SOEs Minister plans changes to Telkom, Telkomsel business models

SOEs Minister plans changes to Telkom, Telkomsel business models

A screenshot of State-Owned Enterprises Minister Erick Thohir at a virtual seminar in Jakarta on Friday (September 17, 202). (ANTARA/Aji Cakti/my)

Jakarta (ANTARA) - State-Owned Enterprises Minister Erick Thohir has announced plans to reorient the business model of Telkom to a business-to-business model and Telkomsel to a consumer-oriented one.

"I met with Telkom and Telkomsel (managements) some time ago; we are going to change the position. Later on, Telkom will focus more on business-to-business or B2B, which means that Telkom will focus on data center, telecommunication infrastructure, such as cable networks and others, the point is as B2B," he said.

As for Telkomsel's model, it will be focused on consumers, he said during the 'Wealth Wisdom' virtual seminar originating from Jakarta on Friday.

"Why do we do it like that? In the end, we have to create competitiveness as a nation. We also start with the Indonesian creative industry, such as content, media, and Telkomsel will do it later," Thohir explained.

State-owned enterprises have also made significant changes, for instance, PFN is no longer an institution that makes films anymore, but a Film Financing Institution like in many countries, he pointed out. State-owned enterprises will try to change that way, he said.

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The purpose behind refocusing the businesses of Telkom and Telkomsel is ensuring that state-owned enterprises can work with young Indonesian startups, the minister disclosed.

Thohir said that when it comes to digital ecosystems, the SOEs Ministry has returned Telkom and Telkomsel to the business models they want. Thus, Telkomsel has become a digital company, while Telkom has become a services company.

From the start, he said he had requested Telkom to refocus on data centers, networks, fiber optic infrastructure, and so on.

Thus, there can be a new ecosystem built for state-owned enterprises, particularly state-owned enterprises that collaborate with young Indonesian startups, which have often been assisted by foreign investment, Thohir said.

State-owned enterprises can assist these startups and open up opportunities for young Indonesians to work, he added.

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