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00:00Welcome back to C2day Business, Telkom Indonesia recently held a general shareholders meeting.
00:09The company announced they will distribute over 17.6 trillion rupiah in cash dividends
00:14to their shareholders after recording a positive performance in 2023.
00:19Now, Telkom Indonesia is set to distribute 17.68 trillion rupiahs or 72% of their annual
00:28profit to be disbursed as cash dividends in early June.
00:33Meanwhile, 28% of total annual profits or 6.88 trillion rupiahs have been allocated
00:41for retained earnings to develop the company's business line in digital business connectivity
00:47and services.
00:48Now, the company also announced the Board of Commissioners and Board of Directors.
00:54The board remains unchanged except for the resignation of Abdi Nagara last January.
01:01This year, I think we just released the Q1 report of 2024 and we grew much better than
01:14the previous quarter, even it's better than last year.
01:18We do expect that the outlook of four years will be getting better than last year.
01:26And Telkom Indonesia plans to expand its line of businesses this year while also improving
01:31goods and services to maximize opportunity and value creation in the future.
01:37To delve more into the topic today, joining me in the studio, Director of Group Business
01:41Development PT Telkom Indonesia, Honesty Bashir.
01:45Pak Honesty, thank you so much for dropping by C2day.
01:49There's a lot of, I would say, transformation in Telkom as well, internally and externally.
01:54And we've heard about the five bold moves that have been resounded a lot by Telkom as
01:58well.
01:59One of them is roping in some global strategic partners because Telkom is now trying to venture
02:04into businesses that are not the DNA of Telkom.
02:08Let's talk about the data center.
02:09Now, we've heard about the data center that Telen Singapore and Nutra DC are now consolidated.
02:16So, if one says that Telen Singapore is losing part of their business, is this thinking true
02:23or how is it like?
02:25Thank you, Mbak.
02:26So yeah, Telkom right now, we are in process to execute what we call it the five bold moves
02:31transformation.
02:32Actually, this transformation is very bold because, critically, to enter the new portfolio
02:38that's Telkom, as you say, we don't have DNA in this area.
02:44So, the consolidation of our data center is part of the program to execute one of the
02:51part of five bold moves, what we call data center businesses.
02:54So, this consolidation will strengthen Telkom's position into the data center business.
03:00That's why we have to expand our capability and also our capacity, and also give the good
03:05impact into the TDA, Assisted Vehicle Product Center, which is Telkom's data ecosystem.
03:12And also Telen, as previous owner of the data center.
03:15Why I said that will be good for them?
03:17Because two companies have different assignments.
03:22And we know that to build the resources, competency, capability in this area is two different areas.
03:31That's why after consolidation data center into TDE, TDE is really for them to build
03:36the resources, to develop the resources.
03:40And also for Telen, also can focus into the new portfolio, we call this Subsea or Submarine
03:45Cable.
03:46So, I believe that the consolidation strongly will give good impact to Telkom, especially
03:50when Telkom want to prove to our investors about our transformation.
03:55When you talk about having, trying this data center portfolio, so have you thought about
04:01the monetization of this?
04:03I mean, since last year, Telkom focuses on the B2B, so how would the data center will
04:09actually utilize on the B2B needs?
04:12Yeah, data center will play the main role in B2B IT services, because if we talk about
04:20the B2B IT services, the data center is part of that.
04:23So that's why when we move our home broadband into Telkom, into Telkomsel, Telkomsel will
04:29be focused into B2B IT services.
04:32And with data center, it will strengthen our offering into the B2B segment.
04:38B2B segment means that we can cater the opportunity into the government sector, private sector,
04:45and also the other like SME.
04:48For example, in government sector, we can provide the multi-platform to deliver healthy
04:56services from government, e-KTP for example.
05:00And also in the private sector, we focus into several areas, like financial, like manufacturing,
05:09digital buyer, also ISP.
05:11So with the combination of what we have in data center, I think our service delivery
05:18into the B2B corporation will be more rich.
05:23So that's why it will give more experience to our corporate customers.
05:29Now, we know that there is the hyper-scalar data center that is built because Telkom aims
05:35to be the hyper-scalar indeed, domestic content as well as data provider in Indonesia and
05:40Southeast Asia.
05:41So how is the progress of the hyper-scale we saw in Cikarang?
05:47Are we expect to have more data centers, for example in IKN, because we also expect that
05:52there will be overspill from other countries that we can cater as well?
05:57Right now, Telkom through TDE, we operate 42 megawatt data center.
