About Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (Telkom) operates as a telecommunications company in Indonesia. The company provides fixed and mobile telecommunications services and solutions and ancillary services. The company continues to strengthen and optimize its portfolio businesses, services and solutions by creating strategic programs that maximize synergies and active portfolio management. Business Portfolios and Segments The company operates through four primary reportable segments: Mobile, Consumer, Enterprise, and WIB. The company’s business portfolios are organized by business lines that are categorized into Legacy, Digital Connectivity, Digital Platform, and Digital Services. Those businesses lines are operated under five customer base segments (Customer Facing Units (CFUs)): Mobile segment comprises mobile broadband services; mobile digital services that include financial services, video on demand, music, gaming, IoT solutions, big data analytics, and digital ads, and mobile legacy services that include mobile voice and mobile SMS. Consumer segment comprises fixed voice services, fixed broadband services, IPTV (Internet Protocol Television, a system through which television services are delivered using the Internet Protocol suite over a packet-switched network, such as the internet, instead of being delivered through traditional terrestrial, satellite signal, and cable television formats), non-IndiHome fixed broadband (e.g., Wi-Fi, etc.), and related consumer digital services. Enterprise segment mainly comprises ICT (information and communications technology, an area concerned with information technology, telecommunications networking and services and other aspects of managing and processing information) and digital platform which covers enterprise-grade connectivity services (e.g., satellite), IT services, cloud, business process outsourcing, and other adjacent services. Wholesale and International Business segment comprises wholesale telecommunications network and traffic, international business, wholesale platform and services, telecommunication tower business, data centers, and infrastructure and network management services. Other segment comprises digital services offerings, such as digital smart platform, digital content, and e-commerce for B2B (business-to-business refers to arrangements and transactions between businesses) to support other segments, and property management to leverage the company’s property assets across Indonesia. The following is a brief overview of the company’s product portfolios: Mobile segment The company’s Mobile segment portfolio comprises legacy businesses (voice and short messaging service (SMS)) and digital businesses (data and digital services) with GSM (Global System for Mobile Telecommunication, a European standard for digital cellular telephone), 3G (the generic term for third generation mobile telecommunications technology. 3G offers high speed connections to cellular phones and other mobile devices, enabling video conference and other applications requiring broadband connectivity to the internet), 4G/LTE (a fourth generation super-fast internet network technology based on IP that makes the process of data transfer much faster and more stable) and 5G (a fifth generation of cellular mobile communications which targets high data rate, reduced latency, energy saving, cost reduction, higher system capacity and massive device connectivity) technology through its subsidiary, PT Telekomunikasi Selular (Telkomsel). Mobile services, including mobile data services, remained the largest contributor to its consolidated revenues in 2022. The company’s prepaid services, used by 95.5% of its cellular subscribers as of December 31, 2022, are marketed under the brands Telkomsel Prabayar, which it introduced in 2021, and by.U, which it introduced in 2019. Telkomsel introduced its new identity and logo in June 2021, a symbol in the form of a 'portal', a gateway to a world full of opportunities and possibilities: an open and inviting path to a trusted digital world. The company’s postpaid mobile services, used by 4.5% of its cellular subscribers as of December 31, 2022, are marketed under the brand Telkomsel Halo. The company’s mobile broadband services for all of its customers are supported by 5G/4G/LTE/HSDPA/3G/EDGE/GPRS technology. In addition to its digital connectivity business, the company established several digital service offerings within its Mobile segment with a specific focus on financial services, video on demand, music, gaming, advertising, and IoT (The Internet of Things is infrastructure, which interconnects physical and virtual things using interoperable information and communication technologies). The company’s Mobile segment comprises a financial payment platform, T-Cash, that pioneered digital payments when it started in 2007. In 2019, T-Cash became LinkAja under PT Fintek Karya Nusantara (Finarya). As of December 31, 2022, Telkomsel owned a 24.83% equity interest in Finarya. The company also offers video content on demand under MAXstream, a one-stop video portal that aggregates OTT video applications, linear channels, video on demand and other original content bundled with broadband data packages. The company provides music and gaming services that offer a mobile entertainment experience by targeting various consumer segments and leveraging Telkomsel's trusted billing system. The company has applications for music (e.g., Langit Musik) and Telkomsel Dunia Games, which provides a complete gaming ecosystem combining media content, distribution, payment facilities, e-sports and game publishing. The company has launched online games and started developing gaming communities to expand its customer experience in that area. With the rapidly evolving customer needs and the transformation taking place in the society, Telkomsel is committed to enhancing the company’s product offerings and digital capabilities to go beyond connectivity while accelerating and expanding its digital ecosystem, to continue to focus on customer needs and long-term growth supported by network quality. This initiative includes enriching digital services related to video and games content, augmenting the functionalities of by.U (a fully digital prepaid product), developing Telkomsel Orbit (a home wireless internet service as an effort to leverage strong network capacity) and rehauling the MyTelkomsel app and Telkomsel.com to improve their value proposition. Following Telkomsel’s investment in PT GoTo Gojek Tokopedia (GoTo) in November 2020 and May 2021, the two companies have strengthened their strategic partnership initiatives to provide users with new benefits and also help to accelerate the digitization of micro, small and medium enterprises (MSMEs). The company intends for these initiatives to strengthen Telkomsel’s digital ecosystem and provide synergies. GoTo has already developed a complete and well-recognized digital ecosystem for users, drivers and merchants. The company’s partnership with GoTo is multi-faceted. The company has jointly promoted products and services, such as SIM card (Subscriber Identity Module, a microchip in a mobile phone that connects it to a particular phone network) promotions and advertising packages, and carried out co-branding activities to better service its respective customers and expand its addressable markets. For instance, the company has offered data packages and discounts designed for GoTo drivers. The company is also collaborating with GoTo to better understand the consumption habits and behaviors of users and customers in order to improve its products and solutions offerings. Following this investment, the two companies have strengthened strategic partnership initiatives to provide users with new benefits and also helped to accelerate the digitization of MSMEs. These initiatives include collaboration on initiatives to increase the number of Telkomsel users within the GoTo ecosystem, create an easy onboarding capability for GoTo’s MSME partners to become Telkomsel reseller partners, integrate MyTelkomsel and GoPay, collaborate with loyalty programs and provide GoTo with a number masking service. The company also expects additional digital initiatives in the future. Telkomsel officially launched 5G service in May 2021, becoming the first cellular operator to offer 5G in Indonesia. As of 2022, Telkomsel had made 5G available by deploying 284 BTS towers at selected points in more than 40 cities in Indonesia as part of its strategy to roll out 5G through a demand-based approach for business to customer (B2C) and business to business (B2B) segments, including in the manufacturing, infrastructure, and education sectors. The company intends to maximize the use of 5G to transform lives and publicize the advantages of the 5G networks to further encourage the growth of digital connectivity, digital platforms and digital services in Indonesia, as well as the development of future technology solutions, such as artificial intelligence, cloud computing and IoT. The company has included 5G investment in its roadmap plan, which it will execute in stages based on several considerations, including maturity of the 5G ecosystem. Consumer segment The company’s Consumer segment portfolio comprises fixed voice, fixed broadband services, IPTV, and consumer digital services. It is marketed under the retail brand IndiHome, a product that allows customers to choose one or more of such services in a bundle package. The need for connectivity continues to increase while the price of connectivity services continues to decrease from year to year. To address this trend, the company continues to implement cost efficiencies and to offer its ‘more for less’ program, by positioning IndiHome as a ‘window of entertainment’ to provide customers with more exciting benefits, at a competitive price through product bundling. These services consist of broadband internet, fixed wireline phone and interactive TV services. The company has offered a one-stop-entertainment solution by bundling selected OTT services together with the IndiHome TV App at a price that is lower than the sum of the individual subscriptions. In response to challenges faced by its customers and the public during the COVID-19 pandemic, the company has launched specifically-designed packages to assist people involved in distance learning activities, such as studying from home (Paket Khusus Pelajar, Pengajar, dan Jurnalis packages). In addition, the company continues to develop products and technologies to meet its customers' aspirations and needs. In 2022, the company collaborated with Netflix