MM 5012

Business Strategy and Enterprise Modelling

Final Exam Take Home Test

PT TELEKOMUNIKASI SELULER Tbk

Lecturer :
Harimukti Wandebori, S.T., MBA., Ph.D.

Ridho Riadi Akbar

29115193

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
2016

CHAPTER 1
BUSINESS SUMMARY

1.1

Company Background
Since its establishment in 1995, PT Telekomunikasi Seluler Tbk (Telkomsel)

consistently serve the country, to bring telecommunications access to Indonesian community

spread from Sabang to Merauke. Currently we are the largest cellular operator in Indonesia
and the largest network that reaches more than 95% of Indonesia's population across the
archipelago to serve the communication needs of various segments of society ranging from
the urban areas, the capital district, an area pioneer, to the border village of the country, either
on small islands or in the deep forest.
Today's world is increasingly connected, and information exchange happens very
quickly. Communications needs are no longer limited to voice and SMS, but also in other
formats such as video and photos. Needs of the community and broadband data services
(broadband) will continue to grow in the next few years. To provide excellent service to the
community in to enjoy the digital lifestyle (digital lifestyle), we helped build digital
ecosystems in the country through a variety of efforts to develop DNA (Device, Network and
Applications), which is expected to accelerate the formation of a digital society Indonesia.
We also consistently implement the roadmap of mobile technology, ranging from
3G, HSDPA, HSPA +, as well as being the first to launch commercial mobile services 4G
LTE in Indonesia that will give customers faster access inside to enjoy data services and
enable the application of mobile technology in scale larger, such as for the development of
smart cities (smart city).
We will always be present to inspire the public to take advantage of cutting-edge
technologies, products and services that are competitive and innovative solutions. It leads
Indonesia towards economy-based society in accordance broadband cellular technology
roadmap. Our love for this country that has always inspired to continue to create and deliver
services for domestic innovation.

1.2

Vision and Mission

1.2.1

Vision
Be a world-class, trusted provider of mobile digital lifestyle services and solutions.

1.2.2

Mission

Deliver mobile digital services and solutions that exceed customers

expectations.

1.3

Create value for our stakeholders.

Support the economic development of the nation.

Organizational structure

1.4

Program of Telkomsel
Several programs performed by Telkomsel Telkomsel in the subject of Corporate

Social Responsibility, such as :

1. Education :
Indonesia Digital Creative
To support local digital creative industry in Indonesia, telkomsel held a number of
CSR programs to enhance the industry to be more dynamics and develop innovation
among youth segment.
LOOP Kreatif Project (KePo)
LOOP KePo is performed to build awareness of the importance of being creative and
be a creator among youth segment.
Integrated Digital School (IDS)
IDS is A program to digitalize schools information systems in order to develop digital
school ecosystem.
Telkomsel Mengajar Untuk Indonesia
Telkomsel therefore launched Telkomsel Mengajar untuk Indonesia program as part
of its commitment to the countrys education.
Telkomsel goes to pesantren program
Telkomsel goes to pesantren is an entrepreneurship program for the community of
Islamic Boarding Schools (pesantren), particulary for orphans in Indonesia.
2. Community Development :

Religion Festivities

Telkomsel Siaga 2014

Donasi Ramadhan program with Baznas

Telkomsel Distributes Qurban Cows/Sheeps throughout Indonesia in 2014

Christmast Roadshow 2014 & New Year (NARU)

M2M (Machine to Machine) Smart City Research program

Telkomsel supported research program in cooperation with top Indonesian university
and research such as industry and research Affiliation Institute (LAPI) and Bandung
Institute of Technology (ITB).

3. Ecosystem Development :

Bina Tangguh Sukses (BTS) Merah Mandiri Program

BTS Merah Mandiri Program is estabilished as part of telkomsels social
responsibility to empower the community living near to telkomsels BTSs

4. Environment

Care for Disaster Program Activity

Telkomsel launched a charity fund collection program as part of its care for the
victims of natural disasters in many places in the country.

Emergency Response and Recovery Activity

In respone to natural disasters that occur in many areas in Indonesia, Telkomsel set up
an Emergency Response and Recovery Activity program to perform disaster
mitigation action, with its main objective being secure the lives and to recover
Telkomsels production equipment.

