Business Context and Reporting Period
Company: Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (Telkom Indonesia)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Year ended December 31, 2021
Filing Date: April 19, 2022
Currency: Indonesian Rupiah (IDR), amounts in billions unless otherwise stated.
Telkom Indonesia is a state-owned public limited liability company providing telecommunications networks and services in Indonesia. The consolidated financial statements include the Company and its subsidiaries, including major entities such as Telkomsel (mobile), Mitratel (tower leasing), and Metra (multimedia).
Key Financial Metrics
| Metric | 2021 | 2020 |
|---|---|---|
| Total Revenues | 143,210 | 136,462 |
| Operating Profit | 47,563 | 43,505 |
| Profit Before Tax | 43,678 | 38,775 |
| Net Profit for the Year | 33,948 | 29,563 |
| Net Profit Attributable to Parent | 24,760 | 20,804 |
| Basic EPS (IDR) | 249.94 | 210.01 |
| Operating Cash Flow | 68,353 | 65,317 |
| Capital Expenditures | (30,341) | (29,436) |
| Total Assets | 277,184 | 246,943 |
| Total Liabilities | 131,785 | 126,054 |
| Total Equity | 145,399 | 120,889 |
| Cash and Cash Equivalents | 38,311 | 20,589 |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by 4.9% to Rp143.2 trillion, driven by growth in mobile data and internet services (Rp64.5 trillion) and Indihome services (Rp26.3 trillion).
- Profitability: Net profit attributable to the parent company rose 19.0% to Rp24.8 trillion. Operating profit increased by 9.3%.
- Investment Gains: A significant unrealized gain of Rp3.4 trillion was recognized from changes in the fair value of long-term investments, primarily due to the valuation of the investment in GoTo (formerly Gojek and Tokopedia) following its merger and subsequent stock split.
- Divestment/IPO: The subsidiary PT Dayamitra Telekomunikasi (Mitratel) completed an Initial Public Offering (IPO) in November 2021. This resulted in proceeds of Rp18.5 billion and diluted the Company's ownership from 99.99% to 71.87%, creating a non-controlling interest of Rp9.5 trillion.
- Impairment: Unlike 2020, which saw a significant impairment loss of Rp763 billion on associates (Tiphone and Indonusa), 2021 reported no impairment on long-term investments in associates.
- Depreciation: Depreciation and amortization expenses increased to Rp31.8 trillion, partly due to the accelerated depreciation of Multi-Service Access Node (MSAN) assets.
Guidance, Outlook, and Risks
- Management Commentary: Management highlighted the successful IPO of Mitratel and the strategic investment in the digital ecosystem via GoTo. The Group continues to invest heavily in network modernization and fiber expansion.
- Regulatory Risks: The Company is subject to significant regulatory oversight regarding tariffs, interconnection fees, and Universal Service Obligation (USO) contributions (1.25% of gross revenue). Tariffs for fixed and mobile services are regulated by the Ministry of Communication and Information.
- Taxation: The Company is involved in ongoing tax assessments and disputes regarding fiscal years 2012, 2015, and 2018. While some disputes have been resolved in the Company's favor, others remain pending with the Tax Court or Supreme Court.
- Financial Covenants: The Group generally complies with debt covenants. However, waivers were obtained from lenders in late 2021 for certain subsidiaries (Telkom Infra, Sigma, GSD) regarding non-fulfillment of specific financial ratios.
- Macroeconomic Risks: The filing notes potential impacts from the COVID-19 pandemic, including economic slowdown and credit risk, though the Group states the effects were not significant in 2021.
Key Facts for Investor Verification
- GoTo Investment Valuation: Verify the sustainability of the Rp3.4 trillion unrealized gain from the GoTo investment, as this significantly boosted 2021 net income and is subject to market volatility.
- Mitratel IPO Impact: Confirm the long-term strategic value of the Mitratel IPO and the implications of the 28.13% non-controlling interest on future cash flows and consolidation.
- Tax Disputes: Review the status of pending tax assessments (fiscal years 2015 and 2018) which could result in future cash outflows or adjustments to tax liabilities.
- Debt Covenants: Monitor the financial ratios of subsidiaries (Telkom Infra, Sigma, GSD) that required waivers in 2021 to ensure continued compliance with lenders.
- Capital Expenditure: Assess the return on the high capital expenditure (Rp30.3 trillion) regarding network upgrades and fiber deployment in the context of competitive market pressures.