to make Netflix available through IndiHome. The company has added a cloud recording service as an add-on through IndiHome Eazy. This service stores IP camera recording data on a cloud server so that it is safe, secure, and easily accessible to customers. The company has also created Ultra Wi-Fi products that provide expanded Wi-Fi coverage for IndiHome customers with large residential areas or multi-story buildings. IndiHome TV is the company’s pay TV (Pay Television, premium television, or premium channels, subscription-based television services, usually provided by both analog and digital cable and satellite, but also increasingly via digital terrestrial and internet television) service that is bundled in IndiHome and delivered via Android TV box devices enriched by the Google ecosystem. The company’s pay TV service includes various linear TV channels, TV-on-demand (catch-up TV), video-on-demand (VoD), and 14 OTT services. These OTT services include non-video OTTs, such as GameQoo, Langitmusik and IndiHome Karaoke, as well as its OTT videos services, such as Netflix, Disney+ Hotstar, Lionsgate Play, Viu, Catchplay+, Mola, WeTV, iFlix, Vidio, Vision+ and the IndiHome TV App which together enrich IndiHome as a ‘window of entertainment’. The company’s pay TV service is available in the IndiHome TV app and on the indihometv.com website (rebranded in December 2022 from the UseeTV Go app and useetv.com) to enable its users to access this content anytime, anywhere and on various devices. IndiHome TV delivers 149 high-definition channels and five Dolby channels. In 2022, the company added to its world-class sports content by collaborating with Vidio to provide access to the FIFA World Cup 2022, added access to the Badminton World Federation competitions and added access to Grand Prix motorcycle racing (MotoGP) through SPO TV and SPO TV 2 channels. Furthermore, IndiHome continues to cooperate and collaborate with notable partners to provide various programs through in-house channels, including Liga 1 football league, creating a national futsal competition, ‘Panggung Kamulah Bintangnya’ Kids Talent Search program, KPOP Dance Cover Competition, Badminton Junior International challenge, and Studio Dangdut. The company also offers wifi.id services to its IndiHome customers, an add-on service which allows such customers to enjoy unlimited internet access at all wifi.id access points in Indonesia. Wifi.id stands for Indonesia Wi-Fi, the company’s wireless public internet network that provides users with facilities to enjoy high-speed internet services and various other multimedia services. Enterprise segment The company’s Enterprise segment comprises mainly ICT and platform services that cover enterprise-grade connectivity services, satellite services, data center and cloud, digital IT services, business process outsourcing, device, and digital adjacent services. For enterprise connectivity, the company offers fixed broadband, Wi-Fi, Ethernet, and data communication services, including a SD-WAN (Software-defined Wide Area Network, an approach that uses software to deploy, operate and manage WAN (Wide Area Network, a collection of local-area networks (LANs) or other networks that communicate with one another) architectures more easily and with increased connectivity) ecosystem that enables higher performance of WANs, leased channels, such as metro Ethernet (Bridge or relationship between locations that are apart geographically, this network connects LAN customers at several different locations), VPN-IP, high-capacity data network solutions giving point-to-point connection with high-capacity bandwidth, and fixed voice services, among others. The company also provides satellite services as part of its enterprise connectivity offering and continue to strengthen its presence in this sector by providing transponder capacity leasing, satellite secondary product lines, and other satellite support solutions. The company’s satellite operations consist primarily of leasing satellite transponder capacity to broadcasters and operators of VSAT(Very Small Aperture Terminal, a relatively small antenna, typically 1.5 to 3.0 meters in diameter, placed in the user's premises and used for two-way communications by satellite), cellular services, and ISPs, as well as providing earth station satellite up-link and down-link services for domestic and international users. In 2020, the company launched FLOU Cloud, cloud services designed to support the digitalization of Indonesian startups, small and medium businesses, enterprises, and government agencies. The company’s cloud services include cloud computing services, data storage and management, network services, data protection, and access to databases. In 2022, PT Sigma Cipta Caraka (TelkomSigma) worked to upgrade FLOU Cloud's capabilities and performance as a strategic initiative to further its intention of growing the company’s market share while also introducing a new brand experience. In 2022, the company focused on providing professional cloud management and cloud advisory services to the financial, manufacturing, government and communications sectors since it expects these sectors to grow significantly. The company uses a combination of its own resources and partnerships with global cloud players, including Amazon Web Services, Google Cloud Platform, Microsoft Azure and Alibaba Cloud. The company continues to provide system integration and IT service management, together with related business process management, business process as-a-service, and customer relationship management services. The company aspires to digitalize its service offering further and so are constantly focused on strengthening its IT capabilities going forward. The company continues to provide smart enabler platform services to promote innovation with next-generation technology solutions, integrated industry ecosystems and to foster changes in consumer behavior in Indonesia. The company’s adjacent services comprise diverse services relating to applications, platform, digitalization of advertising, financial and banking support services, e-health, video and gaming, enabler services and other vertical industries support. Moreover, the company offers financial services which consist of bill payment aggregators, electronic payment platform services, online payment solutions, and payment switching services. The company also offers digital advertising solutions, such as media placement services and creative solutions, integrated digital media services, such as digital out-of-home, mobile advertising, online advertising, and digital printing services. Big data and data analytics in the form of platform services that generate insights for customers to analyze consumer behavior and create more efficient marketing campaigns are also included in the company’s service portfolio. The company also assists with customer relationship management, among other things: IoT services that offer IoT solutions for buildings, IoT applications for smart energy monitoring and management, fleet management, unified communication and collaboration services, IT security services, and other adjacent services. Lastly, the company’s e-Health solutions provide a simplified procedure and standardized healthcare claim process for healthcare providers, patients, and insurance providers which leverages its digital and IT service capabilities. In 2022, the company prioritized its ICT businesses which provides businesses with solutions for vertical industries, such as logistics, healthcare, education, government, financial services and insurance, agriculture, and mining, among others. The company has developed customized solutions that address the unique characteristics of each such industry. The company’s approach treats information, communication and technology (ICT) services and industrial solutions as horizontal platforms consisting of IoT, data center and cloud, big data, cybersecurity, and payments. Wholesale and International The company’s Wholesale and International business segment includes domestic and international wholesale traffic, wholesale network, wholesale digital platform and services, data centers, telecommunications tower business, and infrastructure services business. The domestic and international wholesale traffic, wholesale network and wholesale digital platform and services that the company offers comprise network services, data and internet, as well as interconnection services, value added services, voice-hubbing, A2P SMS, platforms, and solutions. The company earns revenue from interconnection services that it provides other telecommunications operators that utilize its network and infrastructure in Indonesia, both for calls that terminate at and calls that transit via its network. Similarly, the company also pays interconnection fees to other telecommunications operators when it uses their networks to connect a call from its customers. Interconnection services that the company provides to other telecommunications operators comprise domestic and international interconnection services. With regards to its telecommunications tower business, the company leases out space to other operators to place their telecommunications equipment on these towers, for which it receives a fee. As of December 31, 2022, the company had approximately 40,588 towers, comprising approximately 35,418 towers owned by Mitratel, approximately 477 towers owned by Telkom (PAK), and approximately 4,693 towers owned by Telkomsel. In 2022, Mitratel acquired 49 towers from multiple providers, as well as a 6,012 kilometer fiber cable network. As of December 31, 2022, Mitratel owned 35,418 towers. In February 2023, PT Dayamitra Telekomunikasi (Mitratel) further acquired 997 telecommunication towers from PT Indosat Tbk. (Indosat). The company provides managed infrastructure and network services by performing network construction and maintenance, including laying and maintaining submarine cable, and energy solutions for telecommunications infrastructure ecosystems. The company accomplishes this by leveraging existing businesses in its portfolio and developing in-house capabilities and innovative solutions. As part of its infrastructure portfolio, the company has developed energy management solutions. As such, the company completed the delivery and installation of diesel power plants in the Kalimantan and Sulawesi regions in 2017; after completion of this project, the company was engaged by an SOE (State-Owned Enterprise, a Government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, Government business enterprise, or parastatal, a legal entity created