SR Telkom 2013 English Final lowres
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
Prioritizing
Customers
GRI G4
Core Index
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
Creating Sustainable
Global Talents and
Opportunities
1
2
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability
Performance
Overview
About Telkom
About
This Report
Economic
Growth
G4-31
DISCLAIMER
Several parts of this Sustainability Report include forward-looking statements, including our expectations and projections
related to future sustainability performance. These statements generally make use of words such as “commitment”,
“believe”, “expect”, “anticipate”, “estimate”, “project” or other similar words. In addition, all statements other than historical
facts included in this sustainability report can be categorized as forward-looking statements. Although we believe that the
expectations relected in the forward-looking statements are reasonable, we can give no assurances that such expectations
will prove to be correct. Statements that are forward looking are subject to risks and uncertainties, including changes in the
economic, political and social environments in Indonesia.
PERSONAL CONTACT (3.4)
For further information regarding this Report, please contact
Investor Relations, Grha Merah Putih 5th Floor, Jl. Jend. Gatot Subroto Kav. 52, Jakarta 12710, Indonesia. Tel: (62-21) 521 5109,
Fax: (62-21) 522 0500 or email: investor@telkom.co.id. You can also download this document from our website
http://www.telkom.co.id.
Telkom Shares
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
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2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
Creating Sustainable Global
Talents and Opportunities
International expansion has resulted in
Telkom now standing alongside worldclass companies and ensures sustainable
future growth.
As a company strongly committed
to maintaining balanced high-quality
growth, Telkom has implemented various
educational programs to facilitate the
whole of Indonesian society, including
business corporations, SME and micro
enterprises, to take part in the global
market with the support of world-class
TIMES services and to operate more
eiciently and in an environmentally
friendly manner.
1
2013 Sustainability
Performance
Overview
About Telkom
About
This Report
Economic
Growth
Telkom Shares
Contents
2
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability Performance
Overview
Report from the President Director
About Telkom
Products and Services
24
Company Scale
27
Relationship with Suppliers
(Supply Chain)
27
Signiicant Changes
28
Mitigation Principle
Approaches
28
Commitment to External
Initiatives
29
Industry Association
and Other Organization
Memberships
29
Operational Structure and
Share Ownership
29
About This Report
Determining Materiality Level
34
Report Boundary
35
Supply Chain
35
Determining Material and
Boundary Aspects
36
Materiality and Boundary
Aspects
36
Relations with Stakeholders
37
Signiicant Changes from the
Previous Year’s Report
37
Personal Contact
37
Community Economic
Empowerment
44
Development Partner
Success Stories
46
Telkom Shares
Corporate Social
Responsibility Development
Strategy
50
Community Empowerment
Program
51
Community Development
Program
51
Economic Growth
Supporting Indonesia’s
Economic Growth
40
Development Strategy
40
Supporting Improved
Economic Conditions for
Stakeholders
Telkom Preserves the Environment
Environmental Impact of
Telkom’s Activities
62
41
Implications, Risks and
Business Opportunities
Related to Climate Change
62
Contribution to State
Revenue
42
Participation in
Environmental Conservation
63
Fostering a Healthy and
Environmentally Friendly
Culture
66
Supporting Environmentally
Friendly Economic Activities
66
Report Content
Determination Process
33
Supporting Regional
Economic Growth
43
Report Content
Determination Process
Flow Chart
33
Fostering Good
Relationships with Partners
43
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
Participation in Greening
Activities
67
Environmental Costs and
Awards
67
Telkom’s People
Developing Employee
Competencies and Careers
70
Beneits
74
Occupational Health, Safety
and Environment (HSE)
76
Industrial Relations
78
IT-based HR Service System
80
Culture Transformation
81
Employee Proile
82
Awards
83
Prioritizing
Customers
GRI G4
Core Index
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
Telkom Governance
GCG Framework and
Performance
86
Governance Strengthening
Roadmap and Initiatives
86
Company Governance
Structure
88
Code of Ethics and
Corporate Culture
Whistleblowing System
3
Fulilling Customer Needs
and Improving Customer
Satisfaction
104
Marketing Strategy and
Customer Privacy
107
Marketing Communication
108
Improving Service Quality
109
91
Handling Customer
Complaints
110
94
Customer Satisfaction
Surveys
111
Consumer Protection
111
Prioritizing Customers
The Future of Indonesia’s
Telecommunication Industry
102
Universal Service Obligations
and Competition
103
GRI G4 Core Index
Glossary
4
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability
Performance
Overview
About
This Report
About Telkom
Economic
Growth
Sustainability Performance
Overview
Economic Performance Overview
Economic Value Generated
Economic Value Distributed
(Rp billions)
(Rp billions)
84,322
77,882
60,298
71,900
57,640
49,796
2011
2012
2013
2011
2012
2013
Retained Economic Value
Contribution to State Revenue
(Rp billions)
(Rp billions)
26,682
15,874
16,742
14,780
22,104
17,584
2011
2012
2013
2011
2012
2013
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Community Empowerment
Total
Community
Development
Disbursement
Rp
55.8
billion
(including administrative costs)
Total Soft Loan
Disbursement
Total
Development
Partners
Training
Costs for
Development
Partners
Rp
118.2
3,975
Rp
2.9
billion
partners
billion
5
6
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability
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Environmental Performance
Highlights
Programs
Conserved energy at
3,996 outdoor BTS and utilized
renewable energy sources for BTS in remote areas.
Energy efficiencies in office buildings by:
•
•
•
•
•
•
Use of capacitor banks to improve power factors.
Use of relective glass.
Replacing conventional light bulbs with LED bulbs.
Applying building automation for cooling systems.
Applying lighting zoning schemes.
Installing timers for outdoor lighting.
Implementation of a paperless oice for online oice
applications, resulting in reduced paper use of at least
7,966 reams per year.
Promotion of a healthy and environmentally friendly culture
through the
Bike to Work and Earth Hour programs.
Recycling water for outdoor requirements and to water plants.
Telkom Preserves
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Results and Program Realization
Reduced CO2 emissions of at least
961.39 tons carbon equivalent.
Beach cleaning at Pulau Pramuka
in Kepulauan Seribu, to reduce the
environmental impact of 100 tons of trash
per day from Jakarta.
Creation of a Green Belt to minimize
coastal abrasion in Indramayu.
Planting
15,000 mangrove seedlings
in Kampung Garapan, Tangerang.
Planting trees / regreening in Bandar
Lampung, Makassar.
7
8
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2013 Sustainability
Performance
Overview
About Telkom
About
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Telkom Shares
Social Performance Highlights
Building Social Welfare
Fund disbursement for Community Development Program
Education and Training
Religious Facilities
(Rp billion)
(Rp billion)
20
13.28
2011
2012
2013
2011
.21
2012
2013
Public Facilities
Victims of Natural Disaster
(Rp billion)
(Rp billion)
6.19
1.41
5.54
5.28
1.47
0.49
2011
2012
2013
2011
2012
2013
Community Health
Environmental Conservation
(Rp billion)
(Rp billion)
2.44
7.80
5.37
4.65
0.96
0.50
2011
2012
2013
2011
2012
2013
Telkom Preserves
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Telkom’s
People
New Program:
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9
Poverty Alleviation with Funding of Rp6.63 billion
Programs
Education and Training
Dedicated to My Teacher program conducted in six cities; participants were
Junior and Senior High School teachers.
Internet Education in disadvantaged villages in Banten and West Java.
Bandung Knowledge Cloud in cooperation with the Institute for Innovation
and Entrepreneurship Development (“LPIK”) ITB.
Integrated Digital School – Applying DNA (device-network-application)
technology for school communities, reaching 25 schools in Central Java,
Yogyakarta, East Java and Bali.
Edu Campus Development Center (“ECDC”) program – A program to equip
undergraduate students with knowledge of Microsoft application software.
Indonesia Digital School (“IndiSchool”) – A program to install Wi-Fi
equipment in 100,000 schools across Indonesia to “Develop a Smart
Indonesia”.
Assistance to Increase Public Religious Activities and Facilities
Building Islamic boarding schools and mosques in various areas, as well as
assistance to construct church buildings in Toraja, Papua, Simalungun and Toba
Samosir.
Assistance Developing Public Facilities and Infrastructure
Broadband Learning Center (BLC) – assisting with internet access in remote
areas.
Independent Community Electricity (Listrik Mandiri Rakyat) Program –
installing pico-powered village-based electricity generation installations in
two villages in East Java.