1.5

Business Issues
The mobile phone industry has grown rapidly over the last 2 decades and the

development of increasingly significant in recent years. The mobile phones were a luxury
item until the end of the 1990s and owned only by certain groups have now become a
common commodity that anyone can access to the lower classes though. According to the
Association of Indonesian Cellular Phone (ATSI), the number of mobile phone users in
Indonesia is growing by an average 49.1% per year from 2002-2006. Even today, Indonesia
ranks sixth mobile phone subscribers in the world under China, India, USA, Russia and
Brazil.
Wide mobile phone market and promises to make telecommunications service
provider industry also growing increasingly crowded until growth occurs not only in the
number of customers but also emerging new players in the industry operators with a
significant amount.
Competition in the telecommunications industry began when the government
liberalized the mobile telecommunications industry in 1995.
Since then, the private sector is allowed to participate in the business of
telecommunications and compete openly. The development of this industry can be seen from
the growth of the service provider of the only PT Telkom and Indosat in the early era to the
present grow to 10 carriers include Telkom (TelkomFlexi), Telkomsel, Indosat,
Excelcomindo (XL), Hutchison (3), Sinar Mas Telecom, Sampoerna telecommunication,

Bakrie Telecom (Esia), Mobile-8 (Fren), and Natrindo Cellular Phone (formerly Lippo
Telecom).
when allowed to participate private sector to take stock in the telco world, a lot of
things going from price wars that most clearly visible for us. Telkomsel including providers
who have a very high price and supported with very good quality signal throughout
Indonesia. many users of other providers complained at a very low price but with a lack of
good signal and cuman get a good signal dibeberap certain places such as urban areas.

CHAPTER 2
EXTERNAL AND INTERNAL ENVIRONMENT

2.1

External Environment
External environtment of Telkomsel can be analyze with PEST Analysis, Porters

Five Forces and Competitor Analysis.

2.1.1

PEST Analysis

2.1.1.1 Political
Political and social events that occurred in Indonesia at this time may adversely
affect business activities in Indonesia. Indonesia has undergone a process of democratic
change, which resulted in the emergence of social and political events that create uncertainty
in the political map of Indonesia. These events have led to political uncertainty, in addition to
social and civil unrest that is reflected by the number of occasions in recent years.
There is no guarantee that the political situation in Indonesia will be stable or
government will implement economic policies conducive to sustaining economic growth or
that do not adversely affect the telecommunications regulatory conditions at this time. There
is no guarantee that the next government will be a customer or Telkom and Telkomsel.
As the BUMN, the intervention of the government sometimes makes Telkom can
not behave dynamically to market changes.
2.1.1.2 Economic
There is no guarantee that the political situation in Indonesia will be stable or
government will implement economic policies conducive to sustaining economic growth or
that do not adversely affect the telecommunications regulatory conditions at this time.
The possibility of the global financial crisis will adversely affect materially against
Telkom. Indonesia has felt the effects of the global financial crisis. The inflation rate
increases, importing countries to lower orders and the value of exports also declining. Some
companies implement programs to decrease the number of employees and unpaid leave. All
these factors resulted in a decrease in the level of consumer spending, which has a negative
impact on Telkom's revenue.
Conditions will become increasingly fierce competition, operators compete to gain
customers a growing number of small, coupled with the economic crisis at this time will
make a number of small operators to consolidate.

Large population and

rapid

economic

growth has

driven demand for

telecommunications services. The telecommunications industry will continue to grow in line

with economic growth in Indonesia is expected to increase demand for telecommunications
services.
2.1.1.3 Social
Society increasingly demands mobility and flexibility of communication equipment,
home phone "traditional" no longer able to meet these needs. With the change in the lifestyle
of migration towards mobile and other mobile product selection can no longer be stopped and
these conditions can impact the wireline business.
2.1.1.4 Technology
Challenges for the future is in full transformation to become a company that focuses
on the customer, supported by technology and appropriate organizational structures and that
can make all people and Telkomsel to work together effectively.
New wave of technology has grown rapidly in the past ten years and is changing the
way we communicate with each other, accessing entertainment and work. Although Telkom
expects wireline services will remain the basis for the future business, but Telkomsel is also
aggressively grow in its new wave business that has changed a number of options for
communicating and sharing information through multimedia platforms.

