OFF-BALANCE SHEET ARRANGEMENTS TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS
- 76 - D.
The significant trends, or developments that have had in recent years, and may have in the future, a material impact on our results of operations, financial condition and capital expenditures, include i an increase in cellular telephone revenues with increases in
subscribers, minutes of use, ARPU and regulatory aspects ii an increase in revenues from data, internet and information technology services revenues, and iii a decrease in fixed lines telephone revenues. See “Operating Results”.
We believe favorable external factors, among others, will support our ability to continue to drive revenue growth from data, internet and information technology services as well as from mobile phone services. Indonesias economy recorded a relatively robust growth
in recent years despite a sluggish global economy. With good economic fundamentals, Indonesia’s national economy is expected to continue to grow steadily, with a corresponding increase in consumer purchasing power, which in turn is expected to result in higher
demand for telecommunications services, for both basic telecommunications services as well as the more sophisticated value-added services that are part of the increasingly prevalent digital lifestyle in modern societies.
In the longer term, Indonesia’s economy is also expected to enjoy support from Government initiatives such as the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development, which was launched in 2011. One of the three pillars of the
master plan is development of national connectivity, including development of the information and communication technology sector. This is in line with our IDN program and our strategic initiative on the development of our Nusantara Superhighway project i.e. the
Palapa ring project known as id-Ring, an optical-based network of six interconnected rings which links Indonesia’s main island groups, namely the Sumatra ring, the Java ring, the Kalimantan ring, the Sulawesi ring, the Bali and Nusa Tenggara ring and the
Maluku and Papua ring. We expect that the development of this extensive telecommunication network connecting all the six major economic corridors will allow us to offer more value-added services, and to reach more customers in a much larger scale, as well as
provide opportunities for our products and services in the IMES areas.
We believe the shift in consumer preferences towards a digital lifestyle will be a key factor that we expect will drive our business in the future. We believe this will lead to continuing increase in broadband demand including mobile broadband, compensating for the
decline of our legacy business both fixed wireline and cellular telephone revenues and SMS revenues. We expect the increase in demand for data communications and corporate internet to continue next year as we increase our capacity to cover more small and
medium enterprises.