Establishment of Taman Bungkul – a public park with Free Wi-Fi facilities.
Assistance to Victims of Natural Disaster
Donations for disaster and post-disaster relief related to Mt. Sinabung, looding
in various areas and the Aceh earthquake.
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2013 Sustainability
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Telkom Shares
Kaleidoscope
1856-1882
On 23 October 1856, the Dutch-East
Indies colonial government operated
the irst electromagnetic telegraph
service in Indonesia, connecting
Batavia (Jakarta) and Buitenzorg
(Bogor).
1974
1991
PN Telekomunikasi was divided
into two divisions, PT Industri
Telekomunikasi Indonesia (”PT INTI”),
which produced telecommunication
equipment, and Perusahaan Umum
Telekomunikasi (“PERUMTEL”), which
provided domestic and international
telecommunication services.
Perumtel became PT Telekomunikasi
Indonesia, or Telkom, with its
business operations split into
twelve telecommunication areas
(“Witel”). These twelve Witel were
then reorganized into seven regional
divisions (“DIVRE”), namely
Division I Sumatera, Division II
Jakarta and its surrounding area,
Division III West Java, Division IV
Central Java and DI Yogyakarta,
Division V East Java, Division VI
Kalimantan and Division VII Eastern
Indonesia.
1906-1965
The colonial government formed
a state agency to control postal
and telecommunication services in
Indonesia. In 1965 the Postal and
Telecommunication Services were
separated into two state-owned
enterprises, PN Pos and Giro and
PN Telekomunikasi, which managed
these services.
1980
The international telecommunication
service was taken over by
PT Indonesian Satellite Corporation
(“Indosat”).
1995
Telkom implemented its Initial
Public Ofering on 14 November
1995 on the Jakarta and Surabaya
Stock exchanges. On 26 May 1995,
Telkom established a subsidiary,
Telkomsel, to handle the cellular
telecommunications business.
1999
The Telecommunications Law (Law
No. 36/1999) came into efect in
September 2000 and facilitated
the entry of new players into the
telecommunications industry to
stimulate a competitive business
environment.
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11
2001
2009
2012
Telkom acquired 35% of Indosat’s
shares in Telkomsel, thus becoming
a majority shareholder in the cellular
company with 77.7% shares. Indosat,
meanwhile, took over 22.5% of
Telkom’s shares in Satelindo and
37.7% of Telkom’s shares in
PT Aplikanusa Lintasarta. At the
same time, Telkom lost its right to be
sole provider of ixed line telephony
services in Indonesia.
Telkom transformed from an
infocomm company to a provider
of Telecommunication, Information,
Media & Edutainment (“TIME”).
Telkom’s new look was introduced to
the public with a new logo and a new
tagline: “the world in your hand’’.
Telkom increased broadband
penetration with the construction
of Indonesia Wi-Fi to realize the
Indonesia Digital Network (“IDN”).
The business portfolio changed from
TIME to TIMES (Telecommunication,
Information, Media, Edutainment &
Services) to improve business value
creation.
2002
Telkom reee
7
es
in Telkomsel to Singapore Telecom
Mobile Pte Ltd (“SingTel Mobile”).
2004
Telkom launched international direct
dialing for ixed line telephones.
2005
The Telkom-2 satellite was launched
to take over all satellite transmission
services previously handled by
Palapa B-4 satellite. This launch
made it the eighth satellite launched
by Telkom, including Palapa A-1.
2010
The JaKaLaDeMa submarine iberoptic cable project connecting Java,
Kalimantan, Sulawesi, Denpasar and
Mataram was successfully completed
in April 2010.
Telkom Corporate University was
established to develop human
resources able to compete in the
international business world (from
competence to commerce).
2011
Telecommunication infrastructure
reformation commenced with the
Telkom Nusantara Super Highway
project, to connect the archipelago
from Sumatra to Papua, and the
True Broadband Access project,
which provides internet access with
a capacity of 20-100 Mbps to all
customers across Indonesia.
2013
Telkom now operates
in seven countries:
Hong Kong-Macau,
Timor Leste,
Australia, Myanmar,
Malaysia, Taiwan and
the United States of
America.
12
2013 Sustainability Report
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2013 Sustainability
Performance
Overview
About Telkom
with our Vision,
and
About
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Economic
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Telkom Shares
Mission
Values...
VISION
To become a leading
Telecommunication, Information, Media,
Edutainment and Services (“TIMES”)
player in the region.
MISSION
• Provide more for less TIMES services.
• Be the role model for best managed
Indonesian corporation.
Corporate Culture
The New Telkom Way
Philosophy to be
the best
Always The Best
Principle to be the
star
Solid, Speed, Smart
Practice to be the
winner
Imagine, Focus, Action
Our Vision and Mission are recorded in the company’s long-term plan and were approved by the Board of
Commissioners on 30 May 2013 in the Board of Commissioners’ Decree No. 06/KEP/DK/2013/RHS.
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..as well as our Strategic
Initiatives...
1
Centre of Excellence.
2
Focus on portfolios with high growth or value.
3
Accelerated international expansion.
4
Transformation costs.
5
IDN development (id-Access, id-Ring, id-Con).
6
Indonesia Digital Solution (“IDS”) – convergence service
for digital ecosystem solutions.
7
Indonesia Digital Platform (“IDP”) – platform enabler for
ecosystem development.
8
Best subsidiary management system execution.
9
Portfolio management through BoE and CRO.
10
Improving synergy within Telkom Group.
Strategic initiatives are determined based on the decision of the PT Telekomunikasi, Tbk, Indonesia Board of
Commissioners, Decree No.06/KEP/DK/2013/RHS dated 30 May 2013.
13
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Signiicant Events
27 JUNE 2013
11 JULY 2013
21 AUGUST 2013
4 SEPTEMBER 2013
FEBRUARY
Launch of Contact Center 110
Telkom launched Contact Center
110 (free to call) in synergy with the
Indonesian National Police to report
accidents and criminal acts.
8 JUNE 2013
Telkom demonstrated its care for the
environment through a series of Go
Green Smile programs, encompassing:
Beach cleanup on Pramuka Island,
Thousand Islands. Planting 15,000
mangrove seedlings in Kampung
Garapan, Desa Tanjung Pasir,
Tangerang. Creation of a Green
Belt to minimize coastal abrasion in
Indramayu.
Greening project in Bandar Lampung,
Makassar, Bengawan Solo riverbanks,
Jember and Madura. Establishment of
biopore holes in Bogor and Bandung.
27 JUNE 2013
Telkom Indi School Wi-Fi Launching
at SMPN I Sabang
As part of its participation in creating
a digital society and ensuring national
integrity, Telkom implemented its
Launching Wi-Fi at SMP Negeri I Kota
Sabang, as part of the “The World in
Your Hand with high quality internet
access from Telkom” program, part of
the Broadband Learning Center (BLC)
activities.
11 JULY 2013
SME IndiPreneur Training in
Yogyakarta
Telkom Yogyakarta held IndiPreneur
training titled “Pelatihan Portal
Community Sentra UKM Merah
Putih” (Red & White SME Center
Portal Community Training) involving
business people from SME centers
across Yogyakarta. The IndiPreneur
series of programs is aimed at
encouraging SMEs to go online to
boost promotions and increase
transaction turnover.
21 AUGUST 2013
Jogya Digital Valley
To stimulate the digital creative
industry in Indonesia, speciically in
Yogyakarta, Telkom built the Jogja
Digital Valley (JDV), an incubator
and business accelerator center
for Information & Communication
Technology (ICT) businesses,
following the establishment of a
similar facility, namely Bandung
Digital Valley (BDV).
23 AUGUST 2013
Signing of CLA V
The management and SEKAR
successfully reached agreement
for the signing of CLA V, valid
from 23 August 2013 to 23 August
2015, based on Law No. 13/2003
regarding Manpower, as well as
Ministerial Decree of the Minister
of Manpower and Transmigration
No. PER.16/MEN/XI/2011 regarding
Procedures for the Preparation and
Legalization of Company Regulations
and Registration of Collective Labor
Agreements (“CLA”)
4 SEPTEMBER 2013
National Customer Day
To celebrate National Customer Day
(HPN), Telkom held a One Day Service
for New Installations, Customer
Disturbances, Transfers and Claims
at Plasa Jatinegara and Plasa Gatot
Subroto.
NOVEMBER 2013
Assessment Center Indonesia
Telkom’s Assessment Center Indonesia
(“ACI”) was inaugurated by State SOE
Minister Dahlan Iskan. The center is
Telkom’s contribution to developing
Indonesia’s human resources.
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15
Awards
Speedy was awarded best Internet
Service Provider (“ISP”) in Indonesia
2012 by Chip Magazine in the 2013
Chip Award.
Awarded “The Best Product
Innovation of Infrastructure
Sector” for IndiFinance, “The Best
Technology” for Indigo and “The
Best Corporate Innovation Culture
& Management” in the 2013 SOE
Innovation Award by the SOE Ministry.
Awarded “Best of Asia” in Asia’s
icon on Corporate Governance in the
Corporate Governance Asia Annual
Recognition Award 2013 by Corporate
Governance Asia Magazine.
Awarded “Best Sustainability
Reporting Award 2012” in the industry
category of the Sustainability
Reporting Award (“SRA”) from the
National Center for Sustainability
Reporting (“NCSR”).
Awarded “Diamond” in Cellular
Telecommunication CDMA category
for Plasa Telkom in the Service Quality
Award 2013 by Service Excellence
Magazine.
Awarded “Excellent Service Performance”
for the Telkom Contact Center in the
Contact Center Service Excellence Award
2013 held by Care Center for Customer
Satisfaction and Loyalty.
Awarded “Asian Town Scapes Sector Award 2013”
for Bungkul Park, an annual award made by Asian
Townscape Award (ATA). Bungkul Park was renovated
with funding from the Community Development
Program, and is also known by the name Taman Telkom.
National Social Solidarity Award (KSN) Expo & Awards
2013 from the Coordinating Minister for Social Welfare
for Telkom’s Active Role in activities directly related to
poverty alleviation.
16
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Certiication
ISO 9001:2008 Certiication
Awarded to PT Finnet by DQS GmbH
in 2012. Valid until 2015.
Customer Center of Expertise
Certiication
Awarded by SAP in 2012. Valid until
2013.
AS/NZS ISO 9001:2008 Certiication
Awarded to PT Administrasi Medika
(“AdMedika”), one of Telkom’s
indirect subsidiaries, by Veriication
New Zealand Limited in 2012. Valid
until 2015.
ISO 9001:2008 Certiication
Awarded to PT Dayamitra
Telekomunikasi (“Mitratel”), a
Telkom subsidiary, by United
Register for System (“URS”) in
2013. Valid until 2016.
ISO/IEC 27001:2005 Certiication
Awarded to PT Finnet, one of
Telkom’s indirect subsidiaries, by
DQS Gmbh in 2012. Valid until 2015.
ISO 9001:2008 Certiication
Awarded to Consumer Service West
Division by TUV Rheinland Cert
GmbH in 2011. Valid until 2013.
Telkom Preserves
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ISO 9001:2008 Certiication
Awarded to Business Service Division
by TUV Rheinland Cert GmbH in
2013. Valid until 2016.
Prioritizing
Customers
GRI G4
Core Index
ISO 9001:2008 Certiication
Awarded to Telkom Flexi Division by
TUV Rheinland Cert GmbH in 2011.
Valid until 2014.
ISO/IEC 27001:2005 Certiication
Awarded to Infratel Division M Floor
and Access Division 7th Floor of
Gedung Grha Citra Caraka, by TUV
Rheinland Japan Ltd. in 2012. Valid
until 2015.
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
17
ISO 9001:2008 Certiication
Awarded to PT Telkom Akses, a
Telkom subsidiary, by TUV Rheinland
Cert GmbH in 2013. Valid until 2016.
ISO 9001:2008 Certiication
Awarded to Enterprise Service
Division by TUV Rheinland Cert
GmbH in 2011. Valid until 2014.
18
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2013 Sustainability
Performance
Overview
About Telkom
About
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Telkom Shares
Telkom Preserves
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People
Telkom
Governance
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2013 Sustainability Report
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19
“Telkom continues to actively participate in the mitigation
of carbon dioxide impact through the Telkom Go Green
Action program and to stimulate environmentally friendly
business activities through the provision of worldclass telecommunication service content and IT-based
transmission content.”
Message from the
President Director
Arief Yahya
President Director
20
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2013 Sustainability
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The widespread extent of the
operational activities. Telkom
natural gas), in accordance with
environmental crisis facing the
also demonstrates real eforts
international standards for new
Earth is demonstrated by the
to stimulate an environmentally
room coolers (air conditioners). We
increasingly intense extreme
friendly economy, growth and
are also making eforts to reduce
weather that has hit various
business development through
indirect emissions of CO2 gas by
parts of the globe, not excluding
improved performance in TIMES
the eicient use of mains electricity
Indonesia. The joint eforts
services that facilitate more reliable
for AC and lighting, including
promoted by leaders of the world’s
communication, data transfer
more energy eicient STOs, using
major industrial nations to mitigate
and teleconference activities.
buildings designed especially
the efects of CO2 (carbon dioxide)
Nowadays, business management
to save electricity, and taking
emissions are still facing a variety
activities can be more eicient
other steps to reduce the use of
of challenges. The main obstacle is
with substantially reduced physical
electricity generated by power
difering economic interests, which
movement, thus reducing CO2
stations.
has resulted in no agreement yet
emissions from transportation.
In addition, we continue to apply
being reached on the joint global
the paperless oice concept and
framework.
INCREASING THE INTENSITY
OF ENVIRONMENTALLY
FRIENDLY OPERATIONS
Despite this reality, Indonesia,
We continue to maintain a high
By improving the quality of
as a country with vast tropical
level of consistency in applying
such service applications, we
rain forests, is one of the main
environmentally friendly operations
fully support the growth and
components in the process of
as part of our Telkom Go Green
development of more eicient
mitigating CO2 gas emissions
Action program, which covers
business activities that are
naturally and has demonstrated
eforts to mitigate carbon gas
environmentally friendly through
strong consistency in eforts to
emissions, eiciencies in energy
the substantial reduction of
mitigate carbon gas emissions
usage, the use of renewable energy
physical mobility. We are also
through the application of the
sources, the implementation of
striving our utmost to safeguard
REDD+ (Reduce Emissions
paperless oices, an improved
natural resources through the
from Deforestation and Land
environmentally friendly culture,
application of the 3R principle
Degradation) program. This
and so forth.
(recycle, reuse, reduce). This
program involves all layers of
As part of our participation in
principle is an important
society, the government and
mitigating the efects of CO2 gas
consideration in the preparation
initiatives within the Kyoto Protocol
are providing various applications
for businesspeople in Indonesia.
industry players in its realization.
emissions, we apply a carbon
of pro-environment policies. The
Through this joint efort, the
free concept through the use
implementation of the 3R principle
Indonesian Government believes
of solar powered cells, micro
includes the installation of waste
the Earth’s sustainability and that
hydro energy and low power
water management at the Head
of all its contents will be achieved.
consumption equipment to
Oices in Jakarta and Bandung.
At the same time, communities
operate our 3,996 outdoor BTS,
around the forests are seeing
subsequently successfully reducing
We continue to support the growth
improving welfare, such that future
CO2 emissions by the equivalent
of an environmentally friendly
generations will have a healthier
of 961.39 tons per year. Meanwhile,
culture through the national Bike
planet.
indoor BTS are operated with new
to Work movement, which is
energy saving technology.
becoming increasingly entrenched
among employees, and Earth
As an industry with coverage
Hour, which is promoted by the
across Indonesia, Telkom is
We are trying hard to reduce
strongly committed to managing
emissions from ozone depleting
World Wildlife Fund (WWF). In
this environmental crisis through
substances (ODS) by using
addition, we also actively preserve
various strategic policies aimed at
environmentally friendly coolants,
the environment through direct
mitigating carbon gas emissions
zero depletion refrigerant (no
action involving local community
that occur due to the company’s
CFC), zero depletion FAP (N2 100%
participation for various projects,
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
Prioritizing
Customers
GRI G4
Core Index
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
21
regreening critical land and the
Telkom distributed 68.4% of this, a total of Rp57.64 trillion, to stakeholders.
creation of city parks incorporating
The economic value distributed to suppliers, employees, national
up-to-date communication facilities
and regional governments, providers of capital and to communities,
in various areas of Indonesia.
demonstrates that Telkom’s business activities have a signiicant economic
impact on its stakeholders’ economic progress. Telkom contributed to State
IMPROVING SUSTAINABLE
ECONOMIC DEVELOPMENT
revenue in the form of dividends, fees and taxes to the amount of Rp16.74
trillion, an increase of 5.5% on the Rp15.87 trillion the previous year.
