Jakarta, CNBC Indonesia – Singapore Telecommunications (SingTel), Singapore’s state-owned telecommunications operator, reported an 83 percent increase in profit. The trigger is the integration of Indihome with Telkomsel.
Telkomsel, a subsidiary cellular operator of PT Telekomunikasi Indonesia (Persero) Tbk. whose shares are partially owned by Singtel, officially merged with Indihome in the middle of last year. Before joining Telkomsek, Indihome was one of the business units that was fully controlled by Telkom.
With Indihome moving from a business unit fully controlled by Telkom to being part of Telkomsel, Singtel now shares in the revenue generated by Indihome’s fixed line internet service.
However, the merger of Indihome into Telkomsel was also followed by an injection of funds from Singtel. Telkom and Singtel agreed that Indihome’s valuation was IDR 58.2 trillion.
Singtel then paid capital worth IDR 2.71 trillion to Telkom so that the Singapore BUMN’s ownership in Telkomsel would not be diluted too much.
The merger of Telkomsel and IndiHome will also dilute Singtel’s share ownership in Telkomsel. Based on information disclosure on the Indonesian Stock Exchange (BEI), after the separation, the breakdown of Telkomsel’s share portion will be Telkom 69.9% and Singtel 30.1%, from previously 65% and 35% respectively.
Using the same Telkomsel valuation that was used as a reference when the Company carried out the business separation, the value of the cash capital contribution that will be provided by Singtel is IDR 2.71 trillion.
The merger of Indihome into Telkomsel is Telkom’s step to realize its business model fixed mobile convergence (FMC) is a mobile and fixed line internet service provider.
“The first contribution from Indihome can cover the decline in share ownership [di Telkomsel]SingTel wrote in a statement.
SingTel announced a net profit of S$ 2.14 billion (Rp. 24.71 trillion) in the April-September 2023 period, up from S$ 1.17 billion (Rp. 13.51 trillion) in the same period the previous year.
[Gambas:Video CNBC]
(dem/dem)