by a Government to undertake commercial activities on behalf of a Government owner) into 2023 to manage the maintenance of some of the diesel engines it had delivered and installed. In 2017, construction was completed for the SEA-US submarine cable which connects California to Manado, Indonesia, and by extension to the Indonesia Global Gateway (IGG) submarine cable, which connects major cities in Indonesia, as well as the SEA-ME-WE 5 and SEA-US cable systems. In 2022, the company completed construction of the second gateway that it owns, a gateway to the SEA-US cable in Manado which adds to its bandwidth, provides direct connections to multiple cable routes and improves its network reliability through redundancy. The company plans to add additional landing points in the future for redundancy and further deploy submarine cables in the future. The company expects the future deployment of 5G technology will also provide growth opportunities to its wholesale segment. The deployment of 5G technology in Indonesia is subject to various factors and conditions, but the company intends to pioneer such deployment in a phased approach to offer 5G wholesale services in Indonesia. The company’s A2P SMS services experienced a slight increase in demand in 2022 as a result of changed consumption habits from the COVID-19 pandemic, namely an increase in the use of mobile applications that use A2P SMS for authentication or notifications. In 2022, the company continued to consolidate and expand its data center capabilities, including its cloud services and marketplace services. The company began consolidating its data center business under its subsidiary, PT Telkom Data Ekosistem (TDE) in 2021 by transferring its under-construction Cikarang HyperScale data center. In 2022, the company transferred its enterprise data center business in Sentul, Serpong and Surabaya from Telkom Sigma. TDE continues to expand the capacity of the company’s HyperScale data center in Cikarang and has begun building a second HyperScale data center, in Batam. The company plans to continue consolidating its domestic and international data centers under TDE in the future and to expand capacity in order to become market leader in the data center ecosystem. The company’s subsidiary, PT Telekomunikasi Indonesia Internasional (Telin), continues to strengthen its international business. Telin has developed its NeuAPIX cloud-based CPaaS(Communications Platform-as-a-Service refers to a cloud-based platform that provides the ability to customers to add real-time communication features to their business applications. SMS, voice or other messaging capabilities are features that can be added to such business applications) services to provide small, medium and large companies and business owners with omni-channel communication features (bots and live chats, real-time voice capabilities, SMS, emails, video calls and messaging services, such as Line or Facebook messenger). Telin also offers NeuTrafiX, a web-based public exchange platform for connecting buyers and sellers for wholesale trading of voice, SMS and virtual numbers. Telin also manages data centers in Singapore, Hong Kong, and Timor-Leste. The company also has limited operations and/or interests in a number of jurisdictions outside Indonesia in telecommunications and data-related areas. The company’s subsidiary, Telin, manages its international operations in the following jurisdictions: Singapore, through Telekomunikasi Indonesia International Pte. Ltd. (Telin Singapore), where the company operates as an end-to-end information and communication technology provider, providing cloud and connectivity, wholesale voice services, data center and managed services; Hong Kong, through Telekomunikasi Indonesia International Ltd. (Telin Hong Kong), where the company provides wholesale voice services, wholesale data services, retail mobile services as an MVNO, and where it also operates a GraPARI center and a data center; Timor-Leste, through Telekomunikasi Indonesia International S.A. (Telkomcel), where the company provides mobile cellular services, enterprise solutions, wholesale and international services and operate a data center; Australia, through Telekomunikasi Indonesia International Pty. Ltd. (Telin Australia), where the company provides enterprise solutions, wholesale and international services; Taiwan, through Telin Taiwan Limited as an indirect subsidiary of Telin, where the company provides retail mobile services as a MVNO, digital retail services and operate a GraPARI center; Malaysia, through Telekomunikasi Indonesia International Sdn. Bhd. (Telin Malaysia), where the company holds a majority ownership interest in a joint venture that provides international airtime services and support, wholesale voice services, enterprise solutions, as well as wholesale and international services; The United States, through Telekomunikasi Indonesia International Inc. (Telin USA), where the company provides data services, internet connectivity services (including operating Point of Presence, peering and transit services) and wholesale voice services; Myanmar, through a branch office, where the company provides data connectivity service; Dubai, through a branch office, where the company provides wholesale voice services, wholesale data services and enterprise services; The United Kingdom, through a sales representative, where the company provides wholesale data services and enterprise services; and The Philippines, through a sales representative, where the company provides wholesale data services and enterprise services. The company regularly assesses these overseas operations, their profitability, prospects and strategic positioning in order to optimize its portfolio structure. In Indonesia, the company continues to monitor the potential for further consolidation in the telecommunications tower business. Other Digital Services The company’s digital services portfolio primarily comprises media and edutainment services targeted to digital consumers. Its diverse digital portfolio is clustered into a smart platform and gives access to digital contents and e-commerce. The company also manages a venture capital fund through its subsidiary, PT Metra Digital Investama (also known as MDI Ventures) to invest in digital startups. The company’s smart platform business line consists of digital advertising, intelligent applications, big data, IoT, and financial services. The company’s financial services offering focuses on creating a digital financial ecosystem by offering digital payment solutions. For example, LinkAja is an electronic money service by Telkomsel that enables Telkomsel consumers to perform banking activities, such as paying bills, transferring funds, and making online and offline retail payments on its consumers' smartphones and/or feature phones. As of December 31, 2022, Telkomsel owned a 24.83% equity interest in Finarya investment and strategic partnership with GoTo will also allow it to expand its digital ecosystem, benefit from co-branding and joint promotional activities and bring it closer to customers of digital services. Telkomsel established TED as a holding company for digital businesses in the edu-tech, health-tech and gaming sectors. TED intends to collaborate with Indonesian startups, investors, and stakeholders in the digital industry. As an example, TED has partnered with Agate, one of the largest game developers in Indonesia, to expand access to locally made games and so open opportunities for local creators in Indonesia’s gaming ecosystem. In 2022, the company introduced a new brand, Leap, as an umbrella brand for all of its digital transformation products and services. The company seeks to use Leap to help achieve Indonesia's digital sovereignty by creating technological solutions through collaboration and innovation. The company’s big data and smart platform is a business it carries out by acting as a platform enabler providing common horizontal solution components that can be used across industries and market segments. The company provides an IoT platform, Antares, for the enterprise segment that can be used in multiple environments and industries, such as for smart connected airports or smart manufacturing. Developers can also use the platform to create and test IoT products. The company also offers its enterprise customers big data solutions, analytics and deep insight tools through its big data platform, BigBox, to meet their operational and business needs for decision-making, governance, strategy, and even assessing their prospects. The company also operates an ad exchange platform that brings publishers, advertisers, and agencies together to be able to carry out digital advertising activities effectively and efficiently by linking buyers to sellers in one advertising marketplace. The company’s digital advertising services provide digital advertising media solutions, integrated with its advertisement exchange platform called TADEX, which brings publishers, advertisers, and agencies together to be able to carry out digital advertising activities effectively and efficiently by linking buyers to sellers in one advertising marketplace. The company also delivers services, such as a digital advertising agency, integrated digital media, and big data analytics. In 2022, TADEX partnered with Uzone.id by bringing them on as one of TADEX's digital media partners. The company’s digital content portfolio comprises music and gaming. The company manages its digital content portfolio across the company and also manages the relevant value chains which mainly consist of sourcing content, providing the content platform, dealing with payments and marketing. The company’s digital content portfolio focuses on providing consumers with a mobile entertainment experience. It targets different consumer segments and leverages Telkomsel's trusted billing system to facilitate transactions. It offers applications for music (e.g., Langit Musik for music streaming and an application for ringtones called Nada Sambung Pribadi) and games (e.g., Upoint.id and Dunia Games, which combines game content data for several games with game vouchers). The company launched online games and started developing gaming communities to expand its customer experience in that area in 2019 and the company further developed this type of offering in 2020 with the publication of new games and a team specifically dedicated to developing this business. In 2021, the company’s e-commerce business focused on B2B e-commerce opportunities through Pasar Digital UMKM in collaboration with the Ministry of State-Owned Enterprises to expand the