We consistently realize a variety
of development programs to take
In addition, through the payment of regional taxes, the direct and indirect
advantage of growth opportunities,
absorption of labor, coaching small and medium business enterprises and
support more eicient activities,
cooperatives, the provision of TIMES facilities and the provision of business
ensure improved economic
opportunities for the public to become part of the business chain, Telkom
performance and the distribution
also actively plays its part in improving regional economies.
of economic value generated to
stakeholders as manifestation
THE DEVELOPMENT OF SOCIAL LIFE
of the economic dimension of
As a company that grows due to its harmonious relationship with its
sustainability. In 2013, Telkom
stakeholders, including employees and local communities, Telkom is
increased its economic value to
determined to improve employee performance, uphold Human Rights,
Rp84.32 trillion, a rise of 8.3% from
and improve its product and civic responsibility as the manifestation of
the Rp77.88 trillion of the previous
sustainability from the social dimension.
year.
22
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability
Performance
Overview
About Telkom
About
This Report
Economic
Growth
Telkom Shares
We distance ourselves from
customer satisfaction index with
LOOKING AHEAD
discrimination based on ethnicity,
optimum assessment results from
Telkom is committed to continue
religion, class and gender in the
year to year.
its support of eforts made by
management of human resources,
the global community to improve
while acknowledging diversity
Telkom also actively participates
environmental conditions and to
and providing equal rights for
in government eforts to improve
mitigate the efects of climate
employees to progress along their
the conditions of marginal
change, which remain the
career path out of respect for
communities, poverty alleviation,
primary issue in the context of
Human Rights. We have established
improving public health and
sustainability. The chain of extreme
Telkom Corporate University
providing satisfactory public
weather, climate change and global
(Telkom CorpU) to develop
facilities and infrastructure,
warming afects all human activities
excellent and digniied people for
improving regional operations that
and has business consequences
Telkom and assign employees to
encompass remote areas across
faced by all corporate entities,
participate in training to improve
Indonesia. These community
including Telkom. Potential
their competencies. In addition, we
development activities are realized
risks faced by Telkom include
have established various leadership
through the implementation of
network and telecommunication
development programs, in which
the Partnership and Community
infrastructure damage, which in
897 employees have taken part, to
Development Program, supported
turn has the potential to reduce the
prepare our leaders for the future.
by suicient funding.
company’s economic value in both
Telkom has also implemented
the short and long term.
entrepreneur training programs to
In 2013, Telkom disbursed funds for
prepare employees approaching
education and training amounting
For this reason, Telkom is
retirement age to provide them
to Rp20.96 billion, Rp18.82 billion
committed to actively participating
with skills for retirement.
for public, including religious
in mitigating the efects of global
facilities, Rp5.37 billion for the
warming through the reduction
Telkom also displayed consistent
provision of health facilities and
of carbon emissions from its
eforts in maintaining and
infrastructure, Rp6.63 billion aid
operational activities and supports
safeguarding its zero accident
for poverty alleviation and a total
environmentally friendly business
achievement in various operational
of Rp1.47 billion for aid to victims
activities based on development of
areas, an achievement reached
of natural disasters. This funding
the TIMES business. Through this
through the involvement of all
demonstrates Telkom’s active
method, Telkom can demonstrate
levels of employee in upholding
participation in the achievement of
its strong commitment to eforts
work regulations related to health
the 2015 Millennium Development
to responsibly and sustainably
and the awareness of the risk
Goals (MDGs) initiated by the
manage natural resources for
of workplace accidents. Telkom
government long ago.
a better future for the coming
understands its responsibility
toward the health of its customers
and continues to develop prime
services for its customers, as well
as selecting high quality vendor
products. With this approach, we
have successfully maintained our
generations.
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
Prioritizing
Customers
GRI G4
Core Index
CLOSING
TOWARD 2014
At this time, we express our
We encourage all employees and
thanks to the shareholders, in
the management to work even
particular the SOE Ministry, which
harder in running environmentally
has provided direction to improve
friendly operations, improving
Telkom’s sustainability performance.
social care for employees and
We appreciate the advice and
society, and to improve the welfare
direction of Telkom’s Board of
of all stakeholders.
Commissioners, which has enabled
the entire workforce to improve
A bright future for Indonesia is a
the company’s sustainability
bright future for Telkom Indonesia!
performance in 2013.
The Telkom Board of Directors,
of course, expresses its highest
appreciation to all the employees
for their dedication and hard work
to ensure an improved sustainability
Arief Yahya
performance compared to the
President Director
previous year.
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
23
24
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability
Performance
Overview
About Telkom
About
This Report
Economic
Growth
Telkom Shares
G4-3 | G4-4 | G4-5 | G4-6 | G4-8
About Telkom
PT Telekomunikasi Indonesia
PRODUCTS AND SERVICES
(Persero), Tbk is a State Owned
As a company providing TIMES services, we continue to innovate in sectors
Enterprise (SOE), with its head
other than telecommunications, as well as to develop synergies between all
oice at Gedung Grha Merah Putih,
products, services and solutions, moving from a legacy business to a New
Jalan Japati No. 1 Bandung and
Economy Business (NEB).
with branches spread across the
whole of Indonesia.
Our business portfolio is grouped into several lines of business, as follows:
See Pages 47-53 of the Telkom 2013 Annual Report.
Per 31 December 2013, we owned
a total of 572 customer service
1. Telecommunication Business
a. Fixed Wireline Services
oices (Plasa Telkom) spread
Products under the ixed wireline services are Plain Old Telephone
across 34 provinces and 511
Services (POTS), value added services (VAS), Intelligent Network
towns/regencies across Indonesia
(IN) services and Session Initiation Protocol (SIP) service. IN
supported by 25,011 employees.
services are internet protocol (IP) based network services connected
to the Telkom telecommunication network and exchange system.
SIP services are based on IP Multimedia Subsystem (IMS) that
integrates wireless and wired voice and data communication.
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
Prioritizing
Customers
b. Fixed Wireless Services
GRI G4
Core Index
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
25
access through a wireless internet connection
Services under the brand Telkom Flexi or Flexi
supported by our hotspot infrastructure.
make use of limited mobility CDMA technology
Services can be easily accessed through all
and are managed under the Wireless Broadband
Wi-Fi enabled equipment merely through the
Division.
use of a FlexiNet Unlimited or Flexi Mobile
c. Cellular Services
Cellular communication services are implemented
through the subsidiary, Telkomsel, and make
use of GSM technology on the 3.5G frequency.
Cellular products and services are divided into
two models, post-paid services through the
Broadband username and password, which are
available at every hotspot.
- Virtual Private Network (VPN), is a private
network using media such as internet to safely
connect to a remote site.
- Astinet, provides high quality internet access
kartuHalo product, and pre-paid services through
using a default internet gateway and public IP
the simPATI and Kartu As products.
address for a dedicated, ixed communication
d. Network Services
The Telkom network services encompass satellite
line 24 hours a day.
- VoIP, Telkom provides afordable international
transponder leasing, satellite broadcasting,
call services through our premium VoIP service
VSAT, audio distribution and satellite-based and
package “Telkom Global-01017”, while “Telkom
terrestrial-based leased lines.
e. Broadband and Internet Services
- Broadband internet is ofered under the
Save” provides regular international calls.
- ISDN PRA is a digital network to facilitate
multimedia telecommunication services making
commercial name “Speedy” and provides
use of wider bandwidth and inter terminal
broadband internet and non cellular services.
digital systems to provide voice, data and video
- Cellular data communication. Telkomsel
communication through a single channel with
provides internet and data communication
high speed, quality and capacity. Telkom also
through its cellular network under the
provides ISDN-based internet access.
commercial name Flash.
- SMS services for cellular and ixed wireless
telephone subscribers.
- Dial up internet connection is provided under
the name “TelkomNet instan”.
- Wi-Fi/hotspot is a wireless access solution for
- DINAccess is a communication service
with dedicated access to provide LAN
interconnection services and multimedia
services at a speed adjustable to customer
needs.
- Global Datacom is a data communication
mobile internet data services in certain areas
service that lets corporate customers connect
utilizing Telkom’s and other ISP’s payment
their headquarters with branch oices or clients
facilities, or in bulk using Customer Premises
across the globe. Telkom works with global
Equipment (CPE)-based Wi-Fi technology. In
partners through Telin, a subsidiary, to provide
2012, we launched the Indonesia Wi-Fi service
to meet public need for Wi-Fi-based internet
this service.
