Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (lit. Telecommunications Indonesia State-owned Public Limited Company) officially shortened into PT Telkom Indonesia (Persero) Tbk, also simply known as Telkom, is an Indonesian multinational telecommunications conglomerate with its corporate headquarters in Bandung and its operational headquarters in the Telkom Landmark Complex in Jakarta. Telkom is listed on the Indonesia Stock Exchange and has a secondary listing on the New York Stock Exchange. The government of Indonesia owns over half of Telkom's shares outstanding.
Telkom has major business lines in fixed line telephony, internet, and data communications. It is operated as the parent company of the Telkom Group, which is engaged in a broad range of businesses which consist of telecommunication, multimedia, property, and financial services. Since 2008, Telkom Indonesia began changing its business focus, infrastructure, systems, organization and human resources, as well as the corporate culture, in an effort to face rising competition.
After privatization in 1995, Telkom Indonesia's total consumer base grew by 7.8% in 2010 to 129.8 million customers at the end of December 2011, making the company the nation's largest telecommunication service provider in terms of subscriber count.
History
Telkom is one of the world's oldest telecommunication companies. The company can be traced back to the establishment of the first electromagnetic telegraph service in Indonesia on 23 October 1856, by the Dutch colonial government to connect Batavia (Jakarta) and Buitenzorg (Bogor).
In 1884, the Dutch colonial government founded a private company with its headquarters in Bandung to provide postal and domestic telegraph services and, later on, international telegraph and telephony services.
Early years
Telephony services had been introduced to Indonesia in 1882 by privately owned companies under a 25-year government license.
In 1906, all postal and telegraph services in Indonesia were taken over by the government as a single, unified government agency named Post, Telegraph and Telephone Service (, PTT).
In September 1945, roughly a month after the Indonesian proclamation of independence, the agency headquarters in Bandung was taken over by Indonesian nationalists.
In December 1949, after years of national revolution war, the PTT was nationalized by the Indonesian Government as part of an Indonesian effort to oust the remaining Dutch and nationalize Dutch corporate assets.
State-owned company
In 1961, PTT was converted from an official government agency into a newly established statutory corporation, the Postal and Telecommunications Services company.
Four years later, on 6 July 1965, Indonesian Government separated this company into two statutory corporations; PN Pos Giro, responsible for providing mail services and PN Telekomunikasi for telecommunications services. The mail services PN Pos Giro developed over the year became the Pos Indonesia in 1995, which is still state-owned today and the official postal carrier for Indonesia's population of 230 million.
In 1974, PN Telekomunikasi was further divided into two state-owned companies. Perusahaan Umum Telekomunikasi (Perumtel) provided domestic and international telecommunications services, while PT Industri Telekomunikasi Indonesia (PT INTI) manufactured telecommunications equipment. A further division in 1980 saw the international telecommunications business taken over by the newly nationalized PT Indonesian Satellite Corporation (Indosat).
In 1991, Perumtel became a state-owned perseroan terbatas and renamed to what is now Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia or Telkom. Until 1995, Telkom's operations were organized along twelve regional operating units known as Wilayah Telekomunikasi or Witel. Each Witel had full responsibility for all aspects of business and operations in their respective regions, such as telephone services, property management, and security.
In 1995, Telkom reorganized the twelve Witels into seven regional divisions and one network division. Under a series of Cooperation (KSO) Agreements, Telkom transferred the right to operate five of its seven regional divisions (I, III, IV, VI, and VII) to private sector consortia. Under these agreements, the KSO partners manage and operate the regional division concerned for a fixed term, build a specified number of fixed lines which at the end of the term, transfer the telecommunications facilities to Telkom for an agreed amount in compensation. Revenues from the KSO operations were shared between Telkom and the KSO partners.