Jakarta,Indonesia – Indonesian markets presented a mixed performance today,with the Jakarta Composite Index (IHSG) posting a marginal gain while foreign capital experienced a significant outflow. Meanwhile, the Indonesian Rupiah (IDR) weakened against the U.S. dollar, and gold prices surged.
The IHSG closed at 6,446,up a scant 0.12%. However, foreign investors pulled out a net Rp687 billion (approximately $42.7 million USD) from Indonesian equities, signaling some caution among international players.
The Rupiah depreciated to 16,805 against the dollar, a 0.12% slip, potentially reflecting the foreign outflow and broader concerns about emerging market currencies.Bucking the trend, gold prices soared to 3,406, marking a ample 2.31% increase, as investors sought safe-haven assets amid global economic uncertainties.
In the commodities sector, oil prices declined to $66.1 a barrel, down 2.63%, while coal prices edged up to $95.0 a ton, a 0.85% increase. Crude Palm Oil (CPO) prices declined to 3,911, or 1.61%. Nickel prices also fell to 15,622 or -0.39%.
Telkom Indonesia reports Earnings
In company news, Telkom Indonesia (TLKM), the country’s largest telecommunications provider, reported a net profit of Rp5.9 trillion (approximately $366 million USD) for the fourth quarter of 2024,an 18% year-over-year increase and 1% increase quarter-over-quarter. The result brought full-year 2024 net profit to Rp23.6 trillion (approximately $1.46 billion USD), a 4% drop compared to the previous year. Still, these numbers were in line with market expectations.
Key Points from Telkom Indonesia’s Earnings Report:
Stable Customer Base,Rising ARPU: Telkom’s mobile subscriber base remained steady at 159.4 million in Q4 2024, showing no year-over-year growth but edging up 1% from the previous quarter. The average revenue per user (ARPU) for mobile services stood at Rp44,000, a 5% year-over-year decrease but a 2% increase quarter-over-quarter. This quarterly ARPU growth is the first since a downward trend began in Q2 2023, when it peaked at Rp49,700. The increase signals a positive growth for the telecommunications industry amid intense price competition.
Broadband Growth, ARPU Decline: the company’s broadband subscriber base grew in Q4 2024, increasing 8% year-over-year and 1% quarter-over-quarter. Though, broadband ARPU fell to Rp233,000, a 6% year-over-year and 1% quarter-over-quarter reduction. Analysts attribute this decline to Telkom’s “fixed mobile convergence” strategy and stiff price competition in the fixed broadband market.
Operating Profit Impacted by Marketing Costs: Despite improved operational metrics, Telkom’s operating profit for Q4 2024 decreased to Rp10 trillion, a 1% year-over-year increase but a 6% decrease quarter-over-quarter. This decline was primarily due to increased marketing expenses, which rose to Rp1.3 trillion, up 38% year-over-year and 36% quarter-over-quarter. These costs were associated with customer loyalty programs. For the full year 2024, TLKM operating profit was Rp42.4 trillion (-6% yoy) and slightly below expectations.
Dividend Potential: based on projections, Telkom Indonesia may distribute a dividend for the 2024 financial year of around Rp 167-191 per share, representing a dividend yield of around 6.5-7.4% based on the share price as of Monday, April 21 at the level of Rp 2,570 per share.TLKM plans to hold an Annual General meeting of Shareholders on May 27,2025 to determine the distribution of dividends for the 2024 financial year.
Telkom Indonesia’s financial performance and strategic initiatives remain a focal point for investors as the company navigates a dynamic telecommunications landscape.
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