- Metro Link is a Metro-network-based
services in public places, such as airports,
connectivity service that accommodates point-
shopping malls, hospitals, universities/schools,
to-point, point-to-multipoint and multipoint-to-
cafes and other public places, with a target of
1 million access points in 2013. Indonesia Wi-Fi
multipoint communications.
- Metro I-net is a high capacity data network
has been rolled out with a minimum speed of
solution based on IP (Internet Protocol) or
10 Mbps to accommodate roaming, oloading,
ethernet that provides lexibility, ease of use
retail and other needs.
and efectiveness, as well as quality assurance
- FlexiNet, is our internet access service that
uses the Telkom Flexi network. In 2011, we
for corporate and SME customers.
- Port Wholesale provides wholesale rental
launched our “Flexi Hotspot” service for
of port remote access servers to internet
customers wishing to enjoy high speed internet
service providers, content service providers
and corporate customers to sell on to their
subscribers.
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
26
2013 Sustainability
Performance
Overview
- Value-added service. Datacom provides
f.
About
This Report
About Telkom
Economic
Growth
Telkom Shares
2. NEB Portfolio and Strategic Business
additional facilities ofering added value for
Opportunities
data communication customers.
Portofolio NEB dan Strategic Business Opportunities
Interconnection Services
mencakup:
Telkom also earns revenue from other
a.
IT Outsourcing or Managed Application, which
telecommunication operators that utilize our
consists of cloud-based and server-based
extensive infrastructure network in Indonesia,
management services, as well as IT consultation
both for calls that end at or transit through our
services.
network.
g. Ancillary Services
b.
e-Payment/Payment Services, covering:
- Billing Payment is a service that facilitates
We have exclusive agreements with several
customers making payment transactions for
investors under revenue sharing arrangements
service providers or goods, such as PT PLN,
to expand ixed line phone services, public card
Telkom, PDAM, PT KAI and other services,
phones (including their maintenance), data and
through collecting agents such as banks,
internet networks, and ancillary facilities related
cooperatives, BPR, convenience stores and
to telecommunications.
other agents;
-
Remittance is a money transfer service where
In addition, we also have several supporting and
neither the sender nor the receiver needs a
ancillary businesses, which include the lease and/
bank account to complete the transaction
or supply of BTS to other cellular operators and the
as transfers can be accomplished using only
provision of various support facilities. We manage
mobile equipment;
our telecommunications tower business through our
subsidiary, Mitratel.
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
Prioritizing
Customers
GRI G4
Core Index
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
27
G4-9 | G4-12
-
-
c.
e-Money provides services to customers who
d. Portal services facilitate content aggregation
wish to manage money electronically through
and distribution. In addition to sales and
certain media (cell phone, prepaid card, or a
payments related to the company’s products
virtual account that can be accessed via the
and services conducted through our
Internet) for use in electronic transactions;
e-commerce portal, our e-store portal and on-
and
device portal services also facilitate the sale and
e-Voucher or Telkom Voucher is a single
distribution of content and applications, such
voucher issued by Telkom that can be used to
as games, applications, news, sport information,
purchase or reill services provided by Telkom
education content, music, ring back tones, SMS
Group, such as Kartu As, simPATI, Flexi
content and others that can be downloaded
Trendy, post-paid TelkomVision services and
directly on the customer’s mobile device or web.
Speedy Hotspot.
This content and application can be obtained
IT enabler services include business process
either for payment or free of charge.
outsourcing and knowledge process
outsourcing, which consists of:
-
Network-centric value added services,
COMPANY SCALE
comprising IT-based value added services
for data and phone, security services,
and server and storage for connectivity
25,011
25,683
77,143
- Total Liability (Rp billion)
50,527
44,391
Equipment (CPE), applications and software,
- Total Equity (Rp billion)
60,542
51,541
as well as computer hardware.
- Total Assets (Rp billion)
127,951
111,369
Integration services, comprising integration
services for network and hardware
associated with Customer Premises
Number of Employees (People)
2012
82,967
customers; and
-
2013
Net Revenue (Rp billion)
Total Capitalization:
Media and Edutainment business portfolio,
Pay TV ofering packets or a la carte provided
RELATIONSHIP WITH SUPPLIERS (SUPPLY
CHAIN)
through satellite or cable or IPTV (Internet
G4 has introduced a number of new approaches, one
protocol-based television) with premium
of which is a concept related to the organization’s value
content including news, sport, entertainment
chain. The deinition of the GRI G4 supply chain is a
and others. This service is managed by our
sequence of activities or parties that provide products
subsidiary, Indonusa Telemedia, under the brand
or services to the company. This concept, as deined in
TelkomVision. Meanwhile, commercial IPTV
GRI G4, is an important aspect both inside and outside
services were launched in August 2011 under the
the company.
comprising:
a.
brand Groovia TV and are currently available
b.
c.
in all regions included in the service provision
We recognize the importance of parties who act as
license, namely Jabodetabek, Bali, Bandung,
suppliers in the sustainability of our operations. Positive
Semarang and Surabaya. Per 31 December 2012,
reciprocal interaction and mutual support between
the Company had 1.2 million Pay TV subscribers.
us and the suppliers has a positive impact on our
UseeTV - Over the Top TV (OTT TV) is a TV
performance, thus ensuring the sustainability of the
service accessible for subscribers over the
company. Therefore, our partners / suppliers are part
internet.
of the business operations’ chain.
Advertising is a commercial service for the
promotion of products or services owned by a
third party that is presented through digital or
print media, such as radio, television, internet,
newspapers, brochures/lealets and billboards.
28
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability
Performance
Overview
About Telkom
About
This Report
Economic
Growth
Telkom Shares
G4-13 | G4-14
In order to fulill the need for goods / services
a road map to develop Entity Risk Management as
implemented by our partners, we apply the integrated
follows:
supply chain concept. In addition, the procurement
and partnership process is computer-based to minimize
-
2013 : increased ERM Maturity Level to initial Stage
-
2014 : increased ERM Maturity Level to intermediate
-
2015 : increased ERM Maturity Level to advanced
-
2016 : increased ERM Maturity Level entering
Quantiied Level.
physical contact between suppliers / partners with us
to facilitate fairness and transparency.
Stage Quantiied Level.
SIGNIFICANT CHANGES
There have been no signiicant changes during the
stage Quantiied Level.
Optimized Level.
reporting period to the ownership structure or to the
ield of business. We remain committed to continuing
fundamental and comprehensive transformation at all
The company’s vision related to risk management
levels of business.
implementation is, “Making risk management an
INHERENT CULTURE in the implementation of business
processes and operations”. Therefore, since 2008, we
MITIGATION PRINCIPLE APPROACH
have built and developed the following:
Since 2006, we have been committed to applying
risk management based on the Enterprise Risk
-
Structural aspects, encompassing the development
Management framework. In practice, risk management
of a risk management vision, mission, commitment,
is an inseparable part of a company’s GCG application
tone at the top, conducive internal environment,
and internal control. Moving ahead, we have compiled
policies, competency development, IT tools and
systems.
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
Prioritizing
Customers
GRI G4
Core Index
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
29
G4-7 | G4-15 | G4-16
-
-
of Risk Acceptance Criteria, Risk Assessment
MEMBERSHIP IN INDUSTRY ASSOCIATIONS
AND OTHER ORGANIZATIONS
implementation and the development of risk
Telkom actively participates in several national and
management for speciic functions.
international associations. In the national arena, we are
Aspects of care, encompassing monitoring risk
members of:
management implementation, periodic risk
1.
reporting, ensuring sustainable competency
2. The Indonesian Satellite Association (ASSI);
development, as well as conducting reviews through
3. The Telecommunications Interconnection Clearing
Operational aspects, encompassing determination
a Risk Management Index, Risk Culture Survey
and evaluation of Implementation Maturity Levels.
The Indonesian Infocomm Society (MASTEL);
Association (ASKITEL); and
4. Corporate Forum for Community Development
At this time, risk management implementation
(CFCD).
has reached a level whereby risk management is
integrated across all subsidiaries.
