Telkom Group Injects 292 Billion Rupiah for INDICO

Telkom Indonesia through its subsidiaries Telkomsel injecting capital of Rp292 billion to its subsidiary, PT Telkomsel Digital Ecosystem (TED) or now known as Indonesia Digital Ecosystem (INDICO). Based on the disclosure of information on the Indonesia Stock Exchange, Telkom conducted the affiliate transaction in order to strengthen the digital platform owned by TED.

PGS Director of Strategic Portfolio Telkom Bogi Witjaksono said this transaction is an affiliate transaction considering that Telkom is the controlling company Telkomsel with 65% ownership. TED is a directly controlled subsidiary Telkomsel with 99,99% share ownership.

"In order to comply with the provisions of Article 6 of the Financial Services Authority Regulation No.42/POJK.04/2020 concerning Affiliated Transactions and Conflict of Interest Transactions (POJK 42/2020), we hereby inform you that on May 18, 2022, an Affiliate Transaction in the form of Participation has been carried out. Capital by PT Telekomunikasi Selular (Telkomsel) to PT Telkomsel Digital Ecosystem (TED),” wrote Bogi.

TED is a company engaged in business management consulting services and investment or equity participation in a number of companies. In addition, TED's business is also engaged in data processing activities, hosting, and activities related to advertising.

TED was officially formed in early January 2022 and is positioned as a holding company that houses several subsidiaries of emery vertical business portfolio Telkomsel in the digital sector, by optimizing the utilization of the synergies of all the advantages of the ecosystem of assets owned Telkomsel. Some of the digital innovations that have been running include Kuncie (EdTech), Fita (healthtech), and Majamojo (game).

In the inauguration some time agoTED CEO Andi Kristianto emphasized that INDICO is committed to driving the growth of the digital economy in Indonesia in an inclusive and impactful manner. “INDICO will enable us to do more commits with innovators, investors, strategic partners, and relevant stakeholders,” said Andi.

In the short term, TED is developing a platform that will enable innovators, investors, collaborators to reach the market more easily in the next five years. This development will be based on community needs by utilizing the assets and capabilities of the parent company, namely a customer base of 170 million and more than 300 thousand outlet partners. Telkomsel in 514 cities.

The development of digital innovations also takes advantage of the understanding they have, both geographically and demographically. "Thus, our assets are not only relevant for the telecommunications [market], but for all Indonesian people, with a growth hacking strategy. Indonesia is very diverse, understanding local is very valuable," he added.

For the initial stage, Andi continued, his party will encourage the development of existing digital products in the next six months, namely Kuncie, Fita, and Mamamojo. If the capabilities they have have been optimally utilized, they will only start to enter other verticals.

New approach Telkomsel

Summarizing his digital transformation journey, since last year Telkomsel started to take a different approach in developing digital products. Previously, the development of digital innovation was carried out through vehicles Telkomsel Innovation Center (TINC) and Telkomsel Innovation Partners (TMI). TINC solicits ideas to be incubated and accelerated from local startups, while TMI enters through providing investment to early stage startups.

However, this time Telkomsel trying to explore a vertical that has never been worked on by telecommunications before. Telkomsel developed the Kuncie and Fita platforms which both entered the digital lifestyle segment last year. Then, enter Mamamojo which was founded through a joint scheme by TED and GoTo last February.

In DailySocial.id's previous interview with Kuncie and Fita, this approach is reflected in the steps Telkomsel appoint CEO Kuncie and Fita from outside the company and the parent company. Besides that, Telkomsel provides the flexibility to develop a business with a growth hacking model, and has the potential to be spin-off. This model is certainly contrary to the telecommunications business model which is oriented towards Return of Investment (ROI).