President Director and Chief Executive Officer of Indosat Ooredoo Hutchison (Indosat), Vikram Sinha, discussed the story of Indosat, the most successfully merger that empowers Indonesia. Indosat is the new world-class digital telecoms and internet company for Indonesia resulting from the merger of Indosat Ooredoo and Hutchison 3 Indonesia.
Why is this telco merger a unique one?
During the roundtable discussion, Sinha highlighted that telco mergers often fail for various reasons, such as difficulty integrating different technologies and systems, regulatory hurdles, and challenges in retaining key personnel and customers. However, Indosat’s successful merger has transformed the telecommunications industry and Indonesia’s GDP growth.
Indonesia is one of the fastest-growing economies in the world and one of the most prominent digital economies in ASEAN. Digital adoption enables Indonesia to reduce the time to realize its long-term goal of achieving high-income status. Indosat, a digital telco with 100 million subscribers, is transforming rapidly to help drive the digital revolution in the country.
Sinha discussed how the merger had exceeded all expectations for 2022, giving a positive outlook for Indonesia’s market and the opportunity to grow in the telco industry. Indosat has an ongoing 9-quarter integration plan, and the realization of their synergies is running smoothly and has been completed ahead of the plan. Using Multi-Operator Core Networks (MOCN) technology, their network integration is targeted to be completed this quarter.
Where does Indosat rank in the telco industry?
Indosat launched a research report titled Empowering Indonesia 2023, which reviews the pillars of Indonesia’s digital economy and the role of technology in accelerating its future growth. The results of the research report showed that Indosat is the primary driver of the telecommunications industry and Indonesia’s GDP growth, fueled by its solid growth in 2022.
Indosat’s 2022 Result shows a solid performance, financially and operationally. Total revenue increased by 48.9% YoY, EBITDA was recorded at Rp19,468.7bn, and net profit for the year attributable to parent company owners was Rp4,723.4bn, normalized net profit increased by 76.2% YoY. The company’s cellular clients increased by 62.5% to 102.2 million for FY 2022.
Commenting on Indosat, Vikram Sinha, President Director and Chief Executive Officer of Indosat Ooredoo Hutchison, said, “We have defied expectations and become the successful merger in the world. Indosat is not just good for the industry; it’s good for Indonesia. We will continue to drive the digital revolution and create value for all our stakeholders.”