Earlier this week the Jakarta Composite Index reached a new all-time record high position, and some blue-chip stocks benefit more from this robust investor appetite than others. Per 3 July 2017 state-controlled Telekomunikasi Indonesia (Telkom)'s market capitalization rose to IDR 455.62 trillion (approx. USD $34.3 billion). This figure is calculated by multiplying the company's shares outstanding by the current market price of one share.

The strengths of Telkom are that its operational and financial figures show continued growth over a long period, while the company is also eager to distribute plenty of dividend to its shareholders. Telkom is also listed on the New York Stock Exchange (NYSE). Its NYSE stocks were upgraded by the Goldman Sachs Group Inc from a buy rating to a conviction-buy rating last week. Meanwhile, its NYSE stocks were also upgraded by BidaskClub from a hold rating to a buy rating in late June.

View Telekomunikasi Indonesia's Corporate and Financial Profile

Being the leading company in Indonesia's telecommunication sector there remains plenty of opportunity for further growth for Telkom as the Indonesian government is eager to develop its Palapa Ring project, involving an undersea fiber-optic cable network that stretches across 13,000 kilometers as well as an onshore network of nearly 22,000 kilometers. Through this project the government aims to provide fast broadband Internet to all Indonesians in both the urban and rural areas across the country.

So far this year, shares of Telkom listed on the Indonesia Stock Exchange have risen nearly 18 percent to IDR 4,570 a piece.

Stock Quote Telekomunikasi Indonesia - TLKM:

The management of Telkom also informed that the company seeks to acquire five information communication technology companies, both domestic and regional ones. These acquisitions are part of Telkom's business expansion and will most likely be financed through bank loans.

Combined, the market capitalization of the top ten companies in Indonesia rose from IDR 2,723.2 trillion at the end of 2016 to IDR 3,133.3 trillion on 3 July 2017, showing that these top blue-chip stocks are investors' darling.

Top Market Capitalization at the Indonesia Stock Exchange:

Company     Market Cap.
 (on 3 July 2017)
Share Growth
(Year to date)
Telekomunikasi Indonesia IDR 455.62 trillion            +17.96%
Bank Central Asia IDR 447.49 trillion     +21.19%
HM Sampoerna IDR 446.66 trillion      +2.30%
Bank Rakyat Indonesia IDR 376.20 trillion     +34.56%
Unilever Indonesia IDR 372.34 trillion     +26.42%
Astra International IDR 361.32 trillion      +7.40%
Bank Mandiri IDR 297.50 trillion     +17.78%
Gudang Garam IDR 150.66 trillion     +26.58%
Bank Negara Indonesia IDR 123.08 trillion     +27.24%
United Tractors IDR 102.39 trillion     +33.26%

Source: Kontan