Telkom Earns IDR 1.4 Trillion a Year from GoTo, Here’s the Source

Jakarta, Reportase – The business synergy between Telkom and GoTo is bearing fruit. PT Telekomunikasi Indonesia (Persero) Tbk. also earned IDR 1.4 trillion in revenue from this corporate action throughout 2022.

Telkom Main Director Ririek Adriansyah explained that Telkomsel’s investment returns in GoTo are not limited to the potential return on investment.

Telkomsel also earned operating income from the company’s synergy with the technology company resulting from the merger of Gojek and Tokopedia.

“So one of the reasons we invest in GoTo is synergy, with Telkomsel, it’s easiest with Gojek drivers, Telkomsel SIM cards can be offered,” said Ririek in interviews with several media, quoted Monday (10/4/2023).

The income that Telkomsel has received from many synergy programs with GoTo, including purchasing credits, has reached IDR 1.4 trillion in 2022.

Ririek said the revenue from the synergy resulted in an inflow of money into Telkom’s cash. On the other hand, the outflow of money from Telkom’s cash will only occur once, namely when Telkomsel invests in 2021.

“There will be more cash flow later, after later [saham GoTo yang dimiliki Telkomsel] for sale. So far there has been no cash flow whatsoever,” said Ririek.

Telkom recorded an unrealized investment loss of IDR 6.44 trillion in the 2022 financial report. This loss had a major impact on the company’s bottom line, namely a profit of IDR 27.68 trillion.

Specifically, these losses mostly accumulated from a significant reduction in the value of investments in GoTo. As of December 31, 2022, Telkomsel assessed the fair value of its investment in GOTO using the market value of GOTO’s shares of Rp 91 per share.

Ririek explained that the loss did not reflect the company’s cash flow because it was limited to accounting records. “What matters is operating profit, which is what we’re looking at.”

[Gambas:Video CNBC]