Sign up | Log in



Home  >>   Daily News  >>   Indonesia  >>Telecoms  >> Telkom enters bond market to finance expansion
NEW UPDATES Asean Affairs  25 May  2015  

Telkom enters bond market to finance expansion

State-owned telecommunications giant PT Telekomunikasi Indonesia (Telkom) aims to reap up to Rp 7 trillion from the bond market to finance part of its capital expenditure (capex) and strategic merger or acquisition.

The company announced in a public report on Wednesday that the bond issuance was part of the company’s Rp 12 trillion (US$911.5 million) sustaining bonds offering, which would be carried out in a two year-period.

The Rp 7 trillion worth of bonds will consist of four series: those maturing in seven years with coupon rates of around 8.91 to 10.16 percent, 10 years with 8.96 to 10.31 percent, 15 years with 9.21 to 11.01 percent and 30 years with 9.55 to 11.55 percent.

Telkom has appointed Bahana Securities, Danareksa Sekuritas, Mandiri Sekuritas and Trimegah Securities as the underwriters.

Novita Lubis, Bahana Securities investment banking director, said the bond offering would take place from May 20 to June 4.

Telkom is scheduled to list the bonds on the Indonesia Stock Exchange (IDX) on June 24.

Ratings agency PT Pemeringkat Efek Indonesia (Pefindo) has assigned triple A ratings to the firm’s bonds.

Telkom finance director Heri Sunaryadi said his firm would use 87 percent of the raised funds, from bonds of Rp 6.09 trillion, to finance its infrastructure development, and the remaining 13 percent to support merger and acquisition plans.

Telkom network director Abdus Somad Arief said the majority of the funds from the bond issuance would be used to support the firm’s Indonesia Digital Network (IDN), comprising IDN digital link, IDN access and IDN convergence.

“Under IDN digital link, Telkom will develop its infrastructure backbone in Papua,” he said.

Telkom is now at the forefront of the government’s $24 billion-drive to expand the country’s broadband capacity over the next five years to improve Internet access.

The publicly listed company is now expanding its Internet network in the country’s eastern region by installing a fiber optic ribbon cable system, namely the Sulawesi Maluku Papua Cable System (SMPCS), in Manokwari, Papua.

The firm is also making progress on turning the country into a global Internet transit hub by developing a submarine cable system directly connecting the country to the world’s Internet hub.

For the IDN digital access, Telkom is committed to introducing a 4G network in seven cities by end of this year, increasing its Wi-Fi points to 200,000 from 117,000 at present.

The company also aims to develop its application and digital service platforms to develop its IDN digital convergence.

Telkom is set to allocate a total of 22 to 25 percent of its revenue target this year of Rp 100 trillion to its capex, including for IDN projects.

From the total capex, 61 percent will be to develop the business of its cellular arm PT Telkomsel, 26 percent to develop broadband networks and the remaining 13 percent to develop its other subsidiaries.

“Meanwhile, we will use 13 percent of the raised funds from the bonds for merger and acquisition to support business development,” Heri said.

Telkom emerged triumphant in the first quarter of this year as it became the only telecommunications operator booking double-digit growth in its revenues.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           May  25 , 2015 Subsribe Now !
• Trade talks aim to boost quota Subcribe: Asean Affairs Global Magazine
• Japan vows to help RI develop infrastructure
• Telkom enters bond market to finance expansion
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Honda to recall 87,182 vehicles in Malaysia
• Economic restucturing ‘too slow'
Asean Analysis                   May 15, 2015
• Asean Analysis May 15, 2015
Washington Needs a More Holistic View of Myanmar’s Elections
Advertise Your Brand

Asean Stock Watch  May 22,  2015
• Asean Stock Watch-May 22, 2015
The Biweekly Update
• The Biweekly Update May 15, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand