Board of Commissioners can be seen on Profile of the Board of Commissioners |
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With the appointment of KEMPR members, on June 29, 2020, the following old KEMPR members no longer carry out their duties in the committee.
Committee for Planning and Risk Evaluation and Monitoring’s Composition as of December 31, 2019
Position | Name | Double Position Status |
---|---|---|
Chairman | Isa Rachmatarwata * | Commissioner |
Members | Ismail* | Commissioner |
Marsudi Wahyu Kisworo* | Independent Commissioner | |
Cahyana Ahmadjayadi* | Independent Commissioner | |
| Widia Praptiwi | Independent Member |
Remark:
* Profile of KEMPR members from the Board of Commissioners can be seen on Profile of the Board of Commissioners
KEMPR’S MEMBER PROFILE WHO ARE NOT BOARD OF COMMISSIONERS’ MEMBER
Embun Prowanta
Independent Member
Personal
Born | : Plaju, March 26, 1964 |
Age | : 57 years old |
Nationality | : Indonesia |
Domicile | : Jakarta, Indonesia |
1988 | Bachelor Degree in MIPA, Universitas Nasional, Indonesia. |
1993 | Master Degree in Management, Universitas Gajah Mada, Indonesia. |
2017 | Doctoral Degree, Universitas Brawijaya, Indonesia. |
Basis of Appointment
Resolution of the Board of Commissioners No. 02/KEP/DK/2020 dated January 15, 2020 regarding Membership Composition of Committee for Planning and Risk Evaluation and Monitoring of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk as later amended and updated through Resolution of the Board of Commissioners No. 11/KEP/DK/2020 dated June 29, 2020 regarding Membership Composition of Committee for Planning and Risk Evaluation and Monitoring of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk.
Letter of the Board of Commissioners number: 012/SRT/DK/2020 dated January 9, 2020 regarding Membership/Secretary of Committee for Planning and Risk Evaluation and Monitoring (KEMPR) of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk.
Term of Service
January 9, 2020 up to present.
Duties and Responsibilities
Together with other KEMPR members, it is tasked with evaluating the proposed Long Term Plan of the Company (RJPP) or CSS and the Company's Budget Activity Plan submitted by the Board of Directors, evaluating the implementation of RJPP and RKAP, and supervising the implementation of Telkom's enterprise risk management.
Career Experiences
: | |
2020 | Secretary of Committee for Planning and Risk Evaluation and Monitoring. |
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KEMPR’S INDEPENDENCE
KEMPR members have acted independently and have fulfilled the independence aspect in accordance with the terms and conditions stated in Decision Letter of the Board of Commissioners No. 04/KEP/DK/2011 dated March 24, 2011 regarding Charter of Committee for Planning and Risk Evaluation and Monitoring of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk in carrying out its duties throughout 2020.
KEMPR’S PERFORMANCE AND IMPLEMENTATION ACTIVITIES
Throughout 2020, Telkom's Committee for Planning and Risk Evaluation and Monitoring (KEMPR) has carried out various activities consisting of:
| | ||
1. | Long Term Plan of the Company (RJPP) and Corporate Strategic Scenario (CSS) | ||
| a. | Evaluation of RJPP and CSS 2020-2024 | |
| | ● | Strengthening capabilities in order to curb the decline in legacy business and improve digital business performance. |
| | ● | Revitalizing business portfolios in the context of digital business adoption. |
| | ● | Coordination and synergy of TelkomGroup related to digital business development. |
| | | |
| b. | Preparation of CSS 2021-2025 | |
| | The focus of KEMPR in preparing the CSS 2021-2025 includes: | |
| | ● | Organizational transformation and business to support the Company's digital business. |
| | ● | Sharpening the strategy for the three pillars of the digital business, which are digital connectivity, digital platform and digital service. |
| | ● | Strengthening orchestration within TelkomGroup to build a digital business ecosystem. |
| | ● | Assessing unlock value opportunities in a potential business portfolio. |
| | ||
2. | Company Work Plan and Budget, as well as Capital Expenditures | ||
| a. | Focus on Monitoring RKAP and Capital Expenditure 2020 | |
| | ● | Maintaining the sustainability of the Company's business in the midst of the COVID-19 pandemic. |
| | ● | Improved subsidiary performance including turn-around performance of troubled subsidiaries. |
| | ● | Increase the efficiency and effectiveness of capex and increase the use of capex to support new business opportunities that arise along with the COVID-19 pandemic. |
| | ||
| b. | Evaluation of RKAP proposal and Capital Expenditure 2021 | |
| | Evaluation of RKAP proposal and Capital Expenditure in 2021 including: | |
| | ● | Increased penetration, quality of sales and customer experience in IndiHome business. |
| | ● | Utilizing digital business opportunities, especially in the enterprise business scope. |
| | ● | Optimizing the use of capex in supporting digital business transformation while still paying attention to capex healthiness and profitability. |
| | | |
3. | Enterprise Risk Management/ERM | ||
| Based on monitoring the Company's risk profile, there are three things that get attention, which are: | ||
| a. | Implementation of risk management both in the scope of the Company and on strategic projects. | |
| b. | Increasing the capacity and competence of organization that are managing the Company's ERM. | |
| c. | Improving the quality of ERM implementation in subsidiaries. | |
| | | |
4. | Certain Directors' Actions that Require the Approval of the Board of Commissioners | ||
| During 2020 KEMPR has assisted the Board of Commissioners in reviewing strategic plan proposals submitted by the Board of Directors, including the following projects: Golden, MDI 500, Tiger, Reunion, and Subsidiary Streamlining. |
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KEMPR’S MEETING
In 2020, KEMPR held 11 committee meetings attended by members with the following attendance as follows.
Committee for Planning and Risk Evaluation and Monitoring’s Meeting Attendance in 2020
No. | Name | Total Meetings | Total Attendances | Percentage of Attendance |
| | | | % |
1. | Alex Denni(1) | 7 | 6 | 86% |
2. | Ahmad Fikri Assegaf(1) | 7 | 7 | 100% |
3. | Wawan Iriawan(1) | 7 | 7 | 100% |
4. | Rizal Mallarangeng(1) | 7 | 6 | 86% |
5. | Marcelino Rumambo Pandin (2) | 4 | 3 | 75% |
6. | Ismail | 11 | 11 | 100% |
7. | Marsudi Wahyu Kisworo(2) | 4 | 3 | 75% |
8. | Cahyana Ahmadjayadi(2) | 4 | 3 | 75% |
9. | Embun Prowanta | 11 | 11 | 100% |
Remarks:
(1) | Since June 29, 2020 |
(2) | Up to June 29, 2020 |
KEMPR’S EDUCATION AND TRAINING
Throughout 2020, Telkom has included members to improve the competence of members of Committee for Planning and Risk Evaluation and Monitoring (KEMPR), as shown in the table as follows.
Training and Education Attended by Committee for Planning and Risk Evaluation and Monitoring 2020
No. | Name | Name of Training | Date | Location | Organization Instutution |
1. | Embun Prowanta | GRC Certification | June 30, 2020 | Jakarta (Virtual) | OECG |
* Education and Training of KEMPR members who are members of the Board of Commissioners can be seen in the Education and Training of the Board of Commissioners
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BOARD OF DIRECTORS
Based on Law No. 40 Year 2007 regarding Limited Liability Companies, the Board of Directors is an organ of the Company which is authorized and fully responsible to Company’s management for the Company’s interest, in accordance with the aims and objectives of the Company, and represents the Company both inside and outside the court in accordance with the provisions of the Articles of Association and laws and regulations.
In carrying out their duties, the Board of Directors must comply with the Articles of Association of the Company and laws and regulations and must implement the principles of professionalism, efficiency, transparency, independence, accountability, responsibility and fairness.
BOARD OF DIRECTORS’ BOARD CHARTER
The implementation of duties, responsibilities and authorities of the Board of Directors was ratified through the Board of Directors Charter which was ratified by Regulation of the Board of Directors No. PD.620.00/r.00/HK200/COP-M4000000/2020 dated June 18, 2020. The document contains guidelines and procedures orderly work, authority, duties, responsibilities, obligations, division of tasks, meetings, provisions on conflicts of interest, share ownership, mechanism arrangements and work distribution among members of the Board of Directors which are not regulated in the Articles of Association of the Company nor in the applicable laws and regulations with the Board of Directors' Board Charter, hopefully the performance of the Directors will be more focused and synergized with one another.
BOARD OF DIRECTORS’ AUTHORITIES, DUTIES, AND RESPONSIBILITIES
Telkom's Articles of Association set the Directors' obligations as follows:
, | |
1. | Work for and ensure the performance of businesses and activities of the Company by its purposes and objectives as well as business activities; |
2. | Prepare promptly, the Long-Term Plan of the Company, the Annual Work Plan and Budget of the Company and other work plans as well as their changes to be submitted to the Board of Commissioners and to obtain approval of the Board of Commissioners; |
3. | Prepare the Register of Shareholders, the Special Register, the Minutes of the GMS, and the Minutes of Meeting of the Board of Directors; |
4. | Prepare the annual report which, among others, contains the financial statement, as the materialization of the accountability report on the management of the Company, as well as the financial documents of the Company, as referred to in the Law regarding Corporate Documents; |
5. | Compose the financial statement in number 4 above based on the Financial Accounting Standards and submit it to the Public Accountant for audit; |
6. | Submit the annual report after having been reviewed by the Board of Commissioners within a period of at the latest 5 (five) months after the financial year of the Company has ended to the GMS for approval and ratification; |
7. | Explain to the GMS concerning the Annual Report; |
8. | Submit the Balance Sheet and the Profit and Loss Statement which have been ratified by the GMS to the Minister in the Law Sector following the provisions of the statutory regulations; |
9. | Compose other reports which are obliged by the provisions of the statutory regulations; |
10. | Maintain the Register of Shareholders, the Special Register, the Minutes of GMS, the Minutes of Meeting of the Board of Commissioners and the Minutes of Meeting of the Board of Directors, the annual report and the financial documents of the Company as referred- to in letter 4 and letter 5 above, and other documents of the company; |
11. | Maintain at the place of domicile of the Company: the Register of Shareholders, the Special Register, the Minutes of GMS, the Minutes of Meeting of the Board of Commissioners and the Minutes of Meeting of the Board of Directors, the annual report and the financial documents of the Company as well as other documents of the company; |
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12. | Maintain and keep the bookkeeping and administration of the Company following the common practices for a company; |
13. | Compose an accounting system following the Financial Accounting Standards and based on the internal control principles, particularly the Management, registration, retention, and supervisory functions; |
14. | Provide periodic report according to the method and at the time following the provisions, as well as other reports, once requested by the Board of Commissioners and/or Series A Dwiwarna shareholder, with due observance of the statutory regulations, particularly the regulations in the Capital Market sector; |
15. | Prepare the organizational structure of the Company, complete with its breakdown and their duties; |
16. | Explain concerning any matters to be inquired about or requested by the members of the Board of Commissioners and Series A Dwiwarna shareholder, with due observance of statutory regulations, particularly the regulations in the Capital Market sector; |
17. | Perform other obligations following the provisions stipulated in this Articles of Association and which are stipulated by the GMS by continuing to observe the statutory regulations. |
18. | In carrying out the management of the Company, there are actions of the Board of Directors which must obtain written approval from the Board of Commissioners and/or Series A Dwiwarna shareholder. The actions referred are regulated in the Articles of Association; |
19. | If in carrying out Company’s management there are actions of the Board of Directors that do not require the approval of the Board of Commissioners, but for decision making process the Board of Directors it is deemed necessary by the Board of Directors to be consulted with the Ministry of SEO as Series A Dwiwarna shareholder, then the Board of Directors may seek advice first from the Board of Commissioners before consulting with the Ministry of State-Owned Enterprises, and for any material consultations, especially every single thing related to the appointment of management or personnel, directions and instructions, as well as Company policies, must be written in writing to be submitted to the Board of Commissioners; |
20. | The division of duties and powers of each member of the Board of Directors is determined by the GMS. GMS does not determine the division of duties and powers, the division of duties and powers among the Directors shall be determined based on Resolution of the Board of Directors. |
Besides, the Board of Directors also has rights and authorities as follows:
| |
1. | To determine the policies considered appropriate in Company’s management; |
2. | To arrange the delegation of authorities of the Board of Directors to represent the Company, inside and outside the Court to one or several individuals specifically appointed for such purposes, including the employees of the Company, both individually and collectively and/or other entities; |
3. | To stipulate the provisions regarding the employees of the Company, including the stipulation of salary, pension or old-age insurance, and other income for the employees of the Company based on the statutory regulations; |
4. | To appoint and dismiss the employees of the Company based on the manpower regulations of the Company and the statutory regulations; |
5. | To appoint and dismiss the Corporate Secretary and/or the Head of Internal Supervisory unit with the approval of the Board of Commissioners; |
6. | To write-off non-performing loans with the provisions as stipulated in this Articles of Association and which furthermore will be reported to the Board of Commissioners to be further reported and accounted in the annual report; |
7. | Not to further collect interest receivables, penalties, costs and other receivables outside the principal debts which is carried out in the framework of restructuring and/or receivables settlement as well as other actions in the framework of Company’s receivables settlement with the obligation to report it to the Board of Commissioners, the provisions and reporting procedures of which are stipulated by the Board of Commissioners; |
8. | To take any actions and other deeds regarding the management and ownership of the Company’s assets, to bind the Company to other parties and/or other parties to the Company, as well as to represent the Company inside and outside the Court regarding any matters and in any events, with the restrictions as stipulated in the statutory regulations, this Articles of Association and/or the Resolutions of the General Meeting of Shareholders. |
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Furthermore, in the event of Company’s losses, each member of the Board of Directors is jointly and severally liable for losses caused by errors or negligence in carrying out their duties. Members of the Board of Directors are not responsible for the Company's losses if they can prove it:
| |
1. | Such loss is not caused by their mistake or negligence; |
2. | They have performed actions in good faith, full responsibility, and prudentially for the interest and based on the purpose and objective of the Company; |
3. | They do not have any conflict of interest either directly or indirectly for the management activities causing the loss; and |
4. | They have taken the action to prevent the occurrence or continuation of such loss. |
BOARD OF DIRECTORS’ COMPOSITION
On June 19, 2020, the Annual General Meeting of Shareholders (AGMS) has determined the composition of the new Board of Directors. The AGM determines to terminate the following terms of service for the Directors as follows:
1. | Mr. Harry Mozarta Zen as Director of Finance; |
2. | Ms. Siti Choirana as Director of Consumer Service; |
3. | Mr. Zulhelfi Abidin as Director of Network & IT Solution; |
4. | Mr. Achmad Sugiarto as Director of Strategic Portfolio; |
5. | Mr. Bogi Witjaksono as Director of Enterprise & Business Service; |
6. | Mr. Edwin Aristiawan as Director of Wholesale & International Service; and |
7. | Mr. Faizal Rochmad Djoemadi as Director of Digital Business. |
And then appoint:
1. | Mr. Heri Supriadi as Director of Finance; |
2. | Ms. FM Venusiana R. as Director of Consumer Service; |
3. | Mr. Herlan Wijanarko as Director of Network & IT Solution; |
4. | Mr. Budi Setyawan Wijaya as Director of Strategic Portfolio; |
5. | Mr. Dian Rachmawan as Director of Wholesale & International Service; |
6. | Mr. Muhamad Fajrin Rasyid as Director of Digital Business; and |
7. | Mr. Afriwandi as Director of Human Capital Management. |
One of the Directors, Mr. Edi Witjara, who previously worked as Director of Human Capital Management, has a new position as Director of Enterprise & Business Service.
With the decision above, the composition of the Board of Directors as of the end of 2019 and 2020 can be seen in the following tables.
Board of Directors’ Composition as of December 31, 2019
No. | Name | Title | Appointment | End of Period(1) |
1. | Ririek Adriansyah | President Director | AGMS 2019 | AGMS 2024 |
2. | Harry Mozarta Zen | Director of Finance (KEU) | AGMS 2016 | AGMS 2020 |
3. | Siti Choiriana | Director of Consumer Service (CONS) | AGMS 2018 | AGMS 2020 |
4. | Bogi Witjaksono | Director of Enterprise & Business Service (EBIS) | AGMS 2019 | AGMS 2020 |
5. | Zulhelfi Abidin | Director of Network & IT Solution (NITS) | AGMS 2017 | AGMS 2020 |
6. | Edwin Aristiawan | Director of Wholesale & International Service (WINS) | AGMS 2019 | AGMS 2020 |
7. | Edi Witjara | Direktur Human Capital Management (HCM) | AGMS 2019 | AGMS 2024 |
8. | Faizal Rochmad Djoemadi | Director of Digital Business (DB) | AGMS 2019 | AGMS 2020 |
9. | Achmad Sugiarto | Director of Strategic Portfolio (SP) | AGMS 2019 | AGMS 2020 |
Remark:
(1) | The term of office of the Board of Directors is set at 5 (five) years and can be reappointed for 1 (one) more term of office. The GMS may dismiss the Board of Directors before the end of the term of office |
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Board of Directors’ Composition as of December 31, 2020
No. | Name | Title | Appointment | End of Period(1) |
1. | Ririek Adriansyah | President Director | AGMS 2019 | AGMS 2024 |
2. | Dian Rachmawan | Director of Wholesale & International Service (WINS) | AGMS 2020 | AGMS 2025 |
3. | Afriwandi | Director of Human Capital Management (HCM) | AGMS 2020 | AGMS 2025 |
4. | Heri Supriadi | Director of Finance (KEU) | AGMS 2020 | AGMS 2025 |
5. | FM Venusiana R. | Director of Consumer Service (CONS) | AGMS 2020 | AGMS 2025 |
6. | Edi Witjara | Director of Enterprise & Business Service (EBIS) | AGMS 2019 | AGMS 2024 |
7. | Herlan Wijanarko | Director of Network & IT Solution (NITS) | AGMS 2020 | AGMS 2025 |
8. | Muhamad Fajrin Rasyid | Director of Digital Business (DB) | AGMS 2020 | AGMS 2025 |
9. | Budi Setyawan Wijaya | Director of Strategic Portfolio (SP) | AGMS 2020 | AGMS 2025 |
Remark:
(1) | The term of office of the Board of Directors is set at 5 (five) years and can be reappointed for 1 (one) more term of office. The GMS may dismiss the Board of Directors before the end of the term of office |
BOARD OF DIRECTORS’ DIVERSITY
Telkom upholds equality of human rights (HAM) as stated in Law No. 39 Year 1999 regarding Human Rights. One of the manifestations is that Telkom's Main shareholders and controllers guarantee there is no discrimination in the election and appointment of the Board of Directors even though it is not contained in a special human rights policy. Each member of the Board of Directors elected is professionals who have expertise, skills, and good integrity following Telkom's needs in the digital era.
The results of the 2020 Annual General Meeting of Shareholders stipulated that 9 (nine) men and 1 (one) woman in the Board of Directors. This determination is based on the selection results and does not constitute an effort to discriminate against Telkom's Board of Directors’ position.
Board of Directors’ Diversity as of December 31, 2020
TE | |||||
---|---|---|---|---|---|
No. | Name | Position | Gender | Background of Expertise & Skill | Level of Education |
1. | Ririek Adriansyah | President Director | Male | Electrical Engineering | Bachelor |
2. | Dian Rachmawan | Director of WINS | Male | Electrical Engineering | Master |
3. | Afriwandi | Director of HCM | Male | Industrial Engineering | Master |
4. | Heri Supriadi | Director of KEU | Male | Business Management | Doctoral |
5. | FM Venusiana R. | Director of CONS | Female | Electrical Engineering | Master |
6. | Edi Witjara | Director of EBIS | Male | Business Strategy Management | Doctoral |
7. | Herlan Wijanarko | Director of NITS | Male | Electrical Engineering | Master |
8. | Muhamad Fajrin Rasyid | Director of DB | Male | Informatics Engineering | Bachelor |
9. | Budi Setyawan Wijaya | Director of SP | Male | Industrial Engineering and Management | Master |
Remarks:
KEU Finance, CONS Consumer Service, EBIS Enterprise & Business Service, NITS Network & IT Solution, WINS Wholesale & International Service, HCM Human Capital Management, DB Digital Business, SP Strategic Portfolio
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BOARD OF DIRECTORS’ DOUBLE POSITION
In 2020, there are Telkom Directors who have dual positions, both at Telkom as the parent company or subsidiary, or other entities. Information regarding concurrent positions of Directors can be seen in the following table.
Board of Directors’ Double Position as of December 31, 2020
No. | Name | Telkom | Subsidiary | Other Entities | ||
---|---|---|---|---|---|---|
Position | Other Position | |||||
1. | Ririek Adriansyah | President Director | None | a. | President Commissioner of PT Telekomunikasi Selular (Telkomsel) | None |
2. | Dian Rachmawan | Director of WINS | None | a. | President Commissioner of PT Telkom International | None |
| | | | b. | President Commissioner of PT Telkom Infra | |
3. | Afriwandi | Director of HCM | None | a. | President Commissioner of Infomedia | None |
| | | | b. | Commissioner of Finnet | |
4. | Heri Supriadi | Director of KEU | None | a. | President Commissioner of PT Graha Sarana Duta (GSD) | None |
5. | FM Venusiana R. | Director of CONS | None | a. | President Commissioner of Telkom Akses | None |
6. | Edi Witjara | Director of EBIS | None | a. | President Commissioner of PT Telkom Satelit Indonesia | None |
| | | | b. | President Commissioner of PT PINS Indonesia | |
| | | | c. | President Commissioner of PT Multimedia Nusantara | |
7. | Herlan Wijanarko | Director of NITS | None | a. | President Commissioner of PT Dayamitra Telekomunikasi | None |
8. | Muhamad Fajrin Rasyid | Director of DB | None | a. | President Commissioner of PT Metra-Net | None |
| | | | b. | President Commissioner of PT MDI | |
| | | | c. | Commissioner of PT Sigma Cipta Caraka | |
9. | Budi Setyawan Wijaya | Director of SP | None | a. | President Commissioner of PT Sigma Cipta Caraka | None |
| | | | b. | President Commissioner of PT Teltranet Aplikasi Solusi | |
| | | | c. | President Commissioner of PT Jalin Pembayaran Nusantara | |
KEU Finance, CONS Consumer Service, EBIS Enterprise & Business Service, NITS Network & IT Solution, WINS Wholesale & International Service, HCM Human Capital Management, DB Digital Business, SP Strategic Portfolio
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BOARD OF DIRECTORS’ SELF ASSESSMENT POLICY
Based on the Joint Regulation of the Board of Commissioners and Directors No. 08/KEP/DK/2020 and PD.620.00/r.00/HK200/COP-M4000000/2020 regarding Board Manual of The Board of Commissioners and The Board of Directors of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk, the Board of Directors has a self-assessment policy to assess the performance of the Board of Directors. This policy is a guideline used as a form of accountability for collegial evaluation of the performance of the Board of Directors. The self-assessment is carried out by each member of the Board of Directors to assess the performance of the Board of Directors collegially and not to assess the individual performance of each member of the Board of Directors. With this self-assessment, it is hoped that each member of the Board of Directors can contribute to improving the performance of the Board of Directors on an ongoing basis.
Further information regarding the Board of Directors' self-assessment policy can be seen through Telkom's Board Manual which can be accessed through the GCG menu on Telkom website.
BOARD OF DIRECTORS’ COLLEGIATE ASSESSMENT
Strategic Objective | Point | Measurement | Score(1) | ||
A. Economic and Social Value for Indonesia | 40.0% | | | ||
1. | Operational expansion based on the expansion of EBITDA and net income | 8.0% | EBITDA achieved minimum in accordance with the revised of RKAP 2020 | | |
8.0% | Net Income achieved minimum in accordance with the revised of RKAP 2020 | | |||
2. | Maintain the SOE’s financial condition by maintaining gearing ratios equivalent to an investment grade company | 8.0% | Debt to EBITDA achieved minimum in accordance with the revised of RKAP 2020 | | |
3. | Development of plans for a one-stop-digital platform and marketplace for MSMEs | 8.0% | Approval of the Ministry of SOE for the MSME Digital Platform business model | | |
4. | Development of investment plans in potential Start-up | 8.0% | Approval of the Ministry of SOE for MDI's investment plan in the Health Industry and Food Industry ecosystems | | |
| | | | ||
B. Business Model Innovations | 30.0% | | | ||
5. | To be a B2B IT/digital services leader | | Digital Services & Platform B2B | | |
| | 5.0% | • | External Revenue | |
| | 5.0% | • | EBITDA Margin (Nett Intra before Cost Allocation (CA)) | |
6. | Establishment of digital B2C ecosystem | 10.0% | Digital Service & Platform B2C revenue | | |
7. | Produce an integrated proposition for IndiHome customers | 5.0% | The SOE Ministry's approval for the business plan accompanied by regulatory approval (BRTI) for TelkomGroup's Bundling Fixed and Mobile Products | | |
8. | Maximizing operational and capital efficiency in line with spectrum utilization | 5.0% | Lean Operator: Home-served/home-passed | | |
| | | | | |
C. Technology Leadership | 5.0% | | | ||
9. | 5G leadership as national operator | 5.0% | Approval of the Ministry of SOE for the 5G Business Case | | |
| | | | | |
D. Investment Development | 15% | | | ||
10. | Restructuring acceleration of subsidiaries | 7.50% | Total subsidiaries with ROIC > WACC Telkom | | |
11. | Telkom Digital Venture as a world-scale venture capital | | Telkom Digital Venture (Scale up MDI): | |
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| | 2.50% | • | Total value for Telkom's investment in Start-up | |
| | 2.50% | • | Return on investment in Start-up (> = 1 year investment) | |
| | 2.50% | • | Number of Start-ups that given the investment in the sector of health & food | |
| | | | | |
E. Talent Development | 10.0% | | | ||
12. | Establishment of Digital Capabilities Center and Digital Academy | 5.0% | Indonesian Telecommunication & Digital Research Institute was formed | | |
| 5.0% | Approval of the Ministry of SOE for talent development programs, including the succession program for Directors and the development of young Top Talent (≤ 40 years) | | ||
| | | | ||
Total | 100.0% | |
Remark:
) | |
---|---|
(1) | KPI Audit is still on process so the score is not yet available |
BOARD OF DIRECTORS’ REMUNERATION
Until the end of December 2020, the remuneration structure of Telkom's Board of Directors refers to Regulation of the State Minister for State-Owned Enterprises No. PER-04/MBU/2014 as lastly amended by Regulation of the Minister of SOE No. PER-12/MBU/11/2020 regarding Fifth Amendment to Regulation of the Minister of State-Owned Enterprises Number PER-04/MBU/2014 regarding Guidelines for Determining the Income of Directors, Board of Commissioners, and Supervisory Board of State-Owned Enterprises. Based on this regulation, the income components of the Board of Directors consist of:
| |
---|---|
1. | Salaries; |
2. | Allowances; |
3. | Facilities; and |
4. | Bonus/Incentive. |
Telkom determines the remuneration of the Directors through the following procedures:
1. | Board of Commissioners requests Committee for Nomination and Remuneration to draft a remuneration proposal for the Board of Directors. |
---|---|
2. | If needed, Committee for Nomination and Remuneration able to request an independent party to draw up a framework on the remuneration of the Board of Directors. |
3. | Committee for Nomination and Remuneration proposes the remuneration framework referred to the Board of Commissioners.. |
4. | Board of Commissioner proposes remuneration for the Board of Directors to GMS. |
5. | The GMS delegates authority and power to the Board of Commissioners with the prior approval of Series A Dwiwarna shareholders to determine the remuneration for the Board of Directors. |
Determination of income which in form of salary/honorarium, allowances, also permanent facilities still done by considering the condition of the Company. While bonuses/work incentives are annual work benefits based on the Company's performance, the amount of which is determined by the General Meeting of Shareholders.
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For 2020, the total remuneration paid to the entire Board of Directors was Rp223.9 billion. The table below sets forth the remunerations paid to our Board of Directors received in 2020.
Board of Directors’ Recapitulation of Remuneration
70 | |||||
---|---|---|---|---|---|
No. | Board of Directors | Position | Honorarium & Other Allowances | Tantiem(1) | Total |
| | | Rp million | ||
1. | Ririek Adriansyah | President Director | 5,532 | 13,438 | 18,970 |
2. | Edi Witjara | Director of EBIS | 4,903 | 12,094 | 16,997 |
3. | Afriwandi | Director of HCM(2) | 2,996 | - | 2,996 |
4. | Dian Rachmawan | Director of WINS(2) | 2,883 | 8,317 | 11,200 |
5. | Herlan Wijanarko | Director of NITS(2) | 2,884 | - | 2,884 |
6. | Heri Supriadi | Director of KEU(2) | 2,884 | - | 2,884 |
7. | FM Venusiana R. | Director of CONS(2) | 2,884 | - | 2,884 |
8. | Budi Setyawan Wijaya | Director of SP(2) | 2,849 | - | 2,849 |
9. | Muhamad Fajrin Rasyid | Director of DB(2) | 2,884 | - | 2,884 |
10. | Zulhelfi Abidin | Director of NITS(3) | 2,752 | 19,739 | 22,491 |
11. | Achmad Sugiarto | Director of SP(3) | 2,750 | 11,422 | 14,172 |
12. | Bogi Witjaksono | Director of EBIS(3) | 2,750 | 11,422 | 14,172 |
13. | Faizal Rochmad Djoemadi | Director of DB(3) | 2,750 | 11,422 | 14,172 |
14. | Edwin Aristiawan | Director of WINS(3) | 2,750 | 11,422 | 14,172 |
15. | Harry Mozarta Zen | Director of KEU(3) | 2,750 | 19,739 | 22,489 |
16. | Siti Choiriana | Director of CONS(3) | 2,750 | 19,739 | 22,489 |
17. | Alex J. Sinaga | President Director(4) | - | 9,785 | 9,785 |
18. | Abdus Somad Arief | Director of WINS(4) | - | 8,317 | 8,317 |
19. | Herdy R. Harman | Director of HCM(4) | - | 8,807 | 8,807 |
20. | David Bangun | Director of DSP(4) | - | 8,317 | 8,317 |
Remarks:
(1) | Tantiem stated as gross tantiem |
(2) | Since June 19, 2020 |
(3) | Up to June 19, 2020 |
(4) | Up to May 24, 2019 |
In addition to providing remuneration, Telkom includes the Board of Directors to become BPJS Kesehatan participants as Telkom's efforts to support the National Health Insurance program run by the Government.
In connection with COVID-19 pandemic which affects almost all economic activities in Indonesia, TelkomGroup provides full support both morally and materially. The Board of Directors donates all Tunjangan Hari Raya (THR) or religious holiday allowance to assist the Government in implementing programs related to the eradication of COVID-19 pandemic in all regions of Indonesia, so that it can improve the economy in all regions of Indonesia.
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BOARD OF DIRECTORS’ MEETING
The Board of Directors has provisions for holding internal meetings 1 (once) every month. If needed, the Board of Directors can hold other meetings any time. In addition to the Board of Directors' meeting, Telkom holds a joint meeting between the Board of Directors along with the Board of Commissioners at least 1 (one) time in 4 (four) months.
In meeting, a quorum is reached when more than half of the members of the Board of Directors are present or legally represented at the meeting. Each member of the Board of Directors present one vote (and one vote for each other represented Director). The decision making mechanism at the Board of Directors meeting is based on deliberation to reach consensus. If consensus is not reached, then decision making will be carried out based on the majority vote of the members of the Board of Directors who are present.
In 2020, Telkom Board of Directors has held 65 meetings. The following table explains the frequency of attendance of the Board of Directors' meetings during the 2020 reporting period.