business and micro, small and medium enterprises (MSME) ecosystem in accordance with its digitization program. The company also has Xooply, which provides a B2B marketplace to its clients beyond Indonesian SOEs. Xooply is registered with the Government Procurement Policy Institute, which enables it to sell to the Government. Both services support transactions between the company’s Enterprise segment and MSME Indonesian suppliers and have enabled it to increase the number of merchants and customers on its platform, which contributed to the resilience of local supply chains during the continuing COVID-19 pandemic. In 2022, the company acquired TelkomSigma as part of its intention of providing leading B2B IT digital services. Property Management Consistent with its strategy to accelerate digital ecosystem creation, the company prioritizes increasing network-related building and equipment asset utilization that expands its digital capacity. The company also constructs data centers for data intensive areas while leveraging its sizeable property asset portfolio in markets with lower data usage through external partnerships and collaborations. In addition, the company seeks efficient space allocation for its legacy network equipment and to provide an enjoyable office experience for its employees. The company executes its leveraging initiatives and space reconditioning through its subsidiary, PT Graha Sarana Duta (Telkom Property), which offers services, such as property development (planning, development, and construction of property area), property leasing (property rent and leasing), property facilities (business line engaged in retail and leasing, transportation management system) and property management (building management, mall, apartment, and security services). These services contribute to the increase of the company’s property asset utilization and diversification of its digital ecosystem. During 2022, the company continued to focus on buildings and space conversions into data centers to accelerate services and products digitalization within areas of high traffic. The company brought back its property improvement efforts in 2022 after putting them on hold in the middle of 2021 due to the Delta variant surge and social activity restrictions imposed by the Government. The company’s improvement projects began recovering in the fourth quarter of 2021 and continued to recover in 2022 as it continued to adapt its properties to support the digital business ecosystem by delivering e-commerce co-warehousing and fulfillment center collaboration and cloud kitchen facilities partnerships. The company also commercialized a standalone restaurant branch in cooperation with a global fast-food chain which is expected to increase its property value and generate a new, non-operating revenue stream. Moreover, the company is in the process of gradually modernizing its building management on an ongoing basis by digitalizing its facilities, amenities and visitor access management. In addition to leveraging its idle properties through partnerships as described above, the company incorporates its digital competence and product solutions into its offerings. For example, the company provides network connectivity or internet access to its tenants or their customers as additional amenities. These digital features contribute to the increased value of the company’s asset offerings and help to diversify its digital ecosystem. The company also creates partnerships with digital workplace enterprises through a co-working space business initiative. In addition to generating income, the company’s property business serves internal customers as part of its ‘group synergy projects’ by providing efficient space allocation for its network equipment and an enjoyable work environment for its employees, partners, and subsidiaries. Such property assets come in the form of buildings that function as the company’s network nodes, sales points, customer service centers, headquarters and branch offices, other businesses, functions, and land banks. Network Infrastructure and Development The company classifies its network infrastructure into two categories, namely: its national network infrastructure (including IT, cyber security and services), to support its Indonesia Cyber Core program and its international network infrastructure, to support its international expansion program. National Network In 2022, the company continued aligning its IT, fostering digitization to improve its internal capabilities and digitalization to enhance its services for customers while continue building Next-Gen Network capabilities, as part of its Corporate Strategic Plan. The company also executed other main objectives consisting of providing digital connectivity service innovation, strengthening cybersecurity across all its operations and services, improving network quality, accelerating future state architecture implementation, improving CAPEX/OPEX efficiency, reinventing its operating model and improving talent management. The company continues to pursue the development of its network infrastructure to offer more efficient services, in line with the Government's Indonesia Broadband Plan which lays out the Government's aspirations to accelerate and expand broadband penetration in Indonesia. In addition, the company intends to continue to develop and improve its network infrastructure with a view to developing a high-quality, efficient and competitive infrastructure in terms of costs for delivery of services. As a result, the company continues to actively develop infrastructure to support technology and information services with a focus on growing digital service innovation. The company’s digital business domain consists of digital connectivity, digital platform, and digital services. The company actively develops network, information technology, cyber security and products (services and solution) to support the growth of its business portfolio. The company continues to actualize enablement of digitization in Indonesia through its Indonesia Cyber Core program which comprises three components, namely id-Service (id-SEV), id-Convergence (id-COV) and id-Network (id-NET), described below: id-SEV: Represents the company’s strategy of developing excellent digital connectivity products to maintain its leadership in the market, while boosting innovation of digital and cyber security services to leverage its services and solutions for its customers. Digital connectivity services consists of broadband internet, data communication, voice communication and Wi-Fi services for fixed and mobile customers. In order to leverage its services, the company also works to improve and enrich its digital services, such as games, video/TV, education, e-commerce, mobile payment, travel, crowd-sourcing and health. In order to provide digital services, the company has developed an application platform infrastructure, data management platform infrastructure, graphical processing unit farming infrastructure, in-memory database infrastructure, artificial intelligent infrastructure, and big data platform infrastructure. The company is committed to continuously innovate and improve its product quality for a better customer experience. id-COV: Represents the company’s strategy to support its digital platform business. The company focuses on aligning and integrating its digital platform to ensure the reliability of the digital platform in delivering its services and solutions. The company also focuses on leveraging its data center facilities and innovative cloud platform to deliver better B2B digital solutions, serve data center global customers and strengthen its data center business. In order to realize this strategy, the company is strengthening its neuCentrIX data centers and are building two HyperScale data centers near Jakarta and in Batam, each with an expected total capacity of approximately 75 MW (IT load of 51 MW) when completed. In contrast, neuCentrIX data centers are relatively small data centers located on the network edge. The company operates 19 neuCentrIX data centers in Indonesia and licenses the brand for use in data centers elsewhere. The company is also improving its cyber security platform and strengthening its cyber security to improve its capability to better serve potential markets. Since data security is also becoming a major concern of its customers, the company is developing a data governance council for Telkom to ensure data regulation and compliance with the Government’s policies. The company provides a smart platform to support digital businesses in such areas as data centers, cloud computing, IoT, machine-to-machine technology, security, big data/artificial intelligence, augmented reality, virtual reality and blockchain payments. In order to provide the best interconnected platform and ensure the reliability and scalability of the services and solutions the company offers, it intends to continue utilizing its data center facilities and its cloud management platform, developing and providing some systems of vulnerability management platform, security insight platform, full-stack big data platform, multimedia data extraction, and various standalone and embedded artificial intelligence capabilities. id-NET: Represents the company’s strategy to build a resilient network architecture consisting of next generation access (FTTH, 5G, Wi-Fi, IODN, and satellite infrastructure) adoption, architecture simplification on multi-services aggregation (metro network re-engineering, service edge computing) and backbone networks (fiber optic backbone, point of presence, international gateway). The company also addresses future digital services readiness concerns by initiating cloud-based network implementation in its service control (e.g., SDN/NFV, SD-WAN, and BNG, among others). All of its initiatives are aligned with the company’s strategy to expand fiber optic coverage nationwide with technologies, such as FTTH (Fiber To The Home, the implementation of a fiber optic network that reaches up to the customer point or (known as customer premises)), 4G/5G BTS and access point development to provide best quality services for all customers. This strategy also intends to continue to modernize the company’s legacy node service network by replacing its copper cable network with fiber optic cables to optimize its network quality and performance in service delivery across multiple customer segments, including retail (home), enterprise and BTS (Base Transceiver Station, equipment that transmits and receives radio telephony signals to and from other telecommunications systems) network of mobile