Below is a list with tagged columns and company profiles.

Today's Headlines Telecommunication

  • Indonesia is the 3rd-Largest Smartphone Market in the Asia Pacific

    The number of smartphone users in Indonesia is expected to grow strongly up to (at least) 2019 in line with overall economic growth of Southeast Asia's largest economy in combination with rising Internet penetration as well as the young and large population according to market research company eMarketer. Currently, less than 40 percent of the Indonesian population owns a smartphone (implying a still low smartphone penetration rate), while Indonesia is busy expanding its 4G technology network (a necessity for smartphone or tablet users) across the Archipelago.

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  • Samsung Objects to Indonesia's New Smartphone Hardware & Software Plans

    Samsung Electronics Indonesia, subsidiary of the South Korea-based electronics giant, objects to new proposals currently being studied by the Indonesian government. Although in 2015 a regulation was signed by the government that requires local 4G smartphones manufacturers to use at least 30 percent of locally-sourced hardware content for domestically-sold smartphones (effective per January 2017), Indonesia's Industry Ministry recently proposed new rules regarding the mandatory locally-sourced content of both hardware and software for 4G smartphones.

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  • Moody's: Stable Outlook for Rated Indonesian Companies in 2016

    New York-based credit rating firm Moody’s Investors Service expects global economic factors to have less of a negative impact on Indonesian companies in 2016. In its latest report titled "Non-Financial Corporates - Indonesia: 2016 Outlook - Corporate Profits under Pressure but Likely to Stabilize" it states that amid stabilizing economic growth and the recently unveiled government stimulus packages, companies should manage to improve their corporate performances in 2016.

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  • IPO Mitra Komunikasi Nusantara on the Indonesia Stock Exchange

    Today Mitra Komunikasi Nusantara made a successful trading debut on the Indonesia Stock Exchange. The company, a prepaid mobile credit wholesaler, became the 14th Indonesian company to conduct an initial public offering (IPO) on the IDX this year. Offered at an initial price of IDR 200 (approx USD $0.01) per share, the price rose 70 percent at its trading debut, finishing at IDR 340 per share. Mitra Komunikasi Nusantara is engaged in the trading and sales of smartphones, gadgets, and voucher reloading.

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  • New Regulation Online Businesses in Indonesia Expected in 2016

    Before allowed to operate, online businesses in Indonesia will be required to register and secure permits in an effort to enhance supervision on online trading according to a new government draft regulation. The draft, which is currently being discussed by the Indonesian Trade Ministry, the Communication and Information Ministry, and the Law and Human Rights Ministry, is expected to be issued before February 2016. Foreign businesses engaged in online trading activities in Indonesia will also be required to register and obtain necessary permits.

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  • Stock Market Update: Why Do Indonesian Stocks Hit a Record High?

    The benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated JCI or IHSG) posted a series of consecutive record high closes during the past week, primarily on the central bank’s (Bank Indonesia) decision to cut its key interest rate (BI rate) by 25 basis points to 7.50 percent, investors’ positive outlook on Indonesian companies’ corporate earnings in 2015 and expectation that the Eurozone’s quantitative easing program will offset the negative impact of monetary tightening in the USA.

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  • Internet in Indonesia: Internet Connection Speed Remains Weak

    Based on a report from Akamai Technologies Inc, an America-based Internet content delivery network, Indonesia is ranked 101 in terms of the world’s fastest Internet connections with an average Internet connection speed of 2.5 Mbps. This implies that Internet connection quality in Indonesia is among the weakest regions in the world. As Internet has become an essential tool for the transfer of information, fast Internet is important to foster efficient business and a solid investment climate.

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  • Samsung Electronics Intends to Enter Indonesia’s Mobile Phones’ Market

    Samsung Electronics Co Ltd, the multinational electronics company headquartered in Suwon (South Korea), said that it plans to establish a factory in Indonesia to produce mobile phones for Indonesia’s domestic market. Samsung Electronics, subsidiary of the Samsung Group (a leading global information technology company), wants to set up the factory in West Java and production is expected to start later this year. Samsung Electronics already owns factories in China and Vietnam.

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  • Social Media in Indonesia: Indonesian Facebook, Line & Twitter Communities

    Line, a free social network from Japan which provides applications for instant messaging on smartphones and personal computers, had about 30 million Indonesian users at the start of August 2014 (total global users of Line stood at 490 million around the same time). Most of Line Indonesia’s revenue, approximately 60 percent, is accounted for by games, followed by stickers and official accounts (each contributing twenty percent to the company’s revenue). However, Line Indonesia refrained from mentioning absolute financial figures.

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  • Company Profile of Indosat: A Leading Indonesian Telecommunication Firm

    Indonesia Investments updated the company profile of Indosat in our Indonesian Companies section. Indosat, the third-largest telecommunication operator in Indonesia with approximately 59.7 million cellular subscribers, made headlines in Indonesian newspapers after presidential candidate Joko ‘Jokowi’ Widodo said in a debate on Sunday (22/06) that he would like to see the Indonesian government buy back shares of the company (which had been sold to Qatar Telecom about a decade ago amid financial turmoil).