In the international arena, Telkom is a member of
associations inclu
the Environment
Telkom’s
People
Telkom
Governance
Prioritizing
Customers
GRI G4
Core Index
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
Creating Sustainable
Global Talents and
Opportunities
1
2
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability
Performance
Overview
About Telkom
About
This Report
Economic
Growth
G4-31
DISCLAIMER
Several parts of this Sustainability Report include forward-looking statements, including our expectations and projections
related to future sustainability performance. These statements generally make use of words such as “commitment”,
“believe”, “expect”, “anticipate”, “estimate”, “project” or other similar words. In addition, all statements other than historical
facts included in this sustainability report can be categorized as forward-looking statements. Although we believe that the
expectations relected in the forward-looking statements are reasonable, we can give no assurances that such expectations
will prove to be correct. Statements that are forward looking are subject to risks and uncertainties, including changes in the
economic, political and social environments in Indonesia.
PERSONAL CONTACT (3.4)
For further information regarding this Report, please contact
Investor Relations, Grha Merah Putih 5th Floor, Jl. Jend. Gatot Subroto Kav. 52, Jakarta 12710, Indonesia. Tel: (62-21) 521 5109,
Fax: (62-21) 522 0500 or email: investor@telkom.co.id. You can also download this document from our website
http://www.telkom.co.id.
Telkom Shares
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
Prioritizing
Customers
GRI G4
Core Index
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
Creating Sustainable Global
Talents and Opportunities
International expansion has resulted in
Telkom now standing alongside worldclass companies and ensures sustainable
future growth.
As a company strongly committed
to maintaining balanced high-quality
growth, Telkom has implemented various
educational programs to facilitate the
whole of Indonesian society, including
business corporations, SME and micro
enterprises, to take part in the global
market with the support of world-class
TIMES services and to operate more
eiciently and in an environmentally
friendly manner.
1
2013 Sustainability
Performance
Overview
About Telkom
About
This Report
Economic
Growth
Telkom Shares
Contents
2
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability Performance
Overview
Report from the President Director
About Telkom
Products and Services
24
Company Scale
27
Relationship with Suppliers
(Supply Chain)
27
Signiicant Changes
28
Mitigation Principle
Approaches
28
Commitment to External
Initiatives
29
Industry Association
and Other Organization
Memberships
29
Operational Structure and
Share Ownership
29
About This Report
Determining Materiality Level
34
Report Boundary
35
Supply Chain
35
Determining Material and
Boundary Aspects
36
Materiality and Boundary
Aspects
36
Relations with Stakeholders
37
Signiicant Changes from the
Previous Year’s Report
37
Personal Contact
37
Community Economic
Empowerment
44
Development Partner
Success Stories
46
Telkom Shares
Corporate Social
Responsibility Development
Strategy
50
Community Empowerment
Program
51
Community Development
Program
51
Economic Growth
Supporting Indonesia’s
Economic Growth
40
Development Strategy
40
Supporting Improved
Economic Conditions for
Stakeholders
Telkom Preserves the Environment
Environmental Impact of
Telkom’s Activities
62
41
Implications, Risks and
Business Opportunities
Related to Climate Change
62
Contribution to State
Revenue
42
Participation in
Environmental Conservation
63
Fostering a Healthy and
Environmentally Friendly
Culture
66
Supporting Environmentally
Friendly Economic Activities
66
Report Content
Determination Process
33
Supporting Regional
Economic Growth
43
Report Content
Determination Process
Flow Chart
33
Fostering Good
Relationships with Partners
43
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
Participation in Greening
Activities
67
Environmental Costs and
Awards
67
Telkom’s People
Developing Employee
Competencies and Careers
70
Beneits
74
Occupational Health, Safety
and Environment (HSE)
76
Industrial Relations
78
IT-based HR Service System
80
Culture Transformation
81
Employee Proile
82
Awards
83
Prioritizing
Customers
GRI G4
Core Index
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
Telkom Governance
GCG Framework and
Performance
86
Governance Strengthening
Roadmap and Initiatives
86
Company Governance
Structure
88
Code of Ethics and
Corporate Culture
Whistleblowing System
3
Fulilling Customer Needs
and Improving Customer
Satisfaction
104
Marketing Strategy and
Customer Privacy
107
Marketing Communication
108
Improving Service Quality
109
91
Handling Customer
Complaints
110
94
Customer Satisfaction
Surveys
111
Consumer Protection
111
Prioritizing Customers
The Future of Indonesia’s
Telecommunication Industry
102
Universal Service Obligations
and Competition
103
GRI G4 Core Index
Glossary
4
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability
Performance
Overview
About
This Report
About Telkom
Economic
Growth
Sustainability Performance
Overview
Economic Performance Overview
Economic Value Generated
Economic Value Distributed
(Rp billions)
(Rp billions)
84,322
77,882
60,298
71,900
57,640
49,796
2011
2012
2013
2011
2012
2013
Retained Economic Value
Contribution to State Revenue
(Rp billions)
(Rp billions)
26,682
15,874
16,742
14,780
22,104
17,584
2011
2012
2013
2011
2012
2013
Telkom Shares
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
Prioritizing
Customers
GRI G4
Core Index
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
Community Empowerment
Total
Community
Development
Disbursement
Rp
55.8
billion
(including administrative costs)
Total Soft Loan
Disbursement
Total
Development
Partners
Training
Costs for
Development
Partners
Rp
118.2
3,975
Rp
2.9
billion
partners
billion
5
6
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability
Performance
Overview
About Telkom
About
This Report
Economic
Growth
Telkom Shares
Environmental Performance
Highlights
Programs
Conserved energy at
3,996 outdoor BTS and utilized
renewable energy sources for BTS in remote areas.
Energy efficiencies in office buildings by:
•
•
•
•
•
•
Use of capacitor banks to improve power factors.
Use of relective glass.
Replacing conventional light bulbs with LED bulbs.
Applying building automation for cooling systems.
Applying lighting zoning schemes.
Installing timers for outdoor lighting.
Implementation of a paperless oice for online oice
applications, resulting in reduced paper use of at least
7,966 reams per year.
Promotion of a healthy and environmentally friendly culture
through the
Bike to Work and Earth Hour programs.
Recycling water for outdoor requirements and to water plants.
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Results and Program Realization
Reduced CO2 emissions of at least
961.39 tons carbon equivalent.
Beach cleaning at Pulau Pramuka
in Kepulauan Seribu, to reduce the
environmental impact of 100 tons of trash
per day from Jakarta.
Creation of a Green Belt to minimize
coastal abrasion in Indramayu.
Planting
15,000 mangrove seedlings
in Kampung Garapan, Tangerang.
Planting trees / regreening in Bandar
Lampung, Makassar.
7
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2013 Sustainability
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Social Performance Highlights
Building Social Welfare
Fund disbursement for Community Development Program
Education and Training
Religious Facilities
(Rp billion)
(Rp billion)
20
13.28
2011
2012
2013
2011
.21
2012
2013
Public Facilities
Victims of Natural Disaster
(Rp billion)
(Rp billion)
6.19
1.41
5.54
5.28
1.47
0.49
2011
2012
2013
2011
2012
2013
Community Health
Environmental Conservation
(Rp billion)
(Rp billion)
2.44
7.80
5.37
4.65
0.96
0.50
2011
2012
2013
2011
2012
2013
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9
Poverty Alleviation with Funding of Rp6.63 billion
Programs
Education and Training
Dedicated to My Teacher program conducted in six cities; participants were
Junior and Senior High School teachers.
Internet Education in disadvantaged villages in Banten and West Java.
Bandung Knowledge Cloud in cooperation with the Institute for Innovation
and Entrepreneurship Development (“LPIK”) ITB.
Integrated Digital School – Applying DNA (device-network-application)
technology for school communities, reaching 25 schools in Central Java,
Yogyakarta, East Java and Bali.
Edu Campus Development Center (“ECDC”) program – A program to equip
undergraduate students with knowledge of Microsoft application software.
Indonesia Digital School (“IndiSchool”) – A program to install Wi-Fi
equipment in 100,000 schools across Indonesia to “Develop a Smart
Indonesia”.
Assistance to Increase Public Religious Activities and Facilities
Building Islamic boarding schools and mosques in various areas, as well as
assistance to construct church buildings in Toraja, Papua, Simalungun and Toba
Samosir.
Assistance Developing Public Facilities and Infrastructure
Broadband Learning Center (BLC) – assisting with internet access in remote
areas.
Independent Community Electricity (Listrik Mandiri Rakyat) Program –
installing pico-powered village-based electricity generation installations in
two villages in East Java.
Establishment of Taman Bungkul – a public park with Free Wi-Fi facilities.
