Telkom Indonesia has announced a strategic roadmap and growth plans aimed at elevating customer experience in the fiber broadband business. The company has allocated a significant portion of its capital expenditure (Capex) for 2023, accounting for 22 percent of its total revenue, to focus on the development of mobile, fixed broadband, data centers, cloud services, and infrastructure businesses across Indonesia.
Telkom’s annual report highlights its extensive 176,663 km fiber optic backbone network, comprising 111,663 km of domestic fiber optic and 64,700 km of international fiber optic. This network supports Telkom’s fiber optic access, which currently passes 38 million homes, with 16 million optical ports available by the end of 2023.
The company’s fixed broadband brand, IndiHome, maintains a dominant position in the Indonesian market with 10.1 million subscribers, capturing 66.7 percent of the market share. However, the fixed broadband industry remains competitive, with players such as First Media, MyRepublic, Biznet Home, MNC Play, CBN Fiber, XL Home, Oxygen.id, Indosat HiFi, and Iconnet all vying for a share of the market.
Telkom’s overall telecommunications portfolio is robust, with 159.3 million cellular subscribers, including 7.5 million Halo subscribers, 151.8 million prepaid subscribers, and 137.2 million broadband subscribers. Of these, 127.1 million are mobile broadband subscribers. In 2023, IndiHome saw a 9.5 percent increase in its subscriber base, reaching 10.1 million. However, the average revenue per user (ARPU) for IndiHome B2C declined slightly to Rp252.7 thousand, down from Rp270 thousand, as Telkom shifted its focus towards attracting younger customers and future market segments.
To sustain and expand its subscriber base, Telkom is enhancing its IndiHome B2C offerings through bundling programs that include internet broadband, IP-TV, and fixed wireline telephone services. The company is also boosting sales via digital channels and launching annual promotions, while committing to deliver high-quality services and digital entertainment.
Telkom’s fiber optic network, spanning 175,692 km and covering 501 cities and regencies, is the backbone of its fixed broadband services. The company is also improving operational efficiency by enhancing its Mean Time To Install (MTTI) and Mean Time To Repair metrics through improved technician training and streamlined business processes.
In 2023, Telkom recorded a 9 percent increase in data traffic, reaching 17.9 million TB. The company’s cellular subscriber base grew by 1.6 percent, totaling 159.3 million subscribers, with prepaid users making up 95.3 percent of the total. Mobile broadband subscribers also grew by 5.1 percent to 127.1 million, accompanied by a 9 percent rise in data usage. Telkomsel, a subsidiary of Telkom, completed its network switch from 3G to 4G, deactivating more than 49,000 3G BTS and constructing over 32,000 new 4G BTS. The company also built 370 new 5G BTS, bringing the total to 654 5G BTS by the end of 2023.
