Telkom to focus first on domestic market

The Jakarta Post, Jakarta

Despite hopes of tapping into the global market, the country's largest telecommunications company PT Telekomunikasi Indonesia (Telkom) will, at least for now, focus on solidifying its domestic market stronghold, an executive says.

"As a company that is publicly listed on the New York Stock Exchange, people expect us to penetrate other markets, especially in East Asian countries and Muslim-populated countries," said Garuda Sugardo, the company's vice president director.

"But we haven't thought about it really. Telkom still wants to strengthen its organizational basis here and further penetrate the local market."

The company is also listed on the Jakarta Stock Exchange.

At present, he reiterated, Telkom would rather strengthen its domestic market position than go global and risk losing its strong presence in Indonesia.

"We will not take that risk because other foreign operators, such as those from Singapore and Hong Kong, are also aiming to penetrate our market," he explained.

Telkom has the largest market capitalization at the Jakarta Stock Exchange.

Telkom holds a 93 percent share in the fixed-line market, while it also owns a majority stake in cellular phone company, PT Telkomsel, which has about a 55 percent market share in the country.

Garuda added that the move did not mean that the company would not expand its network overseas in the future. In fact, it aims to become a major regional player at some point.

The Bandung-based firm plans to cooperate with major global players to enhance its services.

Garuda said Telkom would sign an agreement with Telecom Italia Sparkle on Friday to improve its voice and internet protocol services.

"The agreement is in line with our goals to make international market as our learning place, while at the same time focusing on contributing more to the domestic market," he said.

He said that the agreement was the second such cooperative deal with a global telecom operator, having signed a deal with a telecom operator in Gambia earlier this year, aimed at developing the companies' research and development capacity. (006)