Assistance to Victims of Natural Disaster
Donations for disaster and post-disaster relief related to Mt. Sinabung, looding
in various areas and the Aceh earthquake.
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2013 Sustainability
Performance
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About Telkom
About
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Telkom Shares
Kaleidoscope
1856-1882
On 23 October 1856, the Dutch-East
Indies colonial government operated
the irst electromagnetic telegraph
service in Indonesia, connecting
Batavia (Jakarta) and Buitenzorg
(Bogor).
1974
1991
PN Telekomunikasi was divided
into two divisions, PT Industri
Telekomunikasi Indonesia (”PT INTI”),
which produced telecommunication
equipment, and Perusahaan Umum
Telekomunikasi (“PERUMTEL”), which
provided domestic and international
telecommunication services.
Perumtel became PT Telekomunikasi
Indonesia, or Telkom, with its
business operations split into
twelve telecommunication areas
(“Witel”). These twelve Witel were
then reorganized into seven regional
divisions (“DIVRE”), namely
Division I Sumatera, Division II
Jakarta and its surrounding area,
Division III West Java, Division IV
Central Java and DI Yogyakarta,
Division V East Java, Division VI
Kalimantan and Division VII Eastern
Indonesia.
1906-1965
The colonial government formed
a state agency to control postal
and telecommunication services in
Indonesia. In 1965 the Postal and
Telecommunication Services were
separated into two state-owned
enterprises, PN Pos and Giro and
PN Telekomunikasi, which managed
these services.
1980
The international telecommunication
service was taken over by
PT Indonesian Satellite Corporation
(“Indosat”).
1995
Telkom implemented its Initial
Public Ofering on 14 November
1995 on the Jakarta and Surabaya
Stock exchanges. On 26 May 1995,
Telkom established a subsidiary,
Telkomsel, to handle the cellular
telecommunications business.
1999
The Telecommunications Law (Law
No. 36/1999) came into efect in
September 2000 and facilitated
the entry of new players into the
telecommunications industry to
stimulate a competitive business
environment.
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2001
2009
2012
Telkom acquired 35% of Indosat’s
shares in Telkomsel, thus becoming
a majority shareholder in the cellular
company with 77.7% shares. Indosat,
meanwhile, took over 22.5% of
Telkom’s shares in Satelindo and
37.7% of Telkom’s shares in
PT Aplikanusa Lintasarta. At the
same time, Telkom lost its right to be
sole provider of ixed line telephony
services in Indonesia.
Telkom transformed from an
infocomm company to a provider
of Telecommunication, Information,
Media & Edutainment (“TIME”).
Telkom’s new look was introduced to
the public with a new logo and a new
tagline: “the world in your hand’’.
Telkom increased broadband
penetration with the construction
of Indonesia Wi-Fi to realize the
Indonesia Digital Network (“IDN”).
The business portfolio changed from
TIME to TIMES (Telecommunication,
Information, Media, Edutainment &
Services) to improve business value
creation.
2002
Telkom reee
7
es
in Telkomsel to Singapore Telecom
Mobile Pte Ltd (“SingTel Mobile”).
2004
Telkom launched international direct
dialing for ixed line telephones.
2005
The Telkom-2 satellite was launched
to take over all satellite transmission
services previously handled by
Palapa B-4 satellite. This launch
made it the eighth satellite launched
by Telkom, including Palapa A-1.
2010
The JaKaLaDeMa submarine iberoptic cable project connecting Java,
Kalimantan, Sulawesi, Denpasar and
Mataram was successfully completed
in April 2010.
Telkom Corporate University was
established to develop human
resources able to compete in the
international business world (from
competence to commerce).
2011
Telecommunication infrastructure
reformation commenced with the
Telkom Nusantara Super Highway
project, to connect the archipelago
from Sumatra to Papua, and the
True Broadband Access project,
which provides internet access with
a capacity of 20-100 Mbps to all
customers across Indonesia.
2013
Telkom now operates
in seven countries:
Hong Kong-Macau,
Timor Leste,
Australia, Myanmar,
Malaysia, Taiwan and
the United States of
America.
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2013 Sustainability
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About Telkom
with our Vision,
and
About
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Telkom Shares
Mission
Values...
VISION
To become a leading
Telecommunication, Information, Media,
Edutainment and Services (“TIMES”)
player in the region.
MISSION
• Provide more for less TIMES services.
• Be the role model for best managed
Indonesian corporation.
Corporate Culture
The New Telkom Way
Philosophy to be
the best
Always The Best
Principle to be the
star
Solid, Speed, Smart
Practice to be the
winner
Imagine, Focus, Action
Our Vision and Mission are recorded in the company’s long-term plan and were approved by the Board of
Commissioners on 30 May 2013 in the Board of Commissioners’ Decree No. 06/KEP/DK/2013/RHS.
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..as well as our Strategic
Initiatives...
1
Centre of Excellence.
2
Focus on portfolios with high growth or value.
3
Accelerated international expansion.
4
Transformation costs.
5
IDN development (id-Access, id-Ring, id-Con).
6
Indonesia Digital Solution (“IDS”) – convergence service
for digital ecosystem solutions.
7
Indonesia Digital Platform (“IDP”) – platform enabler for
ecosystem development.
8
Best subsidiary management system execution.
9
Portfolio management through BoE and CRO.
10
Improving synergy within Telkom Group.
Strategic initiatives are determined based on the decision of the PT Telekomunikasi, Tbk, Indonesia Board of
Commissioners, Decree No.06/KEP/DK/2013/RHS dated 30 May 2013.
13
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Signiicant Events
27 JUNE 2013
11 JULY 2013
21 AUGUST 2013
4 SEPTEMBER 2013
FEBRUARY
Launch of Contact Center 110
Telkom launched Contact Center
110 (free to call) in synergy with the
Indonesian National Police to report
accidents and criminal acts.
8 JUNE 2013
Telkom demonstrated its care for the
environment through a series of Go
Green Smile programs, encompassing:
Beach cleanup on Pramuka Island,
Thousand Islands. Planting 15,000
mangrove seedlings in Kampung
Garapan, Desa Tanjung Pasir,
Tangerang. Creation of a Green
Belt to minimize coastal abrasion in
Indramayu.
Greening project in Bandar Lampung,
Makassar, Bengawan Solo riverbanks,
Jember and Madura. Establishment of
biopore holes in Bogor and Bandung.
27 JUNE 2013
Telkom Indi School Wi-Fi Launching
at SMPN I Sabang
As part of its participation in creating
a digital society and ensuring national
integrity, Telkom implemented its
Launching Wi-Fi at SMP Negeri I Kota
Sabang, as part of the “The World in
Your Hand with high quality internet
access from Telkom” program, part of
the Broadband Learning Center (BLC)
activities.
11 JULY 2013
SME IndiPreneur Training in
Yogyakarta
Telkom Yogyakarta held IndiPreneur
training titled “Pelatihan Portal
Community Sentra UKM Merah
Putih” (Red & White SME Center
Portal Community Training) involving
business people from SME centers
across Yogyakarta. The IndiPreneur
series of programs is aimed at
encouraging SMEs to go online to
boost promotions and increase
transaction turnover.
21 AUGUST 2013
Jogya Digital Valley
To stimulate the digital creative
industry in Indonesia, speciically in
Yogyakarta, Telkom built the Jogja
Digital Valley (JDV), an incubator
and business accelerator center
for Information & Communication
Technology (ICT) businesses,
following the establishment of a
similar facility, namely Bandung
Digital Valley (BDV).
23 AUGUST 2013
Signing of CLA V
The management and SEKAR
successfully reached agreement
for the signing of CLA V, valid
from 23 August 2013 to 23 August
2015, based on Law No. 13/2003
regarding Manpower, as well as
Ministerial Decree of the Minister
of Manpower and Transmigration
No. PER.16/MEN/XI/2011 regarding
Procedures for the Preparation and
Legalization of Company Regulations
and Registration of Collective Labor
Agreements (“CLA”)
4 SEPTEMBER 2013
National Customer Day
To celebrate National Customer Day
(HPN), Telkom held a One Day Service
for New Installations, Customer
Disturbances, Transfers and Claims
at Plasa Jatinegara and Plasa Gatot
Subroto.
NOVEMBER 2013
Assessment Center Indonesia
Telkom’s Assessment Center Indonesia
(“ACI”) was inaugurated by State SOE
Minister Dahlan Iskan. The center is
Telkom’s contribution to developing
Indonesia’s human resources.
