PT Telkom Indonesia (Persero) Tbk (Telkom) is a state-owned information and communications technology enterprise and telecommunications network in Indonesia. The Government of Indonesia is the majority shareholder with 52.09 percent shares while the remaining 47.91 percent shares belong to public shareholders. Telkom’s shares are traded on the Indonesian Stock Exchange (IDX) where it is listed as “TLKM” and on the New York Stock Exchange (NYSE), which lists it as “TLM”.
As it transforms to become a digital telecommunication company, TelkomGroup implements a customer-oriented business and company operational strategy. The transformation aims to trim down TelkomGroup’s organization to be leaner and more agile in adapting the fast-changing nature of telecommunications industry. The new organization is expected to be able to improve efficiency and be more effective in producing a quality customer experience.
TelkomGroup’s activities grow and change in accordance to the development of new technology, information and digitalization, but still within the corridor of telecommunications and information technology. This is evident in the newly developed business lines, which complements the company’s existing legacy business.
Telkom now categorize its portfolio into 3 Digital Bussiness Domain:
- Digital Connectivity: Fiber to the x (FTTx), 5G, Software Defined Networking (SDN)/ Network Function Virtualization (NFV)/ Satellite
- Digital Platform: Data Center, Cloud, Internet of Things (IoT), Big Data/ Artificial Intelligence (AI), Cybersecurity
- Digital Services: Enterprise, Consumer
PURPOSE, VISION AND MISSION
To respond the industry shift to Digital, to support National Digitization and to internalize the transformation agenda Telkom has redefined its Purpose, Vision, and Missions.
PURPOSE
To build a more prosperous and competitive nation as well as deliver the best value to our stakeholders.
VISION
To be the most preferred digital telco to empower the society.
MISSION
- Advance rapid buildout of sustainable intelligent digital infrastructure and platforms tat is affordable and accessible to all.
- Nature best-in-class digital talent that helps develop nation's digital capabillities and increase digital adoption.
- Orchestrate digital ecosystem to deliver superior customer experience.
CORPORATE CULTURE
The Telkom Way in Digital Era
BASIC BELIEF
Always the Best
CORE VALUES
Solid, Speed, Smart
KEY BEHAVIOURS :
- Practices to be The Winner : Imagine, Focus, Action
- Practices to be The Winner in Digital Era : Collaborative, Openness,
Desire to reach Purpose, innovativE, Self-organized (Telkom CODES)
HISTORY OF TELKOMGROUP
Strengthening National Telecommunications Access, Develop Indonesia’s Digital Society
Throughout its history, Telkom has gone through various business dynamics and transformative phases, such as the invention of telephone, changes in the origin company’s structure that led to the establishment of Telkom, the growth of cellular technology, development of the digital era and international business expansion as well as the company’s transformation to become a digital telecommunications company.
- 1882 – The Invention of Telephone
In 1882, the invention of telephone challenged the postal and telegraphic services, which had been in use from 1856 and gradually users were shifting to use this new invention. At that time, there were private companies that operated telephone business and with more players in the industry, it prompted the industry’s growth even further: by 1892 telephone was used for inter local connection and by 1929 it was available for international connection.
- 1965 – Telkom was Established
The Indonesian government established in 1961 the state postal and telecommunications company, Perusahaan Negara Pos and Telekomunikasi (PN Postel).
But due to the rapid development of telephone and telex services, the Indonesian government issued a government regulation, or the PP No. 30 dated 6 July 1965 which divided PN Postel’s postal and telecommunications industries into PN Pos Giro for postal services and PN Telekomunikasi for telecommunications services.
The division allowed each company to focus on developing their respective business portfolios. The establishment of PN Telekomunikasi is the origin of Telkom that it is today and since 2016, Telkom’s management declared that 6 July 1965 as the founding date of Telkom.