customers and other operators. In terms of its strategy for the company’s backbone network, it is continuously developing its international fiber optic backbone and have joined the Bifrost and SEA-ME-WE 6 submarine cable consortium. The company operates its own satellites, Telkom-3S and Telkom-4 (Merah Putih), in order to deliver better ICT services to remote areas within Indonesia and also to reduce its dependence on foreign satellite operators for capacity. Cellular Network The company’s cellular services, which are operated by its subsidiary Telkomsel, provide the most extensive network coverage of any cellular operator in Indonesia. Telkomsel operates on the GSM/DCS (Digital Communication System, a cellular system using GSM technology operating in the 1.8 GHz frequency), GPRS(General Packet Radio Service, a data packet switching technology that allows information to be sent and received across a mobile network and only utilizes the network when there is data to be sent), EDGE (Enhanced Data rates for GSM Evolution, a digital mobile phone technology that allows improved data transmission rates as a backward-compatible extension of GSM), 3.5G, 4G/LTE and 5G networks. Telkomsel has a wide spectrum with 15 MHz in the 800/900 MHz frequency bands, 22.5 MHz of contiguous spectrum in the 1.8 GHz frequency band, 20 MHz in the 2.1 GHz frequency band and 50 MHz (Megahertz, a unit of measure of frequency equal to one million cycles per second. The hertz (symbol Hz), is the international standard unit of frequency defined as the number of cycles per second of a periodic phenomenon) of contiguous spectrum in the 2.3 GHz (Gigahertz, a unit of measure of frequency equal to one billion cycles per second. The hertz (symbol Hz), is the international standard unit of frequency defined as the number of cycles per second of a periodic phenomenon) frequency band. All spectrums are already using a neutral technology which is able to accommodate GSM/DCS, 3G, 4G and 5G network based on Telkomsel needs. The range of cellular services on the GSM (Global System for Mobile Telecommunication, a European standard for digital cellular telephone) network provided by Telkomsel extends to all cities and districts in Indonesia. In 2022, Telkomsel added 14,078 new BTS. As of December 31, 2022, Telkomsel's digital network was supported by 265,194 BTS (consisting of 50,158 2G BTS, 49,632 3G BTS, 165,120 4G BTS and 284 5G BTS). In October 2020, Telkomsel and Mitratel entered into a conditional sale and purchase agreement for the sale of 6,050 telecommunications towers to Mitratel. The commitment continued whereby Mitratel purchased an additional 6,000 telecommunication towers from Telkomsel in July 2022. Telkomsel intends to focus on its main business as a digital telecommunications company and accelerate the pace of digitalization in Indonesia and expand opportunities for customers to transition to a digital lifestyle. Data and Internet Network In 2022, the company continued to improve the quality of its data network by installing additional capacity and coverage. As of December 31, 2022, the company provided broadband access through fiber optic cable to more than 37 million homes. As of December 31, 2022, the company’s metro ethernet network had an aggregate installed capacity of 1,293 Gbps. The company uses the metro ethernet both to provide broadband services throughout Indonesia and as the main link for IndiHome broadband services, softswitches and IMS related to voice services, video services, enterprise VPN (Virtual Private Network, a secure private network connection, built on top of publicly-accessible infrastructure, such as the internet or the public telephone network. VPNs typically employ some combination of encryption, digital certificates, strong user authentication and access control to secure the traffic they carry. VPNs provide connectivity to many machines behind a gateway or firewall) services and GPON broadband services related to mobile backhaul and corporate business solutions. As of December 31, 2022, the company had extended the capacity of its internet gateway to reach an aggregate installed capacity of 18,500 Gbps. In 2022, the company operated content delivery networks with an aggregate content delivery capacity of 14,572 Gbps in collaboration with Google, Facebook, Akamai, EdgeCast, Level3, Yahoo, ChinaNet, VDMS, Conversant, Zenlayer, and OTT video content providers, such as iFlix and Catchplay+. As of December 31, 2022, the company had 64 points of presence in 49 cities in Indonesia, including 12 main points of presence in Batam (at Batam Center and Bukit Dangas), Jakarta (at Jatinegara and Cikupa), Surabaya (at Rungkut and Kebalen), Manado (at Manado Centrum and Manado Paniki), Makasar (at Pettarani and Balaikota) and Banjarmasin (Banjarmasin and Ulin), and 52 primary and secondary points of presence throughout Indonesia. In 2022, the company added two primary points of presence in Palu. As of December 31, 2022, the company consistently deployed additional access points across Indonesia to enhance its wifi coverage and business model, while also choosing to dismantle certain access points that provided Wi-Fi services in locations where there was low utilization. In 2022, the company expanded its Wi-Fi business by offering Wifi Manage Service using ONT Premium, which allows small and medium enterprises to purchase Wi-Fi at various bandwidth levels and with various additional services. As of December 31, 2022, the company had installed a total of 391,317 access points (consisting of 136,170 managed access points, 221,000 home spots and 34,147 ONT Premium access points). Data Centers As of December 31, 2022, the company operated 28 data centers (23 data centers in Indonesia and five overseas). Telin operated five overseas data centers with a total capacity of 18 MW consisting of three in Singapore, one in Timor-Leste and one in Hong Kong. The company’s 19 neuCentrIX data centers in Indonesia had an aggregate capacity of 1,280 racks. TDE operated three enterprise data centers with a classification of tier 3 or tier 4 in Indonesia (at Serpong, Sentul, and Surabaya) with a total IT load capacity of 15.9 MW (Telkom Sigma transferred these data centers to TDE in 2022 as part of a portfolio consolidation) and one HyperScale data center with a classification of tier 3 or tier 4 in Indonesia (at Cikarang) with a total designed IT load capacity of up to 51 MW across three campuses. In 2022, the company expanded its neuCentrIX data center capacity and services, which target enterprise and wholesale customers, by creating a digital hub experience under the neuCentrIX umbrella brand to provide various connectivity services for digital businesses. The company expanded seven of its existing neuCentrIX data centers. The company is building new neuCentrIX data centers in four locations in Indonesia that will provide carrier neutral connectivity and multiple custom-made services for enterprise clients throughout the Asia Pacific region. In December 2022, TDE conducted the ground breaking ceremony for the company’s second HyperScale data center in Batam. This data center will be built on up to eight hectares of land and will consist of three campuses. It is designed to have a total designed IT load capacity of up to 51 MW. With the capabilities of the company’s data centers and network, it is able to provide integrated data storage solutions to companies across the Asia-Pacific region. Transmission Network In 2022, the company focused on the reinforcement of its domestic backbone network reliability and continued developing its broadband network, which serves as the backbone for its entire network infrastructure. The company’s backbone telecommunications network consists of transmission networks, switching facilities and core routers, which connect multiple access nodes. The transmission links between nodes and switching facilities comprise a terrestrial transmission network, in particular fiber optic, microwave and submarine cable systems, as well as satellite transmission networks and other transmission technologies. Communications Cable System As of December 31, 2022, the company’s transmission network comprised 27 backbone rings in Indonesia with an aggregate installed capacity of 148,100 Gbps and its fiber optic backbone network totaled 108,566 km domestically (compared to 106,185 km as of December 31, 2021). The company’s domestic fiber optic backbone network is supplemented by an international fiber optic backbone network totaling 64,700 km. In 2019, the company began the deployment of several submarine cable systems in order to strengthen its fiber optic backbone. In western Indonesia, the company completed the deployment of the 632.12 km long SLM (Sabang-Lhokseumawe-Medan) submarine cable system in 2021, connecting the Sabang-Lhokseumawe cable system with the Lhokseumawe-Medan cable system. In eastern Indonesia, the company completed deployment of the 283 km long PATARA (Papua Utara) submarine cable system in 2021, connecting Sentani and Sarmi. In Kalimantan, the company completed the deployment of the 673 km long MATANUSA (Mangkajang-Tawao-Nunukan-Sangatta) cable system in 2021. The company continues to progress on the deployment of its fiber optic backbone in eastern Indonesia. The company completed the deployment of the 1,126 km long PATARA-2 submarine cable in 2022, connecting Sarmi and Waisei. In Sulawesi, the company completed the deployment of the 436 km long LUMORI (Luwuk-Morowali-Kendari) submarine cable in 2021, connecting Luwuk, Bonepute, Kolaka and Kendari. When the company’s JASUKA and IGG fiber optic cables were disconnected in the second quarter of 2022 due to an incident with an anchor, Telkom prioritized the repair of these two cables to ensure that it could provide sufficient network bandwidth. The company also intends to leverage Indonesia's strategic geographic location and to provide an alternative direct broadband connection between Europe, Asia and America. This was the company’s strategic intention with the deployment of the IGG cable system to Indonesia in 2020. The IGG cable system connects two major submarine cable systems, namely SEA-ME-WE 5 and SEA-US. The IGG cable system also connects 12 major cities within Indonesia, including Batam, Jakarta, Surabaya, and Manado, spanning a length of 5,403 km. This cable system increases the company’s domestic traffic capacity and ability to offer broadband services. Satellites In 2022, the company operated two satellites, Telkom-3S and Telkom-4 (Merah Putih), and successfully retired its Telkom-2 satellite in May 2021 when it reached the end