Board of Directors’ Attendance and Agenda at Internal Meetings
No. | Date | Meeting’s Agenda | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1. | January 2, 2020 | 1. Operational Performance & Revenue report of W4 December 2019 | |||||||||||||||
| | 2. Telkom Codes’ update | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | - | √ | √ | √ | √ | √ | ||
2. | January 7, 2020 | 1. YtD Operational Performance & Revenue report (outlook) of December 2019 | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
3. | January 14, 2020 | 1. Operational Performance & Revenue report of W2 January 2020 | |||||||||||||||
| | 2. Logo and Corporate Theme report 2020 | |||||||||||||||
| | 3. Tribe Education report | |||||||||||||||
| | 4. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | - | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
4. | January 21, 2020 | 1. Operational Performance & Revenue report of W3 January 2020 | |||||||||||||||
| | 2. ChatAja report | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | - | √ | √ | - | √ | ||
5. | January 24, 2020 | 1. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | - | - | √ | - | √ | ||
6. | January 28, 2020 | 1. Operational Performance & Revenue Report Ytd Des 2019 (closing) and W4 January 2020 | |||||||||||||||
| | 2. IOT Platform update | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | - | - | √ | √ | √ |
211
No. | Date | Meeting’s Agenda | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
7. | February 4, 2020 | 1. Operational Performance & Revenue report of W5 January 2020 | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
8. | February 11, 2020 | 1. YtD Operational Performance & Revenue report of January 2020 (outlook) and W1 February 2020 (using new format) | |||||||||||||||
| | 2. Future State Architecture (FSA) Infrastructure report | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
9. | February 18, 2020 | 1. Operational Performance & Revenue report of W2 February 2020 | |||||||||||||||
| | 2. Digital Business update | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
10. | February 24, 2020 | 1. Limited agenda report | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
11. | February 25, 2020 | 1. Limited agenda report | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| | 3. YtD Operational Performance & Revenue report of January 2020 (closing) dan W3 February 2020 | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
12. | March 3, 2020 | 1. Limited agenda report | |||||||||||||||
| | 2. Operational Performance & Revenue report of W5 February 2020 | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
13. | March 10, 2020 | 1. YtD Operational Performance & Revenue report of February 2020 (outlook) dan W1 March 2020 | |||||||||||||||
| | 2. Future State Architecture (FSA) IT report | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
14. | March 16, 2020 | 1. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
15. | March 17, 2020 | 1. Operational Performance & Revenue report of W2 March 2020 | |||||||||||||||
| | 2. Future State Architecture (FSA) service report | |||||||||||||||
| | 3. Digital Product readiness for COVID-19 emergency report and MelOn update | |||||||||||||||
| | 4. Study on legal aspects related to determination of Corona Virus as a Pandemic (Plague) by WHO report | |||||||||||||||
| | 5. Logistics Management Policy update | |||||||||||||||
| | 6. Readiness to Mitigate the Spreading of COVID-19 in TelkomGroup office area report | |||||||||||||||
| | 7. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
16. | March 20, 2020 | 1. Limited agenda report |
212
No. | Date | Meeting’s Agenda | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
17. | March 24, 2020 | 1. YtD Operational Performance & Revenue report of February 2020 (closing) and W3 March 2020 | |||||||||||||||
| | 2. Telkom’s COVID-19 Crisis Center Task Force socialization report | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
18. | March 31, 2020 | 1. Operational Performance & Revenue report of W4 March 2020 | |||||||||||||||
| | 2. Future State Architecture IT report | |||||||||||||||
| | 3. Pijar Mahir Platform as a support for pre-work cards update | |||||||||||||||
| | 4. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
19. | April 7, 2020 | 1. YtD Operational Performance & Revenue report of March 2020 (outlook) | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
20. | April 14, 2020 | 1. Operational Performance & Revenue report of W1 April 2020 | |||||||||||||||
| | 2. Theme of TelkomGroup’s Leadership Meeting I in 2020 report | |||||||||||||||
| | 3. Progress of Telkom's Government Program support related to COVID-19 outbreak report and UMeetMe Application readiness | |||||||||||||||
| | 4. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
21. | April 23, 2020 | 1. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
22. | 28 April 2020 | 1. Limited agenda report | |||||||||||||||
| | 2. Operational Performance & Revenue report of W3 April 2020 | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
23. | May 4, 2020 | 1. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
24. | May 5, 2020 | 1. YtD Operational Performance & Revenue report of April 2020 (outlook) | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
25. | May 12, 2020 | 1. Operational Performance & Revenue report of W1 May 2020 | |||||||||||||||
| | 2. CorCom: CSR program, Lebaran greeting, and PSBB socialization video update | |||||||||||||||
| | 3. FU HCM report | |||||||||||||||
| | 4. My IndiHomeX progress report | |||||||||||||||
| | 5. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
26. | May 19, 2020 | 1. Operational Performance & Revenue report of W2 May 2020 |
213
No. | Date | Meeting’s Agenda | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2. Preparation for TelkomGroup Siaga Event update | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
27. | May 26, 2020 | 1. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
28. | May 27, 2020 | 1. YtD Operational Performance & Revenue report of April and W3 May 2020 | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
29. | June 3, 2020 | 1. Limited agenda report | |||||||||||||||
| | 2. Cloud TelkomSigma product update | |||||||||||||||
| | 3. Operational Performance & Revenue report of W4 May 2020 | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
30. | June 9, 2020 | 1. YtD Operational Performance & Revenue report of May 2020 (outlook) | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
31. | June 16, 2020 | 1. Operational Performance & Revenue report of W2 June 2020 | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | N/A | N/A | N/A | N/A | √ | N/A | N/A | N/A | √ | √ | √ | √ | √ | √ | √ | ||
32. | June 22, 2020 | 1. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
33. | June 23, 2020 | 1. CSS 2020-2024 update | |||||||||||||||
| | 2. Radir format report update | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | �� | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
34. | June 24, 2020 | 1. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
35. | June 30, 2020 | 1. Operational Performance & Revenue report of W4 June 2020 | |||||||||||||||
| | 2. Telkom Anniversary preparation report | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
36. | July 7, 2020 | 1. YtD Operational Performance & Revenue report of July 2020 (outlook) | |||||||||||||||
| | 2. SOE Core Values update | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
214
No. | Date | Meeting’s Agenda | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
37. | July 14, 2020 | 1. Operational Performance & Revenue report of W1 July 2020 (outlook) | |||||||||||||||
| | 2. Task Force’s kick off End To End IndiHome CX Improvement report | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
38. | July 28, 2020 | 1. Operational Performance & Revenue report of W3 July 2020 | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
39. | August 4, 2020 | 1. Operational Performance & Revenue report of W3 July 2020 | |||||||||||||||
| | 2. BOD Virtual Tour to Digital Capability Center Singapore | |||||||||||||||
| | 3. Task Force report of CX IndiHome improvement | |||||||||||||||
| | 4. 75th Anniversary of Republic of Indonesia celebration update | |||||||||||||||
| | 5. Digitalization within TelkomGroup (Resources readiness, HR managing, KPI, and Procurement Authority) report | |||||||||||||||
| | 6. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
40. | August 11, 2020 | 1. YtD Operational Performance & Revenue report of July (outlook) and W1 August 2020 | |||||||||||||||
| | 2. AP Performance Monitoring Dashboard (including policies for determining Financial Ratios that become KPI for AP Directors) progress report | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
41. | August 19, 2020 | 1. Operational Performance & Revenue report of W2 August 2020 | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
42. | August 24, 2020 | 1. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
43. | August 25, 2020 | 1. YtD Operational Performance & Revenue report of July (closing) and W3 August 2020 | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
44. | September 1, 2020 | 1. Operational Performance & Revenue report of W4 August 2020 | |||||||||||||||
| | 2. Smart City update | |||||||||||||||
| | 3. FU HCM (Talent Development Program) report | |||||||||||||||
| | 4. 5G sharing session by AT Kearney | |||||||||||||||
| | 5. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
45. | September 8, 2020 | 1. Establishment of Indonesian Telecommunication and Digital Research Institute | |||||||||||||||
| | 2. YtD Operational Performance & Revenue report of August 2020 | |||||||||||||||
| | 3. #PeduliInfrastruktur Program progress update | |||||||||||||||
| | 4. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
215
No. | Date | Meeting’s Agenda | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
46. | September 15, 2020 | 1. Operational Performance & Revenue report of W1 September 2020 | |||||||||||||||
| | 2. Task Force report of CX IndiHome improvement | |||||||||||||||
| | 3. Microsoft DC Tender preparation report | |||||||||||||||
| | 4. (Company’s KPI 2020) - Establishment of Indonesian Telecommunication and Digital Research Institute update | |||||||||||||||
| | 5. Company’s KPI 2020 Report | |||||||||||||||
| | 6. (Company’s KPI 2020) - TelkomGroup’s Task Force kick off for Strategy Development and 5G Business Case | |||||||||||||||
| | 7. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
47. | September 22, 2020 | 1. YtD Operational Performance & Revenue report of Agustus (closing) and W2 September 2020 | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
48. | September 29, 2020 | 1. FU DB report: Digital Platform Business Model for Small and Medium Enterprise (SME) | |||||||||||||||
| | 2. Operational Performance & Revenue report of W3 September 2020 | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
49. | October 6, 2020 | 1. Operational Performance & Revenue report of W3 September 2020 | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
50. | October 13, 2020 | 1. Operational Performance & Revenue report of W1 October 2020 | |||||||||||||||
| | 2. Task Force progress report of CX IndiHome improvement | |||||||||||||||
| | 3. TKDN Task Force’s kick off | |||||||||||||||
| | 4. TelkomGroup’s Leadership Meeting III in 2020 planning report | |||||||||||||||
| | 5. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
51. | October 19, 2020 | 1. Limited agenda report | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | - | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
52. | October 20, 2020 | 1. Operational Performance & Revenue report of W2 October 2020 | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | - | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
53. | October 26, 2020 | 1. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
54. | November 3, 2020 | 1. Limited agenda report | |||||||||||||||
| | 2. Operational Performance & Revenue report of W4 October 2020 | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
216
No. | Date | Meeting’s Agenda | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
55. | November 10, 2020 | 1. Limited agenda report | |||||||||||||||
| | 2. Task Force progress report of CX IndiHome improvement | |||||||||||||||
| | 3. YtD Operational Performance & Revenue report of October (outlook) and W1 November 2020 | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
56. | November 17, 2020 | 1. Operational Performance & Revenue report of W2 November 2020 | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | - | √ | - | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
57. | November 23, 2020 | 1. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | - | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
58. | November 24, 2020 | 1. Limited agenda report | |||||||||||||||
| | 2. YtD Operational Performance & Revenue report of October (closing) and W3 November 2020 | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
59. | November 27, 2020 | 1. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
60. | Desember 1, 2020 | 1. Limited agenda report | |||||||||||||||
| | 2. Operational Performance & Revenue report of W4 November 2020 | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
61. | Desember 8, 2020 | 1. HCM Limited agenda report | |||||||||||||||
| | 2. Limited agenda report | |||||||||||||||
| | 3. Telkom Transformation progress report | |||||||||||||||
| | 4. YtD Operational Performance & Revenue report of November 2020 (outlook) | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
62. | December 15, 2020 | 1. Operational Performance & Revenue report of W2 December 2020 | |||||||||||||||
| | 2. Task Force report of CX IndiHome improvement | |||||||||||||||
| | 3. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | - | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
63. | December 18, 2020 | 1. Limited agenda report | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | - | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
64. | December 22, 2020 | 1. HCM limited agenda report | |||||||||||||||
| | 2. Limited agenda report (1st session) | |||||||||||||||
| | 3. YtD Operational Performance & Revenue report of November (closing) & W3 December 2020 | |||||||||||||||
| | 4. Readiness to visit POSKO NARU 2020/2021 report | |||||||||||||||
| | 5. Limited agenda report (2nd Session) | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
65. | December 29, 2020 | 1. Limited agenda report | |||||||||||||||
| | 2. Transformation progress update - Data Center Committee |
217
No. | Date | Meeting’s Agenda | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 3. Operational Performance & Revenue report of W4 December 2020 | |||||||||||||||
| Attendance List | RA | DR(1) | AW(1) | HS(1) | FMV(1) | EW | HW(1) | MFR(1) | BSW(1) | HMZ(2) | SC(2) | ZA(2) | AS(2) | BW(2) | EA | FRD(2) |
√ | √ | √ | √ | √ | √ | √ | √ | √ | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Remarks:
CE | |||||||
RA | Ririek Adriansyah | HW | Herlan Wijanarko | AS | Achmad Sugiarto | (1) | Since June 19, 2020 |
DR | Dian Rachmawan | MFR | Muhamad Fajrin Rasyid | BW | Bogi Witjaksono | (2) | Up to June 19, 2020 |
AW | Afriwandi | BSW | Budi Setyawan Wijaya | EA | Edwin Aristiawan | | |
HS | Heri Supriadi | HMZ | Harry Mozarta Zen | FRD | Faizal Rochmad Djoemadi | | |
FMV | FM Venusiana R. | SC | Siti Choiriana | | | | |
EW | Edi Witjara | ZA | Zulhelfi Abidin | | | | |
Board of Directors’ Attendances at Internal Meeting
| | | | | |
No. | Name | Position | Total Meetings | Total Attendances | Percentage of Attendance |
| | | | | % |
1. | Ririek Adriansyah | President Director | 65 | 65 | 100% |
2. | Dian Rachmawan | Director of WINS(1) | 34 | 31 | 91.17% |
3. | Afriwandi | Director of HCM(1) | 34 | 34 | 100% |
4. | Heri Supriadi | Director of KEU(1) | 34 | 34 | 100% |
5. | FM Venusiana R. | Director of CONS(1) | 34 | 31 | 91.17% |
6. | Edi Witjara | Director of EBIS | 65 | 64 | 98.46% |
7. | Herlan Wijanarko | Director of NITS(1) | 34 | 33 | 97.05% |
8. | Muhamad Fajrin Rasyid | Director of DB(1) | 34 | 34 | 100% |
9. | Budi Setyawan Wijaya | Director of SP(1) | 31 | 31 | 100% |
10. | Harry Mozarta Zen | Director of KEU(2) | 31 | 31 | 100% |
11. | Siti Choiriana | Director of CONS(2) | 31 | 30 | 96.77% |
12. | Zulhelfi Abidin | Director of NITS(2) | 31 | 28 | 90.32% |
13. | Achmad Sugiarto | Director of SP(2) | 31 | 29 | 93.54% |
14. | Bogi Witjaksono | Director of EBIS(2) | 31 | 31 | 100% |
15. | Edwin Aristiawan | Director of WINS(2) | 31 | 30 | 96.77% |
16. | Faizal Rochmad Djoemadi | Director of DB(2) | 31 | 31 | 100% |
Remarks:
Sampai dengan tanggal 29 Desember 2020 | |
(1) | Since June, 19 2020 |
(2) | Up to June, 19 2020 |
218
CORPORATE SECRETARY
In accordance with POJK No. 35/POJK.04/2014 regarding Corporate Secretary of Issuers or Public Companies, Telkom has a Corporate Secretary/Investor Relations that facilitates internal communication between the Board of Directors and the Board of Commissioners. Besides, in terms of external communication, Corporate Secretary/Investor Relations has function to establish relationships between the Company and its stakeholders, especially the Government, Shareholders, and Financial Services Authority. In terms of compliance, Corporate Secretary also plays an important role in ensuring that Telkom can follow the Capital Market regulations.
CORPORATE SECRETARY’S DUTY AND RESPONSIBILITY
The Corporate Secretary has the following duties and responsibilities:
| |
1. | Preparing and organizing GMS, including the material, particularly the annual report; |
2. | Attending the Board of Directors’ Meetings and Joint Meetings between the Board of Commissioners and Board of Directors; |
3. | Managing and maintaining documents related to the Company’s activities, including the GMS’s documents and other important documents of the Company; and |
4. | Determining criteria regarding types and contents of information that can be presented to the stakeholders, including information that can be published as public documents. |
CORPORATE SECRETARY’S FUNCTIONS
The functions of Corporate Secretary include:
| | |
1. | To prepare and communicate accurate, complete, and timely information regarding the performance and prospect of the Company to stakeholders. | |
2. | To synergize with related units, including the subsidiaries, for socialization, implementation, monitoring and reviewing of GCG, and its implementation. | |
3. | To assist the Board of Directors in various activities, information, and documentation, among others: | |
| a. | Preparing the Register Book of Shareholders; |
| b. | Attending the Board of Directors’ meetings and preparing its minutes of meetings; and |
| c. | Preparing and organizing GMS. |
4. | To publish the Company’s information in a tactical, strategic and timely manner. |
CORPORATE SECRETARY’S PROFILE
Andi Setiawan
Personal
Born | : June 6, 1978 |
Age | : 42 years old |
Nationality | : Indonesian |
Domicile | : Jakarta, Indonesia |
Education
| | |
2002 | Bachelor degree in Financial Management, Universitas Indonesia, Indonesia. |
Basis of Appointment
Decision Letter of the Board of Directors.
219
Term of Service
Start from March 4, 2015, up to present.
Career Experiences
2014 - 2015 | GM of Investor Relations, PT Telekomunikasi Seluler. |
2010 - 2014 | Manager of Investor Relations, PT Summarecon Agung Tbk. |
2007 - 2010 | Manager of Corporate Secretary, PT Bakrieland Development Tbk. |
2004 - 2007 | Corporate Rating Analyst, PT Pemeringkat Efek Indonesia. |
CORPORATE SECRETARY’S IMPLEMENTATION TASKS
Throughout 2020, Telkom’s Corporate Secretary has organized the following activities.
No. | Date | Name of Activities | Organizer | Location |
---|---|---|---|---|
1. | November 27, 2020 | Telkom's Written Response regarding to Structured Warrant Regulation Draft. | Financial Services Authority | |
2. | December 11, 2020 | In the context of Rule Making Concepts Exchange Rules Rule Number II-S of the Securities Trading Equity Special Monitoring and Concept In Exchange Rules Amendment No. I-A of the Registration of Shares and Equity In addition Shares Issued by the Listed Company. | Indonesia Stock Exchange | Online Webinar |
CORPORATE SECRETARY’S TRAINING AND EDUCATION
To improve the competence of Corporate Secretary/Investor Relations, the Company has conducted training for Investor Relations Unit in 2020 as shown in the following table.
Training and Education Attended by Corporate Secretary/Investor Relations in 2020
| ||||
---|---|---|---|---|
No. | Date | Name of Activities | Organizer | Location |
1. | May 5, 2020 | Socialization of POJK 15/2020 regarding Planning and Implementation of the General Meeting of Shareholders of Public Companies and POJK 16/2020 regarding Implementation of Electronic GMS of Public Companies | Indonesia Stock Exchange | Online Webinar |
2. | July 3, 2020 | Reporting on Emission and Climate Risk | Indonesia Stock Exchange | Online Webinar |
3. | July 9, 2020 | Reporting on Waste with Circular Economy Perspective | Indonesia Stock Exchange | Online Webinar |
4. | July 10, 2020 | The CFO’s Role in Sustainable Business | Sustainability Accounting Standards Board (SASB) | Online Webinar |
5. | July 17, 2020 | Opportunities and Challenges of Industry and Business in the New Normal Period | Asosiasi Emiten Indonesia (AEI) | Online Webinar |
6. | July 21, 2020 | Sustainable Development Goals (SDG’s) Reporting | Indonesia Stock Exchange | Online Webinar |
7. | July 24, 2020 | Addressing Investor Calls for Environmental, Social and Governance (ESG) Reporting and Assurance | Sustainability Accounting Standards Board (SASB) | Online Webinar |
8. | July 29, 2020 | ASEAN Corporate Governance Scorecard (ACGS) Workshop | Indonesia Stock Exchange | Online Webinar |
9. | August 4, 2020 | Preparing Sustainability Report Stakeholders Engagement | Indonesia Stock Exchange | Online Webinar |
10. | August 11, 2020 | Socialization of POJK 17/2020 regarding Material Transactions and Changes in Business Activities and POJK 42/2020 regarding Affiliated Transactions and Conflict of Interest Transactions | Indonesia Stock Exchange | Online Webinar |
220
| ||||
---|---|---|---|---|
No. | Date | Name of Activities | Organizer | Location |
11. | September 2, 2020 | Increasing Capital Inflow through ESG Development (ESG Rating & Indices) | Indonesia Stock Exchange | Online Webinar |
12. | September 9, 2020 | WHAM (What How Able to Motivated) dan TPOQ (The Power of Question) | Telkom Human Capital Business Partner | Online Webinar |
13. | September 10, 2020 | Conceptual Framework and Rules of Procedure Public Comment Launch | Sustainability Accounting Standards Board (SASB) | Online Webinar |
14. | September 29, 2020 | Living the Grand Why Core Values AKHLAK | Telkom Corporate University Center dan ESQ Group | Online Webinar |
15. | October 1, 2020 | Introduction of Investor Relations and Use of Technology in Investor Relations | BNY Mellon | Online Webinar |
16. | October 8, 2020 | Marketing and Investor Outreach | BNY Mellon | Online Webinar |
17. | October 8, 2020 | ESG and Crisis Communication | BNY Mellon | Online Webinar |
18. | October 15, 2020 | Marketing Intelligence and Strategic Presentation | BNY Mellon | Online Webinar |
19. | October 23, 26, and 27, 2020 | TNT Coaching Top Talent | Telkom Corporate University Center dan Hijrah Coach | Online Webinar |
20. | November 11, 2020 | Focus group discussion in order of hearing the draft amendments to Financial Services Authority Circular Letter (RSEOJK) regarding Form and Content of the Annual Report of Issuers or Public Companies | Financial Services Authority | Online Webinar |
21. | December 11, 2020 | Fundamental of Jurisprudence and the Selection Process for Sharia Shares in Indonesia | Indonesia Stock Exchange, PT Kliring Penjaminan Efek Indonesia, PT Kustodian Sentral Efek Indonesia, and Financial Services Authority | Online Webinar |
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INTERNAL AUDIT UNIT
Telkom has an Internal Audit Unit or Internal Audit Department (IA) provides views and presents various recommendations independently and objectively in Telkom's business activities. Internal Audit also helps the Company achieve its objectives through a systematic and disciplined in evaluating and improving the effectiveness of risk management, control and implementation of Good Corporate Governance. With Internal Audit Department hopefully have a role to adding value and increasing the effectiveness and efficiency of Telkom's business operations.
INTERNAL AUDIT CHARTER
Telkom has an IA Charter which is guided by international standards from the Institute of Internal Auditor (IIA). The IA Charter is stated in Resolution of the Board of Directors No.Tel.09/PW000/UTA/COP-C0000000/2015 dated February 12, 2015 regarding Internal Audit Charter, and has been approved by President Director and Audit Committee. IA Charter contains IA Telkom activities which also describe the vision, mission, structure, status, duties, responsibilities and authorities of IA, as well as the requirements for IA personnel.
INTERNAL AUDIT UNIT’S DUTIES AND RESPONSIBILITIES
Based on Internal Audit Charter, duties and responsibilities of Internal Audit are:
| |
1. | To compose Annual Internal Audit plan; |
2. | To execute the Annual Internal Audit Plan that has been consulted by Audit Committee or has been reviewed by Audit Committee; |
3. | To examine and evaluate the adequacy of internal control and risk management system based on the Company’s Policy; |
4. | To examine and assess the efficiency and effectivity in the field of finance, accounting, operational, human capital, marketing, IT, and other activity; |
5. | To review and/or audit the Company’s financial statement periodically; |
6. | To inspect the compliance to the related regulation; |
7. | To identify the alternative improvement and efficiency and to increase efficiency and effectivity of the utility of sources and fund; |
8. | Create audit report and to deliver that report to President Director and Board of Commissioner c.q. Head of Audit Committee; |
9. | To monitor, analyze and report the implementation of the improvement that has been recommended; |
10. | Give objective improvement recommendation and information about the activity that has been inspected to all management level of the Company and the afiliation of the Company; |
11. | To provide consultation needed by the Company’s management and its affilation company which the coverage of the assignment has been agreed before; |
12. | To carry out task number 2 - 10 for the Company’s Afiliation upon requested by the President Director of the Company (Management instruction); |
13. | To collaborate with Audit Committee, including monitor the follow up of the recommendation by the result of the inspection that have a significant impact and deliver the report to the Audit Committee; |
14. | To compose the evaluation methodology and progam to increase the quality of Internal Audit activity cooperating/coordinating with Audit Committee; |
15. | To review and/or deep inspection Audit Committee request in order to follow up Whistleblower and/or allegations of fraud on the Company or its affiliated company, and deliver the results of the investigation to the President Director and Audit Committee; and |
16. | To conduct the preliminary inspection with a particular purposes. |
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SVP INTERNAL AUDIT UNIT’S PROFILE
Harry Suseno Hadisoebroto
Personal
Born | : Bandung, June 24, 1966 |
Age | : 54 years old |
Nationality | : Indonesian |
Domicile | : Bandung, Indonesia |
Educations
1990 | Graduate Study: Civil Engineering (Ir.), Institut Teknologi Bandung, Indonesia. |
1999 | Postgraduate Study: Engineering - Project Management (MSc.), University of Manchester Institute of Science and Technology, United Kingdom. |
Basis of Appointment
Resolution of the Board of Directors No.1905/PS720/HCC-10/2015 dated June 9, 2015, which came into force from July 1, 2015, to the present. Based on the resolution, the Head of the Internal Audit unit is directly appointed by the President Director.
Term of Office
July 1, 2015 up to present.
Carreer Experiences
2015 - Present | SVP Internal Audit, PT Telkom Indonesia, Tbk. |
2014 - 2015 | SVP Internal Audit, PT Telekomunikasi Seluler. |
2011 - 2014 | VP Infrastructure & Supply Management Audit, PT Telkom Indonesia (Persero) Tbk. |
2010 - 2011 | AVP Infrastructure Audit, PT Telkom Indonesia (Persero) Tbk. |
2007 - 2009 | Deputy General Manager Kandatel Malang, PT Telkom Indonesia (Persero) Tbk. |
INTERNAL AUDIT UNIT’S STRUCTURE AND POSITION
IA Telkom consists of 87 employees, who report directly to the President Director. Internal Audit Unit is headed by a Senior Vice President Internal Audit (SVP IA) who is appointed and dismissed by the President Director with the approval of the Board of Commissioners. The term of office of SVP IA is no longer than 3 (three) years and can be re-appointed for the next period.
If IA SVP does not meet the requirements and/or fails or is unable to carry out its duties, the President Director may terminate IA SVP with the approval of the Board of Commissioners. This is in line with OJK Regulation No. 56/POJK.04/2015 regarding "Formation and Guidelines for the Preparation of Internal Audit Unit Charter". Until the end of 2020, Telkom IA organizational structure can be seen below.
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INTERNAL AUDIT UNIT’S TASK IMPLEMENTATION
IA Telkom annually makes a Work Plan as outlined in Internal Audit Work Program of the Internal Audit Department. In 2020, IA has carried out 77 assignments, which include the following audit, consultation, evaluation, and review activities. The description of IA Telkom activities as follows.
Sub Department | Audit | Consultancy | Review | Evaluation | Total |
---|---|---|---|---|---|
Infrastructure & Operation Audit (IOA) | 8 | 14 | - | - | 22 |
Integrated & Financial Audit (IFA) | 8 | 5 | 17 | 6 | 36 |
Information & Technology Audit (ITA) | 11 | 8 | - | - | 19 |
Total | 27 | 27 | 17 | 6 | 77 |
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INTERNAL AUDIT’S QUALIFICATION AND PROFESSIONAL CERTIFICATION
As of December 31, 2020, IA Telkom employees had various certifications needed to carry out their work in a standardized manner and the quality of internal supervision could be assured of going well. As of December 31, 2020, details of the certifications owned by Telkom Internal Audit members are as follows.
No. | Certification Type | Number of Certification |
---|---|---|
1. | Certification in Risk Management Assurance (CRMA) | 1 |
2. | Certified Accountant (CA) | 3 |
3. | Certified Data Center Specialist (CDCS) | 1 |
4. | Certified Data Center Prosessional (CDCP) | 1 |
5. | Certified Ethical Hacker (CEH) | 1 |
6. | Certified Fraud Examiner (CFE) | 1 |
7. | Certified Forensic Auditor (CFrA) | 1 |
8. | Certified Information Systems Auditor (CISA) | 3 |
9. | Certified Internal Auditor (CIA) | 3 |
10. | Certified IT Infrastructure Library | 3 |
11. | ISO (9000, 9001, 9002, 9003, 14001, 18001, 20000, 22301, 27001, 37001) | 14 |
12. | Qualified Internal Audit (QIA) | 4 |
13. | Certified Associate in Project Management (CAPM) | 1 |
14. | Certified Behavior Consultant (CBC) | 3 |
15. | Certified Management Accountant (CMA) | 1 |
16. | Cisco Certified Network Associate (CCNA) | 2 |
17. | Cisco Certified Networking Profesional (CCNP) | 1 |
18. | Cisco Certified Internetwork Expert (CCIE) | 1 |
19. | Cisco Certified Design Associate (CCDA) | 1 |
20. | Essential Lisenced Trainer (ELT) | 1 |
21. | International Financial Reporting Standards (IFRS) | 1 |
22. | Red Hat Certified System Administrator (RHCSA) | 1 |
23. | Certified Senior Account Manager (CSAM) | 1 |
24. | Telkom Certified Customer Care Expert (TCCCE) | 1 |
25. | Telkom Certified Integrated Marketing Fundamental | 1 |
26. | Telkom Certified IP Fundamental (TCIF) | 2 |
| Total | 54 |
INTERNAL AUDIT’S TRAINING AND EDUCATION
Telkom understands the importance of maintaining the competencies of members of Internal Audit unit. Therefore, throughout 2020, Telkom includes the members of Internal Audit unit to participate in various education and training activities held by Telkom CorpU, ACFE, ACT, IIA, ISACA, SPRINT, etc. as follows
Programs | Number of Participants | Number of Days |
---|---|---|
Culture | 23 | 7 |
Leadership | 3 | 13 |
Business | 133 | 5 |
Technical | 301 | 44 |
Certification | 2 | 3 |
Sharing Knowledge | 445 | 9 |
Total | 907 | 81 |
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INTERNAL CONTROL SYSTEM
Internal Control System (SPI) is a monitoring mechanism established by the Company's management on an ongoing basis. SPI includes the reliability of financial reports, availability of complete and timely financial reports, including up to the implementation of evaluation of financial reporting.
In accordance with the scope of SPI, Telkom always strives to ensure that the preparation of consolidated financial statements is in accordance with Financial Accounting Standards established by the Indonesian Institute of Accountants (IAI). With Telkom listed on the New York Stock Exchange, Telkom also complies with the provisions of SOX Section 404 which requires Telkom to build, maintain, test, and disclose the effectiveness of internal control over financial reporting.
Furthermore, in addition to the financial aspect, SPI also aims to provide adequate guarantees of achieving efficiency and effectiveness of operational activities, as well as compliance with regulations. Operational control within the SPI framework for business processes is carried out in accordance with the activities and the applicable work system in each function. Through SPI, Telkom monitors compliance with various prevailing laws and regulations, both internal regulations issued by company officials and government regulations.
Currently, Telkom's Internal Control System (SPI) is under the supervision of the President Director and the Director of Finance, and is carried out by the Board of Directors, management and other personnel collectively. The application of SPI aims to gain public confidence regarding the effectiveness of financial reporting and preparation of consolidated financial statements.
INTERNAL CONTROL FRAMEWORK
In its implementation, SPI implemented by Telkom is in line with the 2013 Internal Control-Integrated Framework from The Committee of Sponsoring Organizations of the Treadway Commission (COSO). One of Telkom's efforts to implement this framework is a commitment to always ensure that policies, Company compliance and all business activities are carried out in accordance with applicable laws and regulations, both internal and external. The unit that responsible for compliance with laws and regulations is the Legal & Compliance unit under the Corporate Secretary Department. Activities carried out include legal advisory, legal opinion, legal review and litigation.
Following the COSO Framework, Telkom implements five components of internal control that are bound together at all levels and business units of the Company, which are:
| ||
1. | Control Environment | |
| a. | Demonstrates commitment to integrity and ethical values. |
| b. | Exercises oversight responsibility. |
| c. | Establishes structure, authority, and responsibility. |
| d. | Demonstrates commitment to competence. |
| e. | Enforces accountability. |
| | |
2. | Risk Assessment | |
| a. | Specifies relevant objectives. |
| b. | Identifies and analyzes risk. |
| c. | Assesses fraud risk. |
| d. | Identifies and analyzes significant change. |
| | |
3. | Control Activities | |
| a. | Selects and develops control activities. |
| b. | Selects and develops general controls over technology. |
| c. | Deploys through policies and procedures. |
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| | |
4. | Information and Communication | |
| a. | Uses relevant information. |
| b. | Communicates internally. |
| c. | Communicates externally. |
| | |
5. | Monitoring Activity | |
| a. | Conducts ongoing and/or separate evaluations. |
| b. | Evaluates and communicates deficiencies. |
The five components have been applied and applied to Telkom's policies, including the following:
INTERNAL CONTROL IMPLEMENTATION IN TELKOM | |
Control Environment | |
1. | Telkom is committed to integrity and ethical values by building and establishing a corporate culture as a guide for main players in building leadership patterns and strengthening organizational synergies, as an engine of economic growth, an accelerator of social welfare, a provider of employment, and a provider of high performing culture talent. Telkom guarantees sustainable competitive growth in the form of long-term superior performance achievement. Core Values AKHLAK (Amanah, Kompeten, Harmonis, Loyal, Adaptif, and Kolaboratif) are the main values of SOE human resources that must be adopted by TelkomGroup so that every TelkomGroup resource knows, implements, and internalizes seriously, consistently and consequently, thus bring forth to daily behaviors that shape the work culture of TelkomGroup which is in line with the Core Values of SOE. |
2. | Telkom ensures the effectiveness of implemented Internal Audit activities by implementing the SOA 302/404 prerequisites and managed with a risk-based audit approach. Telkom also ensures that effective coordination and co-operation with internal and external parties, and business risks to all business activities are adequately managed with internal control systems. |
3. | Telkom has a Competency Directory that defines the Company's competency needs. One of them is Finance Stream which includes the competence of Corporate Finance with the sub-area of Capital Structure competency and Working Capital Management (Treasury Management). Then, Accounting with sub-area competence of Financial Accounting, Management Accounting, and Corporate Tax. The competency development policy is aimed at creating superior, global quality, and highly competitive employees. |
Risk Assessment | |
1. | Telkom has several considerations in developing accounting policies such as Statements of Financial Accounting Standards (PSAK), Interpretation of Statements of Financial Accounting Standards (ISAK), International Accounting Standards (IAS, related laws, and changes in impacted internal environments. |
2. | Telkom has a principle of financial assertion in ICOFR planning that is well respected by all relevant employees. |
3. | Telkom manages internal and external corporate risk with established mechanisms. |
4. | Telkom also implements an anti-fraud policy control system and have potential fraud prevention. |
Control Activities | |
1. | Telkom sets up a Business Process Owner (BPO) and AO (Application Owner) that have duties and responsibilities related to ICOFR. |
2. | Risk determination rules and internal controls refer to the ICOFR policy consisting of segregation of duties, risk determination, and determination of internal controls. |
3. | Telkom has guidelines for the implementation of information systems security that are aligned with company needs and can be implemented on an ongoing basis. |
Information and Communication | |
1. | Telkom has accounting policies implemented under IFAS and IFRS, outlined following accounting principles and implementation, including information or data related to the process and disclosure of financial reporting, and regulates the components of the consolidated financial statements. |
2 | Telkom has an information technology policy that provides a frame of reference for each process or unit associated with the organization's IT operations in the preparation and implementation of guidelines and procedures. The scope of IT regulations in our Company covers aspects of IT governance and IT management. |
Monitoring Activity | |
1. | Telkom has an Internal Audit Charter that includes the auditor's requirements in the Internal Audit unit, which has professional integrity and behavior, knowledge of risks and important controls in the field of information technology, knowledge of Capital Market laws and regulations. |
2. | CEO Telkom always increases awareness from management regarding audit and change management in the form of CEO Notes and establishes Integrated Audit, and forms Probis IFRS. |
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To improve the quality of the Internal Control System, Telkom regularly conducts assessments related to the implementation of SPI in the Company. In 2020, Telkom has conducted an assessment of the implementation of SPI. This assessment process is in line with Regulation of the Minister of State-Owned Enterprises Article 26 Paragraph 2 Year 2011 regarding the Implementation of Good Corporate Governance (GCG) in SOE.
The result of the SPI assessment state that the effectiveness of Telkom's Internal Control System is Effective.
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RISK MANAGEMENT SYSTEM
Telkom realizes that risk management plays an important role to ensure the realization of Good Corporate Governance (GCG) in the business environment of Telkom and its subsidiaries. A well managed risk management able to support the telecommunications business with a wide business area coverage amid various business risks related to communication transformation in the digital era. Therefore, one of Telkom's important steps to achieve GCG by continuing to implement and improve a risk management system on an ongoing basis.
GENERAL ILLUSTRATION REGARDING THE RISK MANAGEMENT SYSTEM
SOE Ministerial Regulation No. 1 Year 2011 requires SOEs, including Telkom to implement risk management. The implementation of risk management is also an obligation for Telkom as a Company which listed in New York Stock Exchange (NYSE) to fulfill the Sarbanes-Oxley Act, specifically articles 302 and 404. All these regulations and provisions serve as Telkom's foundation for implementing risk management, apart from of course referring to various existing standards and best practices.
Risk Management System (Framework) and Policy
There are two guidelines as basis for Telkom Risk Management Policy. The first guideline is regulation of the Board of Directors No.PD.614.00/r.00/HK.200/COP-D0030000/2015 dated September 30, 2015 regarding Corporate Risk Management (Telkom Enterprise Risk Management). The second is Regulation of Director of Finance number PR.614.01/r.00/HK200/COP-D0030000/2016 regarding Guidelines for the Implementation of Corporate Risk Management (Telkom Enterprise Risk Management).
