TLKM – FMC becomes central strategy for 2023

Management of Telekomunikasi Indonesia (TLKM) stated that Telkomsel and Indihome merger plan has become its core strategy for 2023 amid higher concern over global recession. The merger is part of its Fixed Mobile Convergence (FMC), expected to improve the company's ability to deliver its services with more efficient manner, as well as venue of value creation. In addition to Indihome-Telkomsel merger, TLKM is also eyeing to exercise InfraCo, DC co, B2B Digital IT service co and DigiCo initiatives with a central theme under telco infrastructure consolidation within its entities. (Source : Bisnis Indonesia) Comment: As trend of FMC has been happening accross the globe, becoming a testament for efficiency improvement. We expect Indihome-Telkomsel merger will also boost efficiencies in capital expenditure and operating expenses. In addition, the newly launched 5G will also need to be supported by fiber, the primary infrastructure of Indihome FTTH. Meanwhile, we like TLKM's plan for entities consolidation as it brings out ability to better monetize its superior infrastructures.