- 1995 – Growth of Cellular Technology Telekomunikasi Indonesia TLKM
- Digital Connectivity: Fiber to the x (FTTx), 5G, Software Defined Networking (SDN)/ Network Function Virtualization (NFV)/ Satellite
- Digital Platform: Data Center, Cloud, Internet of Things (IoT), Big Data/ Artificial Intelligence (AI), Cybersecurity
- Digital Services: Enterprise, Consumer
- Advance rapid buildout of sustainable intelligent digital infrastructure and platforms tat is affordable and accessible to all.
- Nature best-in-class digital talent that helps develop nation's digital capabillities and increase digital adoption.
- Orchestrate digital ecosystem to deliver superior customer experience.
CORPORATE CULTURE The Telkom Way in Digital Era
BASIC BELIEF Always the Best
CORE VALUES Solid, Speed, Smart
KEY BEHAVIOURS :
- Practices to be The Winner : Imagine, Focus, Action
- Practices to be The Winner in Digital Era : Collaborative, Openness, Desire to reach Purpose, innovativE, Self-organized (Telkom CODES)
1882 – The Invention of Telephone
1965 – Telkom was Established
Through this service, major cities in Indonesia are expected to be able to capitalize human resource, social capital, and modern telecommunication infrastructure to actualize continuous economy growth and high standard living quality. The program also will be actualized by public participation. Telekomunikasi Indonesia TLKM
The cooperation between Telkom and Grab includes cooperation to promote GrabRewards, which provides ease of payment for IndiHome and Wifi Managed Service (WMS) bills using the Grab application. Also, the two companies worked together to offer new installation of IndiHome and Wifi Managed Service (WMS), purchase of Add On IndiHome packages, and purchase of wifi.id vouchers using the Grab application.
Telkom Consumer Service Director Siti Choiriana, explained that the collaboration between Telkom and Grab includes cooperation that promotes GrabRewards. It provides ease of payment for IndiHome bills and Wifi Managed Service (WMS) using the Grab application. In addition to that, the two companies also work together to offer new installation of IndiHome, WiFi Managed Service (WMS), purchase of Add On IndiHome packages, and wifi.id vouchers on the Grab application.
"This collaboration is an integral part of Telkom's efforts to continue to provide the best service and convenience for customers, both IndiHome and Grab customers. New customers can easily subscribe via the application and old customers are facilitated in the payment process. This makes us even more optimistic that our 7.5 million IndiHome customers target is getting closer and we can realize it," Siti said.
Siti Choiriana further said the collaboration was one of TelkomGroup's efforts to accelerate Indonesia's digital economy progress by improving Indonesians’ digital experience.
Ongki Kurniawan, Executive Director, Grab Indonesia said, "Our vision as an everyday super app is to make customers’ life easier and more convenient through a variety of relevant services in the Grab application. With the support of Grab’s superb digital platform and the extensive IndiHome network throughout Indonesia, we believe this collaboration will enhance the customer experience in the country in making digital payments safely, easily, and adds value in the Grab application." Telekomunikasi Indonesia TLKM
Risk Management Policy
Telkom puts risk management into action to protect assets and business activities as well as creating value for stakeholders. Risk management is also a form of compliance for the current regulations. The role and function of risk management is very important to support the telecommunication business which has wide range of business areas, requires very large investments, and has high level of competition, rapid technological development, regulated business, as well as change in the way of communicating.
General Description of the Risk Management System
The implementation of the risk management system at Telkom is in accordance with regulation of SOE minister No.1 of 2011 which requires SOE to implement risk management. In addition, the implementation of risk management is also Telkom's obligation as a company listed on the New York Stock Exchange (NYSE) to meet the Sarbanes-Oxley Act, specifically article 302 and 404.