The main framework for risk management at Telkom refers to the framework of COSO (COSO ERM Framework), which includes three main components:
| ||
1. | The implementation of Corporate Risk Management must be able to support the Company’s objective from the aspects of strategic, operational, reporting and compliance. | |
2. | Corporate Risk Management was applied at all levels of the organization, which are Enterprise Level, Division, Business unit, and Subsidiary in the Company. | |
3. | The implementation of Corporate Risk Management shall consist of 8 components of process which are: | |
| a. | Internal development |
| b. | Objective setting |
| c. | Event identification |
| d. | Risk assessment |
| e. | Risk response |
| f. | Control activities |
| g. | Information/communication |
| h. | Monitoring |
Other references and guidelines relevant to the application of risk management in Telkom include:
1. | ISO 31000 | Enterprise Risk Management as a comparison and implementation complementary. |
2. | ISO 27001 | Information Security Management System (ISMS) as a reference in the development of risk management to ensure Information Security in terms of Confidentiality, Integrity, and Availability. |
3. | ISO 22301 | Business Continuity Management System (BCMS) as a reference in the effort to ensure business continuity. |
4. | ISO 20000 | Information Technology Service Management (ITSM) as a reference to ensure IT service. |
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Professional Certification
Risk Management unit consists of professionals who are experts in their fields. At the end of the reporting period, there were 4 (four) members of Telkom Risk Management unit who have professional certification related to risk management, as follows:
Professional Certification of Members of Telkom Risk Management Unit as of December 31, 2020
No. | Members’Name | Certification | Year of Review | Status | |
---|---|---|---|---|---|
1 | Jajat Sutarjat | Enterprise Risk & Governance (CERG) | 2017 | Active/Extended 2019 to 2021 | |
2. | Moh Ahmad | a. | Enterprise Risk & Governance (CERG) | 2017 | Active/Extended 2019 to 2021 |
| | b. | Certified Risk Professional | 2020 | Active |
3. | Agus Suprijanto | a. | Certified Risk Associate | 2017 | Active/Extended |
b. | Certified Risk Professional | 2020 | Active | ||
4. | Rudi Sudiro Murbonegoro | a. | Certified Risk Associate | 2017 | Active/Extended |
| | b. | Certified Risk Professional | 2020 | Active |
5. | B Nicolaas Freddy | Certified Risk Professional | 2020 | Active | |
6. | Tati Krisnayanti | Certified Risk Professional | 2020 | Active | |
7. | Iswatoen Hasanah | Certified Risk Professional | 2020 | Active | |
8. | Fivtina Merbelanty | Certified Risk Professional | 2020 | Active |
HEAD OF RISK MANAGEMENT UNIT’S PROFILE
Jajat Sutarjat
Personal
O | |
Born | : Bandung, June 27, 1967 |
Age | : 54 years old |
Nationality | : Indonesian |
Education
| |
1991 | Bachelor Degree of Industrial Engineering, Institut Teknologi Bandung, Indonesia. |
2003 | Master Degree of Financial Management, STMB Yayasan Pendidikan Telkom, Indonesia. |
Basis of Appointment
Decision Letter of Telkom Directors No. 781/PS720/HCB 105/2020 dated July 27, 2020 regarding Employee Movements.
Term of Office
August 1, 2020 up to present.
Career Experiences
| |
---|---|
2020 - present | VP Governance & Risk Management. |
2017 - 2020 | Senior Principal Expert Risk and Process Assurance. |
2015 - 2017 | VP Risk & Process Management. |
2012 - 2014 | VP Corporate Strategic Planning. |
2006 - 2012 | AVP in Corporate Strategic Planning. |
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Risk Management’s Organizational Structure
Telkom has formed a Risk Management unit within the Corporate Secretary Department. The appointment and dismissal of Risk Management unit members is carried out by the President Director, HCM Director or SGM HCBP based on Decision Letter of the President Director, HCM Director or SGM HCBP. Currently, number of employees in Risk Management unit are 9 (nine) people. Management of Risk Management function refers to the Directors Regulation and the Director of Human Capital Management Regulation 2020, with the following structure:
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TYPES OF RISK AND MANAGEMENT METHOD
Risk Management unit established by Telkom to help the management to identify strategic risks related to the business processes managed by Telkom. Some of the main risks that affect Telkom's business activities can be seen as follows.
Table of Risk and Management Method
Type of Risk | Risks That Is Faced | The Impact to Telkom | Mitigation/Risk Management | |||
---|---|---|---|---|---|---|
1. | Risks Related to Indonesia | | | |||
Political and Social | The disruption of political stability and social instability to specific issues. | Have negative impact to the business, operation, financial condition, business proceeds and prospect as well as market price for securities. | a. | Monitoring of the influence of social political instability to the disruption of operational/service. | ||
| | b. | The maintenance of awareness through the improvement of safety & security functions. | |||
Macro Economy | The change of global, regional, or Indonesian economic activities. | a. | Have the impact on the business, financial condition, business result or business prospect. | a. | Monitoring of the influence of macroeconomy to the change to increase the expense through Cost Leadership program. | |
| The fluctuation of Rupiah Exchange rate. | |||||
| The increase of loan interest rate. | b. | Have a material adverse effect to the business, financial, condition, business proceeds or business prospect. | b. | To look for the opportunity to increase the spending of APBN pursuant to the Government focus (Maritime, Tourism, Energy, Transportation, etc). | |
| The decrease of Government or Company’s credit rating. | |||||
Risk of Disaster | Flood, thunder, storm, earthquake, tsunami, volcano eruption, epidemic, fire, drought, power shut down and other event beyond Telkom’s control. | Disrupting its business operations and give negative impact to the financial performance and profit, business prospect as well as market price of securities. | a. | Transfer of risk by using the insurance of assets to anticipate the natural disaster and fire. | ||
| b. | Coordination with ASKALSI (Indonesian Sea Cable Association) to secure SKKL. | ||||
| c. | Preventive & corrective action by preparing the disaster recovery plan and crisis management team. | ||||
Other Risks | Indonesian corporate information disclosure standard is significantly different than what is implemented in other countries including the United States of America. | Disrupting its business operation and giving the negative impact to the financial performance and profit, business prospect as well as market price of securities. | The use of a competent legal consultant that has experience with the issues on corporate law in other countries particularly the United States of America. | |||
| The difference in the regulation of dividend determination. | | | |||
| The issue on the legal certainty in Indonesia and United States of America including the implementation of law. | | | |||
| The possibility on the difference in the interest of controlling shareholders with the interest from other shareholders. | | |
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Type of Risk | Risks That Is Faced | The Impact to Telkom | Mitigation/Risk Management | |||
---|---|---|---|---|---|---|
2. | Business Related Risks | | | |||
Operational Risk | The failure in the sustainability of network operation, main system, gateway on Telkom’s network or other operator’s network. | Has the negative impact to the business, financial condition, proceeds from the operation and business prospect. | a. | Implementation of BCM, BCP, and DRP. | ||
| b. | Certification of Integrated Management System (IMS) for infrastructure management. | ||||
| Threat of physical and cyber security, such as theft, destruction, or other action. | Has the negative impact to the business, financial condition, result from the operation materially. | a. | The upgrade of Preventive Action in the form of Vulnerability Assessment and Penetration Test periodically. | ||
| | | b. | Monitor and Identificate all types of attack in the real-time as well as to choose and conduct a necessary action immediately. | ||
| | | c. | Preparing the recommendation to handle cyber attack based on the historical incident analysis. | ||
| | | d. | Intensive coordination with relevant parties to handle the cyber attack. | ||
| Risk regarding internet service. | May face a lawsuit and damage the reputation. | To be more prudent in the preparation of contract with content provider partner. | |||
| Leak of revenue due to the internal capability weakness or external factor. | Has a negative impact to Telkom’s business result. | a. | Acceleration of leak detection time and revenue indicated as an external fraud in real-time. | ||
| | | b. | Monitoring the critical point of the leak of revenue especially on the rejected billing call. | ||
| New technology. | Has an impact on the competitive power. | a. | The preparation of Technology Roadmap by taking into account future technologies and the possible implementation of competitor’s technologies. | ||
| | | b. | Acceleration of IDN (Indonesia Digital Network) program to support future services. |
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Type of Risk | Risks That Is Faced | The Impact to Telkom | Mitigation/Risk Management | |||
---|---|---|---|---|---|---|
| The limit of operation period, damage or ruin, delay or failure to launch, or the revocation of Satellite license. | Can create loss to financial condition, operation result and capability to give services. | a. | The planning to change the Satellite of which operation period will be immediately expired. | ||
| | b. | The insurance of Satellite operation during the active period. | |||
| | | c. | Insurance for Manufacturing and Launching of new Satellite. | ||
| | | d. | Developing the understanding with Regulator in relation to the Satellite operation by Telkom. | ||
Financial Risk | Interest Rate Risk. | Has an adverse effect to the business, financial condition and result from the operation. | Interest rate swap contract from the float interest rate to become the fix interest rate upon certain loan term. | |||
| Foreign exchange rate risk. | Has negative impact on the financial condition or result from the operation. | Placement of time deposit and hedging to cover the fluctuation risk of foreign exchange. | |||
| The limit to fund capital expenditure. | Has a material adverse effect to the business, financial condition, operational performance, and business prospect. | Maintaining and improving the Company’s performance to obtain the trust from National or Global fund institution/source. | |||
Legal and Compliance Risk | Penalty/fine by KPPU in relation to the price-fixing and the occurrence of class action. | Reducing Telkom’s revenue and has negative impact to the business, reputation, and profit. | Strengthening Legal Review towards corporate action plan or certain contract. | |||
Regulation Risk | The change of Indonesian or International Regulation. | Has the impact to the business, financial condition, operational performance, and business prospect. | a. | Analysis on the impact of the regulation plan towards the industry in general and Telkom in particular. | ||
| | | b. | Giving inputs so that the regulation that will be stipulated will give positive impact to the Company and industry. | ||
Risk in relation to Fix and Mobile Telecommunication Business | Losing the cable phone customers and revenue from the service of cable phone voice call. | Has a material adverse effect on the result from operation, financial condition, and Telkom’s business prospect. | a. | Improving QoS – Quality of Service for cable phone customers. | ||
| | | b. | Giving Value Added Service. | ||
| Competition on the internet service (Fixed Broadband). | Has a negative impact on the business, financial condition operational performance and business prospect. | a. | Strengthening the perception and quality of IndiHome as New Digital Life Style. | ||
| | | b. | Acceleration on the launching of the infrastructure for fixed broadband service. | ||
| The competition on mobile service. | Has a negative impact on the business, financial condition operational performance and business prospect. | a. | Acceleration of the launch of the infrastructure for 4G service. | ||
| | b. | Improving QoS – Quality of Service. |
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RISK MANAGEMENT SYSTEM’S REVIEW ON THE EFFECTIVENESS
Throughout 2020, Telkom Risk Management System was implemented effectively. The current system can manage various Telkom business risks to support every policy and process in Telkom and its subsidiaries. Telkom uses a risk management information system as an infrastructure to support the effectiveness of risk management system, including:
| ||
1. | Generic Tools Enterprise Risk Management Online (ERM Online) which is used by all units to manage Risk Register. | |
2. | Specific Tools for certain risk management which are: | |
| a. | Fraud Management System (FRAMES) application is used as an early detection system for the possibility of Customer Fraud. |
| b. | i-Library application managed by Service Operation Division and to be used to manage the documentation system of the Integrated Management System. |
| c. | SMK 3 Online application managed by Security & Safety unit for Health and Safety documentation management. |
In 2020, Telkom has conducted an evaluation process for evaluating the effectiveness of Risk Management Implementation, which are:
1. | One-on-one Evaluation/discussion with the business unit as necessary. |
2. | Workshop for sharing the implementation and development of ERM with the subsidiaries as necessary. |
3. | Audit Program on Risk Management implementation as necessary. |
4. | Evaluation with Risk Committee, Compliance, and Revenue Assurance in Board of Directors level as necessary. |
5. | Evaluation with Committee for Planning and Risk Evaluation and Monitoring (KEMPR) as necessary. |
6. | Assessment Risk Maturity Level implementation of risk management by Consultants. |
RISK MANAGEMENT UNIT’S ACTIVITIES
In 2020, Risk Management unit has carried out its duties and responsibilities in managing various Company’s risks. In more detail, the duties and responsibilities that have been carried out are as follows:
| |
1. | Manage Enterprise Risk Management policies. |
2. | Providing advisory risk management in the units and subsidiaries. |
3. | Manage tools and applications for Risk Management information systems in unit and subsidiaries (ERM Tools). |
4. | Conduct an assessment of Long Term Corporate Planning risks, Short Term Corporate Planning risks and Specific risks. |
5. | Conduct an ICOFR risk assessment. |
6. | Conduct a Business Process Fraud risk assessment. |
7. | Conducting risk reviews of new business initiatives (Organic and Inorganic) and solving business problems. |
8. | Provide advisory and support for the renewal of Telkom's Asset Insurance Policy. |
9. | Coordinating the management and implementation of Business Continuity Management. |
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RISK MANAGEMENT UNIT’S EDUCATION AND TRAINING
In order to improve the competence and quality of the Risk Management unit, Telkom engages members of Risk Management unit in various education and training courses. Telkom also regularly conducts outreach and workshops in the Company environment, divisions and subsidiaries regarding risk management. The socialization and workshop aims to make all units within Telkom have the same understanding in the application of risk management.
The following table describes the risk management training activities throughout 2020.
Risk Management Training in 2020
ate | ||||
---|---|---|---|---|
No. | Date | Name | Training Activities | Organization Instituiton |
1. | November 4-7, 2020 | Training and Certification of Certified Risk Management Association | Risk Management Certification | TAP Kapital Indonesia |
2. | November 24-30, 2020 | Training and Certification of Certified Risk Management Professional | Risk Management Certification | TAP Kapital Indonesia |
3. | November 11-19, 2020 | Training of ISO 22301:2019 Business Continuity Management | Risk Management Training | PT Sucofindo Prima Internasional |
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WHISTLEBLOWING SYSTEM
Since it was formed in 2006 up to 2020, Telkom has operate the violation reporting system, known as the Whistleblowing System (WBS). This mechanism allows all individuals within Telkom and third parties to report violations, fraud or other forms of ethical violations that occur at Telkom. All individuals at all levels of Telkom's staffing, including the Board of Directors, the Board of Commissioners and committee members under the Board of Commissioners, are entitled to take advantage of WBS.
Currently, WBS has been managed by Audit Committee through Resolution of the Board of Commissioners and ratified by Resolution of the Board of Directors. Every year, Telkom socializes WBS to employees so that the mechanism can be used properly and effectively.
DELIVERING A VIOLATION REPORT
Reports or complaints of violations can be submitted via website, e-mail, fax, or letter with address:
Audit Committee PT Telkom Indonesia (Persero) Tbk The Telkom Hub, Telkom Landmark Tower 40th Floor Jl. Jend. Gatot Subroto Kav. 52, Jakarta, 12710 Email: whistleblower@telkom.co.id; ka301@telkom.co.id Fax: +6221 5271800 Website: www.telkom.co.id |
Complaints must meet the following conditions:
| |
1. | It is submitted through the website, e-mail, fax or letter. |
2. | Complaints submitted related to the issue on internal control, accounting, auditing, breach of regulation, allegation on the fraud and/or allegation of corruption, and the breach of code of ethics. |
3. | The information that is reported must be supported with sufficient evidence and those are reliable to be used as the initial data to conduct further investigation. |
PROTECTION TO THE COMPLAINANT
Telkom guarantees protection of the identity of the reporter who utilizes the WBS mechanism. This is based on the following internal policies:
1. | Resolution of the Board of Commissioners No. 08/KEP/DK/2016 dated June 8, 2016, regarding Policy Procedures for Complaints Handling (Whistleblower) of PT Telkom Indonesia (Persero) Tbk and Consolidated Subsidiaries. |
2. | Directors Regulation No. P.6.618.00/r.00/HK200/COP-C0000000/2016 dated December 21, 2016. |
3. | Resolution of the Board of Commissioners No. 01/KEP/DK/2018 regarding Standard Operating Procedure of the Whistleblower System at Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk and Consolidated Subsidiaries. |
In following up on any complaints or reports, WBS Telkom mechanism promotes the confidentiality and presumption of innocence. The aim is to encourage safe reporting of violations without fear or concern for their safety.
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THE COMPLAINT HANDLING
Telkom operates the mechanism of Whistleblowing System is responsibility of Audit Committee. Referring to the Regulation of OJK No.55/POJK.04/2015 and Sarbanes-Oxley Act 2002 Section 301 regarding Public Company Audit Committee. All complaint reports handled by Audit Committee cover the following topics:
| |
---|---|
1. | Accounting and auditing. |
2. | Violation of regulation. |
3. | Fraud and/or the allegation of corruption. |
4. | Code of conduct. |
To fulfill a responsibility and not slanderous complaint report against someone, Telkom determines certain complaint requirements. In order for reports to be immediately followed up, it is necessary to ensure the correctness and accuracy of the information supported by sufficient data. Some WBS complaints cannot be followed up due to inaccurate and unreliable data and information.
THE COMPLAINT HANDLING MECHANISM
The following is a diagram of Telkom's WBS complaint mechanism.
Remarks:
| |
KEKD | Komite Etika dan Kepatuhan & Disiplin (Ethics and Compliance & Discipline Committee) |
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THE PARTY THAT MANAGES THE COMPLAINT
WBS mechanism at Telkom is managed by several parties which are Whistleblower Protection Officer (WPO), Audit Committee, and Investigation Committee with their respective duties and responsibilities.
Whistleblower Protection Officer (WPO) is a member of Audit Committee whose job is to handle complaints by doing the following:
1. | Receiving the complaint. |
2. | Administering the complaint. |
3. | Conducting the initial verification of whether the complaint is in line with the criteria. |
4. | Monitoring the follow up of the complaint. |
The Audit Committee through meetings determines decisions relating to:
1. | Approval to follow up or not to receive complaints. |
2. | Approval whether the complaint is followed up to internal or external parties. |
3. | Assessment whether the follow up of complaints is adequate or not. |
Internal Auditors play a role in:
1. | Conducting the initial assessment of the complaint received by Audit Committee. |
2. | Preparing initial assessment reports and submitting the reports to the President Director to be copied to Audit Committee. |
The Investigation Committee has a role in:
1. | Conducting further investigation upon the complaint that has been initially assessed by Internal Auditor. |
2. | Preparing reports on the result of further investigation and submitting the reports to the President Director to be copied to the Audit Committee. |
THE RESULT OF COMPLAINT HANDLING
Throughout 2020, Telkom received 48 complaints through the WBS mechanism. From these total, 1 complaint was meet the requirement to be followed up in accordance with the WBS criteria and procedures and total of 47 complaints were service-related complaints. Service complaints have been forwarded to management through Internal Audit unit to be informed and followed up with the related work units.
Description | Total | Remarks | |||
---|---|---|---|---|---|
2020 | 2019 | 2018 | |||
Total Complaint | 48 | 44 | 24 | Received complaints | |
Fulfill the requirements | 1 | 5 | 5 | Complaints proper to be followed up | |
Follow-up | | | | | |
1. | Exploring and further examining complaints in accordance with Company policies and procedures | 1 | 5 | 5 | |
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THE POLICY OF REPORTING SHARE OWNERSHIP OF DIRECTORS AND COMMISSIONERS
Telkom complies with OJK Regulation No. 11/POJK.04/2017 regarding Report of Ownership or Any Change in Share Ownership of Public Companies by requiring each member of the Board of Directors and the Board of Commissioners of Telkom to periodically report any changes in share ownership directly or indirectly through the Board Manual of the Board of Directors and the Board of Commissioners that listed in the Joint Regulation of the Board Commissioners and Directors Number: 08/KEP DK/2020 and Number: PD.620.00/r.00/HK200/COP-M4000000/2020 regarding Guidelines for Work Procedure of the Board of Commissioners and Directors (Board Manual) of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk. In 2020 Financial Year Report, Telkom provides information about share ownership by members of the Board of Directors and the Board of Commissioners, as well as the changes, in the “Shareholder Composition” section.
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EMPLOYEE STOCK OWNERSHIP PROGRAM
Telkom has a stock ownership program by employees and/or management, called Employee Stock Ownership Program (ESOP) and/or Management Stock Ownership Program (MSOP). This program was held at the time of Initial Public Offering (IPO) in 1995. Then Telkom implemented the program again share ownership in 2013.
Until the end of the reporting period, the program has not been carried out by Telkom. Therefore, throughout 2020 there is no updated information regarding the number and/or options, implementation period, eligible requirements and/or management, and implementation price displayed in this report.
Table of Telkom ESOP/MSOP as of December 31, 2020
No. | Date | Number of Employees | Number of Shares | Stock Value |
1. | November 14, 1995 | 43,218 | 116,666,475 shares | Rp239 billion |
2. | June 14, 2013 | 24,993 | 59,811,400 shares (equivalent to 299,057,000 shares after a stock split) | Rp661 billion |
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SIGNIFICANT LEGAL DISPUTES
In 2020, Telkom as a business entities faced 76 important cases consisting of 33 criminal law cases and 43 civil law cases. From all of those, total 43 cases are continuation from the previous year and 33 started in 2020. There are 65 unfinished cases as of December 2020 and the process will continue for the next year.
Recapitulation of Lawsuits Cases in 2018-2020
Legal Issues | ||||||
Status | 2020 | 2019 | 2018 | |||
Criminal | Civil* | Criminal | Civil | Criminal | Civil | |
In process | 29 | 36 | 26 | 44 | 14 | 38 |
Final and binding (inkracht) | 4 | 7 | 3 | 8 | 22 | 27 |
Sub Total | 33 | 43 | 29 | 52 | 36 | 65 |
Total | 76 | 81 | 101 |
Remark:
* Combination of Civil and Non-Litigation Cases
Significant legal problems and faced by Telkom can be seen in the following table.
Telkom Significant Legal Disputes
Object of Dispute | Type of Court | Status of Dispute | Risk | Demand Value | Financial Implications |
Telkom was appointed at DKI Jakarta High Court on suspicion of bad faith in terminating the transponder service to PT Citra Sari Makmur (PT CSM) | High Court and Supreme Court | Supreme Court of Republic of Indonesia has issued a Cassation Decision to reject the appeal from the Cassation Petitioner | None | Rp16 trillion | None |
Throughout 2020, apart from the important cases faced by Telkom, there were no important civil or criminal cases faced by members of the Board of Commissioners and Directors of Telkom, both of those who were still serving and those who had ended their positions.
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INFORMATION REGARDING ADMINISTRATIVE SANCTIONS
Throughout 2020 Financial Year period, there were several records relating to administrative sanctions imposed on Telkom, members of the Board of Commissioners and/or Directors by the Capital Market authorities and other authorities.
Administrative sanctions can be seen in the following table.
Administrative Sanctions in 2020
No. | Sanctioned Parties | Explanation of Administrative Sanctions | Sanctioning Authority | Financial Impact |
1. | PT Telkom Indonesia (Persero) Tbk | Written Warning I for untimely submission of Response in regards to the explanation’s request sent by Indonesia Stock Exchange. | Indonesia Stock Exchange | None |
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INFORMATION ACCESS AND COMPANY‘S PUBLIC DATA
Telkom has tried to provide access to information and strives to establish a good relationships with stakeholders through various approaches and media. This is also carried out to comply with the provisions of Regulation of OJK No. 31/POJK.04/2015 regarding Transparency of Material Information and Facts by Issuers or Public Companies.
Up to the end of report period, Telkom has approached and organized the line of communication lines as follows:
| . |
1. | General Meeting of Shareholders (GMS) |
| Through the GMS, Telkom provides information related to Company performance to shareholders. In the GMS, Shareholders participated in decision making, especially for strategic matters. |
| . |
2. | Media |
| Throughout 2020, Telkom made news releases and sent them to the mass media to disseminate Company information to stakeholders. |
| . |
3. | Website |
| Telkom provides a website with a page www.telkom.co.id which is available in Indonesian and English. The latest information about Telkom can be accessed by stakeholders through the website, including regarding profiles, corporate governance, CSR programs, careers, and products from Telkom. Reports that can be accessed through this page including annual reports, financial reports, and other reports to stakeholders. |
| |
4. | Meeting with Analyst and Investor |
| Telkom always held meetings with analyst and investor. This meeting is held for Telkom to provide information on the Company's performance and prospects as well as providing the latest information on the telecommunications industry in general. In times of pandemic, meetings with analysts and investors are held online. |
5. | Contact Via E-Mail |
| One of the corporate contact facilities listed on the Telkom website is in the form of e-mail contacts, which can be used by stakeholders to communicate with each other. Specifically, Telkom customers can use the e-mail address customercare@telkom.co.id, while the e-mail address Investor@telkom.co.id is intended for investors. |
V | |
6. | Internal Media |
| Telkom has an Intra Telkom bulletin which is managed as a means of information, education, and outreach to all internal employees of the Company. |
V | |
7. | Social Media |
| In line with the current digital era, Telkom uses a variety of social media to reach out to stakeholders and the wider community. This communication channel is also useful for communicating with young people who are very familiar with digital media and social media today. |
Social Media | Youtube | |||
Account | @TelkomIndonesia | Telkom Indonesia | @telkomindonesia | Telkom Indonesia Official |
Followers/Subscribers/Fans | 135.227 Followers | 450.221 Fans | 445.764 Followers | 13.467 Subscribers |
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CORPORATE CODE OF CONDUCT
CODE OF CONDUCT’S IMPLEMENTATION FOR BOARD OF DIRECTORS, BOARD OF COMMISSIONERS AND EMPLOYEES
The implementation of Telkom’s code of conduct has met the provisions of Circular Letter of Financial Service Authority No. 32/SEOJK.04/2015 regarding Governance Guidelines for Public Companies. In addition, the implementation of Telkom's code of conduct is also in accordance with the Sarbanes-Oxley Act (SOA) 2002 section 406. Telkom has a code of conduct which is stipulated in the Board of Directors Regulation No.PD.201.01/2014 regarding Business Ethics in the TelkomGroup Environment and Regulation of the Director of Human Capital Management No.PR.209.05/r.01/HK250/COP-A4000000/2020 regarding Employee Discipline.
This code of conduct applies to all levels of the organization including members of the Board of Directors, members of the Board of Commissioners, and the extend family of Telkom employees. Telkom’s code of conduct covers business ethics aimed at the external environment and employee work ethics aimed at Telkom’s internal. Business ethics for the external environment dealing with customers, suppliers, contractors, and other external parties. On the other hand, employee work ethics applies to fellow employees while working at TelkomGroup.
Furthermore, Telkom also has a Board Manual which contains the duties and responsibilities of the Board of Commissioners and Directors also regulates the code of conduct which must be followed by all members of the Board of Commissioners and Directors. The Board Manual which was approved through Joint Regulation of the Board of Commissioners and Directors No. 08/KEP/DK/2020 and No.PD.620.00/r.00/HK200/COP-M4000000/2020 dated June 18, 2020.
In addition to code of conduct, Telkom requires employees, Directors, and the Board of Commissioners to sign an Integrity Pact. The Integrity Pact contains the commitment of employees and Directors not to violate the integrity and established code of ethics which includes Resolution of the Board of Directors Number KD.36/HK290/COP-D0053000/2009.
CODE OF CONDUCT’S PRINCIPLES
The Telkom Code of Conduct, which applies, among others, regulates the main matters concerning:
hich is the system of values or norms that are used by all employees and leaders in the daily work. | |
1. | Employee Ethics |
| The system of values or norms that are used by all employees and leaders in the daily work. |
| |
2. | Business Ethics |
| The system of values or norms that are upheld by the Company as guidelines for the company, management, and its employees to interact with the surrounding business environment. |
CODE OF CONDUCT’S SOCIALIZATION AND EFFORTS TO ENFORCE THEM
Violation of the code of conduct will potentially lead to sanctions determined after going through an investigation and various considerations. Telkom's code of conduct has set the provisions related to sanctions for each type of violation as follows:
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No. | Main Ethics | Type of Violation | Penalty | |
1. | Employee Work Ethics | 1. | Minor Abuse | Minor Disciplinary Punishment |
2. | Medium Violation | Medium Disciplinary Punishment | ||
3. | Severe Offense | Severe Disciplinary Punishment | ||
2. | Business Ethics | 1. | Insider Trading | Integrity Committee Decision |
2. | Conflict of Interest | Employee Discipline Committee Decision | ||
3. | Windows Dressing | Integrity Committee Decision | ||
4. | Gratifying | Employee Discipline Committee Decision |
EFFORTS TO DISSEMINATION OF CODE OF CONDUCT
In order to socialize Telkom's Code of Conduct, routinely, Telkom management sends outreach materials related to code of conduct to employees which also covers topics on GCG, business ethics, integrity pacts, fraud, risk management, internal control (SOA), whistleblowing, prohibition of gratification, IT governance, information security, and other matters related to good and ethical corporate governance practices. Telkom is consistent in disseminating business ethics through various media, including e-learning.
In addition, another approach to socialized is through the obligation to make a statement in the form of an integrity pact signed and compiled by all employees every year as long as they are employee of Telkom.
In 2020, efforts to disseminate Telkom’s code of conduct can be seen in the following table:
Table of Code of Conduct Socialization 2020
No. | Oncoming | Amount Reached |
1. | E-learning | All employees |
2. | Face to face (training, communication forum/workshop) | All employees |
3. | Socialization material through the intranet portal | All employees |
REPORT ON RESULTS OF APPLICATION OF CODE OF CONDUCT
Telkom recorded a total number of violations of the code of ethics in 2020 of 10 (ten) cases consisting of 22 (twenty two) perpetrators of violation. This total number is higher than the previous year of 2 (two) cases consisting of 18 (eighteen) perpetrators of violations. In general, the trend in the quality of the adoption of the code of ethics was need improvement throughout 2020 as seen from the number of cases that increase in 2020.
The following table provides data on the form of violations of the code of ethics, the number of violations and sanctions provided in 2020.
Results of Code of Conduct in 2020
No. | Forms of Code Violation | Number of Code Violations in 2020 | Sanctions Given in 2020 | |
1. | Misuse of goods/assets/money/position authority | 6 cases | Disciplinary Punishment: | |
| | | Minor | : 2 Peoples |
| | | Medium | : 5 Peoples |
| | | Severe | : 8 Peoples |
| | | On Progress | : 3 Peoples |
2. | Absenteeism | 2 cases | Dismissal | : 2 Peoples |
3. | Criminal Case | 2 cases | Scorsing | : 1 Person |
| | | Dismissal | : 1 Person |
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CORPORATE CULTURE
CORE VALUES AKHLAK
In 2020, based on Circular of the Minister of SOE Number: SE 7/MBU/07/2020 dated July 1, 2020 regarding Core Values of Human Resources of State-Owned Enterprises, every State-Owned Enterprise (SOE) is obliged to implement the main values called AKHLAK. AKHLAK is defined as Trustworthy, Competent, Harmonious, Loyal, Adaptive, and Collaborative values that underlie the behavior of BUMN personnel.
In order to answer these directions and in line with Telkom's Corporate Strategy Scenario 2021-2025, which mandates the Company to Align Ways of Working Under Digital Age, TelkomGroup as one of the SOEs is committed to implementing Core Values AKHLAK. One form of TelkomGroup's commitment to implementing Core Values AKHLAK is by carrying out the pledge and commitment by all TelkomGroup Directors to carry out AKHLAK and become a role model for its implementation at the TelkomGroup Leadership Meeting on 23 July 2020. This pledge and commitment is also followed by all TelkomGroup employees. Furthermore, the Company also issued a Regulation of the Director of Human Capital Management regarding the implementation of Core Values AKHLAK in TelkomGroup.
EVALUATION OF COMPANY CULTURE
Telkom evaluates the company culture using AKHLAK Culture Health Index (ACHI) measurement to determine the level of effectiveness of the implementation of the company culture. The value is measured as a whole or specifically which leads to the internalization of Core Value AKHLAK. ACHI measurement carried out in 2020 is a measurement of the baseline value in the implementation of Core Value AKHLAK. Results of ACHI measurement as a baseline in 2020 are in the fairly healthy category.
COMPANY CULTURE ACTIVATION PROGRAM
In the Company culture activation program, both the TelkomGroup CEO and unit leaders act as role models who are the main movers in the program. In its implementation, the unit leader appoints a Culture Agent to ensure that the internalization of culture through the participation of all employees has gone well. The current number of Culture Agents is 1,977 people, consisting of 1,357 people from units in Telkom, and 620 people from subsidiaries. A Culture Agent must take part in the Culture Agent on Boarding program in order to have an understanding and knowledge of the same Company culture. Then the unit leader will be assisted by a Culture Agent to form a forum called the Cultural Activation Provocation Community (Kipas Budaya) for the implementation of cultural activation in each unit.
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CALENDAR OF CULTURE ACTION
Every year, the Company sets a program theme for Company culture. The theme for 2020 is Culture to Commerce. This theme is in line and supporting Company's main program because Company culture activities must work in synergy with the Company’s goals.
This theme is a foundation to prepare the Company culture activities. With the Calendar of Culture Action (COCA) as a reference, it will be easier for each unit to compile and implement various cultural activation programs, because these activities are systematically arranged in the COCA every year. The culture activities that carried out must be able to instill AKHLAK values into daily behavior in order to improve the Company’s performance.
Throughout 2020, Telkom has built Core Value AKHLAK's culture, which includes how to work in the digital era through virtual training, namely:
1. | AKHLAK training specifically for TelkomGroup Top Leader, total 2 batch. |
---|---|
2. | AKHLAK training for Culture Agent and Culture Booster, total 4 batch. |
3. | AKHLAK training for TelkomGroup employees, which attended by 8,876 employees, which also attended by 421 employees from 108 SOE. |
4. | AKHLAK Training for Trainer for expert, total 1 batch. |
5. | E-learning AKHLAK and Telkom CODES, which attended by 24,865 TelkomGroup employees. |
BUILDING DIGITAL CULTURE
Telkom strives to continuously carry out digital transformation by updating Company culture program in order to encourage changes in mindset, behavior, capability and digital-oriented skill with AKHLAK benchmarks as the Company’s value system.
Telkom has a main program to develop the digital culture which is Hack Idea activity that has been started since 2017. Hack Idea is an innovation exchange platform between employees such as design sprints, design thinking, experiments, and collaboration. The initial series of activities through Talent Booster, which is a knowledge development and innovation capability through class room and e-learning learning methods followed by the innovation result assesment. For the innovation that qualified will enter the development stage under the guidance of experienced mentors and facilitated by the company in a program called Amoeba that has produced various products and development of internal digital-based business processes.
Telkom using various digital tools in Telkom's business processes such as corporate portal as daily application which includes e-office, e-budgeting, file sharing, collaboration (Diarium), career & succession management (Ingenium), learning & knowledge management (Cognitium), and others.
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CORPORATE SOCIAL RESPONSIBILITY (CSR)
250 | The Governance of Corporate Social Responsibility |
255 | Business Integrity, Human Rights and Fair Practices |
261 | Goods and Services Responsibility |
266 | Social Responsibility for Employment |
274 | Social Responsibility for Community Engagement and Development |
279 | Environmental Responsibility |
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THE GOVERNANCE OF CORPORATE SOCIAL RESPONSIBILITY
As a leading business in the Indonesian telecommunications industry, TelkomGroup also carries out social responsibility towards its stakeholders. With the paradigm of “Telkom ada untuk Indonesia, tumbuh dan berkembang bersama-sama masyarakat Indonesia,” which means "Telkom exists for Indonesia, grows and develops together with the Indonesian people," Telkom believes that increasing the welfare of stakeholders, including society, and environmental sustainability will also impact the sustainability of the Company. Therefore, TelkomGroup is committed to carrying out social responsibility by applying the principle of “profit-people-planet” (“3P”) or often referred to as “environmental, social, and governance” (“ESG”), as well as contributing to the Sustainable Development Goals (SDGs).