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Latest Columns Telecommunication

  • Blue Chip Telkom Indonesia Continues to Post Solid Growth in Q3

    State-controlled telecommunication and network provider Telekomunikasi Indonesia (Telkom) managed to post a 12.5 percent year-on-year (y/y) rise in net sales to IDR 97.0 trillion (approx. USD $7.2 billion) in the January-September 2017 period. Meanwhile, the company's net profit rose 21.7 percent (y/y) to IDR 17.9 trillion (approx. USD $1.3 billion) over the same period.

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  • Data & Internet Services Boost Earnings in Indonesia's Telecom Sector

    Data and Internet services are now the big engine of growth for the corporate earnings of Indonesia's listed telecommunication and network providers. However, there is only one of such companies that showed great net profit growth in the first half of 2017, to wit Telekomunikasi Indonesia (Telkom). Therefore, Telkom is expected to have raised its market share in the mobile phone market of Indonesia this year.

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  • 3 Key Information Technology (IT) Trends to Occur in Indonesia in 2017

    NetApp Indonesia, the local unit of the American multinational storage and data management company, predicts three main information technology (IT) trends in Indonesia in 2017: (1) data becoming the "new currency", (2) new platform models taking over, and (3) cloud computing becoming a key source of corporate growth. Ana Sopia, Country Manager NetApp Indonesia, explained that numerous companies, all over the world, are currently experiencing digital transformation challenges.

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  • Rising Investment in Local Content for Indonesia's 4G LTE Smartphones

    Local and foreign smartphone vendors are eager to assemble 4 Generation long term evolution (4G LTE) smartphones in Indonesia. No less than 26 companies (and brand owners) have established assembly plants in Southeast Asia's largest economy with a combined investment value of USD $600 million since 2015. Of these 26 companies, 14 are local players. The number of foreign smartphone manufacturers in Indonesia is expected to grow as a new government regulation comes into force per 1 January 2017.

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  • Bank Rakyat Indonesia Finally Sees Launch of BRIsat

    The Gods seemed not in favor of the BRIsat, the satellite of Indonesia's second-largest bank by assets Bank Rakyat Indonesia (BRI). The BRIsat was originally scheduled to be launched on 9 June 2016 (Indonesian timezone). However, due to technical problems and bad weather the launch had to be postponed three times. Finally, on early Sunday (20/06) the satellite was launched by Arianespace from the Guiana Space Center, Europe's Spaceport in Kourou (French Guiana), hence ushering in a new era for Indonesia's digital banking industry.

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  • Telekomunikasi Indonesia to Launch Telkom-4 Satellite in 2018

    State-controlled Telekomunikasi Indonesia, Indonesia's largest telecommunication and network provider, plans to launch its Telkom-4 satellite in 2018 through its subsidiary TelkomMetra. The Telkom-4 satellite, which will replace the aging Telkom-1 satellite, is equipped with 49 transponders that will be capable of beaming 100 Gbps mobile broadband across Indonesia, India and Southeast Asia. The USD $200 million satellite is expected to have a life span of 15 years.

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  • Profile of Indosat Ooredoo: Time to Post Profit again

    Indosat Ooredoo, Indonesia's second-largest telecommunication networks and services providers, is expected to post net profit in 2016 after three straight years of net losses. Supported by its new 4G/LTE network - now available in 27 Indonesian cities (and 16 more cities are targeted to be added to this network in 2016) - the company's performance should improve. Moreover, lower US dollar-denominated debt will also contribute positively to Indosat Ooredoo's corporate earnings. At end-2015 the company had 69.7 million mobile phone subscribers.

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  • Performance Indonesia's Telecommunication Providers Improves in 2015

    The financial performance of Indonesia's listed telecommunication and network providers improved in 2015. Indonesia's three largest listed telecommunication companies Telekomunikasi Indonesia, XL Axiata and Indosat Ooredoo all recorded a better financial performance last year. However, this does not mean all three companies posted net profit. In fact, only Telekomunikasi Indonesia recorded net profit. The other two companies still posted a net loss, albeit their losses were much lower compared to one year earlier. Given that Indonesia's economic growth is expected to accelerate in 2016, these companies should be able to continue growing this year.

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  • Mandatory Use of Local Components for 4G Smartphones in Indonesia

    Starting from January 2017, 4G smartphone manufacturers in Indonesia will be required to use at least 30 percent of local content in domestically-sold smartphones and at least 40 percent for base transceiver stations (BTS). Earlier this year the Indonesian government had issued a draft regulation on this subject and last week it was signed by Indonesia’s Communications and Information Minister, the Trade Minister and the Industry Minister. What is the impact of this new rule on Indonesia’s smartphone industry?

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