Digital King
    Category: Special Features By : Ulisari Eslita Read : 1281 Date : Thursday, January 04, 2018 - 15:49:28




    Ahmad Zamroni / Forbes Indonesia

    To motivate the staff of state-run PT Telekomunikasi Indonesia (Persero), Chief Executive and President Director Alex J. Sinaga likes to post his own quotes—in huge easy-to-read letters—onto the walls of the company’s headquarters, from the executive floors all the way down to the ground-floor cafeteria. The quote directly in front of his office, which he and all the other top executives see daily is: “Smart enough is not enough. Disruptive is a must!” As he explains in an exclusive interview in early December: “The digital phenomena has disrupted all industries including the telco industry. If we’re not focused on digital, our business will be eroded, maybe even dramatically decreased,” says Alex.

    For Telkom (as it known), the business is hardly going down under Alex’s disruptive leadership. In fact, business has been going up—dramatically. Alex, 56, is a Telkom veteran, having first started at the state-owned firm in 1997 as the general manager of Telkom Malang, slowly working his way up over 15 years to become president director of Telkom’s largest subsidiary Telkomsel in May 2012, then head of Telkom in December 2014.

    When he arrived in 2014, Telkom’s revenue growth was in the single digits. In the two years to December 2016, Telkom’s combined total revenue growth has been 28%, to Rp 116 trillion. On the net profit side, it grew at 26% from Rp 15 trillion in 2015 to Rp 19 trillion in 2016. By the third quarter of last year, Telkom has booked Rp 97 trillion of revenue, representing a 12.5% increase from the same period last year. Meanwhile, net profit jumped 17.5% to Rp 35.6 trillion.

    Investors have approved of these figures under Alex’s watch. Before Alex took the helm of Telkomsel in 2012, Telkom’s stock had been stuck in a range between about Rp 1,000 to Rp 2,000 for four years. When he was named as head of Telkomsel, the stock was about Rp 1,600, and by the time he got to Telkom, it has risen to about Rp 2,800—a gain of 75%. The stock kept rising after that, now roughly Rp 4,100—a gain of about 50%. All told, during Alex’s six years of tenure first as head of Telkomsel and now Telkom, the company’s stock has more than doubled. Telkom has a market cap that stands at Rp 422 trillion (as Forbes Indonesia went to press), giving the firm one of the largest market caps on the IDX. In Alex’s office, a computer monitor hangs from the ceiling that has a live feed of Telkom’s stock price and trading volumes.

    Alex’s goal is for Telkom to be the “king of digital.” It is aptly summed up by another huge quote from Alex, entitled “The King of Digital,” this time posted on the wall of a company cafeteria on the ground floor of its headquarters building. The quote reads: “Telkom is now transforming to be a Digital Company and to be the King of Digital on the air through cellular, King on the land through fiber to the home, King in the sea through [the] Submarine Broadband Highway and strong footprints in the region. To be…a Digital Company, we are now transforming our people, culture, and organization.”

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