THE COMMITMENT AND POLICY OF CORPORATE SOCIAL RESPONSIBILITY
TelkomGroup's commitment to social responsibility is based on the principles of good corporate governance or GCG, as well as a company code of ethics that all Telkom and its subsidiaries employees must comply with. This commitment is also stated in various Telkom policies, one of them is the Board of Directors Regulation No.PD.701.00/1.00/PR/000/COP-A3000000/2014 dated 14 October 2014, regarding Management of Telkom Corporate Social Responsibility (Telkom CSR).
Furthermore, Telkom as a state-owned enterprise is also required to carry out the Partnership and Community Development Program (PKBL) following the resolution of the Ministry of State-Owned Enterprises (Ministry of SOE). This is stated in the last revision of the Ministry of State-Owned Enterprises’ Regulation of Indonesia Number PER-02/MBU/04/2020 regarding the Third Amendment to the Ministry of State-Owned Enterprises’ Regulation Number PER-09/MBU/07/2015 regarding Partnership Programs and Community Development Programs of State-Owned Enterprise. Under this regulation, TelkomGroup is obliged to carry out various programs to improve socio-economic, community welfare, and nature conservation.
Currently, the PKBL management policy refers to Regulation of the Board of Directors’ No.PD.702.00/r.01/PR000/CDCA1040000/2017 dated 19 December 2017 regarding the management of the Partnership Program and Community Development Program. Its implementation is technically regulated in the Regulation of the Director of Human Capital Management No.PR.702.01/r.01/PR000/CDC-A10400002018 dated 26 February 2018 regarding Guidelines for the Operational Implementation of the Partnership Program and Community Development Program.
The scope formulation of corporate social responsibility is currently being carried out by considering the context of TelkomGroup sustainability, related regulations, and international standards. The implementation of Telkom's corporate social responsibility (CSR) consists of the Partnership Program, the Community Development Program, and the CSR-PR Program. In practice, Telkom CSR has scope in various aspects related to its operational activities and considers the expectations and interests of stakeholders. Those aspects are respecting Human Rights, consumer issues, labor practices, environmental preservation, and community empowerment as well as fair practices, such as anti-corruption, business competition, and intellectual property rights (IPR).
Furthermore, with the issuance of Presidential Decree (Perpres) No. 59 Year 2017 regarding Implementing the Achievement of Sustainable Development Goals, Indonesia has determined the Sustainable Development Goals (SDGs) as a national development platform. Therefore, the implementation of TelkomGroup's social responsibility also aims in contributing to Sustainable Development Goals (SDGs). The SDGs' aspects are health and welfare, high-quality education, gender equality, use of clean energy, good employment, and economic growth, infrastructure development especially digital telecommunications, and sustainable urban settlements.
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Other regulations that form the basis of TelkomGroup's social responsibility are OJK Regulation No.51/POJK.03/2017 regarding the Implementation of Sustainable Finance for Financial Service Institutions, Issuers, and Public Companies. As a company listed on the Indonesia Stock Exchange, Telkom is obliged to comply with this regulation and make POJK No.51/2017 as one of the foundations for corporate social responsibility.
In implementing social responsibility, TelkomGroup respects and considers the expectations of stakeholders. Telkom's stakeholders are customers, employees, shareholders and investors, the Government of Indonesia, partners, creditors, community, and the mass media. TelkomGroup has various mechanisms and approaches for engaging the parties, such as customers, investors, and the Government, as well as employees. By using social media and other digital technologies, Telkom accommodates their aspirations as a consideration the social responsibility implementation.
Furthermore, in the social responsibility implementation, TelkomGroup complies with applicable laws and is consistent with international norms of behavior. One of them is that the TelkomGroup respects human rights in conducting its business following the international human rights conventions and the Human Rights Law. In the employment aspect, TelkomGroup strives to meet work health and safety following the international standards and best practices in telecommunications industry.
Throughout 2020, Telkom strived to encourage socially responsible behavior in all parts of the organization, including the units, functions and divisions of the parent company and subsidiaries. It was achieved based on the socialization of the Company code of ethics and the development of corporate culture to all TelkomGroup personnel.
The organization and its arrangement of Telkom CSR initiatives is based on industry needs and characteristics. Nowadays, Telkom CSR consists of the Partnership Program, the Community Development Program, and the CSR-PR Program. The Partnership Program and Community Development Program (PKBL) are under the authority of the Community Development Center (CDC) unit. Then, the Sub Department of Corporate Communication program is authorized to manage the CSR-PR Program.
In terms of financing, Telkom's social responsibility budget comes from operating expenses recorded as the CSR budget according to the Board of Directors’ Regulation No.PD.701.00/2014 dated October 14, 2014. The total budgeted and realized funds for 2020 show in the following table.
Unit | Budget (Rp billion) | Realization (Rp billion) |
Sub Department Corporate Communication | 50.76 | 23.69 |
Community Development Center (CDC) | 348.94 | 346.39 |
The budget increased compared to 2019 of Rp49.5 billion for the Corporate Communication Sub Department, and it decreased from 2019 for CDC of Rp368.70 billion. Regarding the handling of COVID-19, Telkom disbursed funds of Rp5.21 billion under the Corporate Communication Sub-Department Unit and Rp35.7 billion under the CDC Unit, which mostly use for PPE, medicines, medical device assistance, Social Security Networks, Iftar Ramadhan Package, Orphans & Santri Donation Package, and COVID-19 pandemic response activities.
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THE FORMULATION OF CORPORATE SOCIAL RESPONSIBILITY
Telkom formulates the social responsibility and community development programs to fulfill its principles and perform them through internal discussions involving the CDC Unit and the Corporate Communication Sub-Department. In line with the identification of primary social, economic, and environmental issues, Telkom has also identified significant stakeholders affected or influencing the Company's operations.
The identification and formulation of corporate social responsibility and significant stakeholders are approached by defining the priority impacts directly and indirectly on the Company's core activities. Telkom also regularly reviews all regulations, including regulations related to social responsibility issues.
By referring to international standards, such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standard Board (SASB), ISO 26000 Guidance for Social Responsibility, and Sustainable Development Goals (SDGs), the formulation mechanism for important social responsibility issues is carried out with internal analysis and discussion related to the sustainability context of the Company and its stakeholders. Telkom also formulates various potential risks from corporate social responsibility failure. In addition, Telkom also formulates stakeholder expectations of the Company’s social role.
THE PLANNING OF CORPORATE SOCIAL RESPONSIBILITY
Telkom's CSR strategy and planning refer to the previous formulation results of Telkom's social responsibility. Telkom currently has social responsibility initiatives that serve as guidelines to reduce the negative impact of various decisions and activities of the Company. Telkom shows its commitment to creating advantages for the Company, stakeholders, and sustainable development in this CSR or strategic SR initiative. For preparing Telkom's CSR strategy, stakeholder engagement, and analysis of the TelkomGroup sustainability context, including referring to international regulations and standards, to be the fundamental mechanisms and approaches in formulating CSR initiatives or strategies.
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The following is the framework of social responsibility initiatives for Telkom and its subsidiaries.
TelkomGroup’s Social Responsibility Initiatives
The Mechanisms and Approaches | Topic and Initiative | Engagement of the Main Stakeholders | Direct and Indirect Major Impacts |
---|---|---|---|
Company’s Vision and Mission International Standard Regulation | Sustainable in Business and Use of Technology ● Environmental footprint & energy ● Managing systemic risks ● Product end of life and e-waste management | Strategic and comprehensive engagement of the main stakeholders: ● Customers ● Employees ● Shareholders and investors ● The Government of Republic of Indonesia ��� Partners ● Creditor ● Community ● Mass media | The use of technology hardware and infrastructure would impact the environment and the carbon footprint of greenhouse gases. Besides, the no longer used hardware and infrastructure would be possible to become waste that damages the environment. Therefore, Telkom needs to manage this impact. |
Protection of Data & Information ● Data privacy & data security | Data and information protection is an essential aspect of the digital telecommunications industry, especially in maintaining the trust of the parties of TelkomGroup. | ||
Engagement with Customer ● Customer satisfaction & loyalty | Customers' engagements need to be organized by Telkom to ensure their satisfaction and loyalty. Thus, Telkom will maintain the stability of its market share and revenue. | ||
Employee Digital Professionalism & Development ● Training & education ● Occupational health & safety ● Business process digitization | The development of professional human resources based on digitalization is one of the significant aspects of TelkomGroup's sustainability in the transformation to be a world-class digital telco. | ||
Digital Economy & Social Value ● Economic impact ● Social impact | Community socioeconomic empowerment, especially in the digital economy, is an essential aspect for TelkomGroup to ensure its sustainability. TelkomGroup is looked forward to having a role in stimulating the development and growth of the digital economy. |
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THE IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY
There are several functions in Telkom that currently play a role as work organizations that manage the coordination of CSR implementation. The Community Development Center (CDC) Unit manages the Partnership Program and Community Development Program (PKBL), while the Corporate Communication Program Sub Department is authorized manage the CSR-PR Program.
Furthermore, the engagement and involvement of relevant stakeholders in the Company's CSR initiatives are achieved strategically and comprehensively. One of them is Telkom involving customers in determining the level of customer satisfaction through a survey mechanism. Then, employee involvement is also performed to develop and implement social responsibility in the employment sector, such as work health and safety, and the Collective Labor Agreement (PKB) drafting. The community as a stakeholder is also involved in the planning and implementation of community empowerment programs, both through community development programs and other programs.
| | ||
The Commitments of TelkomGroup’s Corporate Social Responsibility | |||
1. | Commitment for Customers | ||
| a. | Provide clear and understandable information about the customers' rights and obligations before the contract/subscription signing of both parties. | |
| b. | Deliver customer rights in providing services as agreed in the Service Level Guarantee (SLG). | |
| c. | Provide and manage customer contact media to make it easier for customers to submit complaints, feedback, and find information about products/services. | |
2. | Commitment for Partners | ||
| a. | Provide increased skills, competencies, and training on products/services, service procedures, and service ethics to agents, resellers, installers, and setters to provide product and service knowledge to improve service to customers. | |
| b. | The procuring process of goods and services is a fair, transparent, and accountable manner by involving prospective suppliers/partners who have a good reputation, following applicable laws and regulations and the principles of GCG. | |
| c. | Obliged to select and evaluate work partners objectively. | |
3. | Commitment for Competitors | ||
| a. | Efforts to obtain information about competitors' businesses are conducted lawfully and obtained from legitimate sources. | |
| b. | It is prohibited to obtain competitor information by illegal and unethical means, including but not limited to espionage, wiretapping, and/or theft. | |
4. | Commitment for Social Community | ||
| a. | Build and maintain a compatible and harmonious relationship, and provide advantages to the community nearby. | |
| b. | Encourage the emergence of the sense of belonging to the community towards the Company aiming the community would take care of the Company. | |
| c. | Minimize the impact on the environment, including but not limited to cable lines excavation and frequency use. | |
5. | Commitment for Employees | ||
| a. | Avoid discrimination practices of employees through: | |
| | • | Respect the human rights and the rights and obligations of employees following the cooperation agreement. |
| | • | Provide equal opportunities regardless of age, group, ethnicity, nation and religion, alma mater, and gender. |
| | • | Respect religious freedom. |
| | • | Provide equal and fair treatment in terms of employment, benefits, and other compensation. |
| b. | Maintain a healthy, secure, safe and comfortable work environment through: | |
| | • | Provide health insurance for employees and their families. |
| | • | Provide appropriate fees and pension guarantees according to the Company's ability. |
| | • | Fulfilling the aspirations of employees through employee unions and making them partners in building business. |
| | • | Provide a comfortable work environment. |
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BUSINESS INTEGRITY, HUMAN RIGHTS, AND FAIR PRACTICES
TelkomGroup strives to maintain integrity based on respect for human rights and fair business practices in its operation. Its realization includes the aspect scopes of anti-corruption, fair competition, intellectual property rights, political involvement, and compliance with laws and regulations.
THE COMMITMENT AND POLICY OF CORPORATE SOCIAL RESPONSIBILITY FOR HUMAN RIGHTS AND FAIR PRACTICES
TelkomGroup carries out its business activities by respecting human rights under international norms and applicable legal regulations. Human rights aspects related to TelkomGroup business include fundamental rights at work, social and economic rights of the community, and serving of consumer rights. The implementation is through various policies and procedures which integrate into TelkomGroup's business operations.
The commitment to business integrity practices as stated in the Regulation of the Board of Directors No. PD.201.01/r.00/PS150/COP-B0400000/2014 dated May 6, 2014, regarding Business Ethics within the TelkomGroup. The policy covers various aspects includes TelkomGroup's commitment to avoid discrimination practices of the employees, by providing the opportunity to occupy the same position regardless of group, age, ethnicity, nationality, religion, and gender. TelkomGroup is also committed to maintaining a healthy, safe, and comfortable working environment; and ensuring the employees' human rights as a citizen for gathering, associating, organizing, and delivering political aspirations with the definite boundaries.
In line with that, the form of TelkomGroup integrity manifests in the implementation of anti-corruption. This commitment indicates in the Resolution of the Board of Directors Number KD.43/HK290/COP-D0031000/2008 dated 2 December 2008 regarding Anti-Fraud Policy in Telkom, which has been approved and signed by the Board of Directors since December 2, 2008. TelkomGroup also shows its commitment by obtaining the ISO 37001: 2016 certificate regarding anti-bribery management systems in August 2020.
Various Company regulations support TelkomGroup's seriousness in enforcing anti-corruption, such as:
• | Resolution of the Board of Directors Number KD.43/HK290/COP-D0031000/2008 dated December 2, 2008 regarding Anti-Fraud Policy in Telkom. |
• | Resolution of the Board of Directors Number KD.36/HK290/COP-D0053000/2009 dated November 20, 2009, regarding Integrity Pact. |
• | Regulation of the Board of Directors Number PD.201.01/r.00/PS150/COP-B0400000/2014 dated May 6, 2014, regarding Business Ethics within TelkomGroup. |
• | Regulation of Director of Human Capital Management Number PR.209.04/r.00/PS000/COP-A4000000/2016 dated July 26, 2016, regarding Gratuity Control. |
• | Regulation of Director of Human Capital Management Number PR..209.05/r.01/HK.250/COP-A4000000/2020 regarding Employee Disciplinary |
Furthermore, TelkomGroup maintains its business integrity by committing itself to be free from conflicts of interest and not politically influenced, both on a local and national scale. TelkomGroup commits to not being involved in any lobbying and political contributions and carried away into the politics in Indonesia. TelkomGroup strictly prohibits all dispositions of activities related to political activities or lobbying carried out by the Company and Telkom's personnel.
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TelkomGroup prohibits employees from participating in campaigns or executing election campaigns. It is under the Regulation of Director of Human Capital Management Number PR.209/01/r,00/HK200/COP-B0200000/2013 dated 30 August 2008 regarding Telkom employees who are Members of Political Parties, Candidates for State Officials, Candidates for Members of the Regional Representative Council, or Candidates for Members of the House of Representatives. Besides, Telkom has never made any other contributions or assistance, including the use of its facilities and infrastructure for election activities.
TelkomGroup's business practices should operate within the applicable legal framework and regulations, to maintain its integrity and increase the trust of stakeholders. One of the significant regulations to be obeyed by TelkomGroup is Law No. 5/1999 regarding the Prohibition of Monopolistic Practices and Unfair Business Competition ("Business Competition Law"). Another regulation that TelkomGroup adheres is Law Number 28 of 2004 regarding Copyright, to consider the intellectual property rights over technology and innovations on its operations. With these various efforts, TelkomGroup strives to ensure its business practices integrity in the 2020 reporting period.
THE FORMULATION OF CORPORATE SOCIAL RESPONSIBILITY FOR HUMAN RIGHTS AND FAIR PRACTICES
Telkom formulates corporate social responsibility for human rights aspects and fair operating practices. The formulation considers social, economic, and environmental impacts and issues. Due diligence on corporate social responsibility regarding human rights and fair operations in the TelkomGroup value chain is not carried out specifically but is integrated into various activities and operating procedures.
One of them is the implementation of a procurement process based on digitization to prevent incidents of corruption. Then, another one is the evaluation process on various technologies used by TelkomGroup to ensure there are no violations of IPR. TelkomGroup also has procedures that encourage partners to have fair labor practices.
Furthermore, in recognizing and formulating social responsibility and significant corporate stakeholders for fair operations, Telkom's approach is to identify the direct or indirect significant impacts of Company activities and decisions. The identifications are related to corruption, human rights violations, violations of intellectual property rights, and monopolistic acts. Telkom also regularly reviews all regulations for fair operational issues.
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The following table is the significant issues and brief descriptions of social responsibility in fair operations which relevant to the Company's business.
Description of Significant Issues, Risks, and Stakeholder Expectations of Fair Operations in Social Responsibility
No. | Aspect | Significant Issue | Risk | Stakeholder Expectation |
---|---|---|---|---|
1. | Human Rights | Potential human rights violations by TelkomGroup or partners, in the scope of employment or related to society | Workforce or community demands, which lead to lawsuits or disruption of operations | Basic rights at work as well as social and economic rights of the community are fulfilled |
2. | Anti Corruption | Potential for fraud or gratification in the procurement and licensing process | The legal lawsuit that leads to the criminal indictment, and loss of public trust | TelkomGroup is free from incidents of corruption |
3. | Business Competition | The bundling of TelkomGroup products and services may be indicated as violating business competition regulations | Fines or demands from the Business Competition Commission | Fair business competition practices |
4. | Intellectual Property Rights | Alleged business competition violations in the case of Interconnection, IP Transit, and Netflix blocking. | Lawsuits and fines if proven to violate IPR | Appreciation for IPR, both for internal and external innovations |
5. | Political Involvement | The independence of TelkomGroup needs to be protected from political interests that want to benefit from certain parties | Conflicts of interest that would have an impact on financial losses | Not involved in politics, free from political influence and conflicts of interest |
6. | Compliance with Laws and Regulations | Strict and dynamic regulations in the telecommunications industry, such as in frequency use, technology import duties, and other aspects | The legal lawsuit that leads to the criminal indictment, and loss of public trust | Compliance with laws and regulations |
THE PLANNING OF CORPORATE SOCIAL RESPONSIBILITY FOR HUMAN RIGHTS AND FAIR PRACTICES OPERATION
Social responsibility planning and fair operating practices aim to reduce the negative impact on its decisions and activities in its value chain. Besides, planning social responsibility initiatives also create benefits and fair operations for stakeholders and the Company, including to increase work productivity.
In the planning process, TelkomGroup involves stakeholders, such as employees and labor unions in the law and regulation boundaries. TelkomGroup also encourages equitable operations in the Company's value chain, such as partners. TelkomGroup takes advantage of its influence to carry out business practices with integrity, including respect for human rights and fair business practices. One of them is the employment and work health and safety that should be considered by work partners.
In particular, TelkomGroup has mechanisms and procedures for dealing with conflicts of fair operations. The WBS is one of the mechanisms and procedures for reporting and resolving complaints about ethics code violations, including complaints regarding human rights and fair operating practices. If there are complaints related to products and services, consumers can provide input to management by email of customercare@telkom.co.id
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Following the Directors Regulation Number PD.701.00/r.00/PR000/COP-A3000000/2014 dated 14 October 2014 regarding Management of Telkom Corporate Social Responsibility, Telkom's CSR budget, including those related to human rights and fair operating practices, originates from operating expenses recorded as the CSR budget. The total budgeted and realized funds for 2020 have been disclosed and can be seen in The Governance of Corporate Social Responsibility in this Annual Report.
The activity plan and targets for 2020 includes:
1. | Telkom Tanggap COVID-19 or Telkom Responds COVID-19, the channel target of 30% of the available allocation is Rp37.5 billion. |
2. | Internet Untuk Pendidikan or Internet for Education, targeted 7 location points nationally. |
3. | Sociodigipreneurship Incubation for students and university students, targeted participants of 3000 crowd talent. |
THE IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY FOR HUMAN RIGHTS AND FAIR PRACTICES OPERATION
Telkom highly appreciates Human Rights that manifest in the basic rights at work. Telkom supports the SEKAR (Employee Union) in its implementation as an organizational forum representing employees for collective negotiations with management, resulted in Collective Labor Agreement or Perjanjian Kerja Bersama (PKB) valid for 2 years and will end on 20 September 2021. TelkomGroup's support for labor unions impacts the good relations between the Company and employees, so that there are not any lawsuit related to the industrial relations throughout 2020.
Fulfillment of human rights in the TelkomGroup work environment throughout 2020 has gone well. The Company carried out activities and budgets related to human rights, including freedom of association and gathering, working hours, underage workers. All parties participate in these activities, including the Board of Directors, Managers, and employees.
Furthermore, for intellectual property rights (IPR), during 2020 Telkom registered 26 IPR which consists of trademarks and copyrights to the Directorate General of Intellectual Property, Ministry of Law and Human Rights of the Republic of Indonesia. It aims to protect and reward the creativity of research as well as product and service development. Registered intellectual property rights in 2020 include:
• | Trademarks and services for the Company's goods and services, company logos and names, as well as Company goods and service product logos; |
• | Copyrights for computer programs, research, papers, and books. |
Based on the Directors Regulation Number PD.605.00/r.00/HK000/COO-D0030000/2011 dated 11 July 2011 regarding Management of Intellectual Property and Intellectual Property Rights, to commercialize intellectual property rights owned by the Company with other parties (co-owner), the transfer of IPR ownership should be done under the permission of the other owner (co-owner) or with the approval of the other owner (co-owner) and/or with the knowledge of the related parties.
In terms of implementing anti-corruption efforts, Telkom implements a procurement and partnership process using an e-auction system application in the implementation under the Regulation of Director of Finance Number PR.301.08/r.03/HK240/COP-A00110000/2020 dated 19 August 2020 regarding Procurement Implementation Guidelines. It aims to minimize physical contact with suppliers so that the tender would be fair and transparent because the process is using computer-based technology.
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Telkom selects suppliers through three main stages, such as registration, selection, then continued to the determination of the Eligible Bidder. Supplier Registration, namely suppliers registering online through the Supply Management and Logistic Enhancement (SMILE) application. Supplier selection is a supplier assessment process according to business classifications and several other criteria that result in ranking and short-list. The last process is the Eligible Bidder, the entitled suppliers will be involved in the procurement process. The advantages obtained from this electronic process include the fast tender process, the suitable prospective tender participants with the requirements, the fairness of price, and transparency.
In the selection process, each prospective supplier or contractor must be committed to the rules of labor/human rights, as well as work health and safety. Also, Telkom evaluates supplier performance in providing support to Telkom to achieve the Company's vision and mission. With this process, it is expected that Telkom and its suppliers' relationship will be better, more sustainable, and bring optimal benefits to the Company.
Telkom's commitment to anti-corruption and fraud against external parties, such as vendors or partners, is stated in the Regulation of Director of Finance Number PR.301.08/r.03/HK240/COP-A00110000/2020 dated 19 August 2020 regarding Guidelines for Procurement Implementation. In the implementation, we ask each vendor or partner to sign an integrity pact that states that they will not practice corruption, collusion, nepotism, price collusion, and conflicts of interest.
Telkom's commitment to preventing corruption is also indicated in Telkom's initiative to become the Kolaborasi Tunas Integritas and the Rembug Integritas Nasional (RIN) member. It was initiated by the Tunas Integritas and Organizer of the Pengendali Kepatuhan dan Gratifikasi Kementrian Lembaga Organisasi dan Perusahaan (KLOP). Its activities include being an active member in several events, being a resource person, panel discussions, and benchmarking objects for KLOP and the National Private Sector in the Business Ethics and Integrity development.
Telkom has reviewed and evaluated various mechanisms, initiatives, and internal policies related to anti-corruption as a corrective measure. Since 2020, Telkom has placed 1 (one) its employees to participate in the Integrity Building Expert Certification (API LSP KPK BNSP) and obtaining an Expert Integrity Building Certificate from the KPK LSP in the Integrity Builder Expert Certification event held by LSP KPK-BNSP.
Telkom involves the Board of Directors, management, and employees in its implementation. The Board of Directors reviews and enhances the credibility of social responsibility initiatives. Through the sustainability report, the Board of Directors oversees the social responsibility performance and approves the sustainability report.
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Following the Law No.5 of 1999 regarding the Prohibition of Monopolistic Practices and Unfair Business Competition (Anti-Monopoly Law), an agency was formed, the Business Competition Supervisory Committee or Komite Pengawas Persaingan Usaha (KPPU) which functions as an anti-monopoly supervisor in Indonesia. This committee has the authority to apply the Anti-Monopoly Law. The Anti-Monopoly Law and Government Regulation No.57/2010 dated 20 July 2010 regarding Merger or Consolidation of Business Entities and Acquisition of Company Shares Resulted in Monopolistic Practices and Unfair Business Engagement. |
Telkom upholds these laws and regulations. Telkom always implements business practices that support healthy competition and respect the role of KPPU. Telkom is also consistently practicing business that prioritizes healthy competition for service excellence, product completeness, and supporting infrastructure as well as operational efficiency. In 2020, there were 3 cases of business competition. |
Netflix Blocking The status of KPPU's examination of Netflix blocking activities by Telkom and Telkomsel has increased from Investigation to Advanced Investigation, with allegations of the discriminatory practices of PT Telkom Indonesia (Persero) Tbk and PT Telekomunikasi Seluler against Netflix, regarding the Provision of Internet Provider Access Services. KPPU has submitted a Report on Alleged Violation on September 24, 2020, which Telkom and Telkomsel then respond to by submitting a Response to the Report on Alleged Violation on October 15, 2020. The KPPU submitted a Resolution of the KPPU Assembly, dated November 3, 2020, regarding examination, with an audit schedule. First continuation was on December 10, 2020. The examination carried out with the last agenda of Submission of Conclusions from Investigators, Telkom, and Telkomsel on March 18th, 2021. |
IP Transit In August 2020, we also received a summons for investigation as the Reported Party from the KPPU in connection with the investigation Number 07-164/DH/KPPU.LID.L /II/2020, regarding the alleged Monopolistic Practices of IP Transit Services by Telkom. In August 2020, we provided information on the investigation as requested by KPPU. After the provision of the information, no further summons has been sent to Telkom. |
Interconnection In June 2020, we also received a summons from the KPPU in connection with investigation Number 48/DH /KPPU.LID.I/XI/2020, regarding the alleged violation of the Anti-Monopoly Law. In this regard, Telkom has submitted a postponement letter, but there has been no follow-up or call back from KPPU. |
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GOODS AND SERVICES RESPONSIBILITY
THE COMMITMENT AND POLICY OF CORPORATE SOCIAL RESPONSIBILITY FOR CUSTOMERS
TelkomGroup understands the importance of maintaining customer satisfaction and loyalty for the sustainability of the Company. Therefore, TelkomGroup has business ethics and policies governing the responsibility for goods and services delivered to customers. This commitment stated in the Resolution of the Board of Directors Number PD.201.01/r.00/PS150/COP-B0400000/2014 dated May 6, 2014, regarding Business Ethics in the TelkomGroup.
Several TelkomGroup approaches in ensuring customer satisfaction and loyalty are:
1. | Provide clear and understandable information of the customers' rights and obligations before the contract/subscription contract is signed by both parties |
2. | Fulfill the customers' rights in providing the services stated in the Service Level Guarantee (SLG) |
3. | Provide and manage customer contact media (complaint counters, phones, emails, and other media) to be more convenient for customers to submit complaints, feedback, and find information about products/services. |
THE FORMULATION OF CORPORATE SOCIAL RESPONSIBILITY FOR CUSTOMERS
In formulating corporate social responsibility for customers, Telkom has conducted due diligence that carried out internally on corporate social responsibility in the consumer sector. It is carried out in discussions with related functions or departments and involving independent consultants.
Telkom also has the Telkom Integrated Quality Assurance (TIQA) program as a method and approach to identify and formulate social responsibility and major corporate stakeholders. Through TIQA, Telkom has identified significant direct or indirect impacts of the Company's activities and decisions on consumers. TIQA also aims to ensure that the offered products and services do not harm customers as their health and safety risks. With this program, Telkom strives to ensure that the created products and the provided services do not give any negative impacts on consumers.
Besides, Telkom reviews regulations related to consumer issues, such as Law No.8 of 1999 regarding Consumer Protection. The important CSR issues in the consumer and the relevant Company's business are related to customer satisfaction and loyalty, experience, complaints, and data protection and confidentiality. Issues related to customer health and safety have low relevance in the TelkomGroup business context.
The formulation of corporate social responsibility for customers also considers the consumer risks, both risks to companies and stakeholders. Customer dissatisfaction can hurt the Company's reputation and then could put its economic performance at risk. In line with that, TelkomGroup is also aware of stakeholder expectations regarding the Company's role in handling consumer issues, including listening and resolving complaints, developing innovative and quality products and services.
The implementation of social responsibility activities in the consumer sector could provide mutual benefits for stakeholders, TelkomGroup and shareholders. Customers would get the advantage of digital telecommunication products and services effectively and efficiently in their daily socio-economic activities with the Company's high-quality products and services. It also supports the sustainable development goals as stipulated in Government Regulation No. 59 of 2017, specifically for providing the telecommunications infrastructure by TelkomGroup that also considers the middle and lower economic groups.
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THE PLANNING OF CORPORATE SOCIAL RESPONSIBILITY FOR CUSTOMERS
To maintain the quality of service to customers, TelkomGroup renews the TelkomGroup Customer Experience (CX) management guideline regulation No. PR.169/r.00/HK200/COP-J0000000/2020 valid since December 23, 2020. It is an in-depth guide as a follow-up to the Company Regulation on TelkomGroup Digital Business Management that guides Customer Experience management in TelkomGroup to support the Company's vision and mission achievement.
TelkomGroup has planned several programs during 2020 related to corporate social responsibility for costumers, including:
● | Promoting digital society empowerment, namely encouraging the digital community’s empowerment through pioneering digitalization of Indonesian talent education, digitizing the community life aspects through organizing sociodigipreneurship incubation programs for students and university students, deploying internet access infrastructure for education, and improving the quality of education in teacher training activities in the field of ICT (Indonesia Digital Learning). |
● | Knitting SME digitalization development, namely realizing the digitalization synergy of Micro and Small Enterprises (MSEs) through the digital platform development for MSEs, commercialization of MSE products in the marketplace, and building MSEs capacity by providing training, mentoring, certification assistance, and participating in local to international exhibitions. |
The TelkomGroup social responsibility program plan is essentially trying to reduce the negative impact on consumers and create mutual benefits for stakeholders and the Company. TelkomGroup currently has mechanisms and procedures for customer satisfaction, complaints, and/or conflicts.
In its implementation, TelkomGroup ensures the involvement of stakeholders in various CSR initiatives in the consumer sector. It implemented with annual customer gatherings and satisfaction surveys. Furthermore, TelkomGroup also uses its influence in protecting consumers, such as encouraging suppliers and other partners to prioritize customer satisfaction in their business activities.
Telkom's CSR budget comes from operating expenses recorded as CSR budget following the Board of Directors Regulation No. PD.701.00/2014 dated October 14, 2014. In 2020, the Company costs incurred related to CSR initiatives for consumers were Rp397.14 billion, decreased 5.03% compared to Rp418.20 billion than the previous year.
THE IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY FOR CUSTOMERS
Following the management guidelines of TelkomGroup Customer Experience (CX) No. PR.169/r.00/HK200/COP-J0000000/2020 as stated in Article 5, Customer Experience is significant in operating the Company's management. It is related to the provider service companies that interact directly or indirectly with customers in particular. The Customer Experience provides feedback on the Company's four main elements such as strategy, service development, customer relationship management, and operation management.
At Telkom, the Board of Directors, management, and employees' engagements in CSR activities for consumers accomplished comprehensively. It is necessary so that all Telkom employees can contribute to customer satisfaction and loyalty according to their respective duties and functions. Customer service programs to customer dispute resolutions involve the management and employees. The Board of Directors is monitoring and evaluating the CSR performance for consumers, including evaluating sustainability reports.
In implementing CSR programs for consumers, Telkom ensures the engagement and/or involvement of relevant stakeholders in the Company's CSR initiatives, especially the customers. One of them is through a customer satisfaction survey. Other activities carried out include customer gatherings and consumer complaint channels.
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Telkom understands the demand for accurate and updated information regarding the consumers' desire for Telkom and its subsidiaries products and services in the digital telecommunications industry. Therefore, TelkomGroup provides information on various products and services on the following media:
1. | Mobile starter pack package |
2. | Website |
3. | Promotional activities |
4. | Intensive marketing communication |
Furthermore, Telkom realizes the importance of the Company's position in serving the public as consumers. Therefore, the consumer complaint mechanism or procedure can be used if there is dissatisfaction or conflict with consumers.
If there are complaints related to products and services, consumers can provide suggestion to management with the following media:
• | Apps: myIndiHome. |
• | Social Media: @IndiHome (Twitter), @IndiHome (Instagram), IndiHome (Facebook). |
• | Complaint via web chat at www.indihome.co.id. |
• | E-mail: customercare@telkom.co.id |
• | Call Center: 147 |
• | Plasa Telkom. |
For the cellular customers in particular, Telkom provides “Caroline” call center, which is an abbreviation for Customer Care Online. The contact numbers of Caroline are as follows:
• | 188 (24 hours, paid) for postpaid and prepaid subscriber. |
• | 0807-1811811 (PSTN local rate tariff) for national scale. |
Moreover, the corporate customer complaints may be submitted through:
• | 0800-1-835566 and e-mail tele-am@telkom.co.id and social media @Smart_Bisnis (Twitter) and Smartbisnis (Facebook) for SMB customers. |
• | 08001 Telkom or 08001035566 and e-mail: c4@telkom.co.id, and social media @TelkomSolution (Twitter) and TelkomSolutionID (Facebook) for corporate customers and Government Institutions. |
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PROGRAMS AND ACHIEVEMENTS OF CORPORATE SOCIAL RESPONSIBILITY FOR CUSTOMERS
Following the issuance of TelkomGroup Customer Experience (CX) management guidelines, five main pillars must implement for Customer Experience transformation, namely 1) CX Vision, "To be the one of the most Customer-Centric companies in Indonesia"; 2) CX Metrics in the form of NPS (Net Promoter Score); 3) CX Action, a process of identifying customer pain-points and root causes to be followed up in the form of short-term (fix the basic) and long-term (create the WOW) actions; 4) CX Enhancement which includes 3 aspects of improvement, namely People, Process and System/Tools; and 5) CX Organization as pillar basic consisting of 3 elements, namely organization, culture, and mindset, as well as communication for both internal and external companies. The Customer Experience Transformation framework was established to help facilitate feedback between the Company and customers. Some of these policies are by the Company to create maximum interaction between customers and Telkom.