The implementation of risk management at Telkom in 2006 was initiated by the establishment of a Risk Management & Legal Compliance Unit (RMLC) under the coordination of the Executive Vice President (EVP). Furthermore, in 2007, a Directorate of Compliance & Risk Management (CRM) was formed under the control of the Director of CRM. With the improved level of risk management awareness and the greater business challenges, in 2013, the CRM Directorate function was changed to be Wholesale & International Directorate, while Compliance, Risk Management & General Affairs Department ("CRMGA") was formed under the Head of CRMGA responsibility to implement Governance, Risk, & Compliance management. In line with the dynamics of business and organization that continue to grow, therefore, in 2016, Risk Management function is run by the Sub-Directorate of Risk & Process Management which is the part of the Financial Directorate. The journey of performing Telkom Risk Management from 2006 to 2016 has led the company to a degree where risk has been taken into consideration in strategic and operational decision making, compliance monitoring, and in Internal Control over Financial Reporting (ICOFR).
The following is a diagram showing the development of the risk management function at Telkom
In 2017, Telkom continues to improve the application of risk management by emphasizing the Revenue Assurance & Fraud Management System. In 2018, Telkom will strengthen the Enterprise Risk Profile Group & Advisory through BCM, Revenue Assurance & Fraud, Insurance Management, and ERM Telkom Group.
The Risk Management Policy in Telkom refers to the regulation of the Board of Directors No.PD.614.00/r.00/HK.200/COP-D0030000/2015 on September 30, 2015 regarding Enterprise Risk Management (Telkom Enterprise Risk Management) and the regulation of Financial Director number PR.614.01 /r.00/HK200/COP-D0030000/2016 concerning guidelines for Implementation of Enterprise Risk Management (Telkom Enterprise Risk Management). Telekomunikasi Indonesia TLKM
As one of the largest state owned enterprises in Indonesia, which operates in telecommunications, Telkom has a corporate social responsibility (CSR) with a paradigm “Telkom is present for Indonesia, grow and develop together with the people of Indonesia”. Telkom believes that improved social welfare will impact on the growth of Telkom’s business and vice versa. Therefore, in accordance to our CSR paradigm, we apply the profit-people-planet (“3P”) principles in our CSR implementation.
LEGAL BASIS AND GENERAL POLICY
The legal basis to carry out the CSR program refers to a Government Regulation (“PP”) No.47/2012 on Social and Environmental Responsibility of Limited Liability Companies, which stipulates the implementation of Article 74 in the 2012 Law No. 40 on Limited Liability Companies. In accordance to the said law and regulation, Telkom issued a general policy for its CSR implementation laid out in the Corporate Policy No.PD.701.00/1.00/PR.000/COP-A3000000/2014 dated 14 October 2014 about the Management of Telkom Corporate Social Responsibility (Telkom CSR). Based on that policy, Telkom CSR program is divided into Partnership Program (“PK”), Community Empowerment Program (“BL”) and Public Relation CSR (“CSR PR”). The latter CSR program is a separate activity than the two former ones.
STRATEGY AND SCOPE OF CSR ACTIVITIES
Telkom implements its CSR program based on issues that Telkom considers as relevant and significant, while also emphasizes on Telkom’s three CSR principles, namely:
- Digital environment. It encompasses development, provision, and management of telecommunications infrastructure and various information and communications technology (ICT) facilities to support and connect all public activities including activities to preserve the environment.
- Digital society. It aims to support community empowerment through education on making the best use of ICT to make their daily lives easier.
- Digital economy. It develops ICT facilities in various public services and provides support for small medium enterprises, especially in the creative industry sector, by maximizing the use if ICT.
VISION, MISSION, AND GOALS
Vision:
Telkom has developed its CSR vision, “to be a leader in CSR implementation in Asia”.
Mission:
Telkom has set out a set of mission to achieve its CSR vision:
- Cause promotion
- Cause related marketing
- Corporate social marketing
- Corporate philanthropy
- Community volunteering
- Socially responsible business practice
Goals:
The goal is aimed to support the sustainability of the Company business through sustainable development in economy, social and environment, which involves TelkomGroup’s employees and stakeholders based on the triple bottom line, which are planet, people and profit.