2.1.2

Porters Five Forces

2.1.2.1 Threat of New Entrants

Competitors of Telkomsel is XL, Indosat, 3, Esia. Telkomsel is the first operator in
Indonesia to stand before the arrival of other competitors. Competitors have some uniqueness
to their own to get their own markets. And they are more easily develop products viewed
from the weaknesses in Telkomsel.
2.1.2.2 Bergaining Power of Suppliers
Companies that depend on the supplier would have slightly bargaining power is
weak. Scarcity supplier will make them easily raise the price of raw materials so that the
profit margin of a company dwindling. In contrast, companies that have a lot of alternatives
suppliers will gain a huge advantage. The telecommunications company has now put on the
fiber optic cable excellent on dry land in the sea maupaun so long cable networks (copper) is
no longer sufficient to accommodate excellent data and information. But the needs of fiber
optic cable is still largely imported from abroad so that if the exchange rate of the domestic

currency weakened it backfire. Bargaining power state telecommunications company

Indonesia is not too weak for suppliers consists of many companies.
2.1.2.3 Threat of Subtitute Products or Services
More and more goods or services that can replace a company's product, then the
company's position is increasingly weak. Mobile communication services today are already
far exceeded the phone and SMS services. Users can connect with friends, family via email,
video calls, audio and video messages, update status. None of these features are becoming the
standard service on mobile devices, because those features are developed and maintained by
many different companies and running over Telecom infrastructure owned. The fact that
these services are used replacing the phone and SMS services start worrying
telecomunication industry. In recent months, five top app on Google Play Indonesia is a
communications application: KakaoTalk, WeChat, WhatsApp, Line and Facebook.
Indonesian consumers want a way to communicate with each other freely. They are not
concerned about the cost of the subscription, which causes penimgkatan application of fuel
and also boost sales of smartphones.
BlackBerry for several years and also WhatsApp as an alternative fuel applications.
When a user starts using the fuel more frequently than phone / SMS, Telkomsel should be
able to see the warning. Perhaps the telecommunications industry should already see this
trend early on and began moving anticipate in many ways, but one recent industry figures say
that it is almost impossible for Telkomsel to move so quickly and anticipate trends service
OTT (Over The Top).
2.1.2.4 Bergaining Power of Buyers
many number of competitors of a company, then the customer (buyer) will have a
stronger bargaining power and lower profit levels of the company, and vice versa. The
number of customers from year to year is always increasing, this is almost 75 percent of
people around the world wear. Indonesian people in general do not have a strong enough
bargaining power to telecommunications, because it does not have the option of
telecommunications facilities that are limited in the choice of specific and less able to satisfy
the service for its services. So seeing that the telecommunications market potential is quite
large from year to year, let alone Indonesia is a developing country that is still very much to
be worked out.
2.1.2.5 Rivalry Among Competitors
The next threat is increased competition from competitors. One example causes a
heightened level of competition is a price war and innovation of new products from

competitors. The greatest threat in Telkomsel is competition competitive prices, new

competitors or competitors who have been there before trying to attract new customers and
customers of Telkomsel with phone rates and sms are cheap, so Telkomsel was trying to
lower the rate, but this affects the telkomsel slowing revenue growth in 2008 is only 1.4%.
Intense competition and price war, Telkomsel pursuing a strategy to win new customers in
2008.
CDMA technology is also quite a negative role in the growth of our customers and
revenue. At present, most customers are customers have two numbers (CDMA and GSM)
and they prefer to call using CDMA, because the tariff is cheaper than the GSM. If there is no
CDMA competitor, we predict minutes of usage will rise much higher. But the
telecommunications industry itself has high growth prospects, because people always need
communication and supported by population growth. Then, the exit barriers too high, because
the company would have invested telecommunications infrastructure is not cheap. Currently,
operators perform in a price war to attract customers, while switching cost was low.
2.2

Internal Analysis

2.2.1

Segmenting, Targeting, Positioning

1. Segmenting
Market segmentation is the identification of market portion that are different from other in
order to identify the needs and serve better customer/partner.

Geographic
Geographic segmentation requires the division of the market into geographic units
such as country, state, region, county, city or neighborhood. In this case Telkomsel
segment for its products in the State Indonesia spread in various districts / cities in
Indonesia.