Description of the achievements of the consumer CSR initiative:
| |
1. | There is information on various achievements of CSR initiatives of community involvement and development. |
2. | The outcomes provide an overview of the benefits to stakeholders. |
3. | The outcomes provide a benefits overview for the Company, either directly or indirectly, as responsibility for CSR implementation to shareholders. |
4. | The outcomes provide an overview of the direct or indirect benefits of sustainable development. |
5. | Owned awards of community involvement and development. |
One of Telkom's measurements made related to CSR for consumers is the ability to handle disturbances so that customer satisfaction and loyalty can be maintained properly. In 2020, the speed of handling disruption increased compared to the previous year. It was due to the stronger of Mean Time To Install (MTTI) and Mean Time To Repair (MTTR) that continuously carried out by increasing the capacity of technicians and improving business processes. Telkom through its subsidiary Telkom Akses, launched the Telkom Akses Command Center as a center for managing access networks with digitally integrated controls. It is also capable of detecting potential disturbance fast in an area so it can repair immediately. An automatically generated predictive ticket will instruct the field technician to take proactive steps for the customer. Furthermore, the agent tracks the ticket completion done by the technician.
The following table is the data of MTTR for the last three years.
Mean Time To Repair (MTTR) 2018-2020
| ||||||
Description | | 2020 |
| 2019 |
| 2018 |
| | Hour | ||||
Mean Time To Repair (MTTR) | | 8.46 |
| 7.10 | | 9.80 |
In 2020, TelkomGroup endeavored to improve customer experience with customers' feedback and input. In making improvements, TelkomGroup determined two ways of solving. The first was improving simple things fast, such as improving processes and training. The second one is radical and comprehensive improvements in various aspects, such as people, processes, systems, and tools.
TelkomGroup measures its progress using the Net Promote System (NPS) measurement metric to ensure that the improvements are adjusted as the customer demands. Also, with the NPS, the Company could find out the updated voice of customers as suggestions. In addition, TelkomGroup could conduct NPS tracking and monitoring on two systems, such as Top-Down NPS and Bottom-Up NPS. Top-Down NPS is the overall customer perception of TelkomGroup as measured by external parties. Bottom-up NPS is the customer experience during direct interaction with TelkomGroup as measured in an internal survey.
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TelkomGroup NPS score has increased 2 points YoY (H2-2019 to H2-2020). It indicates that the customer experience increase needs to improve in the future. TelkomGroup NPS scores during 2019-2020, as shown in the following table (unit: NPS points).
TelkomGroup NPS Score 2019-2020
Besides NPS Top Down, the Company also continues to implement the Customer Satisfaction and Loyalty Survey (CSLS) which informs the index of customer satisfaction, dissatisfaction, and loyalty with the Structural Equation Modeling (SEM) approach. With the SEM approach, the Company can easily trace technical and non-technical factors that will be improvement material or Opportunity for Improvement (OFI) from the dimensions of Product, Price, Delivery System, Service Mindset, and Relationship.
In 2020, TelkomGroup conducted customer satisfaction and loyalty surveys which cover products and services such as Consumer and Enterprise segment customers.
Regarding customer satisfaction, the CSI value increased to 88.72%, and CLI value increased to 86.59%. The increase in survey results at the consumer level occurred due to changes in people's behavior during the pandemic, in which all activities, learning, working, playing, and even exercising were done at home, and the need for entertainment at home also increased so that existing customers tended to be more loyal to service.
Furthermore, in the enterprise customer segment in 2020, the survey conducted showed a CSI of 96.20%. Then, CLI and CDI reached 92.40% and 0.80%. Compared to the previous year, the survey results show a decline but still within reasonable limits, which enterprise customers still want improvement in the use episode and get support for TelkomGroup. The following table shows the survey results for the last three years by TelkomGroup.
TelkomGroup Customer Satisfaction and Loyalty Survey 2018-2020
| ||||||
CSLS Survey | | 2020 |
| 2019 |
| 2018 |
| | % | ||||
Consumer | | | | | | |
Customer Satisfaction Index (CSI) | | 88.72 |
| 88.56 |
| 87.71 |
Customer Loyalty Index (CLI) | | 86.59 |
| 83.44 |
| 82.84 |
Customer Dissatisfaction Index (CDI) | | 0.44 |
| 1.04 |
| 2.17 |
Enterprise | | | | | | |
Customer Satisfaction Index (CSI) | | 96.20 | | 97.70 | | 96.42 |
Customer Loyalty Index (CLI) | | 92.40 | | 95.36 | | 94.53 |
Customer Dissatisfaction Index (CDI) | | 0.80 |
| 0.55 |
| 1.22 |
Until the end of 2020, Telkom has had certification and awards in the consumer sector. The certifications and awards obtained in 2020 were IndiHome as the 1st Millennials Choice Brand for Internet Provide & TV Cable category from Warta Ekonomi Magazine. Besides, Telkom received an award of Contact Center Service Excellent 147 from Marketing Magazine and One Stop Entertainment Media of the Year from Marketeers Editor's Choice Award.
TelkomGroup also implements CX Actions by identifying the main customers' problems so it can find the problem cause properly and determine the appropriate resolution action. This policy was implemented by establishing the "Fixed the Basic" and "Create the Wow" strategy. Every improvement process is continuously carried out (continuous improvement) whose results can be seen from the various assessments above.
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SOCIAL RESPONSIBILITY FOR THE WORKFORCE
THE COMMITMENT AND POLICY OF CORPORATE SOCIAL RESPONSIBILITY FOR THE WORKFORCE
TelkomGroup understands the importance of managing a decent workforce to realize the vision of becoming a world-class digital telco company. TelkomGroup's commitment to the workforce aspect manifests in various ways. One of them is a commitment to ensure no discrimination of rights and obligations in the workplace, such as discrimination against ethnicity, race, religion, gender, and disabilities.
It follows the Resolution of the Board of Directors Number PR.208.03/r.00/HK250/COP-B0020000/2012 dated September 10, 2012, regarding Career Management. With this resolution, both men and women can hold positions at various levels based on their competence with clear, measurable, and objective criteria. Based on the Resolution of the Board of Directors Number PR.204.03/r.02/HK200/COP-J2000000/2015 dated June 26, 2015, regarding the Recruitment System, Telkom's recruitment process is taken an open, objective, effective, and efficient principle.
In the implementation, TelkomGroup is committed to respecting workers' rights of special social facilities such as for disabled workers, breastfeeding mothers, and other social facilities. TelkomGroup also supports women's work participation, such as flexible working arrangements or telecommuting.
TelkomGroup's commitment to social responsibility for the workforce is based on the applicable laws and regulations as well as the Resolution of the Board of Directors Number PD.201.01/r.00/PS150/COP-B0400000/2014 dated May 6, 2014, regarding Business Ethics within the TelkomGroup. For the commitment to safety, health, and security in the operational environment specifically, Telkom has a policy stated in the Resolution of the Board of Directors No. KD.37/UM400/COO-DOO3OOOO/2010 dated October 26, 2010, regarding the Establishment of Security and Safety Management Policies. In addition to the Resolution of the Board of Directors, Telkom states its commitment by clearly stating "Telkom is obliged to carry out occupational safety and health programs following the prevailing laws" in the Collective Labor Agreement (PKB) VIII article 51.
For the remuneration, Telkom complies with the Provincial Minimum Wage (UMP) regulation and internal policies, such as:
1. | Resolution of the Board of Directors Number KD.28/PS560/SDM-20/2004 dated June 4, 2004, regarding the Remuneration System. |
2. | Resolution of the Director of Human Capital Management Number PR.207.19/r.00/PS560/COP-J2000000/2015 dated December 8, 2015, regarding Remuneration System and Structure Arrangement. |
For employee development and education, TelkomGroup is committed to providing employees opportunities without discrimination to develop their full potential according to their duties and responsibilities in the Company. This commitment is in various policies, such as:
• | Resolution of the Director of Human Capital and General Affairs Number PR.206.03/r.00/HK250/COP-B0200000/2013 dated April 12, 2013, regarding Competency Development. |
• | Resolution of the Director of Human Capital Management Number PR.207.09/r.00/HK200/COP-B02000000/2013 dated December 21, 2013, regarding Education Allowances for Company Initiatives. |
• | Resolution of the Director of Human Capital Management Number PR.206.09/r.02/HK200/COP-J2000000/2015 dated June 29, 2015, regarding TelkomGroup Leadership Development System. |
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THE FORMULATION OF CORPORATE SOCIAL RESPONSIBILITY FOR THE WORKFORCE
The social responsibility formulation for the workforce is taken by internal due diligence and regulation reviews related to the workforce issues. Therefore, Telkom also recognizes and formulates social responsibility and significant corporate stakeholders in the workforce sector. The stakeholders are employees, labor unions, and partner employees who work in the TelkomGroup. Then, other key stakeholders are the Government of the Republic of Indonesia, in this case, the Ministry of Manpower, and its regional office.
Furthermore, the social responsibility formulation for the workforce considers the significant direct or indirect impacts of the Company's activities and decisions by emphasizing its key issues and relevance to the business. TelkomGroup is also aware of workforce risks, both for the Company and stakeholders, including their expectations about its role in handling workforce issues. The potential risk of the inconsistent implementation of workforce social responsibility includes decreasing employee productivity and the Company's value in society.
Telkom formulated social responsibility initiatives with its components of the employee, digital, professionalism, and development in internal discussions. Its specific aspects are employee health and safety, development, and digitization of human resource management. Other general aspects include gender equality, equal opportunity for education and training, use of the local workforce, remuneration, promotion, and freedom of association.
THE PLANNING OF CORPORATE SOCIAL RESPONSIBILITY FOR THE WORKFORCE
The targets/plans for TelkomGroup activities in 2020 to do social responsibility for the workforce are:
| ||
1. | Gender Issue | |
| Telkom also supports the program to increase the high-ranking women composition in SOEs announced by the Minister of SOE, along with the innovation and transformation of its human resource management. Telkom targets 15% of Senior Management's talent pool to be filled by women, by implementing leadership development programs to bring out the best talents who will advance the Company's performance and performance. | |
2. | Education and Training | |
| The Company provides training programs for all employees to form professional and productive human resources, following the Company business and operational needs. The Company budgeted a minimum of 1.5% of the Unconsolidated Annual Revenue based on Training Need Analysis (TNA) and following the FU HCM Strategy. Training provides to each employee at least two types of training per year. | |
| | |
| a. | Education: |
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| ||
| b. | Training: |
Training Types | Participants | Programs | Learning Hours |
Certification | 2,195 | 242 | 73,343 |
Leadership Training | 1,016 | 38 | 1,520 |
Regular Training | 36,320 | 1,359 | 635,238 |
Technical | 34,420 | 1,292 | 527,678 |
Management | 1,900 | 67 | 107,560 |
Total | 39,531 | 1,639 | 710,101 |
Remarks:
The total number of participants who have attended the training in 2020 were 39,531 people.
Total participants who took the certification = 2,195 people of which there were 1,814 people certified.
| | | |
3. | Local Workforce | ||
| Telkom empowers local workers through a recruitment program with Regional Talent sources under the Recruitment Management Implementation Guidelines v.01 issued by the VP Human Capital Development through official note C.Tel 330/PS 200/COP-A3000000, aiming to fill positions in the specific region. | ||
| | ||
| Telkom also participated in the Program Perekrutan Bersama (PPB) BUMN, which is the Ministry of BUMN measures through FHCI to seek, acquire and develop Indonesia's Best Talents capabilities, with a more open recruitment system and provides equal opportunities for all groups including disabilities and candidates from Papua, West Papua, Maluku, North Maluku, West Nusa Tenggara, and East Nusa Tenggara. They intended to work in their domicile areas or all SOEs operation area. Telkom has accepted 22 employees based on the Company's needs of the 493 all SOE formations. | ||
| | ||
4. | Remuneration and Promotion | ||
| Telkom applies the Total Reward System concept consists of: | ||
| a. | Foundational Rewards (Monthly and Non-Monthly), including various facilities such as special allowances for disaster or conflict areas, holiday allowances, health facilities, housing and transportation, social security, and pension benefits. | |
| b. | Career & Environment Rewards (training, coaching/mentoring, scholarship, career opportunity, digital culture). | |
| c. | Performance-Based Rewards (corporate/unit/individual variable pay) such as sales and marketing incentives, incentives and other benefits. | |
| | | |
| The Telkom compensation and benefits policies are stated in the Collective Labor Agreement or Perjanjian Kerja Bersama (PKB), which is reviewed every three years. Promotion policies implemented in Telkom in an objective, honest and transparent manner. Telkom has formed a Career Committee responsible for evaluating assessments of employee performance and competency by considering their character, performance, competency, assessment, and other relevant matters. | ||
| |
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5. | Freedom of Association | ||
| Telkom Indonesia is a company that always puts forward the basic principles in the Constitution of the Republic of Indonesia Article 28E paragraph (3), which regulates freedom of association, assembly, and expressing opinions. The base instrument of freedom of association in Telkom Indonesia is a specific employee organization of Telkom Employees Union or Serikat Karyawan Telkom (SEKAR Telkom). Established on March 1, 2000 and recorded in the Resolution of the Minister of Manpower of Indonesia on February 1, 2001, SEKAR Telkom is the only employee union organization in Telkom Indonesia, which functions as a management control in implementing any policies for employees. Having a total of 7,321 (seven thousand three hundred and twenty-one) members spread throughout the Telkom Indonesia working area, SEKAR Telkom is a constructive partner in any policy formulation related to employee welfare, which is divided into 9 (nine) representative regions from regional offices of Telkom Indonesia. The Collective Labor Agreement, which has now entered its VIII (eight) edition, reflects the balance of industrial relations in Telkom Indonesia. Telkom Indonesia always involves in improving the capabilities of SEKAR Telkom management by regularly providing industrial relations training to all organizers and managers of human capital in each region. | ||
| | ||
| SEKAR Telkom also established four pillars of historical roles as the direction of the organization, namely: | ||
| • | As a unifying container for employees; | |
| • | As a forum for employee aspirations; | |
| • | As a constructive partner of management; | |
| • | As guardians and enforcers of Good Corporate Governance (Clean, Transparent, and Professional). | |
| | | |
6. | Employee Health and Safety | ||
| In 2020 the Company budgeted a budget for employee health and safety during the pandemic of Rp53.3 billion (Source: Daily Report of the Corona Crisis Center Task Force 31 Dec 2020) consisting of an emergency response budget, rapid test implementation, employee health identification, medical recovery of the Health Foundation, distribution of PPE and supplements for CSR, salesforce, and technicians, communication budget and public relations, prevention and handling of COVID-19, operational activities for handling the COVID-19 outbreak, chemical disinfectants, and data collection on Telkom office perimeter. | ||
| | ||
| The Company also budgeted Rp3.0 billion (Source: Daily Report of the Corona Crisis Center Task Force 31 Dec 2020) for security management, building cleanliness, and adaptation of new habits such as entry screening (sinks, thermal guns, rapid test/declaration forms), general cleaning, social distancing markers, spraying disinfectants, cleaning air conditioners, PPE, masks, protective clothing, regulating and health of personnel as well as monitoring during the implementation of the PSBB Transition Extension in Telkom. | ||
| | | |
TelkomGroup's social responsibility planning for the workforce emphasizes the efforts to reduce the Company's operational impact on the employee, such as the risk of work accidents and potential employee turnover. Besides, it also aims to create mutual benefits for the Company, stakeholders, the Company's employees, and partners' employees, also the government, and society.
The stakeholders' engagement in various Company's CSR activities or initiatives for the workforce is carried out comprehensively. TelkomGroup involves labor unions in the implementation of social responsibility. Besides, TelkomGroup uses its influence to implement social responsibility for the workforce. There are encouraging suppliers and partners to be socially responsible and support the fulfillment of labor rights and obligations in the TelkomGroup.
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Telkom provides mechanisms and procedures for handling work safety emergencies and/or conflicts related to the workforce sector if necessary. It aims to minimize the employees' dissatisfaction experienced by providing compliant services as an aspiration forum for employees.
Complaints about workforce issues may be submitted to:
• | HR helpdesk is a complaints mechanism through web-in service, email-in service HR_helpdesk@telkom.co.id, the phone-in service number 1500305 and Whatsapp as well as Telegram chat in 08111-900-305. |
• | HR Wiki is search engine service to search information about Telkom’s employements and human capital policy catalog |
• | Employee aspiration is an adaptation of the employee suggestion system (ESS) which may be utilized by the employees to convey their suggestions and aspirations |
THE IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY FOR THE WORKFORCE
In the implementation, TelkomGroup ensures that the management is involved in reviewing and increasing the credibility of CSR initiatives and reports. The engagement of the TelkomGroup's Board of Directors, management, and employees is also carried out comprehensively in CSR activities for the workforce.
On the other hand, TelkomGroup engages relevant stakeholders in CSR initiatives, such as the local Manpower Office and the partners. It is in line with the importance of the Company's position in influencing stakeholders to cooperate in the implementation of CSR for the workforce, that related to work health and safety.
ACHIEVEMENTS OF CORPORATE SOCIAL RESPONSIBILITY FOR THE WORKFORCE
NON-DISCRIMINATION AND GENDER EQUALITY
In the end of 2020, Telkom recruited 219 men and 223 women. In general, the proportion of male and female employees recruited by the Company is equal.
Employees Recruitment Based on Gender in 2018-2020
| |||||||||
Description | 2020 | 2019 | 2018 | ||||||
| Men | Women | Total | Men | Women | Total | Men | Women | Total |
Telkom | 219 | 223 | 442 | 256 | 231 | 487 | 349 | 212 | 561 |
Total | 219 | 223 | 442 | 256 | 231 | 487 | 349 | 212 | 561 |
Both men and women have the same opportunity to occupy positions at various levels according to their competence. It follows the Resolution of the Board of Directors Number PR.208.03/r.00/HK250/COP-B0020000/2012 dated 10 September 2012 regarding Career Management, which career decision making must be on an equal opportunity by referring to clear criteria, measurable and objective assessment.
Employees Based on Gender and Managerial Position per December 31, 2018-2020
Description | 2020 | 2019 | 2018 | ||||||
| Men | Women | Total | Men | Women | Total | Men | Women | Total |
Band I | 122 | 7 | 129 | 199 | 9 | 128 | 144 | 6 | 150 |
Band II | 564 | 65 | 629 | 604 | 62 | 666 | 607 | 58 | 665 |
Band III | 1,914 | 600 | 2,514 | 1,661 | 368 | 2,029 | 2,010 | 355 | 2,365 |
Total | 2,600 | 672 | 3,272 | 2,384 | 439 | 2,823 | 2,761 | 419 | 3,180 |
Remarks:
BP I, II, III above are Position Bands for Telkom Employees only.
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For female employees, Telkom provides a policy of additional leave for menstruation and childbirth. It is given for two days on the first and second day of each month for menstrual leaves, with no reducing the annual leave by attaching a doctor's certificate, regulated in PKB VIII 2019-2021 article 19 paragraph (4). Then, maternity leave is given to pregnant female employees for 3 (three) months, which can implement for 1.5 (one and a half) months before giving birth and 1.5 (one and a half) months after giving birth following Article 19 paragraph ( 1) PKB VIII 2019-2021. Male employees can use leave with urgent reasons for 7 (seven) days and can be extended as needed based on PKB VIII 2019-2021 Article 18. Besides the right to leave, Telkom's concern for female employees is manifested by providing lactation rooms and disability care.
Besides, based on the MoU between the Ministry of Manpower and the Ministry of SOE, since 2014 TelkomGroup has employed disabled people and will continue to recruit them. The Company has developed an i-CHAT application that can help deaf people communicate. To build positive work competition, the Company also provides awards for disabled people who inspire and contribute to the environment and society (Gantari Award).
EDUCATION AND TRAINING
Telkom always improves the quality and quantity of education and training for all employees of Telkom and its subsidiaries. In 2020, Telkom provided educational and training opportunities for 8,293 men and 6,835 women who work at Telkom. It generally increased due to changes in the learning method to the self-learning, which Telkom provides a knowledge repository based on business needs.
Telkom’s Employee Participation to Education and Training Program Based on Gender 2018-2020
| |||||||||
Description | 2019 | 2018 | | ||||||
| Men | Women | Total | Men | Women | Total | Men | Women | Total |
Certification | 1,179 | 481 | 1,660 | 1,213 | 571 | 1,784 | 1,140 | 193 | 1,333 |
Leadership Development Program | 614 | 344 | 958 | 1,215 | 637 | 1,852 | 1,048 | 426 | 1,474 |
Regular Training | 6,500 | 6,010 | 12,510 | 5,869 | 3,270 | 9,139 | 10,709 | 1,766 | 12,475 |
Total | 8,293 | 6,835 | 15,128 | 8,297 | 4,478 | 12,775 | 12,897 | 2,385 | 15,282 |
REMUNERATION
Telkom sets the lowest salary for Telkom companies to be above the UMP. Besides, there is no difference between male and female employees' salaries in the same position. Percentage of remuneration of lowest permanent employees to the average regional minimum wage was 173%. Then, there is no regulation difference between the salaries of male and female Telkom employees.
Competitively, Telkom provides remuneration packages at every position level, which consists of a monthly salary, allowances, and various facilities, including pensions, healthcare, housing and others.
EMPLOYEE TURNOVER RATE
The low employee turnover rate could be an indication of decent employee satisfaction. Therefore, Telkom monitors the employee turnover rate continuously.
In 2020, Telkom's employee turnover rate reached 17.92%, increased compared to 2019 of 17.59%. Most of the employees who leave Telkom are due to retirement reasons.
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Telkom’s Employee Turnover Rate 2018-2020
5 | |||
Description | 2020 | 2019 | 2018 |
| | | |
Total number of Telkom Employees | 9,745 | 11,059 | 12,765 |
Employee turnover rate | 1,746 | 1,945 | 1,919 |
By own request/voluntary | 25 | 22 | 15 |
Becoming a political party official | - | - | - |
Becoming an SOE director/government official | 4 | 9 | 4 |
Disciplinary misconduct | - | - | - |
Marry another Telkom employee | - | - | 2 |
Retired | 1,678 | 1,849 | 1,832 |
Pass away | 39 | 65 | 66 |
Turn Over percentage (%) | 17.92 | 17.59 | 15.03 |
Remarks:
Restated by including retirement & death data.
RETIREMENT PROGRAM
Telkom defines the retirement age for all employees at 56 years. We have 2 (two) retirement schemes consist of:
1. | Program Pensiun Manfaat Pasti (PPMP). |
2. | Program Pensiun Iuran Pasti (PPIP), which applies to permanent employees (other than Directors) on or after July 1, 2002. |
PPMP is regulated in Indonesian pension laws and managed by the Dana Pensiun Telkom (“Dapen”). The Company contributed to Dapen for the years ended December 31, 2020, and 2019 respectively for Rp205 billion and Rp233 billion. The Company did not contribute to Dapen for the year ended December 31, 2018.
PPIP is managed by the Financial Institution Pension Fund (DPLK). Some pension funds plan is borne by the employees partially, while the rest is charged to the Company. The Company's contribution to DPLK is calculated based on a certain percentage of employees' salaries, which for the years ended December 31, 2020, 2019, and 2018 were Rp41 billion, Rp55 billion, and Rp13 billion, respectively.
The Incurred Funds of Telkom's Pension Program 2018-2020
Retirement Program | 2020 | 2019 | 2018 |
PPMP (Rp billion) | 205 | 233 | - |
PPIP (Rp billion) | 41 | 55 | 13 |
OCCUPATIONAL HEALTH AND SAFETY ENVIRONMENT
Telkom believes that decent occupational Health and Safety Environment (HSE) will increase employee productivity. It will improve the Company's operational and financial performance. Therefore, TelkomGroup is committed to applying HSE under regulations and best practices in the telecommunications industry with good corporate governance. On the other hand, the implementation of HSE also shows the commitment to the Sustainable Development Goals (SDGs) mainly for the 3rd goal: "Good Health and Wellbeing".
As of December 31, 2020, Telkom was able to maintain zero accidents. It is a good achievement for the occupational Health and Safety Environment (HSE) of Telkom employees. The implementation of HSE does not apply only in Telkom offices but also in projects carried out by Telkom. HSE strictly implemented.
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Telkom also evaluates HSE management by internal and external parties. Reviews conducted by internal parties with HSE Management Internal Audit, and external parties by PT Sucofindo, which refers to the standard of Government Regulation No. 50 Year 2012. This standard is used in all Telkom and its subsidiaries work environments and the partners in the TelkomGroup operational area.
One of Telkom's HSE management system implementation is the emergency response and first aid simulation in accidents, such as flood simulation in Witel Cirebon, and simulation of COVID-19 anticipation in GMP Japati office area. Telkom created an application on the SAS Portal to ensure occupational safety readiness for Telkom employees. TelkomGroup also routinely conducts fire drills, especially in the head office and branch buildings. To strengthen HSE awareness, TelkomGroup routinely holds OHS seminars and training.
During 2020 Telkom held training related to HSE, including training of General HSE and HSE Management Internal Auditor.
Besides, there are TelkomGroup's programs of occupational safety in the operation field, such as:
1. | Safety Talk |
2. | Safety Observation Round (SOR) |
3. | Check List of Safe Work Readiness |
4. | Management Visit |
5. | HSE Patrol |
6. | Manufacture and Installation of HSE Signs |
7. | HSE Team Meeting |
In 2020, there were significant health and safety environment issues that are relevant to TelkomGroup business, such as the anticipation and prevention of COIVD-19 pandemic in TelkomGroup.
CERTIFICATION AND AWARDS
At the end of the 2020 reporting year, TelkomGroup has several certificates related to Manpower, one of them is TelkomGroup successfully passing the ISO 37001: 2016 Anti-Bribery Management System (SMAP) certification on August 10, 2020.
Telkom also received various awards related to labor aspects in 2020, including Award as a BUMN with the second-best gratification management in 2020 in the BUMN sector in December 2020 on World Anti-Corruption Day (HAKORDIA).
Telkom also always maintains relationships with stakeholders, one of them is the Ministry of Manpower, which Telkom is one of the state-owned companies for pilot projects in submitting the ratification by the General Director of the Directorate of Work Requirements for the Collective Labor Agreement VIII Year 2019-2021 online through an integrated application at the wajiblapor.kemenaker.go.id.
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SOCIAL RESPONSIBILITY FOR COMMUNITY ENGAGEMENT AND DEVELOPMENT
THE COMMITMENT AND POLICY OF CORPORATE SOCIAL RESPONSIBILITY FOR COMMUNITY ENGAGEMENT AND DEVELOPMENT
In principle, TelkomGroup's social responsibility for community engagement and development is very related to the business ethics commitment stipulated in the Resolution of the Board of Directors Number PD.201.01/r.00/PS150/COP-B0400000/2014 dated May 6, 2014, regarding Business Ethics in the TelkomGroup Environment. The TelkomGroup community engagement and development initiatives are regulated in the Partnership and Community Development Program (PKBL) framework, which the Company is obliged as a state-owned enterprise (SOE). It is stated in the Directors Regulation No. PD.701.00/r.00/PR.000/COP-A3000000/2014 (PD.701.00/2014) dated October 14, 2014, regarding Management of Telkom Corporate Social Responsibility (Telkom CSR). The implementation of social responsibility for community engagement and development is under the framework of Partnership and Community Development Program (PKBL) and Telkom CSR PR (Corporate Social Responsibility Public Relations).
Telkom CSR PR strategies and policies are the authority of the Corporate Communication sub-department. On the other hand, PKBL is under the Community Development Center (CDC) unit. For the implementation of Telkom CSR policy and operational functions are regulated as follows:
1. | Telkom CSR Policy decision is the Telkom President Director's responsibility, assisted by the CDC unit and the Corporate Communication Sub-Department for its operations. |
2. | The CDC Unit and the Corporate Communication Sub-Department can coordinate with related work units and subsidiaries for their operational activities. |
Consistently, TelkomGroup's community socio-economic development initiatives focus on digitalization-based business activities support. It is significant for maximizing the potential of Indonesia's digital economy, with various initiatives in routine and ad hoc activities. On the other hand, TelkomGroup also engages and empowers the nearby community by cooperating with partners that use local labor. The scope of local labor use is related to the operational construction and maintenance of infrastructure.
In 2020 due to the COVID-19 outbreak, TelkomGroup was very concerned about the disruption of its business and community activities. Therefore, TelkomGroup also accomplished various social responsibility initiatives related to pandemic handling and support for the national health system.
THE PLANNING AND FORMULATION OF CORPORATE SOCIAL RESPONSIBILITY FOR COMMUNITY ENGAGEMENT AND DEVELOPMENT
TelkomGroup's CSR program for community engagement and development reflects its efforts to increase its positive social impact and build the community's social capital and independence. In performing this social responsibility, TelkomGroup attempt to create mutual benefits for stakeholders, especially startups and digital entrepreneurs, also Telkom and its subsidiaries for sure.
In the implementation, TelkomGroup ensures the presence of its stakeholder engagement in various community development activities. In a more comprehensive context, TelkomGroup attempt to use its influence, particularly on its subsidiaries and partners, to collaborate in community engagement and development activities.
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Telkom's social responsibility initiative budget for community empowerment is from operating expenses recorded as the CSR budget, according to the Board of Directors Regulation No. PD.701.00/2014 dated October 14, 2014. In the implementation, the CSR budgeted cost for community engagement and development was Rp397.14 billion in 2020. It was lower 5.03% compared to Rp418.20 billion than the previous year.
Furthermore, TelkomGroup provides a complaint mechanism and procedure for stakeholders via email or TelkomGroup social media in conflict handling with the community. TelkomGroup is also open to public critics and suggestions regarding its operational activities and those environmental and social impacts.
If there are any complaints, people could contact 147, the application of MyIndiHome, or www.indihome.co.id/support. They can also use Twitter @IndiHome or email customercare@telkom.co.id and come to the nearest Plasa Telkom. The complaints will be followed up and resolved according to a different Service Level Agreement (SLA) depending on the problem.
| | |
Target/Plan of Social Responsibility Activities for The Community Engagement and Development BUMN untuk Indonesia: Telkom Tanggap COVID-19 (SOEs for Indonesia: Telkom responds to COVID-19) Following the instruction of the Ministry of SOE, the allocation of funds for the Community Development Program for disaster management (natural and non-natural) is 30% of the total Community Development budget. Besides, some policies support stimulus Foster Partners, namely restructuring the Partnership Program loans or postponing the Partnership Program loan installment payment to support the economic-vulnerable business affected by the COVID-19. Internet untuk Pendidikan (Internet for Education) Following the President's direction, such as continue infrastructure development through investment in internet network development to serve rural areas, the Telkom CSR Program provides free internet access for communities to poor internet access areas to support the learning process, with the priority of frontier, outermost, and least developed regions or 3T (Terdepan, Terluar, Tertinggal) regions. Internet assistance includes installing internet access, Wi-Fi devices, and computers, with installation targets in 7 locations. Inkubasi Sociodigipreneurship untuk Pelajar, Mahasiswa, dan Karyawan (Sociodigipreneurship Incubation for Students, Students, and Employees) Telkom's commitment and one of the CSR focus in education are utilizing the digital competence of the community and the Company, which is expected to contribute to advancing Indonesian education and social investment for the Company for future generations. The program manifests in the incubation of sociodigipreneurship for SMK (vocational school) students (SMK Digi Social Fest), students (Innovillage), and employees (Ayo Bikin Nyata) as a forum to foster innovation culture in developing digital solutions that can bring solutions to social issues. The target number of participants involved in this sociodigipreneurship incubation program is 1,500 crowd talent. Digital Amoeba Program Following the Amoeba Digital Program or Program Amoeba Digital (PDA) roadmap in 2020, it is expected that innovation can become BAU (business as usual), or innovation become a daily operational activity in TelkomGroup, especially in Regional offices. PDA targets to create additional 120 new digital talents in innovator format, has 40 new incubated products and creates 10 exit products as new businesses. In this year, it is also expected that PDAs will be strong enough to support Indonesia's digitalization development in general and BUMN in particular with the brand Amoeba for Indonesia. Not only the successful PDA in developing intrapreneurial innovation frameworks and techniques (from employees, but not business or entrepreneurs), but also Amoeba products can be used for MSMEs and non-profit organizations. Indigo Creative Nation In 2020, the Indigo Creative Nation Program targeted to incubate up to 50 startups, including gaming startups with the Indigo Game Startup Incubation program. Besides functioning as innovation sources for the development of the Company's digital business, the Indigo Program also expects to help people who want to develop their digital business ideas through the DILo Customer Validation program. |
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THE IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY FOR COMMUNITY ENGAGEMENT AND DEVELOPMENT
The implementation of TelkomGroup's social responsibility initiatives is in the framework of the Partnership and Community Development Program, such as BUMN untuk Negeri, and in the other frameworks. TelkomGroup ensures its management engagement, specifically in reviewing and increasing the credibility of CSR implementation and reporting initiatives. Management is also involved in implementing social responsibility in community engagement and development.
TelkomGroup efforts in the Board of Directors, management, and employees' engagement for social responsibility activities in the community development consist of the planning, budget approval, and achievement evaluation of social responsibility initiatives. The involvement and/or engagement of relevant stakeholders in TelkomGroup CSR initiatives also carried out with various dialogues and activities. Those are involving professionals and C-level practitioners to be inspirational speakers at various TelkomGroup activities.
ACHIEVEMENTS OF CORPORATE SOCIAL RESPONSIBILITY FOR COMMUNITY ENGAGEMENT AND DEVELOPMENT
The social responsibility for community engagement and development carried out by TelkomGroup provides benefits for stakeholders and the Company, either directly or indirectly. The impact on stakeholders, specifically on program beneficiaries, is increased capability, better independence, and the ability to develop a better digital business.
For TelkomGroup, the achievement of social responsibility for community engagement and development is a commitment of corporate social responsibility to shareholders and a direct or indirect contribution to sustainable development.
In empowering the local workforce, as of December 31, 2020, TelkomGroup recorded the local workers at Telkom and its Subsidiaries as 25,123 people. There were 225 foreign workers employed by TelkomGroup because they have the required qualifications. Most of TelkomGroup suppliers are domiciled and owned by Indonesians, such as 852 local suppliers or 98.95% of the total number of suppliers as of December 31, 2020. The supplier data is continuously recorded and monitored on the SMILE application.
During 2020, Telkom has realized Rp397.14 billion for social responsibility activities funds including for community empowerment and social investment. Of the total funds, Rp221.66 billion or 55.81% allocated for the Partnership Program and Rp124.73 billion or 31.40% used for the Community Development Program, while the rest was used for the Corporate Social Responsibility Program.
Realization Funds of Social Responsibility 2018-2020
| ||||||
Description | | 2020 |
| 2019 |
| 2018 |
|
| Rp (Billion) | ||||
Partnership & Community Development Program |
| 346.39 |
| 368.70 |
| 385.86 |
Partnership Program | | 221.66 | | 253.44 | | 279.98 |
Community Development Program | | 124.73 | | 115.26 | | 105.88 |
Corporate Social Responsibility |
| 50.75 |
| 49.50 |
| 39.80 |
Total |
| 397.14 | | 418.20 | | 425.66 |
Community empowerment programs with the PKBL program is more detailed in the Partnership and Community Development Program (PKBL) chapter in this annual report.