of its operational life. The company launched the Telkom-3S satellite in February 2017. The satellite started operating in April 2017. Telkom-3S provides coverage to Indonesia. It has a capacity of 42 transponders (equivalent to an aggregate of 49.00 TPE) consisting of 24 standard C-band transponders, 8 extended C-band transponders, and 10 Ku-band transponders. The company launched the Telkom-4 (Merah Putih) satellite in August 2018 as a replacement for the Telkom-1 satellite which ceased operations in 2017. Telkom-4 began commercial operations in September 2018 and provides coverage to South Asia. It has a capacity of 60 transponders (equivalent to an aggregate of 60.00 TPE) consisting of 24 standard C-band transponders, 24 standard C-band transponders, and 12 extended C-band transponders. The company controls its satellites from a main control station in Cibinong, Bogor in West Java. To ensure continuity of service, the company operates a backup control station in Banjarmasin, South Kalimantan. The company leases capacity of 40.36 TPE (the transponder equivalent of 36 MHz) from the following satellites: Apstar-5C HTS (138 E) in the amount of 34.74 TPE, Apstar-9 (142 E) in the amount of 2.31 TPE, JCSAT 4B (124 E) in the amount of 2.30 TPE and MySat (142 E) in the amount 1.01 TPE (A normalized way to refer to transponder bandwidth, which means how many transponders would be used if the same total bandwidths used only 36 MHz transponder (1 TPE = 36 MHz)). In 2022, the Ministry of Communications and Information Technology awarded Telkomsat Starlink landing rights, enabling PT Telkom Satelit Indonesia (Telkomsat) to operate an intermediary fiber optic network connecting the company’s backbone infrastructure with distribution devices, such as Base Transceiver Stations throughout Indonesia. By mid-2024, the company expects to launch a high-throughput satellite using the C-band and Ku-band frequencies in the 113 E slot orbit. International Networks The company continues to develop its international network infrastructure in order to support its international expansion strategy to be the King of Digital in The Region. The company operates international gateways in Batam, Jakarta, and Surabaya to route outgoing and incoming calls on its IDD service (007 and 01017). The company also operates voice gateways in Singapore and Hong Kong to offer voice services from or to any countries. As of December 31, 2022, the company owned and operated an international fiber optic backbone network totaling 64,700 km. The company is a member of multiple submarine cable consortiums, including Thailand-Indonesia-Singapore, two routes of Batam-Singapore, Dumai-Malacca, Asia-America Gateway, Southeast Asia-Japan, Southeast Asia-Middle East-Western Europe 5 (SEA-ME-WE 5), SEA-US and IGG, which connects major cities in Indonesia with Asia, Europe and the U.S. IGG also provides an express connection between the SEA-ME-WE 5 and SEA-US cable systems. Moreover, the company also operates and has rights of use for fiber optic infrastructure totaling 134,040 km in aggregate under a long-term telecommunication lease agreement with other global submarine cable operators/consortiums. This includes the following submarine cables: 10,000 km of the Japan-U.S. Cable Network (JUS), 9,620 km of the Unity/EAC-Pacific network, 11,629 km of the FASTER network, 2,700 km of the EAC-C2C network, 2,700 km of the APCN-2 network, 6,500 km of the Asia Pacific Gateway (APG) network, 7,000 km of the Asia Submarine-cable Express (ASE)/Cahaya Malaysia network, 2,700 km of the TGN-Intra Asia (TGN-IA) network, 20,000 km of the Southeast Asia-Middle East-Western Europe 4 (SEA-ME-WE-4) network, 20,000 km of the Asia Africa Europe-1 (AAE-1) network, 8,100 km of the Bay of Bengal Gateway (BBG) network, 12,091 km of the Imewe network, 15,000 km of the Europe India Gateway (EIG) network, and 6,000 km of the Hibernia Transatlantic network. In 2021, the company commenced construction of a 15,000 km of submarine cable with the Bifrost Cable System consortium which will connect Singapore, Indonesia, the Philippines, Guam and the west coast of North America and is expected to be completed in 2024. In 2022, Telkom joined the SEA-ME-WE-6 cable consortium, which is constructing a cable to connect Southeast Asia, the Middle East and Europe. The SEA-ME-WE 6 cable will connect Singapore, Malaysia, Bangladesh, Sri Lanka, India, Pakistan, Djibouti, Saudi Arabia, Egypt and France. This 19,200 km-long cable is expected to be completed in 2025, and will provide additional diversity and resilience for the significant amount of traffic between Asia and Europe. Compared with other options, the SEA-ME-WE 6 will offer one of the lowest latencies available between Southeast Asia, the Middle East and Western Europe; and will have a capacity of more than 100 terabytes per second. All of the submarine cables the company uses are equipped with open cable technology for efficient use of capacity, as well as fiber-level ownership to provide guaranteed bandwidth for each member of the cable consortium. The submarine cables are also monitored and supported 24/7 by the Telin WHOCC control center. As of December 31, 2022, to support the company’s international services for both voice and data, Telin operated 58 points of presence throughout the world, including 26 points of presence in Asia and the Middle East (12 in Indonesia which are used for supporting the international network, four in Singapore, three in Hong Kong, two in Kuala Lumpur, and one in each of Dili, Tokyo, Taipei, Yangon and Dubai), 19 points of presence in Europe (one in each of London, Amsterdam, Frankfurt, Warsaw, Vienna, St. Petersburg, Bucharest, Prague, Switzerland, Milan, Manchester, Leeds, Luxemburg, Edinburgh, Brussels, Sofia, Marseille, Paris, and Moscow), 13 points of presence in the United States and Canada (one in each of Montreal and Toronto, two in Los Angeles and one in each of Palo Alto, Ashburn, San Jose, New York, Guam, Hawaii, Seattle, San Francisco and Atlanta). Marketing, Sales and Distribution Mobile Customers In 2022, the company executed a strategy for its mobile customers of hyper personalization through dynamic segmentation and customer value management by targeting specific groups of customers through marketing campaigns. Telkomsel continues to provide products and services that are addressed to customer needs, including a variety of packages available to customers across all Telkomsel channels and physical outlets. Telkomsel also continues to encourage higher data usage, including by enriching its digital products, collaborating with strategic partners and providing seamless experiences. In 2022, Telkomsel continued to implement and incentivize healthier business practice in the industry through price adjustments after competing intensely on prices in the past. In other strategic initiatives, the company has implemented targeted personalized offerings to improve ARPU, network optimization, cost optimization and strengthening of core broadband through digital services. The company enhanced its digital lifestyle related video and games content, including building up the positioning of MAXstream in the video streaming industry through expanded partnerships with major content partners and its own MAXstream originals. The company also expanded its footprint in the mobile gaming industry by providing a complete solution that cultivates the gaming community and it entered into game publishing through its Dunia Games brand. The company has continued to develop Telkomsel Orbit, a home wireless internet service, as an effort to leverage its strong network capacity. The company has cellular subscribers, comprising prepaid subscribers, postpaid subscribers, and mobile broadband customers. Consumer Customers In 2022, IndiHome was the company’s main product targeting the consumer customer market. The company’s Consumer segment included apartment and premium cluster customers in addition to its traditional, purely residential customer base. The company enhanced its services offered to this wider customer base in terms of quality and improved its customers' experience through its program ‘You Are First’, which focuses on making its customers its first priority. As part of this program, the company organizes activities and designed loyalty programs to continually engage with these customers. The company also improved network equipment and response time to handle disturbances and disruptions. With various marketing strategies, from discount to value innovation, the company is able to offer products which offer attractive value. The company offers these products through various sales channels, including digital channels, and carry out campaigns and year-round promotions and festive campaigns as follows: Aktivitas Tanpa Batas (Unlimited Activities) was the tagline that represented the company’s marketing campaign and theme in 2022. IndiHome carried out a series of promotional campaign and activities covering product offerings, its brand story, gimmicks, and special offerings. The company used these to emphasize that IndiHome enables people to work, study, learn, create value, and carry out many other activities from home. IndiHome also conducted major campaigns, such as 11.11 and 12.12 sales days to generate sales leads of potential subscribers. In addition to its core business activities, IndiHome provided near weekly support to dozens of multi-sectoral activities, such as sports, e-sports, art, literacy and education throughout Indonesia in 2022. In this, the company collaborated with government entities, communities, other brands and companies. For example, IndiHome provided fiber optic internet infrastructure for the Indonesian MotoGP race in March 2022. Other entities and events that the company has worked with in the past include MotoGP Mandalika, the IndiHome Gideon Badminton Academy, the International Basketball Federation, the IndiHome Blog Competition and the FIFA World Cup, among others. The company uses the IndiHome Limitless E-Sport Academy to seek out and develop talented individuals who can represent Indonesia in international e-sports competitions, including in the Southeast Asian championship in 2022. In 2022, the company’s sales strategy focused on implementing a value-based pricing of its products and services allowing its selling prices to better reflect local conditions in different areas of Indonesia, while providing its customers with superior bundled products and faster and enhanced services. The company also carries out branding campaigns to attract new customers, including those may be served