- Planet. Taking into accounts efforts to preserve nature and environment in all the company’s operations.
- People. Developing reliable human resources when empowering the community through community development.
- Profit. Not merely seeking profits but also expecting to empower the local community’s economy. Telekomunikasi Indonesia TLKM
The legal basis for implementing Corporate Social Responsibility activities is regulated in Government Regulation ("PP") No.47/2012 concerning Social and Environmental Responsibility of Limited Liability Companies, which is implementing regulations from the provisions of Article 74 of Law No. 40/2007 concerning Limited Liability Companies.
More over, Telkom has established a general policy for implementing CSR through the enactment of the Board of Directors Regulation No.PD.701.00/ 1.00/ PR.000/ COP-A3000000/ 2014 dated October 14, 2014 concerning Management of Telkom Corporate Social Responsibility (Telkom CSR), so based on These general policies of the Telkom CSR program are divided into Partnership Programs ("PK"), Community Development Programs ("BL") and CSR Public Relations ("CSR PR"), namely activities outside the PKBL. Telekomunikasi Indonesia TLKM
These are the CSR programs that Telkom has carried out:
- Indonesia Digital Learning (IDL) & My Teacher My Hero
Indonesia Digital Learning (IDL) 2016 is annual program which reflects Telkom Indonesia’s commitment in education by training teachers about digital knowledge in an effort to implement a digital-based education activities in school and eventually establish a digital society amongst teachers.
My Teacher My Hero is Telkom Indonesia’s way to appreciate teachers in Indonesia who implement digital learning. These teachers were introduced first with digital knowledge through the Indonesia Digital Learning seminar. From the selected number of teachers, they would be trimmed down based on UNESCO’s evaluation standard to eventually pick eight teachers for the My Teacher My Hero program.
- Digital Library
The Digital Library or PaDi is a synergy between two state-owned enterprises, Telkom and publishing company Balai Pustaka, to distribute 1000 Digital Learning Corners in 1,000 points across Indonesia. Through PaDi, public and students can access books available online.
- Socio Digi Leaders
Socio Digi Leaders is a competition for creative ideas aimed to provide the most benefit for the people. The ideas developed could be aimed to address social, legal, environment, human resources, technology, business, products, system development issues or ideas for digital application.
- BUMN Present for the Country (BUMN Hadir untuk Negeri)
- Indonesia Independence Day celebration activities
This is the SOEs annual program to celebrate Independence Day during which the SOEs roll out programs such as SOEs Teach (BUMN Mengajar), House Makeover for Veterans (Bedah Rumah Veteran), Students Getting to Know the Archipelago (Siswa Mengenal Nusantara), Houses Electrification (Electrifikasi Rumah), Development of Water and Sanitation Facilities, and Fun Walk
- BUMN Hadir untuk Negeri during Ramadan
This is the SOE program during the fasting month of Ramadan. Programs carried out during the season are Holiday Exodus With (Mudik Bareng) BUMN and affordable market place which provides 200,00 items
- Disability Care
It is a Telkom CSR program, which is also part of the BUMN Hadir untuk Negeri activities, for the disabled, through which Telkom and other participating SOEs provide assistance such as disabilities assistance tools and training and certification, including I-CHAT, for the disabled community.
- Telkom Craft
Telkom Craft Indonesia was the first digital-based showcase for SMEs. It was part of an effort to implement the Good Corporate Citizenship values from Telkom’s community partnership and empowerment program, and as a form of Telkom’s active participation to boost economic, social progress and assistance to local SMEs so they can develop into a solid people-based economy.
- Study Tour and Real Experience VR Satellite Telkom 3S
This was a CSR program carried out as part of the Satellite 3S launch, which also served as a medium to educate and inform the public about what the real benefits of the satellite for the public. Telekomunikasi Indonesia TLKM
Telkom’s CSRE budget is derived from operational costs and listed as a CSRE budget in accordance to the Corporate Policy No.PD.701.00/2014 dated 14 October 2014.