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Achievements of Social Responsibility Activities for The Community Engagement and Development BUMN untuk Indonesia: Telkom Tanggap COVID-19 (SOEs for Indonesia: Telkom responds to COVID-19) In 2020, Telkom's Community Development Program distributed assistance worth Rp37.5 billion to handle the COVID-19 impact on the community. These assistances are PPE (Personal Protective Equipment), masks, sanitizers, disinfectants. Besides, Telkom has implemented a Program Jaring Pengamanan Sosial or Social Safety Network Program through the distribution of basic foodstuffs to poor families, the informal workers, and layoffs by purchasing Telkom's Foster Partners. It is one of the steps to optimize SMEs/Telkom Development Partners. Internet untuk Pendidikan (Internet for Education) In 2020, the Internet for Education Program was held in 7 locations in West Java, Central Java, and East Java. This program is part of Telkom in supporting education and learning programs that are inclusive of society by utilizing digital technology. Next, it would educate the society to make monthly mutual assistance fees when the grace period is over. It is to ensure the sustainability of aid benefits. Inkubasi Sociodigipreneurship untuk Pelajar, Mahasiswa, dan Karyawan (Sociodigipreneurship Incubation for Students, Students, and Employees) During 2020, Telkom held three types of sociodigipreneurship incubation programs for three different segments, namely the SMK Digi Social Fest (SMK student segment), Innovillage (student segment), and the Ayo Bikin Nyata Program (employee segment). The total number of participants involved in this program was 1,708 crowd talents, consisting of 358 vocational students, 900 students, and 450 employees. Amoeba Digital Program As a result of strong collaboration between the Directorate of Digital Business and the Directorate of Human Capital Management, PDA in 2020 has succeeded in encouraging innovation, and digital mindset and culture, to become part of TelkomGroup operations, specifically Regional offices (to become BAU or business as usual). In 2020, through the active 7 AMA satellites in 7 Regionals, PDA will hold several events, including 2 major events HackIdea #5 with 21 teams (product) winners and HackIdea # 6 with 20 teams (product) winners, added Finding Founder in the form of assignments from 6 teams (products) and 8 specific teams from the Wholesale & International Business Directorate. To that end, PDA managed to add 55 new products incubated with the addition of 170 new talents. The COVID-19 pandemic has postponed many activities, including 20 teams from HackIdea #6 with 62 talents, the incubation must be postponed to 2021. Since 2017, PDA has 7,680 talent sourcing for TelkomGroup digital talent (Talents), 226 Amoeba products incubated (Products), and 13 exit products as new businesses. Recorded revenue in 2020 was Rp55.4 billion with an internal cost-saving of Rp670.3 billion (the value of this business impact has not been audited in detail and is indicative of the business units that have benefited from the innovation). PDAs contribute to creating digital tools products and developing digital-based business processes within TelkomGroup. Besides, PDAs also contribute to the development of the digitization of BUMN. On July 30, 2020, 3 Amoeba innovation products were successful as finalists for the BUMN Millennial Innovation Summit (2 of which were BIGBOX and MANGOESPACE). The three finalists of innovation are the development of infrastructure and big data platforms that also support the Kominfo program, namely One Data (BIGBOX), 3T community empowerment to be able to get better internet access (MANGOESPACE), and a business management platform at the UMKM level which also supports the Ministry's program. BUMN, namely Pasar Digital UMKM (PaDi UMKM). PDA provides knowledge sharing to 10 employee innovation management organizations, including the Ministry of State Secretariat and the Human Initiative. In the third quarter of 2020, the Indonesia Telecommunication and Digital Research Institute (ITDRI) was established and PDA management was transferred to ITDRI. It made PDAs will further develop their social benefits directly or through their network of partnerships, especially with all state-owned enterprises. Amoeba will become ITDRI's key brand in 2021, especially for the pentahelix network, which consists of academics, business, government, technology providers, and communities. Indigo Creative Nation As of December 31, 2020, 51 teams actively validated new products and new processes, with 23 synergy projects aimed at faster development and validation of TelkomGroup's digital business. Since 2013, Indigo Creative Nation has incubated 183 startups. As of December 31, 2020, 110 startups have started commercial operations and 23 startups have received funding from domestic and foreign investors. Several startups have synergized with us in providing digital products and solutions such as Tees.id, Privy.ID, Run System, Opsigo, Goers, Doclink, Tyranix, Habibi Garden, Muslimlife, Bahaso and Verihubs. Besides, through the DILo Customer Validation program, Indigo has helped as many as 112 new startups to validate their business ideas through intensive mentorship activities. |
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During 2020, TelkomGroup received awards in social responsibility for community engagement and development in the following table.
No. | Month | Date | Event | Award | Awarding Institution |
---|---|---|---|---|---|
1. | February | 27 | CSR Program Awards 2020 | Excellence Corporate Social Responsibility Program in 2020 | Iconomics |
2. | June | 5 | Top Corporate Social Responsibility of the year 2020 | Special Achievement of The Corporate’s Contribution to Social Responsibility In COVID-19 Handling Activities | Infobrand.id |
3. | July | 15 | Teropong CSR Award (TCA) 2020 | Gold Winner “Peduli UMKM dan Pengembangan Digital E-Learning” | Teropong Senayan |
4. | August | 27 | Anugrah Gatra Award 2020 | The Innovation and Development of MSMEs Economy | Gatra |
5. | September | 23 | PKBL/CSR Awards 2020 | Indonesia Best CSRxPKBL Award 2020 “Prosperity, Humanity and Sustainability” | Warta Ekonomi |
6. | October | 22 | La Tofi School of CSR Award | Gold Winner “Peningkatan Mutu Pendidikan” | The La Tofi School of CSR |
7. | November | 27 | HR Excellence Award 2020 | Gold Winner in HR Excellence CSR Strategy | Human Resource Online |
Top Corporate Social Responsibility (CSR) of the year 2020. This award is a recognition of Telkom's success in its continuous efforts to balance its business activities by considering the concept of profit-people-planet.
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ENVIRONMENTAL RESPONSIBILITY
THE COMMITMENT AND POLICY OF CORPORATE SOCIAL RESPONSIBILITY FOR THE ENVIRONMENT
TelkomGroup always strives to minimize the negative impact of its policies and operational activities on the environment. It follows the Company's business ethics stated in the policy number PD.201.01/r.00/PS150/COP-B0400000/2014 dated May 6, 2014, regarding Business Ethics in TelkomGroup. The commitment of corporate social responsibility for the environment is by respecting and considering the stakeholders' expectations, complying with applicable laws, and consistent with international norms of behavior.
Telkom encourages socially responsible behavior for the environment on the whole organization, its subsidiaries, and business partners in the implementation. It is expected would contribute to sustainable development, specifically related to the management of energy, water, and waste in the TelkomGroup operational environment. The organization and organizing of corporate social responsibility initiatives in the environment are integrated with other social responsibility initiatives. The implementation of social responsibility in the environment is under the framework of Telkom's social responsibility initiatives.
In the budgeting, the implementation of Telkom's social responsibility for the environment is supported by several budget sources according to the management unit. Some of them are from GSD/Telkom Property (for building electricity and STO, and fuel for operational vehicles), the Digital Service Operation unit (for STO fuel), Telkomsel (for BTS), and Telin and Telkomsigma (for data centers).
THE FORMULATION OF CORPORATE SOCIAL RESPONSIBILITY FOR THE ENVIRONMENT
Telkom has conducted internal due diligence on the various impacts of TelkomGroup decisions and activities for stakeholders and sustainable development. Telkom also reviews every defined policy for all its operational activity. It is to ensure the minimization of negative impacts caused by its activities on the environment.
In principle, Telkom and its subsidiaries always support the Government's efforts to improve environmental conditions, such as mitigation and adaptation to climate change. It realizes the extreme climate change is a sequence of greenhouse effects that would affect all human beings' activities and affect all corporate entities including TelkomGroup.
The potential risks of climate change for TelkomGroup include extreme weather that can damage digital telecommunications networks and infrastructure, and those will impact consumer service and the sustainability of the Company. For prevention, Telkom mitigates the impact of global warming by reducing carbon emissions and supporting the implementation of environmentally friendly business activities.
In recognizing and formulating social responsibility and significant stakeholders for the environment, Telkom has an initiative as a social responsibility approach. The formulating mechanisms of major social responsibility issues are internal discussions, reviewing all regulations related to them, and considering international social responsibility reporting standards, such as the publication of the Global Reporting Initiative (GRI) and Sustainability Accounting Standard Board (SASB).
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One of the sustainability initiative pillars in implementing social responsibility for the environment is "sustainable in business and use of technology." This pillar includes energy use, environmental impact management, and electronic waste end-life management. Those aspects represent the significant direct or indirect impacts of the Company's activities and decisions, and the sustainability context of TelkomGroup. It also shows the risks that may occur from the failure of social responsibility implementation which is very related to stakeholder expectations on Telkom's social role.
Besides the high energy use for its operations, the other main activity that impacts the environment is materials use for telecommunications equipment and infrastructure on land and sea. The infrastructure construction includes the submarine telecommunications cables installation, the establishment of Base Transceiver Station (BTS) towers, and other infrastructure installations.
THE PLANNING OF CORPORATE SOCIAL RESPONSIBILITY FOR THE ENVIRONMENT
In 2020, Telkom's social responsibility planning for the environment including:
| ||
STO Management | ||
| a. | Electric generator optimization for diesel fuel consumption efficiency as its capacity adjusted to the load capacity. |
| b. | Optimization of air conditioner (AC) system for device room to increase its reliability and electricity efficiency. |
| c. | Revitalization of the obsolete and inefficient device to another with an efficiency of more than 90%. |
2. | BTS Management | |
| a. | Presenting cutting edge technology that more energy efficient to support operational activities. |
| b. | Use of Base Transceiver Station (BTS) with clean energy or environmentally friendly. |
3. | Sigma Data Center Management | |
| a. | AC system consumption saving by temperature and humidity adjustment setting on AC units. It aims to maintain PUE (Power Usage Effectiveness) on average to the efficient level. |
4. | Telin Data Center Management | |
| a. | Saving water with the gutters on the rooftop to collect rainwater which will be processed and used for water consumption in Jurong-3. |
| b. | The use of the IoT concept with sensor power for non-IT electronics, such as automatic light adjustment affected by time or hour. |
| c. | Using Diesel Rotary Uninterruptible Power Supply (DRUPS) technology for backup power sources (generators). This technology replaces batteries which produce a lot of chemical impacts on the environment. |
5. | Building Management | |
| a. | LED lamp and cooling system management use on office buildings. |
| b. | Reflective glass uses on most office buildings with a depth of 6 mm to reduce incoming heat. |
| c. | Use a zoning lighting scheme to adjust the lighting area as its necessity for energy saving. |
| d. | Apply lighting and automatic device schedule to save electricity consumption without disturbing the user building convenience and safety. |
| e. | Capacitor bank uses to optimize electricity consumption. |
| f. | Educate the energy-saving to the employees. |
| g. | Put the reminder board and sticker in various strategic locations to get the employees aware of power and water saving. |
| h. | Biopores and infiltration wells in part of Telkom building for rainwater control. |
In the implementation, Telkom's social responsibility planning for the environment shows TelkomGroup's commitment to reduce negative impacts on the environment and demonstrate efforts to create mutual benefits of environmental initiatives for the stakeholders and Company. TelkomGroup uses its influence to prevent, mitigate, and improve the environment quality to get maximum impact, including vendor or partner selection that offer more reliable and efficient device.
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In the planning, Telkom strives to involve stakeholders in the future environmental activities of the Company. These stakeholders are the more eco-friendly technology provider partner and employees who operate various infrastructure and technologies in the TelkomGroup.
Following the business context, the sustainability aspects of TelkomGroup are not very relevant and significant to environmental incidents, such as explosions or oil spills, which cause emergencies and/or conflicts. However, with the existing mechanisms and procedures, TelkomGroup can prepare itself to face this situation. If there are complaints and suggestions related to the environment, people could send an email via web www.telkom.co.id or Telkom's social media.
THE IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY FOR THE ENVIRONMENT
TelkomGroup accomplishes its social responsibility for the environment comprehensively and involves the Board of Directors, management, employees, and relevant stakeholders, such as suppliers or work partners. Management and employees are the executors supported by stakeholders, while the Board of Directors provides direction, supervises, and reviews its performance and reporting. This review will increase the credibility of the activity initiatives and social responsibility reports.
In 2020, TelkomGroup consistently implemented various policies to reduce adverse impacts on the environment. Those are the use of air conditioners with inverter technology, LED lights, and capacitor banks to optimize electricity use, which has been implemented since 2010. Besides, TelkomGroup also educates employees to save energy. In offices, warning boards and stickers are placed at strategic locations to remind employees to save electricity and water. The work area uses a zoning lighting scheme and reflective glass with a thickness of 6 mm in most office buildings to reduce incoming heat.
For STO operation, Telkom optimizes the electric generator's capacity to its load capacity for diesel fuel-efficiency consumption and the air conditioner system of the device room to increase its reliability and electricity consumption. For data center management, Telkomsigma had AC system consumption saving by temperature and humidity adjustment setting on AC units to maintain PUE (Power Usage Effectiveness) on 1.8 level in 2020. Telin data center in Singapore also improved in the PUE value from 1.73 in 2019 to 1.43 in 2020. Meanwhile, in the operational management of BTS, Telkomsel presents advanced technology to support operational activities, such as the Go Green Fuel Cell Base Transceiver Station (BTS). This commitment is realized by utilizing Fuel Cell through an energy source using Hydro Plus (a mixture of Methanol and Water) and Solar cell with solar energy sources. Telkomsel has implemented this technology in several BTS in several operational areas.
Telkom always reviews the potential environmental impacts while carrying out operational activities, such as installing telecommunication cables and constructing Base Transceiver Station (BTS) towers. Telkom always follows standards according to international norms in development. The Company understands the importance of environmental aspects to avoid the lessen public image risk of neglecting this impact.
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ACHIEVEMENTS OF CORPORATE SOCIAL RESPONSIBILITY INITIATIVES FOR THE ENVIRONMENT
The social responsibility programs realization for the environment in 2020 was considered a positive impact on the community. Reducing fuel, electricity consumption, and emissions expected to contribute to the lower climate change impact. On the other hand, through a sequence of the implemented social responsibility programs, TelkomGroup also received positive benefits, both directly and indirectly, such as efficient resources use.
By carrying out social responsibility for the environment, TelkomGroup is committed to providing sustainable development benefits, either directly or indirectly. It is an effort to support Government Regulation No.59 of 2017 related to the sustainable development goals achievement.
ECO-FRIENDLY WORK CULTURE
Telkom understands the importance of creating an environmentally friendly work culture in the operational areas of the Company and its subsidiaries. Besides, partners who work their activities in the TelkomGroup operation area also should understand and support the work culture. One of Telkom's efforts is to socialize an eco-friendly lifestyle, such as reducing plastic beverage packaging and plastic-based material in the ongoing activities.
Since 2009, Telkom has built an eco-friendly lifestyle system. It was marked by the "Bike to Work" program as a campaign to reduce carbon emissions. Also, TelkomGroup has determined several policies, including online official memos, virtual meetings, shared files, online surveys, and IT-based human resource management. During the pandemic, TelkomGroup implemented a Work from Home policy. Besides the health and safety of employees, it could give a positive impact on the environment due to decreased resource use and discharged emissions.
In 2020 it was estimated that there were 321,827 published online internal official memos. Assuming each official memo is equivalent to 1 sheet of paper and addressed to 2 recipients, Telkom saved as much as 643,654 sheets or 1,288 reams of paper.
TelkomGroup continues to educate customers by paperless bills via email. Besides, customers can also access MyIndiHome and MyTelkomsel applications. From 8.0 million IndiHome subscribers and 6.5 million postpaid cellular subscribers, Telkom can save 147 million sheets of paper (equivalent to 348 thousand reams of paper) assuming 1 bill sheet per month in 1 year.
TelkomGroup through Telkomsel also invites people to show commitment and take real action to reduce plastic use while reducing plastic waste through the #BhayPlastik movement. It has been held since December 2018 aiming to spread environmental awareness, so that people can use plastic wisely.
ELECTRICITY CONSUMPTION
As of the end of 2020, TelkomGroup has calculated electricity consumption includes fixed and cellular networks, building operations, and data centers. The total electricity consumption for 2020 was 2,313,300,900 kWh, increased by 78,447,855 kWh or 3.5% than the previous year.
The electricity increase was due to the consumption of cellular networks in line with the addition of more BTS to strengthen Telkomsel network across country and client colocation, or IT load capacity of data center customers. On the other hand, the electricity consumption decreased due to upgrading STO type device with higher efficiency consumption and the lower electricity consumption of operational building due to the COVID-19 pandemic that decreased the office activities. The following table is the electricity consumption of TelkomGroup for the last three years.
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TelkomGroup’s Electricity Consumption 2018-2020
| ||||||
Electricity Consumption | | 2020 |
| 2019 |
| 2018 |
|
| kWh | ||||
Fixed Network (STO) |
| 287,927,905 |
| 323,667,742 |
| 338,596,501 |
Operational (Building)* | | 71,981,976 | | 80,916,935 | | 84,649,125 |
Cellular Network (BTS) | | 1,889,032,157 | | 1,776,077,129 | | 1,679,150,702 |
Data Center | | 64,358,862 | | 54,191,239 | | 43,042,256 |
Sigma Data Center | | 62,736,741 | | 52,821,841 | | 41,801,266 |
Telin Data Center in Hong Kong | | 251,241 | | 90,678 | | 18,430 |
Telin Data Center in Timor Leste | | 1,370,880 | | 1,278,720 | | 1,222,560 |
Total | | 2,313,300,900 | | 2,234,853,045 | | 2,145,438,584 |
*Building managed by Telkom Property.
FUEL CONSUMPTION
Furthermore, through the facility of Employee Shuttle Bus (EMSHUB), Telkom contributes to reducing the congestion and emissions in Jakarta. The presence of EMSHUB is supported by Satellite Office facilities in Bogor, Tangerang, and Bekasi allowing employees to continue their work when the traffic is high. EMSHUB also has a meeting room and collaboration room equipped with video conferencing facilities and high-speed internet so they can work comfortably in a mobile manner and remain productive. Besides, TelkomGroup Board of Directors have also participated in reducing emissions by using electrical vehicles since 2020.
Furthermore, TelkomGroup uses mostly fuel for operational vehicles, BTS, and STOs. In 2020, there was a decrease in fuel consumption around 130,692 liters or 0.9% due to the lower fuel consumption for STO operation by 31.6% due to the increasing PLN continuity supply, so power outage and the low gap of electric generator capacity and its load rarely occurred. Fuel efficiency also shows in the BTS operational due to energy saving and eco-friendly technology use. The following table is TelkomGroup's fuel consumption for the last three years.
TelkomGroup’s Fuel Consumption 2018-2020
| ||||||
Fuel Consumption | | 2020 |
| 2019 |
| 2018 |
|
| Litre | ||||
Fixed Network (STO) | | 1,082,622 | | 1,583,986 | | N/A |
Operational Vehicle* | | 2,100,567 | | 1,463,650 | | 4,799,513 |
Cellular Network (BTS) | | 9,979,993 | | 10,246,811 | | ± 12,000,000 |
Sigma Data Center | | 18,215 | | 16,642 | | 27,230 |
Telin Data Center in Timor Leste | | 9,000 | | 10,000 | | 12,000 |
Total | | 13,190,397 | | 13,321,089 | | ±16,838,743 |
*Operational vehicles managed by Telkom Property.
ECO-FRIENDLY ENERGY
To reduce carbon emission, TelkomGroup currently uses eco-friendly energy for BTS. The eco-friendly energy use is not new for Telkomsel. Previously, Telkomsel has utilized alternative eco-friendly energy sources of Fuel Cells and Solar Cells (solar power). We can use this eco-friendly energy thanks to continuous research based on the spirit of maintaining and improving Telkomsel services.
Fuel Cell technology can produce power with exhaust gas of water vapor (zero emission). Telkomsel has deployed 216 Go Green Fuel Cell BTSs and 209 Solar Cell BTSs across Indonesia. The eco-friendly alternative energy use is also part of Telkomsel measures to ensure the broadband networks available across the country.
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WATER MANAGEMENT AND CONSUMPTION
In water consumption, TelkomGroup uses water sources from the Regional Drinking Water Company. Water use includes domestic needs. Several efficiencies that have been made were implementing water-saving policies, using automatic taps in most of Telkom buildings and use the AC effluent water. Water saving also implemented by with the gutters use on the rooftop to collect rainwater which will be processed and used for water consumption in Jurong-3. Besides, most of Telkom buildings have biopores and infiltration wells for rainwater control and water reuse. The following table is TelkomGroup's water consumption in 2018-2020.
TelkomGroup’s Water Consumption 2018-2020
| ||||||
Water Consumption | | 2020 |
| 2019 |
| 2018 |
|
| m3 | ||||
| | | | | | |
Office Operational* | | | 1,881,747 | | 1,779,662 | |
Total | | 1.588.177 | | 1,881,747 | | 1,779,662 |
*Water consumption for domestic purpose in Telkom Property buildings.
TOTAL ENERGY CONSUMPTION AND CARBON EMISSION
Telkom's total energy consumption in 2020 was 8,753,352 GJ with on-grid electricity consumption of 8,327,883 GJ and fuel consumption of 425,469 GJ from the exposure to on-grid electricity and fuel consumption. Overall, the energy consumption increased by 278,196 GJ or 3.2% from energy consumption in the previous reporting period.
Total Energy Consumption 2018-2020
Energy Consumption | 2020 | 2019 | 2018 |
Gigajoules (GJ) | |||
Electricity Consumption* | 8,327,883 | 8,045,471 | 7,723,579 |
Fuel Consumption** | 425,469 | 429,685 | 543,150 |
Total Energy Consumption | 8,753,352 | 8,475,156 | 8,266,729 |
* Source: https://www.convertunits.com/from/kWh/to/gigajoule
**(1) Conversion of liters to petrol metric ton (Source: https://www.gowebtool.com/unit-conversion/volume/)
(2) Conversion of gasoline (metric ton) to gigajoules (Source: http://ideas24.asset4.thomsonreuters.com/ideas24/unit_converter.jsp)
Reducing carbon emissions is one of Telkom and its subsidiaries efforts to contribute to the environment and sustainable development. So far, TelkomGroup only calculates emissions limited to electricity and fuel consumption. TelkomGroup recorded an increase in electricity consumption of 78,447,855 kWh in 2020 (equivalent to an increase in carbon emissions of 27,140 tons of CO2eg). For fuel consumption, there were a decrease of approximately 130,692 liters in 2020 (equivalent to a reduction in carbon emissions by 608 tons of CO2eg). TelkomGroup's carbon emissions of fuel and electricity use can be seen in the following table.
TelkomGroup’s Carbon Emission 2019-2020
Description | Unit |
| 2020 |
| 2019 |
Carbon Emission of Electricity Consumption | kg CO2/TJ | 800,309,579 | | 773,169,759 | |
Carbon Emission of Fuel Consumption | kg CO2/liter | 34,453,894 | | 35,061,450 | |
Total Carbon Emission | 834,763,473 | | 808,231,209 | ||
Carbon Emission Increase in Electricity Consumption | ton CO2eg | | 27,140 | | 30,934 |
Carbon Emission Reduction in Fuel Consumption | ton CO2eg | | 608 | | 8,065 |
Total Carbon Emission Increase | ton CO2eg |
| 26,532 | | 22,869 |
*Carbon emission of scope 2 includes electricity consumption | |||||
**Carbon emission of scope 1 includes fuel consumption |
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WASTE MANAGEMENT
Waste management in Telkom and its subsidiaries depends on its operational activities. For the management of Toxic and Hazardous Waste and non-Toxic and Hazardous waste, they are not classified as e-waste. TelkomGroup coordinates with the Sanitation Office in the local government for waste disposal. For recyclable materials such as used batteries, copper cables, and metal materials, it hands over to the third party. Old devices and equipment were replaced with new ones. It should not use Freon R6 or Halon gas for new air conditioners to reduce carbon gas emissions. In 2020 there were no waste spills that endanger the environment.
PRODUCT END-LIFE MANAGEMENT
Electronic waste (e-waste) management is one of TelkomGroup’s concern, which most of the waste is CPE (Customer Premises Equipment). CPE is various hardware related to product and service requirements and installed in the customer location. CPE is related to IT hardware, including desktop PC, peripheral, server, and router. Other hardware in the customer is modem and IP-Set Top Box with remote control for IndiHome subscribers. For CPE procurement, Telkom cooperates with one of the subsidiaries PT PINS. CPE Procurement held by three methods as Fully on Customer (Telkom as operational and maintenance personnel), Fully on Telkom, and Telkom with Customer.
For CPE of Telkom's responsibility, CPE handling adjust to conditions and uses. The decent CPE can be used as a backup in case of disruption or as a replacement device, though it exceeded its useful life. The unsuitable CPE will be stored in the warehouse and wait for management's decision to get the further measure.
The following is the number of CPE withdrawn by TelkomGroup over the last three years.
The Withdrawn CPE and The Treatment 2018-2020
CPE Type | Unit | Treatment Method | 2020 | 2019 | 2018 |
Router | Unit | Reused | 100 | 100 | 50 |
REDUCING SIM CARD AND VOUCHER CARD
For the last four years, the Government restricts SIM card distribution by requiring all mobile phone subscribers to register their SIM card, following the Ministry of Communication and Information regulation No. 12/2016. This regulation caused a decreased demand for new SIM card.
In line with the Go Digital Channel initiative, Telkom determined a policy to change voucher cards into e-voucher. It is supposed to reduce printing costs, logistics/storage, distribution, and solid waste. People can access e-voucher via digital payment to minimize the base cost of phone credit and support Telkom’s program of Go Digital Channel by promoting top-up credit in Own Channel Telkomsel such as LinkAja and MyTelkomsel. In 2020, the percentage of e-vouchers to total voucher sales was 52.7% for Wifi.id and 9% for Telkomsel.
For voucher card printing, Telkomsel has also used eco-friendly SIM card raw materials, and the card size is optimized from 1in1 to 2in1 to get a smaller card size. It directly impacted the waste reduction of new SIM card starter packs and voucher cards in the environmental aspect.
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ENVIRONMENTAL COMPLAINTS
TelkomGroup is committed to preserving the environment by minimizing the negative impact of its operations. If there is an environmental complaint, people could submit it via the email listed on the website www.telkom.co.id and Telkom's official social media. In 2020 there were no environmental complaints from the public to Telkom and its subsidiaries.
CERTIFICATION AND AWARDS IN THE ENVIRONMENT
The Company obtained certification for its achievement of social responsibility activities in the environment such as:
1. | EMS ISO 14001:2015 from British Standards Institution for Telkomsigma data center. |
2. | ISO 50001:2011 dan SS 564 Part-1:2013 from TUV SUD for Telin-3 Data Center in Singapore. |
Meanwhile, the National Energy Efficiency Award (PEEN) was not held in 2020 due to the COVID-19 pandemic.
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PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAM (PKBL)
| |
288 | Partnership and Community Development Program (PKBL) Report |
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PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAM (PKBL) REPORT
For Telkom, the Partnership Program and the Community Development Program (PKBL) are an effort to manage the impact of policies and operational activities on the community and the environment in a sustainable manner. The Partnership Program (PK) is a Government mandate to channel loan funds to micro and small businesses and increase the capacity of the Fostered Partners, while the Community Development Program (BL) is an empowerment of the social conditions of the community consisting of 7 (seven) assistance objects, which are:
| |
1. | Natural disaster victims assistance; |
2. | Education assistance; |
3. | Healthcare improvement assistance; |
4. | Developments of infrastructure and/or public facilities assistance; |
5. | Places of worship assistance; |
6. | Nature conservation assistance; and |
7. | Civil society for poverty alleviation assistance. |
Digitalization of PKBL Management
Since 2016, Telkom has implemented PK loan application services through the SmartBisnis web, installment payments through bank virtual accounts, which are Bank Mandiri and Bank BNI. Starting in 2017, Telkom has implemented an expansion of the installment payment method through virtual accounts, in synergy with subsidiaries, which are PT Finnet Indonesia as a payment point non-bank payment point aggregator and payment point, including PT Pos Indonesia, PT Pegadaian, Alfamart and Indomaret.
In 2018, Telkom made an innovation in the form of Smart Survey and SMS Reminder. Then, throughout 2019, Telkom made various innovations in terms of digitizing PKBL business processes, including the PKBL Dashboard, the system for recording transactions for Community Development activities in the FiNEC application, and the PKBL Helpdesk. All of these efforts are aimed at making it easier for Foster Partners to pay loan installments and ensuring transparency and accountability in the management of the Partnership Program that has spread to the outermost, underdeveloped and frontier areas throughout Republic of Indonesia (NKRI).
In addition, in 2020, Telkom digitalizing information services needed by Foster Partners through the implementation of UKM Access. This application is needed to support transparent communication & information between the manager and the Development Partners, as well as the mutual control regarding the installments of the Foster Partners.
LEGAL BASIS AND GENERAL POLICY
The legal basis for implementing PKBL activities has been regulated through Law No. 19 dated June 19, 2003, on SOEs, as well as Resolution of SOE Ministerial that have been amended several times. The last amendment is Regulation of the Minister for State-Owned Enterprises Number: PER-02/MBU/04/2020 dated April 7, 2020 regarding Third Amendment to the Regulation of the Minister for State-Owned Enterprises Number: PER-09/MBU/07/2015 regarding Partnership Program and State Owned Enterprises Development Program. Another legal basis is the Letter of the Minister for State-Owned Enterprises Number: S-574/MBU/ 08/2019 dated August 30, 2019 regarding Shareholders Aspirations for the Preparation of the 2020 Work Plan and Company’s Budget.
To carry out this obligation, Telkom has formulated policy and operational guidelines, which is the Company Regulation (Persero) PT Telekomunikasi Indonesia Tbk Number: PR.702.01/r.01/PR000/CDC-A1040000/2018 dated February 26, 2018 regarding Guidelines for the Operational Implementation of the Partnership Program and Community Development Program.
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SUCCESS PARAMETER
CSR (PKBL) Index
In 2020, Company measured the CSR (PKBL) Index with the achievement of 79.58%. This achievement illustrates that CSR activities carried out by the Company was in a good category or strong level, and have a positive influence on Company's image. Compared to the previous year, the CSR (PKBL) Index increased from 76.08% in 2019. This was due to an increase in the perception of fostered partners/aid objects and the surrounding community regarding Telkom CSR program, especially in the dimensions of citizenship, governance, and workplace.
Net Promoter Score – NPS
In measuring the success of social responsibility towards the community, Telkom uses the measurement of the Net Promoter Score (NPS). With NPS, Telkom identifies people's motivation to encourage or promote Telkom products and services. The 2020 NPS measurement results were 47,35% showed a positive value from the perspective of the community in recommending the use of Telkom products. However, the result is higher than the previous year which was 25.23%.
According to the increase, this indicates people's motivation to recommend or promote Telkom’s products and services. The results of the 2020 NPS measurement show a positive value from the perspective of the community in recommending the use of Telkom products.
The following table presents Telkom's NPS in the past three years.
NPS Measurement Results in 2018-2020
| ||||||
Criteria |
| 2020 |
| 2019 | | 2018 |
| | % | ||||
Promoters |
| 53.98 |
| 38.53 | | 42.23 |
Passive | | 39.39 | | 48.18 | | 42.14 |
Detractor | | 6.63 | | 13.30 | | 15.63 |
NPS |
| 47.35 |
| 25.23 | | 26.60 |
PKBL REALIZATION
Partnership Program
The Partnership Program is a community economic empowerment program which has the main objective to improve the income of micro and small scale business activities (Micro, Small and Medium Enterprises/MSMEs) through the provision of loan funds with low interest and administrative services. Management of the Partnership Program run by Telkom is also focused on digitalization. Therefore, in addition to providing loans, Telkom provides digital training for Fostered Partners and includes Fostered Partners at national and international exhibitions.
Throughout 2020, the Partnership Program funds distributed by Telkom amounted to Rp221.66 billion to 5,091 MSMEs engaged in the industry, trade, agriculture, animal husbandry, plantation, fishery, services sector, and others. The following is data on the realization of the number of Fostered Partners and Distribution of funds per business sector from 2018 to 2020.
289
Table of Distribution of Partnership Program Funds and the Number of Telkom Fostered Partners in 2018-2020
No. | | Business Sector | | Number of Foster Partners | | Total Disbursements | ||||||||
| | | | | | | | | | Rp billion | ||||
| | | | 2020 | | 2019 | | 2018 | | 2020 | | 2019 | | 2018 |
1. |
| Industry |
| 1,043 |
| 1,261 |
| 1,699 |
| 45.10 |
| 46.34 |
| 53.86 |
2. |
| Trading |
| 2,795 |
| 2,872 |
| 4,028 |
| 112.74 |
| 108.91 |
| 134.39 |
3. |
| Agriculture |
| 100 |
| 108 |
| 125 |
| 4.46 |
| 4.53 |
| 4.17 |
4. |
| Farming |
| 168 |
| 144 |
| 216 |
| 7.38 |
| 5.80 |
| 8.20 |
5. |
| Plantation |
| 45 |
| 46 |
| 80 |
| 2.02 |
| 1.80 |
| 2.71 |
6. |
| Fishery |
| 99 |
| 116 |
| 146 |
| 4.81 |
| 4.06 |
| 4.78 |
7. |
| Service |
| 807 |
| 985 |
| 1,184 |
| 33.11 |
| 38.28 |
| 43.06 |
8. |
| Others |
| 34 |
| 10 |
| 20 |
| 0.93 |
| 0.44 |
| 0.77 |
| | Special SOE | | - | | 1 | | - | | - | | 25.00 | | - |
| | Sub Total | | 5,091 | | 5,543 | | 7,498 | | 210.55 | | 235.16 | | 251.99 |
| | Fostering Partnership Fund | | | | | | | | 11.11 | | 18.28 | | 27.99 |
|
| Total |
| 5,091 | | 5,543 | | 7,498 |
| 221.66 | | 253.44 | | 279.98 |
|
| CAGR (%) |
| (8.15) |
| (26.07) |
| (10.39) |
| (12.53) |
| (9.48) |
| (7.80) |
The number of recipients of Partnership Program funds in 2020 decreased by 8.15% compared to 2019, while the number of funds channeled in 2020 decreased by 12.53%.
Increased Capacity of Fostered Partners
One of Telkom's efforts to increase the Capacity of Foster Partners is to participate in Indocraft 2020 exhibition on March 11-15, 2020 at Cendrawasih Hall, Jakarta Convention Center (JCC). In this exhibition, various batik and craft products are presented as the mainstay products of Indonesia's creative economy. Pandemic conditions transformed the way to deliver the Partnership Development Program from face-to-face to digital-based, including Telkom-Assisted UKM webinar to Help Relieve the Impact of COVID-19 on Business Continuity on May 13, 2020, which was attended by 650 Foster Partners.
