Perusahaan Perseroan PT Telekomunikasi Indonesia Tbk (TLK) PESTLE Analysis

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK): PESTLE Analysis [Jan-2025 Updated]

ID | Communication Services | Telecommunications Services | NYSE
Perusahaan Perseroan PT Telekomunikasi Indonesia Tbk (TLK) PESTLE Analysis

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In the dynamic landscape of global telecommunications, Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk stands as a pivotal player, navigating complex intersections of government influence, technological innovation, and market transformation. With a 52.09% government ownership stake and a strategic position in Indonesia's rapidly evolving digital ecosystem, Telkom Indonesia represents a fascinating case study of how state-owned enterprises adapt and thrive in an increasingly competitive and technology-driven environment. This comprehensive PESTLE analysis unveils the multifaceted factors shaping the company's strategic trajectory, offering insights into its resilience, challenges, and potential for future growth in the telecommunications sector.


Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) - PESTLE Analysis: Political factors

Government Ownership and Control

Indonesian government maintains a 52.09% ownership stake in Telkom Indonesia as of 2024, directly influencing corporate governance and strategic direction.

Ownership Category Percentage
Government Ownership 52.09%
Public Shareholders 47.91%

Regulatory Environment

Telecommunications sector is extensively regulated by the Ministry of Communication and Informatics, which oversees:

  • Spectrum allocation
  • Licensing procedures
  • Network infrastructure standards
  • Service quality regulations

State-Owned Enterprise Dynamics

Telkom Indonesia's status as a state-owned enterprise (Badan Usaha Milik Negara - BUMN) significantly impacts its operational framework and strategic decision-making processes.

National Digital Infrastructure Policy

Government policies prioritize digital infrastructure development with specific targets:

Digital Infrastructure Goal Target
Broadband Coverage 95% by 2024
Digital Connectivity Index 65% improvement

Regulatory Compliance Requirements

  • Mandatory local content regulations
  • National cybersecurity standards
  • Data localization requirements
  • Investment transparency rules

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) - PESTLE Analysis: Economic factors

Indonesia's expanding digital economy drives telecommunications market growth

Indonesia's digital economy reached USD 77 billion in 2022 and is projected to grow to USD 146 billion by 2025. The telecommunications sector plays a critical role in this expansion.

Year Digital Economy Value Annual Growth Rate
2022 USD 77 billion 23.4%
2023 USD 96 billion 24.7%
2025 (Projected) USD 146 billion 26.2%

Increasing smartphone penetration and internet usage boosts company revenue

As of 2023, Indonesia has 204 million internet users, representing 73.7% of the total population. Smartphone penetration reached 85.4% in the same period.

Metric 2022 Value 2023 Value
Internet Users 196 million 204 million
Smartphone Penetration 82.3% 85.4%
Mobile Data Traffic 13.2 exabytes 16.5 exabytes

Competitive telecommunications market with multiple domestic and international players

Telkomsel, a subsidiary of PT Telekomunikasi Indonesia, holds 52% market share in the mobile telecommunications sector. Key competitors include XL Axiata and Indosat Ooredoo.

Telecom Provider Market Share Subscriber Base (2023)
Telkomsel 52% 108 million
XL Axiata 22% 45 million
Indosat Ooredoo 18% 37 million

Economic fluctuations and currency exchange rates impact financial performance

In 2023, Indonesian Rupiah experienced depreciation of 2.3% against USD. Telkom Indonesia's revenue was IDR 146.8 trillion in 2022, with net profit of IDR 28.6 trillion.

Financial Metric 2022 Value 2023 Value
Total Revenue IDR 146.8 trillion IDR 155.3 trillion
Net Profit IDR 28.6 trillion IDR 30.2 trillion
USD Exchange Rate IDR 14,800/USD IDR 15,200/USD

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) - PESTLE Analysis: Social factors

Growing digital literacy among Indonesian population increases service demand

Indonesia's digital literacy rate reached 59.6% in 2022, with 211.8 million internet users out of total population of 275.4 million. Mobile internet penetration stood at 70.7% in 2023.

Year Digital Literacy Rate Internet Users Total Population
2022 59.6% 211.8 million 275.4 million

Rising youth population with high technology consumption preferences

Indonesian population under 35 years old comprises 57.4% of total population, with 49.7% actively using digital services and smartphones.

Age Group Percentage of Population Digital Service Usage
Under 35 years 57.4% 49.7%

Urban-rural digital divide creates opportunities for infrastructure expansion

Urban internet penetration reaches 84.2%, while rural areas have 48.3% connectivity. Telkomsel covers 96.5% of Indonesia's populated areas.

Area Type Internet Penetration Network Coverage
Urban 84.2% -
Rural 48.3% -

Increasing remote work and digital communication trends support telecommunications services

Remote work adoption in Indonesia increased to 37.6% in 2023, driving demand for telecommunications infrastructure and services.