The total funds allocated for 2016 was Rp24.13 billion, out of which
Rp19.26 billion was realized. The allocated budget increased from
Rp18.25 billion in 2015. Telekomunikasi Indonesia TLKM
Partnerships & Community Development Program
Telkom believes that the Partnership and Community Empowerment Program (PKBL) is not just about carrying out obligations as an SOE, but it is about putting efforts to manage with ethics and transparency the impact of the company’s operations and policies on the public and the environment. The implementation of PKBL program is also in line with the 3P (profit, people, planet) concept and in synergy with the Telkom Corporate Social and Environmental Responsibility program (Telkom CSRE).
Telkom’s commitment in executing the PKBL program is also in accordance to the Ministerial Regulation PER-09/MBU/07/2015 on SOEs Partnership and Community Empowerment Program. Therefore, the Corporate Development Center (CDC) unit now manages the Partnership and Community Empowerment Program, in accordance to the Policy on Managing Telkom PKBL, as regulated in the KD.21/PR000/COP-B0030000/2010 dated 19 April 2010 about the Management of Partnership and Community Empowerment Program, which was replaced by the Corporate Policy PD.701.00/r.00/PR000/CDC-A104000/2015 dated 10 December 2015 about the Management of Partnership and Community Empowerment Program
For further explanation on community empowerment by ANTAM, please click here.
- PARTNERSHIP PROGRAM
It is empowerment program for the marginalized to increase their income through micro, small and medium scale business activities, by providing them low-interest loans out of the funds set aside from the SOEs profit. The economic empowerment program for the marginalized are channelled through:
- Provision of soft loans;
- Entrepreneurship training;
- Creative developments for empowerment partners who are in the small, medium enterprises and cooperation
The Partnership Program is also a form of implementation of the Profit pillar in Telkom CSR’s Triple Bottom Line
Improvement on Quality of Partnership Program Management
To improve the quality of Partnership Program management, Telkom in 2016 focused in carrying out three main activities, which were:
- Digitalization of Partnership Program Management.
Since 2016 Telkom implemented a PK loan application service through the smartbisnis , web, loan installment payment through virtual accounts, which are aimed to ensure transparency and accountability in the PK funds.
* Smartbisnis: It is a digital-based service application through which users can submit their proposal for PK loan assistance and the public can access it through the smartbisnis web. Users can submit loan proposal through this app anytime without having to come to Telkom’s office. Telkom started to disburse PK loan through Smartbisnis to 7,171 empowerment partners since the beginning of 2016.
- Digital Training for Empowerment Partners
Telkom carried out his training in an effort to assist its empowerment partners to promote and market their products and to enter the global market through the marketplace website blanja.com. Telkom also organized training on export procedures to familiarize our partners with the global trade and export procedures and regulations.
- Participation of Empowerment Partners on national and international trade shows
Telkom facilitated its empowerment partners in 2016 to participate in an international event, Sail Karimata, which the Ministry of Fisheries and Maritime Affairs organized and was attended by national and international business people.
In March 2017, Telkom held for the first time, Telkom Craft Indonesia, in which hundreds of SMEs that Telkom and HIMBARA empower participated in the digital transactions took place during the exhibition.
2. ENVIRONMENT PRESERVATION PROGRAM
In accordance to the SOE Ministry regulation, the environmental conservation or PBL consists of eight areas and all of them are Telkom’s philanthropic activities, namely: humanitarian aid for victims of natural disasters, public health assistance, public facilities assistance, environmental conservation assistance, poverty alleviation assistance, and assistance on capacity building for empowerment partners.
- Humanitarian aid for victims of natural disasters
- Education and training assistance
- Community health assistance
- Development of public infrastructure and facilities
- Worship facilities assistance
- Environmental conservation assistance
- Poverty alleviation assistance
- Capacity Building for Empowerment Partners Telekomunikasi Indonesia TLKM