Demographic
Telkomsel demographic segment for its products to various segments, such as
Telkomsel LOOP presented to segment youth (aged 12-19 years) men and women.
Then HALO indicated for the premium or value oriented consumer who did not make
the prices. Then one of the other products of Telkomsel namely AS products that are
specifically indicated for serving the lower middle market, especially youth and
novice users who can be reached by people whose income is not high enough.

Psychographic

In this case Telkomsel through serving the flash products among young people who
have a lifestyle that is up to date on the development of information by providing fast
internet access.
2. Targeting
Telkomsel market products to all parts of Indonesia.
3. Positioning
Positioned itself as a product that is dedicated to people who always wanted a large
network.

2.2.2

Marketing Mix 7Ps

1. Product
Telkomsel is able to issue high-quality products and provide convenience to
consumers as the product simpati flash makes it easy for Internet users. Products are issued
by Telkomsel include, Simpati Loop, Simpati Flash, Kartu HALO, Kartu AS.
2. Price
Telkomsel rate schemes can be changed at any time in accordance with the rate
policy set by Telkomsel. Telkomsel right to amend, terminate, add to any part of the service
or the pricing structure at any time based on policy telkomsel or should it be determined and
approved by the government.
Telkomsel may enact different rates in certain location and time appropriate rate policy
telkomsel. Rates may change at any time in accordance the rate policy will be informed via
his website. At any use telkomsel products are the basic features international roaming is
automatically activated with a specific rate schemes established by Telkomsel.
3. Place
Telkomsel uses patterns of consumer marketing channel level two, because the
grooved from manufacturer to wholesalers to retailers and then ended up in consumers. There
is also the distribution agency that is owned or carried by Telkomsel as Partnership stores,
feet on the street, the official dealer, and retail outlets.
4. Promotion
Telkomsel promote products from various segments starting from sponsoring events,
television advertising, social media, community eg, TSC (Telkomsel School Community) and
etc.
5. People

Telkomsel has the culture to make employees become better at his job by
implementing The Telkom Way, which contains three core elements 3P, namely philosophy,
principle and practice.
Philosophy to be the best: always the best which is the basic philosophies contain the
basis for all Telkom to be the best man.
Principle to be the star-speed solid-smart (3S) are the core values that contain the
basic principles to be the star man. Principle to be the star contains three core values called
3S: solid is the realization of one heart, one mind and one act, the speed is fast acting and
smart in every job that is behave, think and act intelligently in on the job through sharp
intuition.
Practices to be the winner that is a standard of behavior that contain sublime
practices to be a winner.
6. Process
Telkomsel opened outlets in accordance with the provisions that has been enacted by
the company and providing training to karayawannya for services provided excellent and
could add more value to the product.
7. Physical Evidance
Physical evidence that there is a tower that is widespread throughout Indonesia as
well as the reform of rapid technological and other physical evidence is already installed
fiber optic as far as 100,000 km.

2.2.3

Components of Internal Analysis

2.2.3.1 Resources

Tangible (Financial Resources, Organizational Resources, Physical Resources,

Technological Resources)
Leaders in the industry as mobile telco, Telkomsel with a strong commitment to
deliver our increasingly mobile lifestyle of quality is evident by the consistent
implementation of the latest mobile technology roadmap, namely 3G, HSDPA,
HSPA, HSPA +, 4G and Long Term Evolution (LTE). Telkomsel also has a tower
which spread all over Indonesia so that no matter where users are always get a good
signal.

Intangebile (Human resources, Innovative resources, Customer Reputation, Brand

Power, Quality Product)

Management of human resources, Tellkomsel arrange Human Capital Master to

optimize the potential of existing human capital. With reference to the long-term
corporate planning and annual. In addition to Telkomsel that can be said is the first
provider in Indonesia with a nice Internal company and a great product to earn the
trust of society and becomes top of mind by the community thus impacting its brand
baikterhadap Telkomsel
2.2.3.2 Capability
To increase company capability, company must have three capabilities, such as :

Adaptive Capability
Adaptive capability is the capability to identify and re-respond the oppurtunity also
allocating resource to marketing activities. Telkomsel looks adaptive capabilities as
the oppurtunity from many people who need telephone, communication using
internet, E-banking, search information using mobile phone internet.

Absortive Capability
Absortive capability is used to evaluate and use the outside capabilities. Telkomsel
juga selalu mengevaluasi productnya setiap tahunnya melalui Annual Report tentang
penjualan produk, human resources, operational, financial, etc.

