TLKM – Plans to expand Indico

A subsidiary of Telkom Indonesia (TLKM), Telkomsel is aiming to develop its entity, Indico to help become an enabler in digital ecosystem and start-ups in Indonesia. To that end, the company will leverage its status as the carrier with widest network coverage and experience as market leader in telecommunication industry. Currently, start-up ecosystem is facing huge challenge trying to balance out between growth and profitability amid unfavourable environment. Meanwhile, user acquisition is also a challenge for early stage funded start-ups. (Source : Investor Daily) Comment: We view that the move is part of the company's masterplan to leverage as well as diversify its source of growth and strengthen competitive edge under 'Five bold moves framework'. This is also in line with vernment's effort to expand the size of digital economy ing forward. In our view, this one-step- forward move by leveraging its infrastructure and robust balance sheet are imperatives to create new source of growth ing forward as cellular industry is deemed to be quite mature.