Telkom plans to acquire 10 startup fintech and e-commerce

Telkom plans to acquire ten startup fintech and e-commerce. PT Telkom Indonesia Tbk (IDX: TLKM, NYSE: TLK) has budgeted 23 to 25 percent of its total capital expenditure in 2016 of Rp116.33 trillion (US$8.7 billion). Telkom's Director of Digital and Strategic Portfolio, David Bangun, said the fund is part of an effort to develop the company's core business.

Tinuku Telkom plans to acquire 10 startup fintech and e-commerce

"If we are not able to develop organically yes we will acquire other companies. This needs business development in the future," said Bangun.

"But our guidance is a disclose to media investments, 23-25 percent of revenue. But that's not the act of acquisition and merger, it's a capital expenditure for organic activity, not inorganic," Bangun said on Monday.

Bangun said the company is being vigorous to develop the business forward. The company said it would choose to make the acquisition, if they were unable to develop it themselves. Telkom also said it had targeted 10 companies in the field of fintech and e-commerce to be acquired.

"But in the evaluation process, there are approximately 10 initiatives being evaluated and no closed deal yet. The ten companies are domestic and global in fintech and e-commerce," Bangun said.

PT Telekomunikasi Indonesia (Persero) Tbk is a full service provider and telecommunication network in Indonesia. Telkom claims to be the largest telecommunication company in Indonesia with 15 million fixed telephone subscribers and 104 million cellular subscribers.

Telkom shares currently owned by the Government of Indonesia amounted to 52.56%, the rest owned by Bank of New York and other investors. The telecommunication giant also has a majority stake in 13 subsidiaries including Telkomsel.