Arifin Wiguna's PT Dini Nusa Kusuma (DNK) is one of the most important telecom company you never heard of. It provides satellite-based communications to some of the most remote areas of the country, such as to energy firms. While the company is relatively small now, with just $5 million in revenues, Arifin has big target: to raise revenues ten-fold in just one year to $50 million. The plan to do this is by aggressively entering the B2B market.
Arifin’s plans do not stop there. He would like DNK to go public in 2015, in which he expects to have doubled revenues from $50 to $100 million. Arifin also would like to acquire its own satellite, to give it better control over its services (the company right now buys satellite services from others).
According to Arifin, the founder and president commissioner at DNK, satellites are the best technology for overcoming the restraints posed by Indonesia’s landscape. “We are not competing against the terrestrial based telecommunications, but aggregating it with satellite technology,” says Arifin, 48.
When Arifin founded the company in 2001, DNK was a subsidiary of Indika Group, which provided telecommunications using 3G technology. In 2006, he led a group of executives in a management buyout of the company from Indika. Currently, Arifin owns a majority of the company’s shares; the rest are owned by four other senior executives.
In 2006, DNK entered the satellite telecommunication business after obtaining an official license as a data communication systems provider. Unlike Telkom, Indosat, Indovision and PSN, DNK does not have its own satellite; instead, it cooperates with satellite partners (Inmarsat, Iridium and Thuraya). DNK is now the only company in Indonesia that holds official licences for reselling the Inmarsat-4 service.
Chief Executive Officer Thomas Widodo says that the combination of rapid economic growth and low capacity in telecommunication infrastructure makes satellite-based communication a promising venture. “People’s needs and purchasing power are increasing. People are willing to spend their money not only on primary needs, but also on communication,” says Widodo.
Since Indonesians are some of the most active Facebook and Twitter users in the world, Internet use for business has to compete with Internet use for social media for bandwidth. “We want to provide secure connectivity for B2G and B2B so they do not have to compete with the consumer,” says Deputy CEO Hendra Widjaja. In B2B, DNK has customers in financial services, oil and gas, mining, plantation and transportations. As for B2G, DNK has customers in ministries and government bodies, law enforcement and emergency responses.