Innovative Capability
Innovate Capability is the capability to develop new product. Telkomsel be the first
provider that develops 4G LTE in Indonesia. By following along the changing times
which require very high speed internet for use with services.

2.2.3.3 Core Competencies

Core competencies is one thing that important from business. Telkomsel memimiliki
jaringan yang sudah tersebar diseluruh wilayah Indonesia untuk melayani kebutuhan
bertelekomunikasi bagi seluruh pelanggannya yang tersebar di seluruh wilayah Indonesia
2.2.3.4 Distinctive Competencies
Telkomsel memiliki kompetensi lebih dibandingkan dengan pesaingnya yang lain
karena Telkomsel memiliki infrastruktur jaringan yang luas dan mencakup semua wilayah
Indonesia.
Company Value Chain :
1. Inbound Logistics
2. Operation
3. Outbound Logistics

4. Marketing & sales

5. Services
2.2.3.5 Competitive Advantage
Two major forces that are owned by PT Telkomsel is the financial strength and
network infrastructure. Financial and network infrastructure is a physical resource. The
strategy can be developed is the optimization of the resources owned by PT Telkomsel
through the addition of new networks. Telkomsel is also the first provider in Indonesia so that
more people put their trust in Telkomsel. Has an extensive network with very quick service.
Networking and Infrastructure, from the early stages of the passage of the
network, locate PT.Telkomsel base transceiver station (BTS) to all the network to be more
efficient. PT.Telkomsel network pattern also allows for better use of existing bandwidth
without sacrificing the quality of the network.
Marketing and sales, Changing views about the Company that have been rated
'expensive' to be affordable, young, dynamic, trendy and very understanding of customer
needs becomes Telkomsel strategy to find many customers.

2.2.4

SWOT and TOWS Analysis

Strenght :
1. Network widespread in Indonesia
2. The products offered are varied
3. Always maintain product quality
4. Superior human resources

Weakness :
1. The technology developed is not long
lasting.
2. One of the products of dwindling
earnings.

5. A good service

3. Large budget to develop technologies.

6. Rapid technology development

4. The price offered is quite high.

7. A strong brand image

5. Total expenses continues to increase.

8. Adequate financial resources

6. lack of promotion.

9. Revenue growth increasing

7. Mergers and acquisitions lacking

10. User safety guaranteed

excellent.
8. The product quality is uneven.
9. Fraud in the financial audit.
10. Government
fixing.

regulation

of

price

Opportunity :

Threat :

1. The growth of mobile phone users is

large.

1. Perisiwa-social and political events

that occurred.

2. The need for information is even

higher.

2. The reduced rate of economic growth.

3. The increasing power of competitors.

3. The average rate on a good public

education.

4. The complementary goods prices rise.

5. Disaster risk.

4. Average high income.

6. The

5. Government projects that support the

company.

decline

in

people.

communication tools.

8. cyber crime.
9. New technologies that can be have a

7. The tendency for the digital lifestyle

in modern society.

negative

impact

competitiveness.

8. The advent of new competitors in the

10. Theft of equipment.

mobile telecommunications field.

need

for

security

in

communication.
10. Desire

of

the

people

are

very

practical.
2.2.5

of

7. Acts of terrorism in Indonesia.

6. The increasing purchasing power of

9. The

sales

Quantification of SWOT and TOWS Analysis

Internal
Strength
Network widespread in Indonesia
Superior human resources
Variations in product quality as well as practical
Good service on the company's
Technological development
Total
Weakness
The technology used was not long lasting
one of the products of dwindling earnings
big budget to use for technology development
The price offered is high enough
increasing the amount of load
Total

Weight Rating Score

0.10
5
0.50
0.10
4
0.40
0.15
4
0.60
0.10
4
0.40
0.15
3
0.45
2.4
Weight Rating Score
0.10
3
0.30
0.05
2
0.10
0.15
3
0.45
0.05
4
0.40
0.10
3
0.30
0.85

on

the

Based on SWOT, can be seen Telkom has high competitiveness that makes
Telkomsel became the market leader in the areas of telecommunications since it can utilize
the power of competitiveness. The Range Telkomsel has a high enough price for each
product so that it becomes a weakness considerable influence for consumers in Indonesia are
very sensitive about the price difference because consumers want something cheap. But the
company directly renew the image by changing the vision and mission of being "more for
less" is to give more by paying a little cheaper. Telkom should have been able to make
products that be affordable for all societies.