06:04It is built into four countries, like Indonesia, Singapore, Hong Kong, and Southeast Asia,
06:09the small one.
06:10And we continue to expand our capacity and our capability.
06:14So in Cikarang, right now we have around 4 megawatt capacity, and I think that we believe
06:19that they are already exceeding more than 50% of the capacity.
06:24And we will continue to expand the capacity in that.
06:28So I think in Cikarang right now, we are also in the process to build the new one in Batam.
06:36From 42 megawatt what we have today, at the end of this year, we will get more additional
06:4118 megawatt.
06:44So I think at the end of this year, Telkom will manage around 60 megawatt capacity.
06:50It is only in 2034, because we will not stop only in 60 megawatt.
06:58Until 2030, our plan is to have around 350 up to 400 megawatt capacity.
07:06But I believe that we will not manage this by ourselves, but we try to find the partner,
07:13the direct partner to together with us, invest with us and grow with us.
07:16All right, now there is a need to grow.
07:18At the same time, we also want to have the sustainability efforts going on.
07:22So talking about sustainability, what steps do Telkom take, especially to enforce ESG
07:30in the data centers?
07:31We heard that the HDC in Batam, for example, to build the infrastructure, it is actually
07:35the net zero emission using green energy.
07:40So how is it like, especially in Batam and maybe in Cikarang as well?
07:44I think that is Telkom's commitment to sustainability, also the ESG principle.
07:51But we believe that we should make some adjustments to our data center.
07:56For example, we have to implement what we call the cooling system management.
08:01It uses a lot of water, doesn't it?
08:02Yes, cooling system management.
08:06And we also implement the water efficiency technology.
08:10And also the proper hazardous waste management, including the recycled electronic waste.
08:17Because I think this is also required by international standards.
08:22So if you want to meet the regional standard, I think we have to follow this standard.
08:27That's why issues in sustainability, also ESG, is something we have to put in our priority.
08:35Because after we discussed with several potential investors, the main question that they asked
08:41to Telkom was, how about your policy regarding sustainability, also ESG?
08:46So we are very focused, and we also not only to put the plan for that, but also to get
08:53some recognition.
08:54I mean that we have what we call the BCE, Grand Platinum Certification.
09:00This certificate demonstrates how Telkom can achieve at least 30% energy saving into
09:08non-residential air building.
09:09So we will continue this program and to prove to our investors that Telkom will pay attention
09:17and will execute anything to sustain the sustainability, also ESG issues.
09:22We heard as well that you have used the solar panels as well on some of your towers.
09:28Is that correct?
09:29Yes.
09:30For example, in Cikarang, we already operate the 300 kilowatt solar panel.
09:38I think it's not only that, but also another technology for renewables.
09:42Because you know, to give our commitment, our plan has to have the energy power, at
09:49least renewable, I mean, 30% from total capacity.
09:54And also, I think we continue to implement this.
09:57Right.
09:58Let's talk about generative AI.
10:00You know, AI now has already evolved to generative AI.
10:04So does the data center, the hyper-skilled data center in Cikarang maybe, or in Batam,
10:09already complies with this or already ready to serve for any, maybe in the future, requirements
10:16for a generative AI?
10:18Yeah.
10:19Generative AI requires the high density of data center racks, right?
10:23And from the beginning, actually, our data center didn't provide to AI readiness.
10:32But because of our plan, because of the issue of AI demand, right now we are in the process
10:37to adjust some technology to make our data center ready for AI.
10:41For example, in Cikarang and Batam, the new one, we did some adjustment into the cooling
10:49system management because it's required to fulfill the AI readiness.
10:55And also, I think we not only that, we also find the opportunity to find the partner,
11:02especially in graphic processing unit, GPU provider, together with us to find the integrated
11:09solution for AI.
11:10So I think with the partnership right now, we are also in the process of evaluating and
11:16also to provide the business model for AI because, you know, that use case, we didn't
11:22find that use case in Indonesia, actually.
11:25But when our data center is ready for AI, I think it's easy for us to communicate also
11:29to over the AI services into our client.
11:32Okay, so may the future be bright for Telkom.
11:36And thank you so much, Pak Onestibasyan, for coming to see today's studio, the Director
11:39of Group Business Development of Telkom Indonesia.
11:42Thank you and come again, Pak.
11:43Thank you, Melati.
11:44Thank you.
11:46So now we're going for a break when we return our daily recap from Stock Market.
11:50You don't want to miss that.
11:51So we'll be right back.
11:53Stay tuned in to see today's business.