TLKM - eyes to earmark up to IDR40 tn in capex for 2023

TLKM - eyes to earmark up to IDR40 tn in capex for 2023 TLKM is planning to earmark between IDR36 tn and IDR40 tn for capex this year, or equal to 25% of estimate revenue. The company has previously spent IDR28.6 tn in capex as of 9M22. The capex spending this year is focused on mobile and fixed broadband expansion as well as other businesses, especially data center. In addition to capex spending, the company is looking to bring TelkomSigma, a data center subsidiary ing public, to improve value of the company. (Source : Investor Daily) Comment : While the capex allocation is generally the same as previous years, we appreciate TLKM’s plan to take TelkomSigma public to be able to improve the company’s value given potential business of data center industry, which remains nascent. Data Center, where TLKM holds around 40% of market share, also provides more stability and certainty to top line.