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Erick Opens: Telkom’s Business Model Changes!

Jakarta, CNBC Indonesia SOE Minister Erick Thohir said the business model of PT Telkom Indonesia (Persero) Tbk (TLKM) would change to focus on the digital world.

When he first became a minister, Erick had presented a challenge to Telkom, how Telkom with its large infrastructure still relies on the old business model.

In fact, digital changes at the same time have eroded the analog telecommunications business. Now, the change in Telkom’s business model towards digital has seen a significant development.

According to him, the change in Telkom’s business model to a digital platform is very visible in the last three years.

“I am optimistic, with the planning and implementation of communication tower infrastructure development, within three years Telkom can become the largest digital telco company in Southeast Asia,” Erick said in an official statement, Friday (11/2/2022).

However, Erick underlined that the change in Telkom’s business model towards digital must continue to be improved at the implementation level.

Because changing a good business model is not just about creating a new value (new value creation), but can also capture new values ​​that support the company’s income (new value capture).

“And how can this digital infrastructure generate new value propositions for companies (new value preposition). That’s how effective the company’s business model changes,” said Erick.

Telkom through its subsidiary, PT Dayamitra Telekomunikasi Tbk (Mitratel/MTEL), continues to build operator towers to support 5G networks throughout Indonesia. Mitratel targets the construction of 6,000 communication network operator towers in the next three years.

According to Erick, what PT Telkom has done through Mitratel is a big task because it will grow public communication access in all regions to be able to access digital networks and realize Digital Indonesia.

“This will have a huge effect on economic growth, public services and bring multiplier effect towards MSMEs and also human resource development,” said Erick.

According to him, the development of Mitratel is in line with the Ministry’s agenda in building a 5G ecosystem, which has been started in the 5G Mining Project with collaboration between Freeport and Telkom.

“In addition, we have also carried out other initiative programs to support digitalization, including in the financial sector (the use of artificial intelligence), health (through telemedicine), logistics (integrated logistic system), and transportation (ecosystems for autonomous vehicle),” said Eric.

[Gambas:Video CNBC]

(vap/vap)



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