Eksternal
Opportunity
The growth of mobile phone users is large
The need for information is even higher
The average rate on a good public education
Average high revenue
Government regulations supporting the company
Total
Threats
Events of social and political
Declining economic growth rates
The increasing power of competitors
Prices of goods Complementary good
The climate is not supportive
Total

Weight Rating Score

0.15
3
0.45
0.10
4
0.40
0.10
3
0.30
0.15
4
0.60
0.10
3
0.30
0.95
Weight Rating Score
0.05
3
0.15
0.10
2
0.20
0.10
3
0.30
0.05
2
0.10
0.10
2
0.20
0.95

From the SWOT analysis as Telkomsel then the conclusion is:

1. In a company is very important to keep and maintain a good relationship between the
company and the community. Since the function of Public Relations is to create a
positive public opinion for the company to be a good corporate image is maintained.
2. Public Relations Information given to the internal public, not impress exaggerating
public opinion outside of the company. So that the employees / staff can carry out
their duties on target or on target companies. And the information provided must be
up to date so that the company's activities running smoothly.
3. Always maintain the spirit and loyalty to the company employees or staff.

4. Desires and needs of the community, as the consumer, it should be noted for the sake
of maintaining the company.
5. Received failure of a company or production company's least favored by the public,
one of which relies on the work of a company marketing.

2.2.5.1 SWOT Matrix

S-O
1.

S-T
Make the products have high quality and 1. Developing potentially areas.
price.

2.

2. Provide information of natural disasters

Merger or acquisition the new potential

company.

or is likely to happen.
3. Make protection difficult burglarized.

3.

Make more towers for in the rental.

4.

Payment

program

awith

practically

System.
5.

Create a single product that can covering

all.

W-O
1.

Technological

W-T
development

with

strong network.
2.

3.

1. Create

derivative

products

more

affordable.

Includes all the product advantage in all

2. Developed a recycling technology.

services.

3. Cooperate with other companies with

3. In collaboration with advertising

services may include all.

improvement of technology.

CHAPTER 3
GENERIC STRATEGY

3.1

Business Level Strategy

3.1.1

Product Diferentiation
At the beginning of competition between operators happen to use the service

(content) such as wallpapers, games, Ringback Tone, etc. and then evolve to technologies
GPRS, 3G and the latest is 3.5 G or HSDPA. Telkomsel, such as providing content combined
between voice, text, image, and video. Users can access the video call, broadcast MobileTV,
mobile video, Internet browsing, as well as download data.
This mobile operators continues to increase the vocabulary content. Currently the
number of Telkomsel 3G World content reaches about 130 content grouped into eight types
of content. World TV Channel (22 content), the World Entertainment (12 content), The
World News (14 content), World Sports (15 content), the World Religious (45 content), the
World Lifestyle (2 content), World Cultural Diversity (11 content) and the World children
(14 content). Telkomsel also added two new music clips content from Gigi and Purple.
Currently, content services in Indonesia is very likely to enter the 3G business. With
appropriate regulation will foster the industry (see IMOCA). Opportunity to become a
content provider was open to anyone. This year, the mobile content business is predicted to
reap a turnover of Rp 225 billion from last year's revenue of Rp 70 billion (2007) operators
and content service providers should work together to provide education to consumers,
because they are very concerned that the content industry continues to grow in addition to
providing benefits to consumers.
Implementation of third generation mobile telecommunications services (3G) has
not made a significant contribution to the growth of industry content providers. In the first
year of implementation (3G 2007), all the operators are still looking for the right shape to
provide services to customers. In addition to the content provider that provides local content
is also assessed to be less ready to deliver any service over 3G technology. Whereas existing
telecom network has been ready to hold 3G.
In 2007 the number of mobile subscribers is expected to reach 80 million numbers.
Mobile phone users is growing, content service providers will enjoy it as well as services
growth will be more diverse content. Certainly not easy for the operator to grow 3G fever in

the community, but at least it was a great deal of work for mobile operators that exist for the
delivery of 3G can be a success.
However, all operators can present the services and no significant product
differentiation and therefore has not contributed income that affect each of the three
companies are due to the lack of educational facilities the community to the content provided
by the company. In fact, what happens is the 3G technology (face to face call) not as much as
expected and the service as it was considered to have failed to attract consumers. Therefore
the competition instead switch to a more competitive price.
3.2