by its competitors. The company also intensified its efforts to provide tailored service to customers by using customer profiles created through the compilation of customer data to personalize services and offer products, which may be attractive to customers based on their profile. The company also relies on an end-to-end traceable customer relationship management process, which allows it to identify and rectify problems as they happen, rather than waiting for customers to alert it to such issues. Enterprise Customers For its enterprise customers, the company has been implementing a marketing strategy to attract high-end market enterprise customers using strategic key account management. The company also has a transformative digital marketing strategy which comprises: lead enterprise digital transformation agendas (including SOE) and strengthening market position for the company’s product portfolio to became a leading digital connectivity player by bandwidth share in the enterprise segment; empower SMEs through digital platform to gain better market access, fund access, and information and technology access as part of supporting Indonesia’s digital transformation agendas; and become a trusted ICT partner for the Government to support key national digital agendas (Making Indonesia 4.0 and One Data Indonesia). In 2022, the company’s sales strategy comprised providing customer support through the following points of contact: Enterprise Account Managers for the large enterprise segment serve as a single point of interaction to provide end-to-end service to such customers, from initiation of the relationship to after-sales services by leveraging end-to-end digitalization with an application-based process, Government Account Managers serve Government ICT digital needs and support Government Relationship Officers in managing relationships with the company’s Government customers to increase the quality of its services and thus encourage contract renewal, Business Account Managers serve medium-sized MSME customers while Tele Account Managers serve small and micro-sized MSME customers. Both are supported by value-added reseller third-parties, which help sell Telkom's MSME products, a reliable digital channel, and advanced mobile applications that provide additional products or services with the purchase of an initial or qualifying item. Wholesale and International Business Customers The company’s wholesale and international business customers are mainly domestic other licensed operators, service providers, digital players, global wholesalers and carriers, and enterprises that are related to its products or services (e.g., overseas data centers and international connectivity). The company also serves retail customers in its international operations as a MNO (mobile network operator, sometimes also known as a carrier service provider, mobile phone operator or mobile network carrier, which provides telecommunications services, such as wireless voice and data communication to subscribed mobile users) and MVNO (Mobile virtual network operator, a provider of telecommunications services, such as voice and data communication to subscribed mobile users that does not own the wireless network infrastructure over which it provides its services). For its wholesale and international business customers, the company focuses on offering attractive business schemes for its voice traffic portfolio to leverage such benefits to increase retail traffic, through the bundling of voice traffic products at competitive prices that are compatible with the quality of the service offered; improving services, such as quality and coverage, for overseas data center and connectivity customers; offering an end-to-end tower solution to customers both for core tower services, such as ‘built to suit’ (a tower rental service tailored to the preferred location and specifications of the first tenant or anchor tenant for the relevant tower), co-location and adjacent tower services, such as site maintenance, and other related services; and exploring its regional market by providing submarine cable laying and maintenance services. The company also provides customer service management for wholesale and international customers through account managers, digital touchpoints, and 24-hour customer care support. The company keeps developing the capability and competency of its account management team to improve its capability to deliver excellent service and strong engagement with its customers. Digital Service Customers The company offers customer care and channel management, including through contact centers, dedicated account management for large enterprises, websites, and social media. The company’s digital service customers program focuses on improving IndiHome services. For example, the company promotes the myIndiHome application as a digital touchpoint for IndiHome’s customers, which also offers Disney+ Hotstar in a starter bundle package, Indibox as a source of value-added services (e.g., video content, games, and certain Google applications), GameQoo as a cloud gaming service and also IndiHome Smart as an IoT home service. Customers can enjoy these value added services by subscribing and paying an additional price. Distribution Channels The following are the company’s primary distribution channels for its products and services: Face-to-face customer service points include walk-in customer service points and mobile units, where customers have access to the full range of Telkom and Telkomsel's products and services, including billing, payment, subscription cancellation, promotions, and complaint handling. Plasa Telkom outlets provide access to Telkom products and services while GraPARI centers provide access to Telkomsel products and services. The company had 22 Plasa Telkom Digital outlets as of December 31, 2022, some of which offer both Telkom and Telkomsel products. As of December 31, 2022, the company managed 387 Plasa Telkom outlets and 372 GraPARI centers in Indonesia (including nine GraPARI Telkom Group centers). The GraPARI Telkom Group centers provide the most comprehensive services for both retail and corporate customers of Telkom and Telkomsel. Several of the company’s GraPARI centers operate on a 24-hour basis. As of December 31, 2022, the company operated 750 IndiHome sales cars which are sales points located in vehicles that travel to reach customers across the country. Authorized dealers, retail outlets and modern channels are distribution outlets for Telkomsel products, such as starter packs, prepaid SIM cards and top-up vouchers. The company operates an extensive network of authorized dealers and retail outlets across Indonesia. These dealers are non-exclusive, and receive a discount on all of the products they receive. Partnership Stores are extensions of the company’s distribution channels, in cooperation with a variety of third-party marketing outlets, such as computer or electronic stores, banks through their ATM (automated teller machine) networks and others. Contact centers are call centers that support the company’s customers' ability to access certain of its products and services, including making billing enquiries, submitting complaints, and accessing certain promotions and service features. The company operates 24-hour contact center facilities in Semarang, Bandung, and Malang (Indonesia). Account Management Teams are teams that manage relationships and account portfolios of large enterprises, Government agencies, medium-scale businesses, and wholesale customers. Sales Specialists have deep product and technical knowledge to provide appropriate and effective recommendations and solutions to corporate customers who work together with the company’s Account Managers. Channel Partners serve as value added resellers that conduct sales and marketing activities to the company’s enterprise customers to seek their specific requirements and to its retail customers to offer retail packages. The company also engages third parties to conduct sales activities for retail customers at certain events. Digital Touchpoints are web and mobile application-based services which the company provides to its IndiHome subscribers and corporate customers. The company operates myIndiHome, a self-care mobile application-based service for both existing and potential IndiHome customers, which allows customers to manage payments and billing, report and monitor network problems, access video-on-demand services and manage customer reward programs, along with self-care service for potential customers to check IndiHome service availability, browse packages, and register for subscription. Telkomsel also offers MyTelkomsel, which is a self-care mobile application-based service for Telkomsel subscribers that provides information on services and allows purchase of packages and products, as well as account management. For enterprise customers, the company offers MyTEnS (Telkom Enterprise Solution), a user-centric digital touchpoint that digitizes and simplifies business processes to increase its productivity and performance in providing services to its customers. MyTEnS also enhances the user experience for the company’s Enterprise Customers. Customers can use this service in real time without the need to call their relationship managers. Users can interact with the company on mobile applications. The company regularly adds new features to MyTEnS over time, the most recent of which include access to its product catalog, the ability to receive a digital quotation, tracking of delivery tickets, and allowing customers to ask for support so they can report service disruptions. For SME (Small and Medium Enterprise) customers, the company offers mysooltan, a one-stop service solution for developing their business that offers multiple digital products, including sooltanNet, sooltanPay and sooltanKasir, among others. Also, users can easily apply for a loan. For wholesale and international customers, the company offers MyCarrier, a self-service digital touchpoint that provides an end-to-end customer digital experience that is integrated with its internal process in real time, allowing access to its product catalog, order management, delivery tracking, ticket creation and monitoring, billing and payment, among other services. Users can interact with the company on its web platform with any enabled device. Websites, the company operates www.telkom.co.id, www.telkomsel.com, www.telin.net, and www.indihome.co.id which enable its customers to access certain of its products and services. Available services include e-billing, registration, collective billing registration