Indonesia’s largest telecom firm PT Telekomunikasi Indonesia Tbk (TLKM) and Australia’s Telstra have kick-started the operation of their joint-venture company TelkomTelstra, which is aimed at tapping the growing telecom application and services market across Indonesia and the region.
TelkomTelstra has launched a customer experience centre in Jakarta to introduce potential customers to its integrated information, technology and telecommunication offering.
According to Phill Sporton, TelkomTelstra president director, the company uses cloud-based technology called Network Applications and Services (NAS) – which allows it to detect problems before they cause trouble for customers.
Telstra and Telkom Indonesia decided to form TelkomTelstra in August 2014. The JV was to combine the Australian carrier’s advanced enterprise in cloud computing services with the latter’s understanding of the local market. The new company is focussed on the banking and financial sector vertical and is targeting 50 per cent share of the country’s NAS market.
Telkom Director for Innovation and Strategic Portfolio, Indra Utoyo said, it was possible for the new joint venture to achieve the ambitious target as the company already controlled about 60 per cent of the country’s network solution market in the enterprise segment. The market for corporate information communication technology (ICT) in Indonesia is estimated at Rp93.5 trillion and projected to reach Rp124.6 trillion by 2017.
The joint venture has already see both partners investing $10 million in the last nine months. TelkomTelstra has already signed up electronics manufacturer Schneider Electric as its first customer. The global firm will buy services for its 30 locations across Indonesia.
Telkom-Telstra plans to utilise the one cloud platform for multiple users, compared to a one cloud platform for one customer, which was being used by Telkom’s subsidiary, PT Telkomsigma, he explained.
By combining Telkom’s established ICT infrastructure and Telstra’s management of network services, the JV expects to cash in billions of rupiah during the first year of operations in the country’s growing ICT market, Sporton added.
According to Telstra global enterprises and services group executive Brendon Riley, the partnership is running ahead of schedule with tens of millions of dollars of contracts expected to land within the next 12 months.
Telstra said that the success of the partnership was vital for Telstra’s strategy of extracting vital profit growth in the Asian region. Its new chief executive Andy Penn has repeatedly stated that he prefers to form joint ventures with local players to take advantage of Asia’s rising middle class.
Telstra made $26.6 billion in revenue during financial year 2015, of which $1.38 billion came from its international operations. It has already confirmed joint venture discussions to launch a new mobile network in the Philippines with local food giant San Miguel.