Functional Strategy

3.2.1

Marketing and Sales

Telkomsel marketing and sales strategy is to maintain its position as the leading

brands, products and solutions to ensure that they are still the product of choice in each of the
segments; prepaid, postpaid and data services. To do this, in 2013 Telkomsel strengthen
marketing communications in building awareness and top of mind for the position of each
brand through mass media campaigns.
Telkomsel provides 95% of the population telecommunications throughout
Indonesia and covers more than 95% of the population. Geographically diversified business
is very important in the effort to enable the company to have revenue streams stronger and
more stable.
3.2.2

Technology Information
Continuous innovations made by Telkomsel in products and services that require

advanced technology support. It is clear that the development was to support the
implementation of the company's strategic objectives and initiatives in an effort to become a
world-class digital service providers.
3.2.3

Human Capital Management

In facing the changing business environment becomes digital business orientation

and to exploit the business opportunities in the area or region, Telkomsel is conducting
business transformation. Transformation of Human Capital Management (HCM) is an
integral part of that transformation. Transformation initiative that consists of:
Our People Transformation
Facilitating people to have their future career plans in addition to identifying young
talent diving internship program takes place.
The Telkomsel Way

Strategic program to support business transformation and culture within the

organization. To support the internalization of values of the new and to measure the
implementation of cultural transformation.
Transform Organization, Adaptive and More Agile
Digital business has a short product life cycles, Telkomsel requires adaptive
organization and speed in execution and internal processes to enable it to face the
challenges.

CHAPTER 4
BUSINESS MODEL

4.1

Business Model Canvas

Key partners

Key Activities

Aplication

Increasing

developers

signal (4G)

Retailers

Increasing

Banks

quality of

Trusted

customer care

manager
Jasper

Costumer

Proposition

Relationship

Segment

1. Information

School and

Communication
provider
Connecting

services
2. Customer

Collage
Market
corporate and

Internet access

handling

community

good signal

3. Handling

merketing

throughout

disturbances

and

strategy

Indonesia

4. Billing

businessman

Billing

Wireless

Costumer

complaint

Updating

service

Value

people

complain

Premium

handling

segment

Key Resources

Channels

IT expert

1. Office area

Marketers

2. School

Operating

Hausehold

3. Community

system staff
Server
Technichian
Engineer
Cost Structure

Revenue Streams

Operational cost

Pulse purchase

Research and development cost

Partnership

Maintanance cost

Products users

General and administrative cost

advertisement

Market cost

4.2

Key Performance Indicator

Business
Unit
Strategy

Strengthe
ning
media
business
portfolio
and
edutainm
ent well
as the
revitalizat
ion of the
cable
network
by
making
new
product.

Key
Perform
ance
Indicator

Target

Meas
urem

Baseline

ent

Resul
t

Reality

Achiev
ement

time

result

time

Performa
nce Score

Telkom

280/3=93,

new

33%

product
innovatio

1th

1th

10

10

3 month

10

ADSL

ADSL

wireless

wireless

Technolo

Technolo

gy

gy

100%

n which
have
variant
Good
quality of
services
with

3
month

100%

customer
growth
Strengthe

ADSL

n the use
of
technolog
y

wireless
Technolo
gy

2th

2th

100%

Total Performance Score

Average Performance Score

93,33
93,33%

CHAPTER 5
FINANCIAL PERFORMANCE

5.1

Financial Analysis
Table Income statement

Period
Revenues (in billion Rp)
Postpaid
Prepaid
Interconnection & International Roaming
Other
Total

5.151
55.690
4.656
755
66.252

Expenses (in billion Rp)

Operation & Maintenance
Depreciation & Amortization
Cost of Services
Interconnection
Personnel
Marketing
General &administrative
Others net
Total

15.127
11.672
4.176
3.157
2.687
2.451
1.396
104
40.563

Net Income
Net income after Tax (assumption 25%)

2014

25.689
19.266,75

Because of data limitations, the data used is data from 2014 obtained from the
annual report Telkomsel. Telkomsel financial statements prepared by the company and
exposed to be read by the shareholders or investors.
As we see from the annual report, total revenue sebesa telkomsel got Rp. 66.25
trillion and total net revenues of 19.26 trillion (assuming a 25% tax). Net revenues of 19.26
trillion in dadapat majority of pre-paid services (simPATI, AS, and LOOP) conducted by
Telkomsel. It has been done in the pricing strategy is to increase revenue with the right
pricing strategy, coupled with the use of traffic data is relatively high in that year, it resulted
in revenue from this business increased to 12.2%.

