Income from data internet and information technology services as well as from cellular services contributed to the rise in net income, its financial report issued on Monday said.
Income from data, internet and information technology services rose 10.3 percent to Rp1.9 trillion and income from cellular service climbed 8.4 percent to Rp14.67 trillion, the report said.
The report showed the country`s largest telecommunication company posted Rp8.9 trillion in net profit or an increase of 11.85 percent with profit per share rising to Rp333.97 from Rp302.05 per share.
President of the state company Arief Yahya said despite the increase in income, Telkom could not press down financial burden which swelled 6.3 percent to Rp24.801 trillion.
Increase in financial burden was contributed more by interconnection cost which rose 33.4 percent to Rp2.13 trillion, Arief said.
The company also recorded an increase in short term loans to Rp23.67 trillion up from Rp22.19 trillion.
Similarly, its short term debts rose to Rp20.04 trillion from Rp19.88 trillion.
Its assets were valued at Rp101.54 trillion down from Rp103.05 trillion six months earlier.
Earlier Telkom said it would set aside Rp16 trillion for capital expenditure this year up from Rp14.5 trillion last year partly to be used to develop cloud computing service.
Telkom`s then president Rinaldi Firmansyah said bank loans would make up 30 percent of the capital expenditure of the state company.
Rinaldi said the company would replace the copper cables of fixed line with optic fiber to improve its data service.
The company will also continue development of undersea telephone cables between Manado and Papua, he added.
He said Telkom would invest US$150 million in optic fiber network project this year.
Telkom plans to build optic fiber networks with links to 13 million residential houses all over the country until 2015, Rinaldi said
"This year construction will be concentrated in areas around the island of Java with a target of 2 home-passes," Rinaldi said.
Telkom had also announced it would allocate Rp21.19 trillion to build true broadband that could be linked to the houses of subscribers with a speed of 20-100 mbps.
Rinaldi said at least 497 cities all over the country could be covered by the service.
Last year, Telkom finished construction of links to 1.7 million houses . (ASG/B003)