The Effectiveness of Partnership Program Fund Disbursement
In 2020, Telkom targets the effectiveness of Partnership Program funding to reach 90% of the available funds. The effectiveness of the distribution of Partnership Program funds reached 98.27% with a score of 3. The achievement is not much different in the last three years.
Effectiveness of Program Fund Disbursement in 2018-2020
20 | | | | | | | |
Partnership Program | Unit | | 2020 |
| 2019 |
| 2018 |
Total Funds Disbursed | Rp billion | | 221.66 |
| 253.44 |
| 279.98 |
Total Funds Allocated | Rp billion | | 225.58 |
| 268.48 |
| 293.87 |
Fund Disbursement Effectiveness Rate | % | | 98.27 |
| 94.40 |
| 95.27 |
Fund Disbursement Effectiveness Score |
| | 3 |
| 3 |
| 3 |
290
The Collectability of Partnership Program Funds
The realization of the collectability of Telkom Partnership Program refunds in 2020 reached 74.03% with a score of 3. With a collectability target of 70%, the achievement exceeded expectations. The performance is also relatively constant in the last three years.
Collectability Rate of Partnership Program Funds in 2018-2020
| | | | | | | |
---|---|---|---|---|---|---|---|
Collectability | Unit |
| 2020 |
| 2019 |
| 2018 |
Collectability Rate | % |
| 74.03 |
| 86.96 |
| 88.85 |
Score | |
| 3 |
| 3 |
| 3 |
The Effectiveness of Community Development Program Fund Disbursement
In setting the 2020 target, Telkom is expected to be able to channel 100% of Community Development funds from a fund allocation of Rp124.74 billion. Realization of funds for the Community Development Program in 2020 amounted to Rp124.73 billion or 99.99% of the fund allocation for that year. This achievement in 2020 is considered to have increased from the previous year.
Effectiveness of Community Development Program Fund Disbursement in 2018-2020
| | | | | | | |
Community Development Program | Unit |
| 2020 |
| 2019 |
| 2018 |
Total Funds Disbursed | Rp billion |
| 124.73 |
| 115.26 |
| 105.88 |
Total Funds Allocated | Rp billion |
| 124.74 |
| 118.93 |
| 105.00 |
Fund Disbursement Effectiveness Rate | % |
| 99.99 |
| 96.91 |
| 100.84 |
PKBL BUDGET ALLOCATION
In accordance with Regulation of the Ministry of SOE, budget allocation for Partnership and Community Development Program comes from the calculated budget as SOE’s cost. Total of PKBL budget decreased from Rp383.93 billion in 2019 to Rp350.32 billion in 2020. That was due to no additional approval of the budget allocation for the partnership program from the Ministry of SOE.
Budget Allocation of Partnership Program and Community Development in 2018-2020
No. |
| Type of Program | Change | | 2020 |
| 2019 |
| 2018 |
| | | % | | Rp billion | ||||
1. |
| Partnership Program | (14.88) |
| 225.58 |
| 265.00 |
| 300.00 |
2. |
| Community Development Program | 4.89 |
| 124.74 |
| 118.93 |
| 105.00 |
|
| Total | (8.75) |
| 350.32 |
| 383.93 |
| 405.00 |
291
APPENDICES
293 | Appendix 1 | : | Glossary |
300 | Appendix 2 | : | List of Abbreviations |
306 | Appendix 3 | : | Circular Letter of Financial Services Authority No. 30/SEOJK.04/2016 Cross Reference |
319 | Appendix 4 | : | List of Affiliate Transactions |
292
APPENDIX 1:
GLOSSARY
The abbreviation for second-generation: relating to or using a technology that gave mobile phone users improved features and allowed people to send text messages (SMS).
3G
The generic term for third generation mobile telecommunications technology. 3G offers high speed connections to cellular phones and other mobile devices, enabling video conference and other applications requiring broadband connectivity to the internet.
4G/LTE
A fourth generation super fast internet network technology based on IP that makes the process of data transfer much faster and more stable.
5G
A fifth generation of cellular mobile communications which targets high data rate, reduced latency, energy saving, cost reduction, higher system capacity and massive device connectivity.
ADS
American Depositary Share (also known as an American Depositary Receipt, or an "ADR"), a certificate traded on a U.S. securities market (such as the New York Stock Exchange) representing a number of foreign shares. Each of our ADS represents 100 shares of common stock.
AKHLAK
Defined as Amanah (trustworthy), Kompeten (competent), Harmonis (harmonious), Loyal (loyal), Adaptif (adaptive), and Kolaboratif (collaborative) values that underlie the behavior of SOE personnel.
ARPU
Average Revenue per User, a measure used primarily by telecommunications and networking companies which states how much revenue is generated by the user on average. It is defined as the total revenue from specified services divided by the number of users of such services.
B2B (Business-to-Business)
The sale of products or services provided by one business and intended for another business, not to consumers.
B2C (Business-to-Customer)
A business that provides services or sales of goods or services to individual or group consumers directly.
Backbone
The main telecommunications network consisting of transmission and switching facilities connecting several network access nodes. The transmission links between nodes and switching facilities include microwave, submarine cable, satellite, fiber optic and other transmission technology.
One of the tools used by managers to measure the performance of a business seen from four perspectives. The four perspectives consist of a financial perspective, a customer perspective, an internal business process perspective, and a growth and learning perspective.
293
Bandwidth
The capacity of a communication link.
Bapepam-LK
Badan Pengawas Pasar Modal dan Lembaga Keuangan, or the Indonesian Capital Market and Financial Institution Supervisory Agency, the predecessor to the OJK.
BigCap
The largest market capitalization.
Broadband
A signaling method that includes or handles a relatively wide range (or band) of frequencies.
BTS
Base Transceiver Station, equipment that transmits and receives radio telephony signals to and from other telecommunication systems.
C2C (Customer-to-Customer)
A business model where customers can sell their merchandise to each other.
CFU
Customer Facing Unit, similar to a strategic business unit, which is an organizational unit that interacts with certain customer segments, with responsibility for profit and loss respectively, and is responsible for restructuring subsidiaries and business portfolios that are relevant to certain business segments that being its responsibility.
Common Stock
Our Series B shares having a par value of Rp50 per share.
CPE
Customer Premises Equipment, any handset, receiver, set-top box or other equipment used by the consumer of wireless, fixed line or broadband services, which is the property of the network operator and located on the customer’s premises.
A cyber attack is deliberate of the exploitation of computer systems, technology-dependent enterprises, and networks. Cyber attacks use malicious code to alter computer code, logic or data, resulting in disruptive consequences that can compromise data and lead to cybercrimes, such as information and identity theft.
Cyber Security
An effort to protect information from cyber attacks. Cyber attacks in information operations are any kind of deliberate action to disrupt the confidentiality, integrity, and availability of information.
DBPP
Defined Benefit Pension Plan. A type of pension plan in which an employer promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee’s earnings history, tenure of service and age, rather than depending on investment returns. It is considered ‘defined’ in the sense that the formula for computing the retirement benefits is known in advance.
294
DCPP
Defined Contribution Pension Plan. A type of retirement plan in which the amount of the employer’s annual contribution is specified. Individual accounts are set up for participants and benefits are based on the amounts credited to these accounts (through the employer’s contributions and if applicable, the employee’s contributions) plus any investment earnings on the money in the account. Only the employer’s contributions to the account are guaranteed, not future benefits. In defined contribution plans, future benefits fluctuate on the basis of investment earnings.
Digitization
Process of converting non-digital information to digital. If a company uses this digital information to increase business, generate revenue, or simplify some business processes, it is called digitization. The result of the digitization and digitization process is called digital transformation.
Dwiwarna Share
The Series A Dwiwarna Share having a par value of Rp50 per share. The Dwiwarna Share is held by the Government and provides special voting rights and veto rights over certain matters related to our corporate governance.
e-Commerce
Electronic Commerce, the buying and selling of products or services over electronic systems such as the internet and other computer networks.
e-Procurement
Electronic procurement, the process of procuring goods and services carried out online.
Earth Station
Antennas and related equipment used to receive or transmit telecommunication signals via satellites.
EBITDA
Adjusted EBITDA is defined as earnings before interest, tax, depreciation, and amortization. Adjusted EBITDA and other related ratios in this Annual Report serve as additional indicators on our performance and liquidity, which is a non-GAAP financial measure.
Edutainment
Education and Entertainment.
Fiber Optic
Cables using optical fiber and laser technology through which modulating light beams representing data are transmitted through thin filaments of glass.
Fixed Line
Fixed wireline and fixed wireless.
Fixed Wireline
A fixed wire or cable path linking a subscriber at a fixed location to a local exchange, usually with an individual phone number.
Gateway
A peripheral that bridges a packet-based network (IP) and a circuit-based network (PSTN).
295
Gbps
Gigabyte per second, the average number of bits, characters, or blocks per unit time passing between equipment in a data transmission system. This is typically measured in multiples of the unit bit per second or byte per second.
GHz
Gigahertz, The hertz (symbol Hz), is the international standard unit of frequency defined as the number of cycles per second of a periodic phenomenon.
GMS
General Meeting of Shareholders, which may be an Annual General Meeting of Shareholders (“AGMS”) or an Extraordinary General Meeting of Shareholders (“EGMS”).
GraPARI
Telkomsel service network.
GSM
Global System for Mobile Telecommunication, a European standard for the digital cellular telephone.
Homes Passed
A connection with access to fixed-line voice, IPTV and broadband services.
International Direct Dialing, a service that allows a subscriber to make an international call without the assistance or intervention of an operator from any telephone terminal.
Insider Trading
The trading of a public company's stock or other securities (such as bonds or stock options) by individuals with access to nonpublic information about the company. In various countries, some kinds of trading based on insider information is illegal.
Interconnection
The physical linking of a carrier’s network with equipment or facilities not belonging to that network.
Intranet
a computer network based on TCP / IP protocols such as the internet, however the usage is restricted or closed and only certain people or users can log on and use the intranet network.
IP
Internet Protocol, the method or protocol by which data is sent from one computer to another on the internet.
IPO
Initial Public Offering, the first sale of stock by a Company to the public.
IPTV
Internet Protocol Television, a system through which television services are delivered using the Internet Protocol suite over a packet-switched network such as the internet, instead of being delivered through traditional terrestrial, satellite signal, and cable television formats.
ISP
Internet Service Provider, an organization that provides access to the internet.
296
Leased Line
A dedicated telecommunications transmissions line linking one fixed point to another, rented from an operator for exclusive use.
Mbps
Megabyte per second, a measure of speed for digital signal transmission expressed in millions of bits per second.
Metro Ethernet
Bridge or relationship between locations that are apart geographically. This network connects LAN customers at several different locations.
MHz
Megahertz, a unit of measure of frequency equal to one million cycles per second.
MidCap
Middle cap market.
Mobile Broadband
The marketing term for wireless internet access through a portable modem, mobile phone, USB Wireless Modem or other mobile devices.
Network Access Point
A public network exchange facility where ISPs connected in peering arrangements.
OJK
Otoritas Jasa Keuangan, or the Financial Services Authority, the successor of Bapepam-LK, is an independent institution with the authority to regulate and supervise financial services activities in the banking sector, capital market sector as well as a non-bank financial industry sector.
Over The Top, A generic term commonly used to refer to the delivery of audio, video and other media over the internet without the involvement of a multiple-system operator in the control or distribution of the content.
Point of Presence. An access point, location or facility that connects to and helps other devices establish a connection with the Internet, which may consist of a router, switches, servers and other data communication devices. We operate two points of presence, namely main and primary points of presence. The "main point of presence" is the main transportation network that contains traffic aggregates within a country. The "primary point of presence" is a collection of major regional transportation networks that have the ability to create a service.
Postpaid
A type of communication service where customers can use telecommunications services first and then pay for them.
Prepaid
A type of communication service where the customer makes an advance payment in order to use telecommunications services.
297
PSA 62
Audit Standard Statement No. 62 (PSA 62) is a statement issued by the Indonesian Accounting Association which states that in conducting audits of financial statements of government entities or other recipients of government financial assistance which conducts stock offers through the capital market, auditors must comply with the provisions of the Capital Market Law.
PSTN
Public Switched Telephone Network, a telephone network operated and maintained by Telkom.
Pulse
The unit in the calculation of telephone charges.
Reverse Stock
The compression of shares to become a smaller amount of shares using higher value per share.
RMJ
Regional Metro Junction, an inter-city cable network installation service in one regional (region/province).
Radio relay equipment embedded in a satellite that receives signals from earth and amplifies and transmits the signal back to the earth.
Self Assessment
Guidelines are used as a form of accountability for collegially assessing the performance of the Board of Commissioners.
SIM cards
Subscriber Identity Module card is a stamp-sized smart card placed on a mobile phone that holds the key to the telecommunication service.
SKKL
Sistem Komunikasi Kabel Laut/Submarine Communications Cable System, a cable laid on the sea bed between land-based stations to carry telecommunication signals across stretches of ocean.
SMS
Short Messaging Service, a technology allowing the exchange of text messages between mobile phones and between fixed wireless phones.
SOA
Sarbanes-Oxley Act, effective from July 30, 2002, also known as the Public Company Accounting Reform and Investor Protection Act and Corporate and Auditing Accountability and Responsibility Act.
SOE/BUMN
State-Owned Enterprise/Badan Usaha Milik Negara is a government-owned company, state-owned company, state-owned entity, state-owned company, public-owned company, or parastatal which is a legal entity formed by the Government to conduct commercial activities on behalf of the Government as the owner.
SOX Section 404
SOX Section 404 (Sarbanes-Oxley Act Section 404) mandates that all publicly-traded companies must establish internal controls and procedures for financial reporting and must document, test and maintain those controls and procedures to ensure their effectiveness.
298
Stock Split
Splitting the number of shares becoming more shares using a lower value per share.
Switching
A mechanical, electrical or electronic device that opens or closes circuits, completes or breaks an electrical path, or selects paths or circuits, used to route traffic in a telecommunications network.
TPE
a normalized way to refer to transponder bandwidth it simply means how many transponders would be used if the same total bandwidths used only 36 Mt transponder (1 TPE = 36 MHz).
Treasury Stock
The company’s share has been buying back from the outstanding share temporarily.
USO
Universal Service Obligation, the service obligation imposed by the Government on all telecommunications services providers for the purpose of providing public services in Indonesia.
VoIP
Voice over Internet Protocol, a means of sending voice information using the IP.
VPN
Virtual Private Network, a secure private network connection, built on top of publicly-accessible infrastructure, such as the internet or the public telephone network. VPNs typically employ some combination of encryption, digital certificates, strong user authentication and access control to secure the traffic they carry. VPNs provide connectivity to many machines behind a gateway or firewall.
VSAT
Very Small Aperture Terminal, a relatively small antenna, typically 1.5 to 3.0 meters in diameter, placed in the user’s premises and used for two-way communications by satellite.
Whistleblower
The term for employees, former employees or workers, members of institutions or organizations who report actions that are considered to violate the regulation to the authorities.
299
APPENDIX 2:
LIST OF ABBREVIATIONS
Keyword | Descriptions |
---|---|
3T | Terdepan, Terluar, Tertinggal |
A2P | Application to Person |
AAG | Asia-America Gateway |
AC | Air Conditioner |
ACGS | ASEAN Corporate Governance Scorecard |
ACHI | AKHLAK Culture Health Index |
ADS | American Depositary Shares |
AEI | Asosiasi Emiten Indonesia |
AGMS | Annual General Meeting of Shareholders |
AKHLAK | Amanah Kompeten Harmonis Loyal Adaptif Kolaboratif |
AO | Application Owner |
APCN-2 | Asia Pacific Cable Network 2 |
ARPU | Average Revenue Per Unit |
ASEAN | Association of Southeast Asian Nations |
ATM | Automated Teller Machine |
AUP | Agreed Upon Procedure |
AVP | Assistant Vice President |
B2B | Business-to-Business |
B2C | Business-to-Consumer |
BAM | Business Account Manager |
Bapepam-LK | Badan Pengawas Pasar Modal dan Lembaga Keuangan or Financial Institution Supervisory Agency |
BAU | Business as Usual |
BBM | Bahan Bakar Minyak |
BCM | Business Continuity Management |
BCP | Business Continuity Plan |
BEI/IDX | Bursa Efek Indonesia or Indonesia Stock Exchange |
BL | Bina Lingkungan or Community Development |
BNSP | Badan Nasional Sertifikasi Profesi |
BOC | Board of Commissioners |
BOD | Board of Directors |
BPJS | Badan Penyelenggara Jaminan Sosial or Social Insurance Administration Organization |
BPK | Badan Pemeriksa Keuangan |
BPO | Business Process Outsourcing |
BSCS | Batam-Singapore Cable System |
BSI | British Standard Institution |
BTS | Base Transceiver Station |
C2C | Consumer-to-Consumer |
CAGR | Compound Annual Growth Rate |
CAPEX | Capital Expenditure |
CCTV | Closed-Circuit Television |
CDC | Community Development Center |
CDI | Customer Dissatisfaction Index |
CDN | Content Delivery Networks |
CEO | Chief Executive Officer |
CFO | Chief Financial Officer |
CLI | Customer Loyalty Index |
CLCS | Customer Satisfaction and Loyalty Survey |
COCA | Calendar of Culture Action |
CONS | Consumer Service |
COSO | Committee of Sponsoring Organizations of the Treadway Commission |
300
Keyword | Descriptions |
---|---|
COVID-19 | Corona Virus Disease 19 |
CPaaS | Communication Platform as a Service |
CPE | Customer Premises Equipment |
CSLS | Customer Satisfaction and Loyalty Survey |
CRM | Customer Relationship Management |
CSI | Customer Satisfaction Index |
CSPA | Conditional Sale and Purchase Agreement |
CSR | Corporate Social Responsibility |
CSR-PR | Corporate Social Responsibility – Public Relations |
CSS | Corporate Strategic Scenario |
CVC | Corporate Venture Capital |
CX | Customer Experience |
DB | Digital Business |
DBPP | Defined Benefit Pension Plan |
DCPP | Defined Contribution Pension Plan |
DER | Debt to Equity Ratio |
DMCS | Dumai-Malacca Cable System |
DR | Depositary Receipt |
DJP | Direktorat Jenderal Pajak or Directorate General of Taxes |
DRP | Disaster Recovery Plan |
DRUPS | Diesel Rotary Uninterruptible Power Supply |
DS | Depositary Shares |
DSL | Digital Subscriber Line |
DTH | Direct to Home |
EBIS | Enterprise & Business Service |
Edutainment | Education and Entertainment |
EGM | Executive General Manager |
EIG | Europe-India Gateway |
EMSHUB | Employee Shuttle Bus |
ERM | Enterprise Risk Management |
ESG | Environmental, Social, and Governance |
ESOP | Employee Stock Ownership Program |
ESS | Employee Suggestion System |
EVP | Employee Volunteer Program |
EWR | Early Warning Report |
EY | Ernst & Young |
F&B | Food and Beverage |
FHCI | Forum Human Capital Indonesia |
FRAMES | Fraud Management System |
FSA | Future State Architecture |
Gbps | Gigabyte per second |
GCG | Good Corporate Governance |
GCT | Group Corporate Transformation |
GDP | Gross Domestic Product |
GHz | Gigahertz |
GMS | General Meeting of Shareholders |
GRI | Global Reporting Initiative |
GRO | Government Relationship Officer |
GSD | Graha Sarana Duta |
GSM | Global System for Mobile Communication |
HAKORDIA | Hari Anti Korupsi Dunia or World Anti-Corruption Day |
HAM | Hak Asasi Manusia or Human Rights |
HCGA | Human Capital and General Affairs |
HCM | Human Capital Management |
HD | High Definition |
301
Keyword | Descriptions |
---|---|
HDC | HyperScale Data Center |
HIS | High-Speed Internet |
HR | Human Research |
HR | Human Resource |
HSE | Occupational Health and Safety |
HTS | High Throughput Satellite |
IA | Internal Audit |
IAI | Ikatan Akuntan Indonesia |
IAS | International Accounting Standards |
ICOFR | Internal Control Over Financial Reporting |
ICT | Information and Communications Technology |
IDN | Indonesian Digital Network |
IFAS | Indonesian Financial Accounting Standards |
IFRS | International Financial Reporting Standard |
IGG | Indonesia Global Gateway |
IIA | Institute of Internal Auditor |
IICD | Indonesia Institute for Corporate Directorship |
IMS | Integrated Management System |
IoT | Internet of Things |
IPLC | International Data Center or International Connectivity |
IPO | Initial Public Offering |
IPR | Intellectual Property Rights |
ISAK | Interpretasi Standar Akuntansi Keuangan or Interpretation Statements of Financial Accounting Standards |
ISO | International Organization for Standardization |
ISP | Internet Service Provider |
IT | Information Technology |
ITDRI | Indonesia Telecommunication and Digital Research Institute |
JaKaLaDeMa | Jawa Kalimantan Sulawesi Denpasar Mataram |
Jo. | Juncto |
KAP | Kantor Akuntan Publik or Public Accountant Firm |
KEKD | Komite Etika dan Kepatuhan & Disiplin |
KEMPR | Komite Evaluasi dan Monitoring Perencanaan dan Risiko or Committee for Planning and Risk Evaluation and Monitoring |
KEU | Keuangan or Finance |
KIPAS | Komunitas Provokasi Aktivasi or Community Cultural Activation Provocation |
KLOP | Kementerian Lembaga Organisasi dan Perusahaan |
KM | Kontrak Manajemen or Management Contract |
KNR | Komite Nominasi dan Remunerasi or Committee for Nomination and Remuneration |
KPI | Key Performance Indicator |
KPK | Komisi Pemberantasan Korupsi or Corruption Eradication Commission |
KPKU | Kriteria Penilaian Kinerja Unggul or Criteria for Superior Performance Appraisal |
KPPU | Komisi Pengawasan Persaingan Usaha or Commission for the Supervision of Business Competition |
kWh | KiloWatt Hour |
LED | Light Emitting Diode |
LFH | Learn From Home |
LSA Expenses | Long Service Award Expenses |
LSE | London Stock Exchange |
LFH | Learn From Home |
LSP | Lembaga Sertifikasi Profesi |
LTI | Long Term Incentive |
LUMORI | Luwuk-Morowali-Kendari |
M&A | Merger & Acquisition |
MDI | Metra Digital Investama |
MDM | Metra Digital Media |
MNO | Mobile Network Operator |
302
Keyword | Descriptions |
---|---|
MSOP | Management Stock Ownership Program |
MSE | Micro and Small Enterprise |
MTN | Medium-Term Notes |
MTTI | Mean Time to Install |
MTTR | Mean Time to Repair |
MVNO | Mobile Virtual Network Operator |
MyTDS | My Telkom Digital Solution |
NAP | Network Access Point |
NIB | Nomor Induk Berusaha |
NITS | Network, IT & Solution |
NJOP | Nilai Jual Objek Pajak or Sales Value of Tax Objects |
NKRI | Negara Kesatuan Republik Indonersia or Unitary Republic of Indonesia |
NPS | Net Promoter Score |
NPWP | Nomor Pokok Wajib Pajak or Tax Identification Number |
NSP | Nada Sambung Pribadi |
NYSE | New York Stock Exchange |
OECD | Organization for Economic Co-operation and Development |
OFI | Opportunity for Improvement |
OJK | Otoritas Jasa Keuangan or Financial Services Authority |
OLO | Other Licensed Operator |
OTT | Over The Top |
OVP | Operational Vice President |
PaDi | Pasar Digital |
PANDI | Pengelola Nama Domain Internet Indonesia or Indonesian Internet Domain Name Registry |
PATARA | Papua Utara |
PAYU | Pay As You Use |
PDA | Program Digital Amoeba or Amoeba Digital Program |
PEFINDO | PT Pemeringkat Efek Indonesia |
Pilkada | Pemilihan Kepala Daerah or Regional Election |
PK | Program Kemitraan or Partnership Program |
PKB | Perjanjian Kerja Bersama or Collective Labor Agreement |
PKBL | Program Kemitraan dan Bina Lingkungan or Partnership and Community Development Program |
PN | Perusahaan Negara or State Company |
POJK | Peraturan Otoritas Jasa Keuangan or Regulation of Indonesia Financial Services Authority |
PoP | Point of Presence |
POTS | Plain Old Telephone Service |
PPB | Program Perekrutan Bersama |
PPE | Personal Protective Equipment |
PR | Public Relation |
PPIP | Program Pensiun Iuran Pasti |
PPMP | Program Pensiun Manfaat Pasti |
PSAK | Pernyataan Standar Akuntansi Keuangan or Statements of Financial Accounting Standards |
PSBB | Pembatasan Sosial Berskala Besar or Large-Scale Social Restrictions |
PSTN | Public Switched Telephone Network |
PUE | Power Usage Effectiveness |
QMS | Quality Management System |
QoS | Quality of Service |
RIN | Rembug Integritas Nasional |
RJPP | Rencana Jangka Panjang Perusahaan or Company’s Long Term Plan |
RKAP | Rencana Kerja Anggaran dan Pendapatan or Budgeting and Revenue Work Plan |
ROA | Return on Asset |
ROE | Return on Equity |
RPP | Rancangan Peraturan Pemerintah or Government Regulation Draft |
SaaS | Software as a Service |
SAK | Standar Akuntansi Keuangan or Financial Accounting Standard |
303
Keyword | Descriptions |
---|---|
SAS | Security and Safety |
SASB | Sustainability Accounting Standards Board |
SD | Standard Definition |
SDG | Sustainable Development Goals |
SEA-ME-WE 4 | South East Asia-Middle East-Western Europe 4 |
SEA-ME-WE 5 | Southeast Asia-Middle East -Western Europe 5 |
SEA-US | South East Asia-United States |
SEC | Securities and Exchange Commission |
SEKAR | Serikat Karyawan or Employee Union |
SEM | Structural Equation Modeling |
SEOJK | Surat Edaran Otoritas Jasa Keuangan or Circular Letter of Indonesia Financial Service Authority |
SFH | School From Home |
SGM | Senior General Manager |
SIUP | Surat Izin Usaha Perdagangan or Business Permit |
SJC | Southeast Asia-Japan |
SKKL | Sistem Komunikasi Kabel Laut or Submarine Communications Cable System |
SLA | Service Level Agreement |
SLG | Service Level Guarantee |
SLI | Sambungan Langsung Internasional or International Direct Dialing |
SMAP | Sistem Manajemen Anti Penyuapan or Anti-Bribery Management System |
SMB | Small Medium Business |
SME | Small Medium Enterprise |
SMILE | Supply Management and Logistic Enhancement |
SMK | Sekolah Menengah Kejuruan or Vocational School |
SMK3/OHSAS | Sistem Manajemen Keselamatan dan Kesehatan Kerja or Occupational Health and Safety Assessment System |
SMPCS | Sulawesi-Maluku-Papua Cable System |
SOP | Standard Operating Procedures |
SOR | Safety Observation Round |
SOX | Sarbanes Oxley Act |
SP | Strategic Portfolio |
SPI | Sistem Pengendalian Internal or Internal Control System |
SPKN | Standar Pemeriksaan Keuangan Negara or Standards on Auditing of State Finance |
SSO | Shared Service Operation |
STO | Sentral Telepon Otomatis or Private Automatic Branch Exchange |
TAM | Tele Account Management |
TDP | Tanda Daftar Perusahaan or Company Registration Certificate |
THR | Tunjangan Hari Raya or Religious Holiday Allowance |
TIOC | Telkom Integrated Operation Center |
TIQA | Telkom Integrated Quality Assurance |
TIS | Thailand-Indonesia-Singapore |
TKDN | Tingkat Komponen Dalam Negeri |
TLK | Telkom Ticker in New York Stock Exchange |
TLKM | Telkom Ticker in Bursa Efek Indonesia |
TNA | Training Need Analysis |
UMP | Upah Minimum Provinsi or Provincial Minimum Wage |
USO | Universal Service Obligation |
VAR | Value Added Reseller |
VOD | Video on Demand |
VOD | Voice Over Data |
VoIP | Voice over Internet Protocol |
VP | Vice President |
VPN | Virtual Private Network |
WBS | Whistleblowing System |
304
Keyword | Descriptions |
---|---|
WFH | Work From Home |
WHO | World Health Organization |
WIB | Wholesale and International Business |
WINS | Wholesale and International Service |
WPO | Whistleblower Protection Officer |
305
APPENDIX 3:
CIRCULAR LETTER OF FINANCIAL SERVICES AUTHORITY NO. 30/SEOJK.04/2016 CROSS REFERENCE
CRITERIA | | EXPLAINATION | PAGES | |||
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I | FORM OF ANNUAL REPORT | | ||||
1. | Annual Report should be able to be reproduced in printed document copy and electronic document copy. | | ||||
2. | Annual Report presented as printed document should be printed on light-colored, good quality, A4 sized paper, bound and possible to be reproduced in good quality. | | ||||
3. | Annual Report presented as electronic document copy is the Annual Report converted to pdf format. | | ||||
II | CONTENT OF ANNUAL REPORT | | ||||
1 | General Requirements | | ||||
a. | Annual Report should at least contain information about: | 1) | key financial data highlight; | 16-17 | ||
| 2) | stock information (if any); | 18-19 | |||
| | 3) | Board of Commissioners’ report; | 22-25 | ||
| | 4) | Directors’ report; | 26-31 | ||
| | 5) | Issuer or Public Company’s profile; | 11-12 | ||
| | 6) | management discussion and analysis; | 86-151 | ||
| | 7) | Issuer or Public Company’s governance; | 152-249 | ||
| | 8) | Issuer or Public Company social and environmental responsibility; | 250-283 | ||
| | 9) | audited annual financial report; and | 321 | ||
| | 10) | statement of Directors and board of Commissioners on the responsibility for the Annual Report. | 32-33 | ||
b. | Annual Report may present information in the form of images, graphs, tables, and/or diagrams by including clear title and/or description to be easily read and understood. | √ | ||||
2. | Description of The Contents of Annual Report | | ||||
a. | Key Financial Data Highlight | Highlights of Key Financial Data presents information in comparative form over a period of 3 (three) financial years or since the commencement of business if the Issuer or Public Company has been running for less than 3 (three) years, and should at least contain: | 16-17 | |||
| | 1) | revenue; | |||
| | 2) | gross profit; | |||
| | 3) | profit (loss); | |||
| | 4) | profit (loss) attributable to parent and non-controlling interests; | |||
| | 5) | comprehensive profit (loss); | |||
| | 6) | comprehensive profit (loss) attributable to parent and non-controlling; | |||
| | 7) | net profit (loss) per share; | |||
| | 8) | total assets; | |||
| | 9) | total liabilities; | |||
| | 10) | total equity; | |||
| | 11) | profit (loss) to total asset ratio; | |||
| | 12) | profit (loss) to equity ratio; | |||
| | 13) | profit (loss) to revenue ratio; | |||
| | 14) | current ratio; | |||
| | 15) | liabilities to equity ratio; | |||
| | 16) | liabilities to total asset ratio; and | |||
| | 17) | other financial information and ratios relevant to Issuer or Public Company and their industry type. |
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CRITERIA | | EXPLAINATION | PAGES | |||
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b. | Stock Information | Information of stock (if any) at least contains: | 18 | |||
| | 1) | stock issued for three months period (if any) presented in comparative form in the last 2 (two) financial years at least contain: | | ||
| | | a) | outstanding stock; | | |
| | | b) | market capitalization by the price in the Stock Exchange where the stock is listed; | | |
| | | c) | highest, lowest, and closing stock price by the price in the Stock Exchange where the stock is listed; and | | |
| | | d) | traded volume in the Stock Exchange where the stock is listed; | | |
| | 2) | in the event of corporate actions such as stock split, reverse stock, stock dividend, stock bonus, and par value decrease, stock price information referred to in point 1) should then include explanation concerning at least: | 19 | ||
| | | a) | date of corporate actions; | ||
| | | b) | ratio of stock split, reverse stock, stock dividend, stock bonus, and the changes of par value; | ||
| | | c) | amount of outstanding stock before and after corporate actions; and | ||
| | | d) | stock price before and after corporate actions; | ||
| | 3) | in the event that the company’s stock trade is suspended and/or delisted during the year reported, Issuer or Public Company should explain the reason for such suspension and/or delisting; and | No suspension/delisting | ||
| | 4) | in the event that such suspension and/or delisting referred to in point 3) still goes on until the final period of Annual Report, the Issuer or Public Company should explain the action carried out by the company in solving the matter. | No suspension/delisting | ||
c. | Director’s Report | Report from the Directors at least contain: | 26-31 | |||
| | 1) | brief description about the performance of Issuer or Public Company, that at least include: | | ||
| | | a) | strategies and strategic policies of Issuer or Public Company; | | |
| | | b) | comparison between achievement of results and targets; and | | |
| | | c) | constraints experienced by Issuer or Public Company; | | |
| | 2) | description of business prospects; | | ||
| | 3) | implementation of Issuer or Public Company’s governance; and | | ||
| | 4) | changes in the composition of the Board of Directors and reasons for such changes (if any). | |
307
CRITERIA | | EXPLAINATION | PAGES | |||
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d. | Board of Commissioners’ Report | Report from Board of Commissioners’ at least contains: | 22-25 | |||
| 1) | assessment on the performance of the Directors in managing the Issuer or Public; | | |||
| | 2) | supervision of implementation of Issuer or Public Company’s strategies; | | ||
| | 3) | overview on the business prospects of Issuer or Public Company established by the Board of Directors; | | ||
| | 4) | overview on the implementation of Issuer or Public Company’s governance; | | ||
| | 5) | changes in the composition of Board of Commissioners and reasons for such changes; and | | ||
| | 6) | frequency and method of advising the member of Directors. | | ||
e. | Profile of Issuer or Public Company | The Issuer or Public Company’s Profile at least contains: | | |||
| 1) | name of Issuer or Public Company, including, if any, changes in names, reasons for such changes, and the effective date of name; | 11 | |||
| | 2) | access to Issuer or Public Company, including branch or representative offices that enables people to obtain the information of: | 8 | ||
| | | a) | address; | | |
| | | b) | telephone number; | | |
| | | c) | facsimile number; | | |
| | | d) | e-mail address; and | | |
| | | e) | web site address; | | |
| | 3) | brief history of the Issuer or Public Company; | 37-38 | ||
| | 4) | vision and mission of Issuer or Public Company; | 35-36 | ||
| | 5) | business activities under the latest articles of association, business activities conducted during the financial year, and type of goods and/or services offered; | 39-40 | ||
| | 6) | organizational structure of Issuer or Public Company in a form of chart, of at least to 1 (one) structural level under the directors, with name and position included; | 45 | ||
| | 7) | profile of the Directors, consisting of at least: | 56-67 | ||
| | | a) | name and position that corresponds to the duties and responsibilities; | | |
| | | b) | latest photograph; | | |
| | | c) | age; | | |
| | | d) | nationality; | | |
| | | e) | educational background; | | |
| | | f) | employment record, consisting of: | | |
| | | | 1. | legal basis of Board of Directors members appointment for the first time at the related Issuer or Public Company; | |
| | | | 2. | double position, either as member of Directors, Commissioners, and/or committee as well as other positions (if any); and | |
| | | | 3. | work experience and the time period both inside and outside the Issuer or Public Company; | |
| | | g) | education and/or trainings participated by member of Directors in enhancing the competencies within a financial year (if any); and | |
308
CRITERIA | | EXPLAINATION | PAGES | |||
---|---|---|---|---|---|---|
| | | h) | Affiliation with other member of Directors, Commissioners, and major shareholders (if any), consisting of the names of affiliated parties; | | |
| | 8) | profile of Board of Commissioners, consisting of: | 46-55 | ||
| | | a) | name; | | |
| | | b) | latest photograph; | | |
| | | c) | age; | | |
| | | d) | nationality; | | |
| | | e) | educational background; | | |
| | | f) | employment record, consisting of: | | |
| | | | 1. | legal basis of non-Independent Board of Commissioners members appointment at the related Issuer or Public Company; | |
| | | | 2. | legal basis of Independent Board of Commissioners members appointment at the related Issuer or Public Company; | |
| | | | 3. | double position, either as member of Board of Commissioners, Directors, and/or committee, as well as other positions (if any); and | |
| | | | 4. | work experience and the time period both inside and outside the Issuer or Public Company; | |
| | | g) | education and/or trainings participated by member of Board of Commissioners in enhancing the competencies within a financial year (if any); | | |
| | | h) | Affiliation with other member of Board of Commissioners and major shareholders (if any), consisting of the names of affiliated parties; and | | |
| | | i) | Independence Commissioners’ disclosure of independency in terms of the board has served more than 2 period (if any); and | | |
| | | j) | education and/or trainings participated by member of Board of Commissioners in enhancing the competencies within a financial year (if any); | | |
| | 9) | in the event of a change in the composition of the Board of Commissioners and/or Directors taking place after the fiscal year until the deadline of Annual Report submission, management composition stated in the Annual Report is then the composition of the Board of Commissioners and/or Directors both the latest and the previous one; | 46-67 | ||
| | 10) | number of employees and description of the range of educational background and ages in a financial year; | 67-72 | ||
| | 11) | name of Shareholders and ownership percentage at the end of financial year. Information includes among others: | 73-74 | ||
| | | a) | shareholders having 5% (five percent) or more shares of Issuer or Public Company; | | |
| | | b) | member of Directors and Board of Commissioners owning shares of Issuer or Public Company; and | | |
| | | c) | group of public shareholders each having less than 5% (five percent) share ownership of Issuer or Public Company; | | |
| | 12) | number of shareholders and ownership percentage at the end of financial year presented in the following classifications: | 73-74 |
309
CRITERIA | | EXPLAINATION | PAGES | |||
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| | | a) | local institution ownership; | | |
| | | b) | foreign institution ownership; | | |
| | | c) | local individual ownership; and | | |
| | | d) | foreign individual ownership; | | |
| | 13) | information concerning major and controlling shareholder of Issuer or Public Company, both direct and indirect, until the individual owner, presented in the form of scheme or diagram; | 73 | ||
| | 14) | names of subsidiaries, associated companies, joint ventures in which Issuer or Public Company owns control with the entities, along with the percentage of share ownership, line of business, total asset, and operating status of such companies (if any); For subsidiaries, information of company’s address should be added; | 75-78 | ||
