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Jakarta Post

Minister tells Telkom to focus on data center

  • Made Anthony Iswara

    The Jakarta Post

Jakarta   /   Sat, February 15 2020   /  01:50 am

State-Owned Enterprises (SOEs) Minister Erick Thohir has criticized publicly listed state telecommunications giant Telekomunikasi Indonesia (Telkom) for being financially reliant on its subsidiary, cellular operator Telkomsel, for its revenue.Erick said on Wednesday that Telkomsel earnings made up nearly 70 percent of Telkom’s overall earnings. Thus, he wanted Telkom to change its core business and be less dependent on the subsidiary by focusing on areas such as big data and cloud computing."It's better to not have Telkom at all [with current conditions] and directly make Telkomsel a state-owned firm. Then, their dividends [earnings for the government] are clearer," Erick said during the launch of an SOEs internship program in Jakarta.Erick envisioned Telkom’s cloud and data center business as being competitive with that of Alibaba Cloud, a subsidiary of Chinese tech behemoth Alibaba...