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Tag: trikomsel

  • Indonesia’s Trikomsel says it will likely default on Singapore-issued bonds

    Indonesia’s Trikomsel says it will likely default on Singapore-issued bonds

    Indonesian mobile phone retailer PT Trikomsel Oke Tbk warned on Monday that it will likely default on its S$215 million (US$155 million) bonds, in what would be the first in the Singapore bond market since the global financial crisis.

    The announcement by Trikomsel, which is 19.9 per cent-owned by Japan’s SoftBank Group Corp, could decrease investor appetite for debt issued by Indonesian companies.

    Some Indonesian firms already are under pressure due to the rupiah’s depreciation, sagging domestic economic growth and concern about outflows whenever United States interest rates are hiked. “It will highlight the risks that a number of other Indonesian businesses face and should put pressure on the bonds and equities of other companies with high foreign exchange debt,” said Vaninder Singh, an economist at RBS.

    Indonesia’s sovereign credit default swaps (CDS) underperformed their regional peers on Monday, reflecting some of these concerns. Its five-year contract rose by one basis point versus a general decline in other Asian sovereign CDS.

    Jakarta-based Trikomselhad issued a S$115 million bond due 2016 bearing a 5.25 per cent coupon rate, and a S$100 million bond due 2017 paying 7.875 per cent.

    In a filing to Singapore’s stock exchange on Monday, Trikomsel said that more than 80 per cent of its total debt of around US$460 million, which includes the two Singapore dollar bonds, will fall due in the next two years. “With the depleting and volatile cash flow, the company anticipates that it is unlikely to be in a position to service interest and repay debts as they fall due,” Trikomsel said, adding that it will come up with restructuring proposals in the next 2-3 weeks.

    Trikomsel said its mobile phone sales have been hit by a reduction of the number of its retail shops and increased competition in the market, while the weak rupiah has dampened the purchasing power of consumers.

    Cash flow from operations was negative 53.5 billion rupiah (US$3.9 million) for the six months ended June, Trikomsel said.

    The rupiah has fallen more than 9 per cent against the dollar this year, making it the second-worst performing Asian emerging market currency after Malaysia’s ringgit. markets.

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  • Indonesia’s Telkomsel collaborates with Trikomsel for handset bundling deals

    Indonesia’s Telkomsel collaborates with Trikomsel for handset bundling deals

    The largest mobile operator in Indonesia, PT Telekomunikasi Selular (Telkomsel), unit of state-run telecom operator PT Telkom Indonesia Tbk (TLKM), has joined hands with gadget store operator PT Trikomsel Oke Tbk (TRIO) to launch a device bundling program to drive the growth in smartphone users, the company said in a statement.

    The device bundling program includes, Lenovo Vibe X2, Xiaomi Redmi 2 and Xiaomi Mi 4i with cash back and data package promotion. In addition. Telkomsel also launched device bundling program for BlackBerry Classic, Samsung Galaxy S6 edge and LG G4 to attract high value customers.

    Since December 2014, Telkomsel has successfully rolled-out 4G LTE services to support the data services in Jakarta, Bali, Bandung, Surabaya and Medan using the 900Mhz spectrum. The operators are in the midst of rearranging their 1800Mhz spectrum and expected to be completed by the end of the year.

    To signify the completion of spectrum rearrangement in areas outside Java, Telkomsel launched 4G LTE services using 1800Mhz spectrum in Makassar and Lombok in July 2015. To date, the operator has more than 1,000 4G LTE BTS serving the seven key cities.

    In the first half of 2015, Telkom as a group has spent Rp11.9 trillion ($888.06 million) in capital expenditure (capex), of which Rp5.8 trillion was for Telkomsel and the remaining Rp6.1 trillion was for Telkom and other subsidiaries.

    Telkom’s capex was mainly utilised for deploying access and backbone infrastructure to support the broadband services, while Telkomsel’s capex was mainly utilized for radio access network. Other subsidiaries’ capex was utilised for towera, property, data center, and project international cable systems.

    In first half of the year, Telkomsel reported that net profit rose 14.7 per cent from previous year (Rp8.81 trillion to Rp10.11 trillion). While the company revenues rose 13 per cent from Rp31.33 trillion to Rp35.40 trillion in first semester of 2015.

    Revenue from prepaid customers accounted for 84.9 per cent with Rp30.04 trillion of Telkomsel’s total revenue mainly driven by prepaid subscriber base, high increase in data usage and data revenue as well as continued growth in voice and SMS revenues.

    Postpaid revenue increased by 13.5 per cent to Rp2.78 trillion mainly driven by the increase in the postpaid customer base which grew by 16.6 per cent to 3 million subscribers. Revenue from postpaid customers contributed 7.9 per cent to the total revenue.

    Telkomsel continued aggressive network deployment with 11,495 new BTS installed in an effort to maintain leading network supply to strengthen mobile broadband experience. Around 90 per cent of new BTSs were 3G/4G BTS.

  • Singpost to target Indonesia eCommerce

    Singpost to target Indonesia eCommerce

    Trikomsel, one of Indonesia’s largest mobile device retailers, and SingPost, one of Asia’s biggest logistics providers for eCommerce, have announced a partnership to take advantage of the growing opportunities of eCommerce in Indonesia.

    The name – and even the exact nature – of the joint venture is still a mystery. However, the two firms are certain that they will create a company that acts as a partner for local brands and merchants in the eCommerce space. The project will combine Trikomsel’s distribution channels in Indonesia and SingPost’s expertise in logistics and eCommerce on a regional basis. In a statement, the firms say that the goal is to provide a complete eCommerce shopping experience, although they did not share any details of their plan.

    Trikomsel will take a majority stake of 67 per cent ownership in the joint venture and SingPost, through wholly owned subsidiaries such as SP eCommerce, will take the remaining 33 per cent. Similar to aCommerce, SP eCommerce provides a variety of solutions for eCommerce businesses including the use of technology, operations management, warehousing, delivery, payment and parcel collection, digital marketing, and post-sales support.

    “With the expertise, technology, and powerful resources owned by both parties, we are optimistic that this cooperation will be able to meet expectations and provide innovative services to our customers throughout Indonesia,” says Sugiono Wiyono, president director at Trikomsel.

    SingPost Group CEO Wolfgang Baier, says that he too is optimistic, as Indonesia is soon expected to become the world’s third-largest consuming nation.

    “As a regional company that encourages the growth of eCommerce, it is important for us to find a good business partner in emerging markets,” says Baier. “Trikomsel has extensive access and retail distribution throughout the nation. Trikomsel will also be able to utilise our expertise in logistics and eCommerce.”

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