February 27, 2020 / 7:18 AM / a month ago

Indonesia's Telkom to raise up to $500 mln to invest in startups - deputy minister

JAKARTA, Feb 27 (Reuters) - Indonesia’s largest telecom company PT Telekomunikasi Indonesia (Telkom) is raising up to $500 million in funds for investments in startups as the company seeks a new source of growth, a deputy minister said on Thursday.

This would be the second fund raising by state-controlled Telkom aimed at startup investments and it will be launched “very soon”, said Budi Gunadi Sadikin, deputy minister of state-owned enterprises, in an industry conference.

He said the upcoming fund raising is targeted to be around $300 million to $500 million in size.

“This is important because Telkom is an industry with very high capital expenditure with declining EBITDA (earnings before interest, tax, depreciation and amortization) and flattening revenue,” Sadikin said.

“We have to move on from only digital infrastructure to digital platform and digital sources.”

Telkom had invested in 34 start-up companies in Indonesia and abroad in its first funding round, Sadikin said.

Reporting by Maikel Jefriando; Writing by Fransiska Nangoy; Editing by Amy Caren Daniel

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