| | 15) | chronology of stock listing, number of stock, par value, and offering price from the beginning of listing up to the end of the financial year and name of Stock Exchange where Issuer or Public Company’s stock are listed (if any); | 79-80 | ||
| | 16) | chronology of other securities listing other than the securities referred to in point 15) that contains the least securities’ name, year of issuance, maturity date, offering value, and rating (if any); | 81-82 | ||
| | 17) | names and addresses of institutions and/or capital market supporting professionals; | 83-85 | ||
| | 18) | in the event that capital market supporting professionals provides services periodically to the Issuer or Public Company, there should be information on services provided, fees and period of assignment; and | 41-44 | ||
| | 19) | award and certification received by the Issuer or Public Company, both national and international scale during the fiscal year (if any), that includes: | 41-44 | ||
| | | a) | name of Award and/or certification; | | |
| | | b) | rewarding agency or institution; and | | |
| | | c) | validity period of the award and/or certification (if any). | | |
f. | Management Discussion and Analysis | Annual Report must contain discussion and analysis of Financial Report and other significant information by emphasizing material changes taking place during the year under review. It should at least contain: | | |||
| | 1) | operational review by business segment in accordance with the industry of Issuer or Public Company, consisting of at least: | 91-106 | ||
| | | a) | Production, which includes process, capacity and its development; | | |
| | | b) | Revenue; and | | |
| | | c) | Profitability; | | |
| | 2) | comprehensive financial performance including a comparison between the financial performance of the last two financial years, explanation on the causes of such changes and their impact, which among others includes: | 121-133 | ||
| | | a) | current assets, non-current assets, and total assets; | |
310
CRITERIA | | EXPLAINATION | PAGES | |||
---|---|---|---|---|---|---|
| | | b) | Short-term liabilities, long-term liabilities, and total liabilities; | | |
| | | c) | equity; | | |
| | | d) | revenue, expenses and profit (loss), other comprehensive revenue and comprehensive income (loss); and | | |
| | | e) | cash flow; | | |
| | 3) | capability to pay debts by presenting relevant ratio; | 134 | ||
| | 4) | account receivables collectability of Issuer or Public Company receivable by presenting relevant ratio; | 140 | ||
| | 5) | capital structure and Management’s policies on the capital structure, as well as basis of the policy making; | 135 | ||
| | 6) | discussion on material commitment for the investment of capital expenditure with explanation concerning: | 138 | ||
| | | a) | purpose of such commitment; | | |
| | | b) | sources of funds expected to fulfill to the commitment; | | |
| | | c) | currency of denomination; | | |
| | | d) | steps taken by the Issuer or Public Company to protect the position of related foreign currency against risks; | | |
| | 7) | discussion on realization of investment of capital expenditure within the last Financial year, that at least contains: | 137 | ||
| | | a) | type of capital expenditure investments; | | |
| | | b) | purpose of capital expenditure investments; | | |
| | | c) | value of capital expenditure investments issued; | | |
| | 8) | material information and facts occurring after the date of accountant’s report (if any); | 140 | ||
| | 9) | business prospects of Issuer or Public Company in relation to the industry, economy in general, and international market, and accompanied with the supporting quantitative data from reliable Data resource; | 141-142 | ||
| | 10) | comparison between target/projection at the beginning of financial year and the realization, that includes: | 143 | ||
| | | a) | revenue; | ||
| | | b) | profit (loss); | ||
| | | c) | capital structure; or | ||
| | | d) | other information deemed necessary by the Issuer or Public Company; | ||
| | 11) | target/projection of the Issuer or Public Company within 1 (one) year, that includes: | 144 | ||
| | | a) | revenue; | | |
| | | b) | profit (loss); | | |
| | | c) | capital structure; | | |
| | | d) | dividend policy; or | | |
| | | e) | other information deemed necessary by the Issuer or Public Company; | | |
| | 12) | marketing aspects of the goods and/or services of Issuer or Public Company, including among others marketing strategies and market Share; | 107-120 | ||
| | 13) | description of dividend during the past 2 (two) financial years (if any), includes at least: | 145 | ||
| | | a) | dividend policy; | |
311
CRITERIA | | EXPLAINATION | PAGES | |||
---|---|---|---|---|---|---|
| | | b) | date of cash dividend payment and/or date of non-cash dividend Distribution; | | |
| | | c) | amount of dividend per share (cash and/or non-cash); and | | |
| | | d) | amount of dividend paid per year; | | |
| | 14) | realization of the use of proceeds from Public Offering is under the Following conditions: | 146 | ||
| | | a) | in the event that during the financial year reported, the Issuer is obliged to submit report on realization of use of proceeds, then Annual Report should disclose accumulated realization of use of Proceeds until the end of the financial year; and | | |
| | | b) | in the event that there is a change in the use of proceeds as stipulated in Financial Services Authority Regulation on Report on Realization of Use of Proceeds, the Issuer should then explain such change; | | |
| | 15) | material information (if any) concerning, among others investment, expansion, divestment, merge, acquisition, debt/capital restructuring, Affiliated transaction, and transaction with conflict of interests, taking place during the financial year (if any). Information includes: | 147 | ||
| | | a) | date, value and object of transaction; | | |
| | | b) | name of transacting parties; | | |
| | | c) | nature of Affiliated relation (if any); | | |
| | | d) | explanation of fairness of transaction; and | | |
| | | e) | compliance with related rules and regulations; | | |
| | 16) | description of changes in regulation which have a significant effect on the Issuer or Public Company and its impacts on the financial report (if any); and | 148 | ||
| | 17) | changes in the accounting policy, rationale and impacts on the financial statement (if any). | 149-150 | ||
g. | Governance of Issuer or Public Company | Governance of Issuer or Public Company at least contains brief description of: | | |||
| | 1) | Directors, consisting of among others: | 161-170, 203-218 | ||
| | | a) | scope of work and responsibility of each member of the Directors; | ||
| | | b) | disclosure that the Directors have Directors’ charter; | ||
| | | c) | disclosure of procedures, basis of decision, and amount of remuneration for members of Directors, along with the relation between remuneration and the performance of Issuer or Public Company; | ||
| | | d) | disclosure of company policies and the implementation on frequency of Directors meetings, including joint meetings with the Board of Commissioners and attendance of members of Directors in such meetings; | ||
| | | e) | disclosure of resolutions of GMS of 1 (one) previous year and the realization during the fiscal year, along with reasons in the event that there is a resolution not yet realized: | ||
| | | | 1. | resolutions of GMS realized in one financial year; and |
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---|---|---|---|---|---|---|
| | | | 2. | reasons in the event that there is a resolution not yet realized. | |
| | | f) | disclosure of resolutions of GMS during financial year, that includes: | ||
| | | | 1. | resolutions of GMS realized in one financial year; and | |
| | | | 2. | reasons in the event that there is a resolution not yet realized; and | |
| | | g) | disclosure of company policies on performance assessment of members of Directors; | ||
| | 2) | Board of Commissioners, consisting of among others: | 171-186 | ||
| | | a) | description of responsibility of the Board of Commissioners; | | |
| | | b) | disclosure that the Board of Commissioners has Board of Commissioners’ charter; | | |
| | | c) | disclosure of procedures, basis of decision, and amount of remuneration for members of Board of Commissioners; | | |
| | | d) | disclosure of company policies and the implementation on frequency of Board of Commissioners meetings, including joint meetings with the Directors, and attendance of members of Board of Commissioners in such meetings; | | |
| | | e) | disclosure of Issuer or Public Company’s policies on performance assessment of members of Directors and Board of Commissioners and its implementation, including among others: | | |
| | | | 1. | procedure of performance assessment implementation; | |
| | | | 2. | criteria of assessment; and | |
| | | | 3. | parties conducting the assessment; | |
| | | f) | disclosure of performance assessment of committee supporting the duties of Board of Commissioners; and | | |
| | | g) | in the event that the Board of Commissioners did not establish Committee for Nomination and Remuneration, the least information to disclose includes: | | |
| | | | 1. | reasons for not establishing a committee; and | |
| | | | 2. | procedure of nomination and remuneration implemented during financial year; | |
| | 3) | Syariah Supervisory Board, for Issuer or Public Company running business under the principles of Syariah as expressed in the Articles of Association, contains at least: | Not relevant | ||
| | | a) | name; | | |
| | | b) | tasks and responsibilities of Syariah Supervisory Board; and | | |
| | | c) | frequency and method of advising and supervisory on the compliance of Syariah Principles in Capital Market toward the Issuer or Public Company; | |
313
CRITERIA | | EXPLAINATION | PAGES | |||
---|---|---|---|---|---|---|
| | 4) | Audit Committee, consisting of among others: | 187-193 | ||
| | | a) | name and position in the committee; | | |
| | | b) | age; | | |
| | | c) | nationality; | | |
| | | d) | educational background; | | |
| | | e) | employment record, consisting of: | | |
| | | | 1. | legal basis of appointment as member of committee; | |
| | | | 2. | double position, either as member of Board of Commissioners, Directors, and/or committee and other positions (if any); and | |
| | | | 3. | work experience and the time period, both inside and outside the Issuer or Public Company; | |
| | | f) | period of service of Audit Committee members; | | |
| | | g) | disclosure of independence of Audit Committee; | | |
| | | h) | disclosure of company policies and the implementation on frequency of Audit Committee meetings and the attendance of Audit Committee members in such meetings; | | |
| | | i) | education and/or trainings participated within a financial year (if any); and | | |
| | | j) | brief description activities carried out by Audit Committee during the financial year based on what is stated in Audit Committee Charter; | | |
| | 5) | other committees the Issuer or Public Company has in order to support the function and tasks of Directors and/or Board of Commissioners, such as Committee for Nomination and Remuneration, consisting of among others: | 194-202 | ||
| | | a) | name and position in the committee; | | |
| | | b) | age; | | |
| | | c) | nationality; | | |
| | | d) | educational background; | | |
| | | e) | employment record, consisting of: | | |
| | | | 1. | legal basis of appointment as committee member; | |
| | | | 2. | double position, either as member of Board of Commissioners, Directors and/or committee and the other positions (if any); and | |
| | | | 3. | work experience and the time period both inside and outside the Issuer or Public Company; | |
| | | f) | period of service of committee members; | | |
| | | g) | description of the tasks and responsibilities; | | |
| | | h) | disclosure that the committee has charter of committee; | | |
| | | i) | disclosure of independence of committee members; | | |
| | | j) | disclosure of company policies and the implementation on frequency of committee meetings and the attendance of committee members in such meetings; | | |
| | | k) | education and/or trainings participated within a financial year (if any); and | |
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---|---|---|---|---|---|---|
| | | l) | brief description activities carried out by committee during the financial year; | | |
| | 6) | Corporate Secretary, consisting among others: | 219-221 | ||
| | | a) | name; | | |
| | | b) | domicile; | | |
| | | c) | employment record, consisting of: | | |
| | | | 1. | legal basis of appointment as Corporate Secretary; and | |
| | | | 2. | work experience and the time period both inside and outside the Issuer or Public Company; | |
| | | d) | educational background; | | |
| | | e) | education and/or trainings participated within a financial year; and | | |
| | | f) | brief description activities carried out by Corporate Secretary during the financial year; | | |
| | 7) | Internal Audit Unit, consisting among others: | 222-225 | ||
| | | a) | name of Internal Audit Unit’s chief; | | |
| | | b) | employment record, consisting of: | | |
| | | | 1. | legal basis of appointment as Internal Audit Unit’s chief; and | |
| | | | 2. | work experience and the time period both inside and outside the Issuer or Public Company; | |
| | | c) | qualification/certification as an Internal Audit (if any); | | |
| | | d) | education and/or trainings participated within a financial year; | | |
| | | e) | structure and position of Internal Audit Unit; | | |
| | | f) | description of tasks and responsibilities of Internal Audit Unit; | | |
| | | g) | disclosure that the unit has charter Internal Audit Unit; and | | |
| | | h) | brief description of tasks implementation of Internal Audit Unit during the financial year; | | |
| | 8) | description of internal control system implemented by Issuer or Public Company, consisting of at least: | 226-228 | ||
| | | a) | operational and financial control, along with compliance with other prevailing rules and regulations; and | | |
| | | b) | review on effectiveness of internal control system; | | |
| | 9) | risk management system implemented by Issuer or Public Company, consisting of at least: | 229-236 | ||
| | | a) | general description of risk management system of Issuer or Public Company; | | |
| | | b) | types of risks and efforts to manage such risks; and | | |
| | | c) | review on effectiveness of the risk management system of Issuer or Public Company; | | |
| | 10) | material litigation faced by the Issuer or Public Company, subsidiaries, present members of the Board of Commissioners and Directors (if any), including among others: | 242 | ||
| | | a) | material of the case/claim; | | |
| | | b) | status of settlement of case/claim; and | |
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| | | c) | impacts on the financial condition of the Issuer or Public Company; | | |
| | 11) | information on administrative sanctions to Issuer or Public Company, members of the Board of Commissioners and Directors, by Capital Market authority and other authorities during the fiscal year (if any); | 243 | ||
| | 12) | information on code of conducts and culture of Issuer or Public Company (if any) consisting of: | 245-246 | ||
| | | a) | main points of code of conducts; | | |
| | | b) | form of socialization of code of conducts and efforts to enforce it; and | | |
| | | c) | disclosure of that code of conducts is applicable to member of Directors, Board of Commissioners, and employers of Issuer or Public Company; | | |
| | 13) | information on corporate culture or corporate values (if any); | 247-248 | ||
| | 14) | explanation on employees and/or Management stock ownership program carried out by Issuer or Public Company, including among others amount, period of time, requirements for eligible employees and/or Management, and exercise price (if any): | 241 | ||
| | | a) | amount of stock and/or options; | | |
| | | b) | time period of exercise; | | |
| | | c) | requirements for eligible employees and/or Management; and | | |
| | | d) | exercise price; | | |
| | 15) | explanation on Whistleblowing System at the Issuer or Public Company to report misconducts causing potential loss to the company or the stakeholders (if any), consisting of among others: | 237-239 | ||
| | | a) | procedure to submit whistleblowing report; | | |
| | | b) | protection for whistleblower; | | |
| | | c) | handling of whistleblowing; | | |
| | | d) | party managing whistleblowing; and | | |
| | | e) | results of whistleblowing handling, consisting of at least: | | |
| | | | 1. | number of whistleblowing registered and processed in financial year; and | |
| | | | 2. | follow up of whistleblowing; | |
| | 16) | implementation of Public Company Governance Guidelines for Issuer that issues Equity Securities or Public Company, consisting of: | 154-158 | ||
| | | a) | disclosure of implemented recommendations; and/or | | |
| | | b) | explanation concerning unimplemented recommendation, including reasons for such conditions and alternatives (if any). | |
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h. | Social and Environmental Responsibility of Issuer or Public Company | 1) | Information on Issuer or Public Company’s social and environmental responsibility consisting of policies, types of programs, and cost, in relation of the aspects of among others: | | ||
| | | a) | environment, among others: | 277-283 | |
| | | | 1. | use of environmentally friendly and recyclable material and energy; | |
| | | | 2. | waste management system; | |
| | | | 3. | mechanisms of complaints on environmental concern; and | |
| | | | 4. | certification in the field of environment; | |
| | | b) | labor practices, occupational health and safety, among others: | 264-271 | |
| | | | 1. | equality in gender and work opportunity; | |
| | | | 2. | work facility and safety; | |
| | | | 3. | employees turnover; | |
| | | | 4. | work accident rate; | |
| | | | 5. | education and/or training. | |
| | | | 6. | remuneration; and | |
| | | | 7. | mechanisms of complaints on Employment concern; | |
| | | c) | social and community development, among others: | 272-276 | |
| | | | 1. | use of local work force; | |
| | | | 2. | empowerment of the Issuer or Public Company’s surrounding community, among others by the use of raw materials produced by the community or provision of education to the community; | |
| | | | 3. | improvement of social facilities and infrastructure; | |
| | | | 4. | other forms of donations; and | |
| | | | 5. | communication on anti corruption policy and procedure in the Issue or Public Company, as well as training on anti corruption (if any); | |
| | | d) | product and/or services responsibility, among others: | 259-263 | |
| | | | 1. | consumers’ health and safety; | |
| | | | 2. | product and/or services information; and | |
| | | | 3. | facilities for customers’ complaints, number of complaints and complaints handling; | |
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| | 2) | Issuer or Public Company may disclose information referred to in point 1) as part of the Annual Report or in a separate report, such as submitted at the same time as Sustainability Report or Corporate Social Responsibility Report, and therefore the Issuer or Public Company is excluded to disclose information on social and environmental responsibility in the Annual Report; and | - | ||
| | 3) | The report referred to in point 2) is submitted to Financial Services Authority at the same time as the Annual Report submission. | - | ||
i. | Audited Financial Statement | The Financial Statement contained in the Annual Report should be presented in accordance with Financial Accounting Standard in Indonesia and has been audited by Accountant. The Financial Statement should contain statement regarding responsibility on the financial statement in compliance with Regulations in Capital Market sector on the Directors’ responsibility to the financial statement or regulations in Capital Market sector on periodical report of Securities Companies in the event that the Issuer is a Securities Company; and | 324 | |||
j. | Statement of Members Board of Directors and Board of Commissioners on The Responsibility for the Annual Report | Statement of members of Directors and Board of Commissioners on the responsibility for the Annual Report is composed in accordance to the format of Statement of Members of Directors and Board of Commissioners on the Responsibility for the Annual Report as attached in the Appendix as an inseparable part of the Circular Letter of FSA. | 32-33 |
318
APPENDIX 4:
LIST OF AFFILIATE TRANSACTIONS
Service Receiver | |||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Service Provider | Telkom | AdMedika | Finnet | Infomedia Solusi Humanika | Metraplasa | Balebat | MDI | GYS | Metranet | Nutech | Pointer | Telkomsat | Infratel | TLT | Mitratel | GSD | Infomedia Nusantara | Melon | Telkom Metra | PINS | Telkomsel | Telin | Telin HK | Telin Singapore | Sigma | Telkom medika | Sarana Swadharma Informatika | Bosnet | Telkom Akses | Telin Timor Leste | Collega Inti Prima | Telin USA | Media Nusantara Data Global | MD Media | Signet Pratama | Metrasat | Telin Malaysia | TSGN | |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | |
Telkom | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Link Rental Service: Metroethernet, Astinet, VPN IP, DINACCESS | | √ | √ | √ | √ | √ | √ | √ | √ | √ | | √ | √ | √ | √ | √ | √ | √ | √ | √ | √ | √ | | | √ | √ | √ | | √ | | √ | | √ | | √ | | | |
2. | Training/Assessment Service | | | | √ | | | | | | | | √ | | | √ | | √ | | | | | √ | | | | | | | | | | | | | | | | |
3. | Advertising/Printing Service | | | | | √ | | √ | | √ | | | | | | | | | √ | | | √ | | | | | | | | | | | | | | | | | |
4. | e-ticketing Service | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | |
5. | Management Service | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | |
6. | Telecommunication and Supporting Facilities Service | | | | | | | | | | | | √ | √ | | √ | | √ | √ | | | √ | √ | | | | | | | | | | | √ | | | √ | | |
7. | Colocation/Maintenance /Supporting Service | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | |
8. | Content Service/PIB | | | | | | | | | | | | | | | | | | | √ | | √ | | | | | | | | | | | | | | | | | |
9. | I/C SLI 007 Service | | | | | | | | | | | | | | | | | | | | | √ | | √ | √ | | | | | | | | | | | | | √ | |
10. | ii 007 Signaling Service | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | |
11. | Domestic Incoming Service (Interconnection) | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | |
12. | PE2PE Service | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | |
13. | Telecommunication Facility Service: CINOP, GRX etc. | | | | | | | | | | | | | | √ | | | | | | | √ | | | | | | | | | | | | | | | | | |
14. | Building Management Service | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
15. | Content Service/PIB | | | | | | | | | | | | | | | | | | √ | | | √ | | | | | | | | | | | | | | | | | |
16. | Telecommunication and WiFi.ID Supporting Facilities Service | | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AdMedika | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Health Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Finnet | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | e-Payment/Money Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2. | Collection Service | √ | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | |
3. | Phone Credit Voucher Fee/RITNAS Service | | | | | | | | | | | | | | | | | | | √ | √ | | | | | | | | | | | | | | | | | | |
4. | Injapati/VAS Service: Call Center, Calling Card, VAS | | | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Infomedia Solusi Humanika | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Outsourcing Service | √ | | | | | | | | √ | | | √ | | | | | | | √ | √ | √ | √ | | | | | | | √ | | | | | | | | | |
2. | Training/Assessment Service | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Metraplasa | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | e-Commerce Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | |
2. | Advertising/Printing Service | | | | | | √ | | | √ | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balebat | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Advertising/Printing Service | √ | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2. | Supporting Facilities Service | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
MDI | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Incubation Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
319
Service Receiver | |||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Service Provider | Telkom | AdMedika | Finnet | Infomedia Solusi Humanika | Metraplasa | Balebat | MDI | GYS | Metranet | Nutech | Pointer | Telkomsat | Infratel | TLT | Mitratel | GSD | Infomedia Nusantara | Melon | Telkom Metra | PINS | Telkomsel | Telin | Telin HK | Telin Singapore | Sigma | Telkom medika | Sarana Swadharma Informatika | Bosnet | Telkom Akses | Telin Timor Leste | Collega Inti Prima | Telin USA | Media Nusantara Data Global | MD Media | Signet Pratama | Metrasat | Telin Malaysia | TSGN | |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | |
Graha Yasa Selaras (GYS) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Building Management Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
MD Media | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Advertising/Printing Service | √ | | | | | | | | √ | | | | | | | | √ | √ | | | √ | | | | | | | | | | | | | | | | | |
2. | Management Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
3. | SMS KA Service | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | |
4. | I/C SLI 007 Service | | | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Metranet | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Advertising/Printing Service | √ | | | | √ | | √ | | | | | √ | | | | | √ | | √ | | | | | | | | | | | | | | | | | | | |
2. | Colocation/Maintenance/Supporting Service | √ | | | | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | |
3. | License/Application Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
4. | Supporting Facilities Service | | | √ | | | | | | | | | | | | | | | | | √ | | √ | | | √ | | | | | | | | | | | | | |
5. | Satellite Service & VAS Service | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nutech Integrasi | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | CPE Managed Device Service | √ | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | |
2. | Supporting Facilities Service | √ | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | |
3. | License/Application Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
4. | e-Payment/Money Service | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pojok Celebes Mandiri (Pointer) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | e-Ticketing Service | √ | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | |
2. | Management Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telkomsat | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Satellite Link/Transponder/VISAT/Circuit Service | √ | | | | | | | | | | | | | | | | | | √ | | √ | | | | √ | | | | | | | | | | | | | √ |
2. | Manage Capacity Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
3. | Management Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
4. | Maintenance Service | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telkom Infra (Infratel) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Manage Capacity Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2. | Equipment Installation Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
3. | Maintenance Service | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | |
4. | Management Service | | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | |
5. | Supporting Facilities Service | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telkom Landmark Tower (TLT) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Building Management Service | √ | | √ | | | | √ | | √ | | | √ | √ | | | | | √ | √ | √ | √ | √ | | | | √ | | | | | | | | √ | | | | |
2. | Supporting Facilities Service | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
3. | Building/Tower Rental Service | | | | | | | √ | | √ | | | | | | √ | | | | | | | | | | √ | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mitratel | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Building/Tower Rental Service | √ | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | √ | | | | | | | | |
2. | Manage Capacity Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
3. | Technical Assistance Service/Investigation Survey | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
4. | Equipment Installation Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
5. | Lease & Trade Service | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Graha Sarana Duta (GSD) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Building/Site Management Service | √ | √ | √ | √ | | | | | | | √ | √ | √ | | | | √ | √ | | √ | √ | √ | | | √ | √ | √ | | | | | | | √ | | | | |
2. | Transport Management | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | |
3. | Supporting Facilities Service | | | | | | | | | √ | | | | | | | | | | √ | | | | | | | | | | √ | | | | | | | | | |
4. | Building/Tower Rental Service | | | | | | | | | | | | √ | | | √ | | | | √ | | | | | | √ | | | | | | | | | | | | | |
5. | Construction Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
320
Service Receiver | |||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Service Provider | Telkom | AdMedika | Finnet | Infomedia Solusi Humanika | Metraplasa | Balebat | MDI | GYS | Metranet | Nutech | Pointer | Telkomsat | Infratel | TLT | Mitratel | GSD | Infomedia Nusantara | Melon | Telkom Metra | PINS | Telkomsel | Telin | Telin HK | Telin Singapore | Sigma | Telkom medika | Sarana Swadharma Informatika | Bosnet | Telkom Akses | Telin Timor Leste | Collega Inti Prima | Telin USA | Media Nusantara Data Global | MD Media | Signet Pratama | Metrasat | Telin Malaysia | TSGN | |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | |
Infomedia Nusantara | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Call Center/Contact Center - Outsourcing Service | √ | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | |
2. | Outsourcing Service | √ | | | | | | | | | | | | | | | | | | | √ | √ | | | | | | | | √ | | | | | | | | | |
3. | Supporting Facilities Service | | | | | | | | | √ | | | | | | | | | | | √ | | √ | | | | | | | | | | | | | | | | |
4. | Advertising/Printing Service | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | |
5. | Building/Site Management Service | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | |
6. | Management Service | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | |
7. | Access Network Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Melon Indonesia | | | | | | | | | | | | | | | | | | | | | √ | | √ | | | | | | | | | | | | | | | | |
1. | Content Service/PIB | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2. | Advertising/Printing Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | ��� | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telkom Metra | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Content Service/PIB | √ | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | |
2. | Satellite Service & VAS Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
3. | Satellite Link/Transponder/VISAT/Circuit Service | √ | | | | | | | | | | | √ | | | | | | | | | √ | √ | | | | | | | | | | | | | | | | |
4. | Telecommunication and Supporting Facilities Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
5. | Advertising/Printing Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
6. | CPE Managed Application Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
7. | Building/Tower Rental Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
8. | Building/Site Management Service | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
9. | Supporting Facilities Service | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
PINS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Pulse Fee Voucher/RITNAS | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2. | CPE Managed Network Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | |
3. | CPE Managed Application Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
4. | Maintenance Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
5. | Work Facilities/Seat Management Rental Service | √ | | | | | | | | | | | √ | | | | | | | √ | | √ | √ | | | | | | | | | | | | | | | | |
6. | Building/Site Management Service | | | | | | | | | | | | | | √ | | √ | | | | | √ | | | | | | | | | | | | | | | | | |
7. | CPE Managed Service | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
8. | Supporting Facilities Service | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
9. | CPE Managed Device Service | | | | | | | | | | | | | | | | | | | √ | | √ | | | | | | | | | | | | | | | | | |
10. | Server Rental Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
321
Service Receiver | |||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Service Provider | Telkom | AdMedika | Finnet | Infomedia Solusi Humanika | Metraplasa | Balebat | MDI | GYS | Metranet | Nutech | Pointer | Telkomsat | Infratel | TLT | Mitratel | GSD | Infomedia Nusantara | Melon | Telkom Metra | PINS | Telkomsel | Telin | Telin HK | Telin Singapore | Sigma | Telkom medika | Sarana Swadharma Informatika | Bosnet | Telkom Akses | Telin Timor Leste | Collega Inti Prima | Telin USA | Media Nusantara Data Global | MD Media | Signet Pratama | Metrasat | Telin Malaysia | TSGN | |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | |
Telkomsel | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | I/C SLI 007 Service | √ | | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | √ | | | | | | | | |
2. | Domestic Incoming (Interconnection) Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
3. | PE2PE Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
4. | APP2P Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
5. | IoT Services | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
6. | Content/PIB Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
7. | SMS KA Service | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | √ | | | | |
8. | Advertising/Printing Service | √ | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
9. | Injapati/VAS Service: Call Center, Calling Card, VAS | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
10. | Phone Credit Voucher Fee /RITNAS | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | |
11. | Incubation Service | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | |
12. | Link Rental Service: Metroethernet, Astinet, VPN IP, DINACCESS | √ | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | |
13. | Building/Tower Rental Service | | | | | | | | | | | | | | | √ | | | | | | | | √ | | | | | | | | | | | | | | | |
14. | Colocation/Maintenance/Supporting Service | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telin | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | IPLC/SIMBOX International Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2. | Satellite Link/Transponder/VISAT/Circuit Service | √ | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | |
3. | Telecommunication and Support Facilities for WiFi Roaming Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
4. | Telecommunication and WiFi.ID Supporting Facilities Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
5. | Hosting Service/CDN | √ | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | |
6. | Content/PIB Service | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | |
7. | Link Rental Service: Metroethernet, Astinet, VPN IP, DINACCESS | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telin Hong Kong | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | I/C SLI 007 Service | √ | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2. | Satellite Link/Transponder/VISAT/Circuit Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
3. | IoT Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
4. | Supporting Facilities Service | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
5. | Content/PIB Service | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | |
6. | Building/Tower Rental Service | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | |
7. | e-Commerce Service | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telin Singapore | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | I/C SLI 007 Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2. | Supporting Facilities Service | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sigma | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Colocation/Maintenance/Supporting Service | √ | | | | | | | | | | | √ | √ | | √ | √ | | √ | | √ | √ | √ | √ | √ | | | | | √ | | | | | | | | | |
2. | Supporting Facilities Service | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
3. | License/Application Service | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | |
4. | Maintenance Service | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | |
5. | Rental Server Service | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
322
Service Receiver | |||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Service Provider | Telkom | AdMedika | Finnet | Infomedia Solusi Humanika | Metraplasa | Balebat | MDI | GYS | Metranet | Nutech | Pointer | Telkomsat | Infratel | TLT | Mitratel | GSD | Infomedia Nusantara | Melon | Telkom Metra | PINS | Telkomsel | Telin | Telin HK | Telin Singapore | Sigma | Telkom medika | Sarana Swadharma Informatika | Bosnet | Telkom Akses | Telin Timor Leste | Collega Inti Prima | Telin USA | Media Nusantara Data Global | MD Media | Signet Pratama | Metrasat | Telin Malaysia | TSGN | |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | |
Telkomedika | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Health Service | √ | | | | | | | √ | | | | √ | √ | √ | √ | √ | | √ | | √ | | √ | | | | | | | √ | √ | | | | | | | | |
2. | Medical Equipment Sales Service | √ | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bosnet | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Management Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Persada Sokka Tama | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Building/Tower Rental Service | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Collega Inti Prima | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | License/Application Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telin USA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Technical Assistance Service/Investigation Survey | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Media Nusantara Data Global | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Colocation/Maintenance/Supporting Service | √ | | | | | | | | | | | | √ | | | | | | | | | √ | | | | | | | | | | | | | | | | |
2. | Data Center Service | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telkom Akses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Access Network Service | √ | | | | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Metrasys | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | License/Application Service | | | | | | | | | | | | | | | √ | | | | | | | √ | √ | √ | | | | | | √ | | | | | | | | |
2. | Colocation/Maintenance/Supporting Service | | | | | | | | | | | | | √ | | | √ | | | | | | | | | | | | | | | | | | | | | | |
3. | Maintenance Service | √ | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sigma Solusi Integrasi | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Colocation/Maintenance/Supporting Service | | | | | | | | | | | | | | | √ | | | √ | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Metrasat | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Satellite Link/Transponder/VISAT/Circuit Service | √ | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telin Timor Leste | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | I/C SLI 007 Service | | | | | | | | | | | | | | | | | | | | | √ | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sarana Swadharma Informatika | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | Maintenance Service Income | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telin Malaysia | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | I/C SLI 007 Service | √ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
323
CONSOLIDATED FINANCIAL STATEMENTS
Exhibit 99 | Audited Consolidates Financial Statements 2020 and Audited PKBL Financial Statements 2020 |
324