and submission of complaints. Social Media, the company uses social media, primarily Facebook, Instagram and Twitter, to enable customers to interact with it regarding its products and services. LinkAja Wallet is a digital wallet application that allows customers to buy data or voice services, pay bills or buy products with LinkAja. Licensing To provide national telecommunication services, the company has a number of product and service licenses that are consistent with applicable laws, regulations and decrees. The company has secured licenses that have been adjusted as required, as follows: Cellular Telkomsel holds licenses to operate a nationwide mobile cellular telephone network using 15 MHz of spectrum allocation in the 800/900 MHz frequency bands, 22.5 MHz of spectrum allocation in the 1.8 GHz frequency band, 20 MHz of spectrum allocation in the 2.1 GHz frequency band, and up to (depending on the region) 50 MHz additional spectrum in the 2.3 GHz frequency band, together won at auctions in October 2017, May 2021, and November 2022, as well as gained from Berca in November 2022. The licenses do not have a set expiry date, but will be evaluated every ten years. In addition, Telkomsel holds permits and licenses from and registrations with certain regional governments and/or government agencies, primarily in connection with its operations in such regions, the properties it owns and/or the construction and use of its BTSs. Fixed Network and Basic Telephony Services The company has the following licenses to operate fixed local networks, fixed long-distance direct line networks, fixed international call networks and fixed closed networks: MoCI Decree No. 073/TEL.01.02/2021 (on licenses to operate fixed long distance direct line); MoCI Decree No. 094/TEL.01.02/2021 (on licenses to operate fixed closed networks) (MoCI Decree No.844/2016); MoCI Decree No. 082/TEL.01.02/2021 (on licenses to operate fixed international networks) (MoCI Decree No.846/2016); and MoCI Decree No. 095/TEL.01.02/2021 (on licenses to operate circuit switched based local fixed line networks). These licenses do not have a set expiry date, but they are evaluated every five years. International Calls The company has a license to operate a fixed network to provide international call services pursuant to Decree No. 082/TEL.01.02/2021. The company has a license to operate a fixed closed network pursuant to MoCI Decree No. 094/TEL.01.02/2021. This license allows the company to lease installed fixed closed network to telecommunications network and service operators, among others, and to provide an international telecommunications transmission facility through a SCCS directly to Indonesia for overseas telecommunications operators. According to MoCI Regulation No. 5/2021 on telecommunication provision, overseas telecommunications operators wishing to provide international telecommunications facilities through the SCCS directly to Indonesia are required to set up a partnership with a fixed network of international call services or closed fixed network provider. In line with MoCI Regulation No. 5/2021, the international telecommunications transmission facilities provided through SCCS(Submarine Communications Cable System, a cable laid on the seabed between land-based stations to carry telecommunications signals across the ocean) are served by the company on the basis of landing rights attached to its license to operate fixed network of international call services. The company has also secured landing rights based on the landing right Letter No. 006-OS/DJPT.6/HLS/3/2010 from the MoCI. DGPI Decree No. 93 of 2016 (on limited fixed network licenses) granted the company’s subsidiary, Telin, a license to operate a fixed closed line network which enables Telin to provide international infrastructure services. Separately, Telin secured landing rights in Indonesia from the DGPI to provide international telecommunications transmission facilities through the Submarine Cable System (SCS). The foregoing licenses do not have a set expiry date, but they are evaluated every five years. VoIP The company is licensed to provide internet telephony services for public utilization for commercial use as provided under DGPI Decree No. 127 of 2016 (on internet telephony services for public utilization). Telkomsel is also licensed to provide public VoIP (Voice over Internet Protocol, a means of sending voice information using the IP) services based on Directorate General on Post and Informatics (DGPI) Decree No. 65 of 2015 (internet telephony services for public utilization). These licenses do not have a set expiry date, but they are evaluated every five years. ISP The company is licensed as an ISP (internet services provider, an organization that provides access to the internet) under MoCI Decree No. 2176 of 2016 (on internet access services). Telkomsel is also licensed to provide multimedia internet access services with nationwide coverage under DGPI Decree No. 19 of 2016 (on internet access services). These licenses do not have a set expiry date, but they are evaluated every five years. Internet Interconnection Service The company holds a license to provide internet interconnection services pursuant to MoCI Decree No. 1004 of 2018 (on internet interconnection service (network access points)). This license does not have a set expiry date, but it is evaluated every five years. Data Communication System (SISKOMDAT) The company has a license to provide data communication system services pursuant to MoCi Decree No. 046/KEP/M.KOMINFO/02/2020 (on data communication system services). This license does not have a set expiry date, but it is evaluated every five years. Payment Method Using e-Money The company operates its e-money business under the brand name ‘t-money’. The company, through Telkomsel, also operate its e-money business under the brand name ‘LinkAja’. With the issuance of Bank Indonesia Circular Letter No. 9/9/DASP, Telkomsel is also permitted to conduct APMK activities and offers Tunai prepaid cards. In 2021, the company expanded e-money services available to its customers through LinkAja to include electronic toll payments, certain tax payments and the ability to settle certain other transactions in other various use cases. In the midst of digital wallet business competition, LinkAja has a business strategy to not only serve consumers in the form of business to customer (B2C) but also provide business solution services for the B2B business model. LinkAja's business solution service provides various features, such as disbursing funds, collecting cash, digitizing payments through QRIS, merchant applications and others, digitizing ecosystems and advertising services. LinkAja is targeting MSME players and corporations in various industries. LinkAja also collaborates on sharia services with Bank Syariah Indonesia (BSI) to provide digital convenience to the wider community and encourage the transformation of sharia digital transactions to achieve financial inclusion in the country. Administration of Source of Fund and Remittance Service The company and Telkomsel have licenses to operate as money transfer services providers pursuant to Bank Indonesia License No. 23/587/DKSP/Srt/B. These permits do not have a set expiry date or a period of adjustment as long as the company and Telkomsel continue to conduct the relevant businesses; the company does not violate any applicable regulation; and the Government does not amend or revoke such permits. IPTV In April 2011, the company and PT Indonusa Telemedia as a consort IUJK m obtained a license to operate IPTV services. The company sought a new license so that Telkom, as an individual operator, can hold an IPTV Telecommunication Service Operation License and so offer a wider range of multimedia services. The company obtained such license on February 25, 2021 when Telkom was granted a license to operate telecommunication services. Construction Services Business License (SBUJK) Certain of the company’s subsidiaries possess a SBUJK (which permits the company to conduct national telecommunication-related construction services), allowing it to conduct its construction services business of installing telecommunications equipment and wiring buildings. Each SBUJK is valid for three years and must be renewed. Content Provider Services The company obtained a content provider services license in 2017 through MoCI Decree No. 1040 of 2017 on content services providers dated May 16, 2017. While such license has no set expiry date, the MoCI re-evaluates all content services licenses every five years. Strategy The key elements of the company’s strategy include enhancing digital capability and business performance for sustainable growth (such as delivering the best quality of services with excellent customer experience; excelling in its three digital business domains (digital connectivity, digital platform, and digital services) and unlock business leveraging group synergy; and accelerating digitization and lean organization development); further development of 5G services; strategic partnerships; five bold moves (such as fixed-mobile convergence; InfraCo; DC Co; B2B Digital IT Services Co; and DigiCo); and enhancing its assets through acquisitions and spin-offs. Competition Fixed Services: The company competes with other major fixed broadband service providers, specifically with brands, such as First Media, Biznet Home, MNC Play, and MyRepublic. Of the company’s major competitors, First Media has the largest number of customers. The company has faced increasing competition since 2019, including from a new entrant, a subsidiary of the electricity company Perusahaan Perseroan (Persero) PT Perusahaan Listrik Negara (PLN) that started offering internet and TV services in 2019 through its subsidiary PT Indonesian Comnets Plus (Iconnect). International Direct Dialing (IDD): The company competes in traditional IDD services (non-VoIP) in Indonesia primarily with Indosat Ooredoo Hutchison. However, due to the development of digital technology, its IDD services also face competition from VoIP and other OTT (Over The Top is a generic term commonly used to refer to the delivery of audio, video and other media over the internet without the involvement of a multiple-system operator in the control or distribution of the content) voice services, such as Skype, WhatsApp and Line. Regulation The company has a license to provide IDD services under MoCI Decree No. 082/TEL.01.02/2021. The company offers IDD fixed line services to customers using the ‘007’ IDD access code. History Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk was founded in 1884.