Indonesia's IOH Makes Comeback, Revenue Up 12.4%

In a spectacular move, Indonesian telecommunications provider PT Indosat, trading as Indosat Ooredoo Hutchison (IOH), recorded a net profit of $470 million in 2021 after beating an obstacle from the previous financial year when it suffered a loss of $49 million.

The collaborative enterprise between Ooredoo and Hutchison Asia Telecom Group said in an earning release that its total revenue increasing 12.4 percent year-on-year (yoy) to $ 2 trillion.

Year 2021 marks the last fiscal year for the Company before its merger with PT Hutchison 3 Indonesia to form Indosat Ooredoo Hutchison, which was completed in January 2022.

Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison, said: “We have been able to deliver strong and consistent performance in the last three years because of the focused execution of our turnaround strategy. We at Indosat Ooredoo Hutchison are obsessed with delivering superior customer experience, which will continue to remain our core priority going forward.”

In addition, more advantages was achieved by having the customer base of the company increase and expanding by 4.4 percent YoY to 62.9 million subscribers in 2021. Hence, the Average Revenue per User (ARPU) also saw an increase to $2 trillion, from previously 2.22 in FY 2020, said the release.

The company added that its network experience enhancements and fine-tuned product portfolio resulted in data traffic growth by 36.7 percent YoY. Strong performance on operational metrics reflects growing customer trust in brand IOH.

“The Company successfully launched commercial 5G services in Solo, Jakarta, Surabaya, Makassar, and Balikpapan. It also expanded its 4G video-grade network coverage across the country, building 187 new sites to provide internet connectivity to hundreds of remote villages in Aceh, Sumatra, Kalimantan, and Sulawesi. During the year, the Company also entered into a strategic partnership with global digital players like Snap, Cisco, and Google to accelerate digitalisation for consumers and businesses across Indonesia,” the release said.

It is worth mentioning that the competition between  telecommunications operators in the country is dominated by cellular market with the number of customers at the end of 2013 has positioned three big companies: Telkomsel Tbk, PT. XL Axiata Tbk, and PT. Indosat Tbk with 131,513 million users, 60,172 million user and: 59.6 million user, respetively. The operators determine prices and other competitive strategies with thre rest of the market are taken by PT.