5.2

Financial Projection
Table Pro forma balance sheet
Assuming the company growing
6.6% per year

Period

2014

2015

2016

2017

2018

2019

Rp

Rp

Rp

Rp

Rp

Rp

19,300.00

20,573.80

21,931.67

23,379.16

24,922.19

26,567.05

Rp

Rp

Rp

Rp

Rp

Rp

58,887.00

62,773.54

66,916.60

71,333.09

76,041.08

81,059.79

Rp

Rp

Rp

Rp

Rp

Rp

78,187.00

83,347.34

88,848.27

94,712.25

100,963.26

107,626.84

Rp

Rp

Rp

Rp

Rp

Rp

18,106.00

19,301.00

20,574.86

21,932.80

23,380.37

24,923.47

Rp

Rp

Rp

Rp

Rp

Rp

8,469.00

9,027.95

9,623.80

10,258.97

10,936.06

11,657.84

Rp

Rp

Rp

Rp

Rp

Rp

Equity

51,612.00

55,018.39

58,649.61

62,520.48

66,646.83

71,045.52

Total liabilities & stockholders

Rp

Rp

Rp

Rp

Rp

Rp

equity (in billion rp)

78,187.00

83,347.34

88,848.27

94,712.25

100,963.26

107,626.84

Current asset

Non-current assets

Total asset (in billion rp)

Current liabilities

Non-burrent liabilities

Table Financial projection

Period
Debt
Equity
Interest loans (Cost of debt)
Interest rate of bank indonesia (cost of capital)
WACC
Period
Total invested capital
NOPAT (assume that sales will also grow 6.6%
RONA
EVA

Assumption:
Invested capital growth : 6.6%
Growth of BI rate : 1%

2014
33,989%
66,011%
12,000%
7,500%
9,030%

2015
33,989%
66,011%
12,000%
7,500%
9,079%

2016
33,989%
66,011%
12,000%
7,500%
9,129%

2017
33,989%
66,011%
12,000%
7,500%
9,180%

2018
33,989%
66,011%
12,000%
7,500%
9,231%

2019
33,989%
66,011%
12,000%
7,500%
9,282%

2014
78,187
19266,75
24,642%
Rp 12,206.85

2015
83347,342
20538,3555
24,642%
Rp 12,971.24

2016
88848,26657
21893,88696
24,642%
Rp 13,782.91

2017
94712,25217
23338,8835
24,642%
Rp 14,644.75

2018
100963,2608
24879,24981
24,642%
Rp 15,559.81

2019
107626,836
26521,2803
24,642%
Rp 16,531.31

5.3

Economic Value Added Valuation (EVA)

Table EVA

Period

2014

2015

2016

2017

2018

2019

Revenues (in billion Rp)

Postpaid
Prepaid
Interconnection & International
Roaming
Other
Total

5,151
55,69

5,924
64,044

6,812
73,56

7,834
84,698

9,009
97,402

10,361
112,012

4,65
755
66,252

5,354
868
76,19

6,158
998
87,618

7,081
1,148
100,761

8,143
1,132
115,875

9,365
1,519
133,256

Expenses (in billion Rp)

Operation & Maintanance
Depreciation & Amortization
Cost of Services
Interconnection
Personnel
Marketing
General & Administrative
Others net
Total

15,127
11,672
4,176
3,157
3,157
2,687
2,451
104
40,563

17,396
13,423
4,802
3,631
3,09
2,819
1,605
120
46,647

20,005
15,436
5,523
4,175
3,554
3,241
1,846
138
53,645

23,006
17,752
6,351
4,801
4,087
3,728
2,213
158
61,691

26,457
20,414
7,304
5,522
4,7
4,287
2,442
182
70,945

30,426
23,477
8,339
6,35
5,405
4,93
2,808
209
81,587

Net Income
Net income after tax (assumption 25%)

25,689
19,267

29,542
22,157

33,974
25,480

39,070
29,302

44,930
33,698

51,670
38,752