Building upon its legacy of innovation and resilience, Indosat Ooredoo Hutchison (Indosat or IOH) concluded FY 2023 on a high note, posting impressive financial results and solidifying its position as a key player in Indonesia's digital landscape. With revenue surging by 10% and EBITDA soaring by an impressive 23% YoY, Indosat's performance in 2023 underscored its strategic prowess and operational excellence.
As the digital revolution continues to unfold, Indosat remains steadfast in its commitment to driving innovation and empowering communities across Indonesia. With a solid foundation and a forward-looking vision, Indosat is poised to chart new frontiers and lead the charge in shaping Indonesia's digital future for generations to come.
Telco to TechCo Transformation
Indosat has set a vision to transform from a Telco to a TechCo. To achieve this, they are leveraging emerging technologies and fostering an innovation mindset. They have increased their 4G BTS by 30.7% YoY to 179 thousand 4G BTS to expand network coverage in rural areas and have integrated 46,000 network sites using Multi-Operator Core Network (MOCN) technology to improve indoor service quality and internet speeds. These network upgrades have resulted in a superior customer experience, with data traffic growing by 14.8% YoY and an increase in their fixed broadband customer base.
Indosat has also achieved success in the digital space. Indosat’s mobile apps and digital services have gained strong traction, indicating promising opportunities. The Monthly Active User (MAU) count for Indosat's myIM3 app and bima+ apps reached 37.7 million users in 2023, compared to the previous year. They have formed strategic partnerships with global tech leaders and invested over USD 829 million in capital expenditure to develop AI-powered infrastructure in Indonesia.
Indosat’s Strong Performance and Rural Connectivity Drive
Indosat had a successful fiscal year in 2023, with a 10% increase in total revenue amounting to USD 3,323 million. The company experienced growth across all business lines, leading to a 23% YoY increase in EBITDA to USD 1,553 million. Customer satisfaction also improved, with an increase in average revenue per user (ARPU) of 5.3% to USD 2.3.
Indosat is focusing on expanding connectivity to rural areas of Indonesia and bridging the digital divide. They have increased the number of available 4G BTS to improve coverage and service quality. By upgrading infrastructure in remote regions, Indosat aims to empower communities with access to information and opportunities. This connectivity has significant socioeconomic impacts, such as enabling farmers to access market prices and weather forecasts, students to continue education online, and healthcare workers to consult specialists remotely.
Indosat's investment in rural communities aligns with their goal of using technology to empower people and enhance lives. Indosat aims to extend its 4G infrastructure nationwide to ensure connectivity for all Indonesians. To sustain their achievements in a changing environment, Indosat must invest in infrastructure, embrace emerging technologies, recruit top talent, and prioritize customer requirements.
In January, Indosat forged a strategic partnership that aims to bolster Indonesia's internet infrastructure. This partnership focuses on establishing an Internet Exchange (IX) ecosystem, aiming not only to improve the quality of internet services nationwide but also to promote inclusive digitalization throughout the country. This initiative aligns with the visionary perspective of Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison, who is committed to unlocking the full potential of Indonesia's digital economy.
Empowering Growth
Strengthened its position by forming important partnerships with global technology companies, Indosat has the ability to offer cutting-edge services like data centers and AI cloud solutions to enterprise customers, all without the need to build expensive facilities of its own. Instead of investing resources into legacy infrastructure, Indosat is redirecting its capital towards exciting new opportunities in rapidly expanding sectors such as fixed broadband, data centers, and digital services.
By enhancing its digital services and venturing into the home broadband market, Indosat is strategically positioning itself to capitalize on the vast opportunities presented by Indonesia's growing digital economy. Additionally, Indosat has implemented measures to streamline its operations and enhance efficiency, such as integrating its network infrastructure, renegotiating contracts, and implementing cost-saving initiatives.
Empowering Indonesia: Forging Ahead as an AI-Powered Digital Nation
In addition to outstanding financial performance, led by Vikram Sinha, Indosat is at the forefront of Indonesia's ambitious journey towards becoming a Golden Indonesia by 2045. Indosat is driven by a vision where the transformative potential of AI and digital talent propels the nation towards unprecedented growth and prosperity. The commitment lies in democratizing access to technology, ensuring that every individual across Indonesia has the opportunity to harness the benefits of the digital revolution. With this ambition, Indosat is not only shaping the future of the nation but also positioning Indonesia as a global leader in the digital landscape.
Indosat recognizes the immense power of AI as a catalyst for change. By leveraging AI-driven innovations, will enable Indosat to unlock new avenues for growth, redefine traditional industries, and enhance productivity across sectors. The focus extends beyond mere technological advancements; they aim to cultivate a culture of innovation and inclusivity, where every Indonesian can actively participate and contribute to the digital economy. Through strategic investments in digital talent development and technological infrastructure, Indosat is paving the way for sustainable progress and development nationwide.
Innovation is the cornerstone of our approach at Indosat. We foster collaboration, creativity, and customer-centricity to address evolving needs and challenges in the digital era. By forging strategic partnerships with industry leaders and startups alike, we harness collective expertise and insights to drive meaningful change. Our ambition knows no bounds as we strive to position Indonesia as a hub of digital excellence, where ideas flourish, opportunities abound, and innovation thrives. Together with our partners and stakeholders, we are shaping a future where Indonesia stands tall as an AI-powered digital nation, driving progress and prosperity for generations to come.
In essence, Indosat's commitment to advancing Indonesia's digital agenda reflects our unwavering belief in the transformative power of technology. With Vikram Sinha's leadership guiding the path, Indosat is poised to overcome challenges, seize opportunities, and chart a course towards a brighter, more inclusive future for all Indonesians.