Year Remote Work Adoption Digital Communication Impact
2023 37.6% Increased demand

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) - PESTLE Analysis: Technological factors

Significant investments in 4G and 5G network infrastructure

Telkom Indonesia invested 31.5 trillion IDR in network infrastructure for 2023. 5G network coverage expanded to 25 cities as of December 2023.

Network Technology Investment (IDR) Coverage
4G Network 18.7 trillion 350+ cities
5G Network 12.8 trillion 25 cities

Expanding cloud computing and digital transformation services

Telkom's cloud services revenue reached 2.3 trillion IDR in 2023, representing a 24% year-on-year growth. Platform Telkom Cloud serves over 500 enterprise clients.

Cloud Service Segment Revenue (IDR) Growth Rate
Enterprise Cloud Solutions 1.5 trillion 28%
Public Cloud Services 0.8 trillion 19%

Implementing artificial intelligence and machine learning in customer service

Telkom deployed AI-powered customer service platforms handling 65% of customer interactions. Investment in AI technologies reached 350 billion IDR in 2023.

  • AI chatbot resolution rate: 82%
  • Average customer interaction time reduced by 47%
  • Customer satisfaction score improved to 87%

Developing innovative digital ecosystem and integrated telecommunications solutions

Digital ecosystem initiatives generated 5.7 trillion IDR revenue in 2023. Telkom Digital Innovation Hub launched 12 new digital products.

Digital Product Category Revenue (IDR) New Products
Digital Financial Services 2.1 trillion 4 products
Digital Media Platform 1.6 trillion 3 products
IoT Solutions 2.0 trillion 5 products

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) - PESTLE Analysis: Legal factors

Compliance with Indonesian Telecommunications Regulatory Frameworks

Telkom Indonesia operates under the regulatory oversight of the Ministry of Communication and Informatics (Kementerian Komunikasi dan Informatika). The company must adhere to Law No. 36 of 1999 on Telecommunications and subsequent amendments.

Regulatory Body Key Regulatory Requirement Compliance Status
BRTI (Badan Regulasi Telekomunikasi Indonesia) Service Quality Standards Fully Compliant
Kominfo Network Infrastructure Regulations Fully Compliant

Data Protection and Privacy Regulations Impact

Telkom Indonesia complies with Government Regulation No. 71 of 2019 on Electronic System and Transaction Management, which mandates strict data protection protocols.

Regulation Key Privacy Requirements Compliance Mechanism
Personal Data Protection Law User Data Confidentiality Encrypted Storage Systems
Cybersecurity Regulations Data Breach Prevention Advanced Cybersecurity Infrastructure

Required Licensing for Telecommunications Service Operations

Telkom Indonesia maintains multiple operational licenses as mandated by Indonesian telecommunications regulations.

  • Integrated Network Service License (ISP)
  • Telecommunications Network Service Provider License
  • Public Telecommunications Service License
License Type Issued By Validity Period
Integrated Network Service License Kominfo 5 Years (Renewable)
Public Telecommunications Service License Kominfo 5 Years (Renewable)

Adherence to State-Owned Enterprise Governance Standards

As a state-owned enterprise, Telkom Indonesia follows governance standards outlined in Government Regulation No. 45 of 2005 on State-Owned Enterprises.

Governance Standard Compliance Requirement Implementation Status
Transparency Public Financial Reporting Full Compliance
Accountability Board of Directors Oversight Full Compliance

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) - PESTLE Analysis: Environmental factors

Commitment to Reducing Carbon Emissions in Telecommunications Infrastructure

Telkom Indonesia has committed to reducing carbon emissions by 20% by 2025 compared to 2020 baseline levels. The company's total carbon emissions in 2022 were 346,742 tons CO2e.

Year Carbon Emissions (tons CO2e) Reduction Target
2020 435,928 Baseline Year
2022 346,742 20.5% Reduction

Implementing Green Technology and Energy-Efficient Network Solutions

Telkom Indonesia has invested IDR 750 billion in green technology infrastructure upgrades in 2023. Energy efficiency initiatives include:

  • Deployment of 500 green base stations
  • Implementing solar-powered telecommunications equipment
  • Upgrading to energy-efficient cooling systems

Corporate Social Responsibility Initiatives Focused on Sustainability

The company allocated IDR 150 million for environmental conservation programs in 2023. Key sustainability initiatives include:

  • Reforestation project covering 100 hectares
  • Electronic waste recycling program
  • Community environmental education programs
Sustainability Initiative Investment (IDR) Impact
Reforestation 75,000,000 100 hectares planted
E-Waste Recycling 50,000,000 25 tons of electronic waste processed
Environmental Education 25,000,000 5,000 community members reached

Investing in Renewable Energy for Telecommunications Infrastructure

Telkom Indonesia has committed IDR 1.2 trillion to renewable energy infrastructure between 2023-2025. Current renewable energy portfolio includes:

  • 15 solar power installations
  • 3 wind energy projects
  • Total renewable energy capacity: 50 MW
Renewable Energy Type Number of Installations Capacity (MW) Investment (IDR)
Solar Power 15 35 750,000,000,000
Wind Energy 3 15 450,000,000,000

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