1. Startups

Telkomsel Inaugurate New Subsidiary to Accommodate Company's Digital Initiative

PT Telkomsel The Digital Ecosystem will focus on three digital industry sectors, namely edtech, healthtech, and gaming

In an effort to support the continuity of the digital transformation roadmap in Indonesia, Telkomsel specifically formed a new entity called PT Telkomsel Digital Ecosystem. This is stated as a manifestation of the company's seriousness in expanding its digital business portfolio.

PT Telkomsel Digital Ecosystem will take the position as the holding company that houses several subsidiaries of the vertical business portfolio Telkomsel in the digital sector. Through this initiative, they will optimize the utilization of the synergies of the entire ecosystem of assets owned. Until now, the company has not announced the official name that will be used as brand or business identity.

In addition, the formation of a new subsidiary Telkomsel This is also expected to open up opportunities and facilitate the use of the latest digital technology. This is solely aimed at strengthening the digital ecosystem of the country in order to deliver Indonesia to be a digital powerhouse in South East Asia.

President Director Telkomsel Hendri Mulya Syam said, "Telkomsel want to continue to provide benefits to the community by optimizing the capabilities of digital trifecta (digital connectivity, digital platform, and digital service) owned to encourage the expansion of business portfolios in various sectors, especially those that can strengthen the national digital economy."

Indonesia has now become one of the countries with the penetration of the digital economy which continues to grow positively every year with digital transactions projected to reach $124 billion by 2025.

Based on a study conducted by Google, Temasek, and Bain & Co., around 41,9% of Southeast Asia's total digital economy transactions come from Indonesia. The value of Indonesia's digital economy alone in 2020 has reached $44 billion, growing 11% compared to 2019, and has contributed 9,5% to Indonesia's Gross Domestic Product (GDP).

"We hope that PT Telkomsel The Digital Ecosystem can play its role in strengthening Telkomsel as a digital ecosystem enabler, through optimizing the capabilities of its digital service ecosystem, in order to realize Indonesia's vision to become one of the largest digital economy countries in the world," said Hendri.

In the early stages, PT Telkomsel The Digital Ecosystem will be led by Andi Kristianto as Chief Executive Officer (CEO). Previously, Andi also served as CEO Telkomsel Innovation Partner (TMI) and SVP Corporate Strategy and Strategic Investment at Telkomsel. In addition, Andi will also be accompanied by Andry Firdiansyah as Chief Financial Officer (CFO) and Chief Human Resource Officer (CHRO), and Luthfi K. Arif as Chief Technology Officer (CTO).

Digital initiatives Telkomsel

Recent years, Telkomsel has expanded the scope of its digital solutions through its internal incubation and acceleration division Telkomsel Innovation Center (TINC) and Telkomsel Innovation Partner (TMI) as an investment extension company outside the corporate ecosystem. This is a strategic step to find the right business model for its telecommunications business.

In an effort to encourage development in the first wave, PT Telkomsel The Digital Ecosystem will focus on three digital industry sectors, namely EdTech, healthtech, and Gaming. The three business lines are considered to have the potential to encourage the national digital economy and will be part of the emery digital business portfolio Telkomsel sustainable.

In the middle of 2021, Telkomsel introduce Kuncie, platform EdTech which provides business development learning services in various categories with experienced mentors. edtech is a business vertical which may have never been a diversification of the telecommunication operator's line of business, whether developed independently or through investment schemes or strategic partnerships.

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After some time, at the end of 2021, the company officially launched Fita's newest digital platform, which plays in the segment prevent healthcare. This product is called practice growth mentality inherent in the startup culture. Previously, Fita app already present on the Google Play Store and Apps Store in the middle of this year.

Soon, Telkomsel plans to expand the business through the separation of the entire Kuncie application business and Tape to be transferred to PT Telkomsel Digital Ecosystem, in order to strengthen vertical business penetration, in each sector edutech and healthtech.

As for the gaming sector, Telkomsel has also transferred the joint venture contract to PT Telkomsel Digital Ecosystem to establish a Joint Venture (JV) company that has a business focus as a gaming publisher to increase competence and capabilities in the business vertical Telkomsel in the industry Gaming.

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