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15
Awards
Speedy was awarded best Internet
Service Provider (“ISP”) in Indonesia
2012 by Chip Magazine in the 2013
Chip Award.
Awarded “The Best Product
Innovation of Infrastructure
Sector” for IndiFinance, “The Best
Technology” for Indigo and “The
Best Corporate Innovation Culture
& Management” in the 2013 SOE
Innovation Award by the SOE Ministry.
Awarded “Best of Asia” in Asia’s
icon on Corporate Governance in the
Corporate Governance Asia Annual
Recognition Award 2013 by Corporate
Governance Asia Magazine.
Awarded “Best Sustainability
Reporting Award 2012” in the industry
category of the Sustainability
Reporting Award (“SRA”) from the
National Center for Sustainability
Reporting (“NCSR”).
Awarded “Diamond” in Cellular
Telecommunication CDMA category
for Plasa Telkom in the Service Quality
Award 2013 by Service Excellence
Magazine.
Awarded “Excellent Service Performance”
for the Telkom Contact Center in the
Contact Center Service Excellence Award
2013 held by Care Center for Customer
Satisfaction and Loyalty.
Awarded “Asian Town Scapes Sector Award 2013”
for Bungkul Park, an annual award made by Asian
Townscape Award (ATA). Bungkul Park was renovated
with funding from the Community Development
Program, and is also known by the name Taman Telkom.
National Social Solidarity Award (KSN) Expo & Awards
2013 from the Coordinating Minister for Social Welfare
for Telkom’s Active Role in activities directly related to
poverty alleviation.
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Certiication
ISO 9001:2008 Certiication
Awarded to PT Finnet by DQS GmbH
in 2012. Valid until 2015.
Customer Center of Expertise
Certiication
Awarded by SAP in 2012. Valid until
2013.
AS/NZS ISO 9001:2008 Certiication
Awarded to PT Administrasi Medika
(“AdMedika”), one of Telkom’s
indirect subsidiaries, by Veriication
New Zealand Limited in 2012. Valid
until 2015.
ISO 9001:2008 Certiication
Awarded to PT Dayamitra
Telekomunikasi (“Mitratel”), a
Telkom subsidiary, by United
Register for System (“URS”) in
2013. Valid until 2016.
ISO/IEC 27001:2005 Certiication
Awarded to PT Finnet, one of
Telkom’s indirect subsidiaries, by
DQS Gmbh in 2012. Valid until 2015.
ISO 9001:2008 Certiication
Awarded to Consumer Service West
Division by TUV Rheinland Cert
GmbH in 2011. Valid until 2013.
Telkom Preserves
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ISO 9001:2008 Certiication
Awarded to Business Service Division
by TUV Rheinland Cert GmbH in
2013. Valid until 2016.
Prioritizing
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ISO 9001:2008 Certiication
Awarded to Telkom Flexi Division by
TUV Rheinland Cert GmbH in 2011.
Valid until 2014.
ISO/IEC 27001:2005 Certiication
Awarded to Infratel Division M Floor
and Access Division 7th Floor of
Gedung Grha Citra Caraka, by TUV
Rheinland Japan Ltd. in 2012. Valid
until 2015.
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
17
ISO 9001:2008 Certiication
Awarded to PT Telkom Akses, a
Telkom subsidiary, by TUV Rheinland
Cert GmbH in 2013. Valid until 2016.
ISO 9001:2008 Certiication
Awarded to Enterprise Service
Division by TUV Rheinland Cert
GmbH in 2011. Valid until 2014.
18
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2013 Sustainability
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Telkom Shares
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19
“Telkom continues to actively participate in the mitigation
of carbon dioxide impact through the Telkom Go Green
Action program and to stimulate environmentally friendly
business activities through the provision of worldclass telecommunication service content and IT-based
transmission content.”
Message from the
President Director
Arief Yahya
President Director
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2013 Sustainability
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About Telkom
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Telkom Shares
The widespread extent of the
operational activities. Telkom
natural gas), in accordance with
environmental crisis facing the
also demonstrates real eforts
international standards for new
Earth is demonstrated by the
to stimulate an environmentally
room coolers (air conditioners). We
increasingly intense extreme
friendly economy, growth and
are also making eforts to reduce
weather that has hit various
business development through
indirect emissions of CO2 gas by
parts of the globe, not excluding
improved performance in TIMES
the eicient use of mains electricity
Indonesia. The joint eforts
services that facilitate more reliable
for AC and lighting, including
promoted by leaders of the world’s
communication, data transfer
more energy eicient STOs, using
major industrial nations to mitigate
and teleconference activities.
buildings designed especially
the efects of CO2 (carbon dioxide)
Nowadays, business management
to save electricity, and taking
emissions are still facing a variety
activities can be more eicient
other steps to reduce the use of
of challenges. The main obstacle is
with substantially reduced physical
electricity generated by power
difering economic interests, which
movement, thus reducing CO2
stations.
has resulted in no agreement yet
emissions from transportation.
In addition, we continue to apply
being reached on the joint global
the paperless oice concept and
framework.
INCREASING THE INTENSITY
OF ENVIRONMENTALLY
FRIENDLY OPERATIONS
Despite this reality, Indonesia,
We continue to maintain a high
By improving the quality of
as a country with vast tropical
level of consistency in applying
such service applications, we
rain forests, is one of the main
environmentally friendly operations
fully support the growth and
components in the process of
as part of our Telkom Go Green
development of more eicient
mitigating CO2 gas emissions
Action program, which covers
business activities that are
naturally and has demonstrated
eforts to mitigate carbon gas
environmentally friendly through
strong consistency in eforts to
emissions, eiciencies in energy
the substantial reduction of
mitigate carbon gas emissions
usage, the use of renewable energy
physical mobility. We are also
through the application of the
sources, the implementation of
striving our utmost to safeguard
REDD+ (Reduce Emissions
paperless oices, an improved
natural resources through the
from Deforestation and Land
environmentally friendly culture,
application of the 3R principle
Degradation) program. This
and so forth.
(recycle, reuse, reduce). This
program involves all layers of
As part of our participation in
principle is an important
society, the government and
mitigating the efects of CO2 gas
consideration in the preparation
initiatives within the Kyoto Protocol
are providing various applications
for businesspeople in Indonesia.
industry players in its realization.
emissions, we apply a carbon
of pro-environment policies. The
Through this joint efort, the
free concept through the use
implementation of the 3R principle
Indonesian Government believes
of solar powered cells, micro
includes the installation of waste
the Earth’s sustainability and that
hydro energy and low power
water management at the Head
of all its contents will be achieved.
consumption equipment to
Oices in Jakarta and Bandung.
At the same time, communities
operate our 3,996 outdoor BTS,
around the forests are seeing
subsequently successfully reducing
We continue to support the growth
improving welfare, such that future
CO2 emissions by the equivalent
of an environmentally friendly
generations will have a healthier
of 961.39 tons per year. Meanwhile,
culture through the national Bike
planet.
indoor BTS are operated with new
to Work movement, which is
energy saving technology.
becoming increasingly entrenched
among employees, and Earth
As an industry with coverage
Hour, which is promoted by the
across Indonesia, Telkom is
We are trying hard to reduce
strongly committed to managing
emissions from ozone depleting
World Wildlife Fund (WWF). In
this environmental crisis through
substances (ODS) by using
addition, we also actively preserve
various strategic policies aimed at
environmentally friendly coolants,
the environment through direct
mitigating carbon gas emissions
zero depletion refrigerant (no
action involving local community
that occur due to the company’s
CFC), zero depletion FAP (N2 100%
participation for various projects,
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21
regreening critical land and the
Telkom distributed 68.4% of this, a total of Rp57.64 trillion, to stakeholders.
creation of city parks incorporating
The economic value distributed to suppliers, employees, national
up-to-date communication facilities
and regional governments, providers of capital and to communities,
in various areas of Indonesia.
demonstrates that Telkom’s business activities have a signiicant economic
impact on its stakeholders’ economic progress. Telkom contributed to State
IMPROVING SUSTAINABLE
ECONOMIC DEVELOPMENT
revenue in the form of dividends, fees and taxes to the amount of Rp16.74
trillion, an increase of 5.5% on the Rp15.87 trillion the previous year.
We consistently realize a variety
of development programs to take
In addition, through the payment of regional taxes, the direct and indirect
advantage of growth opportunities,
absorption of labor, coaching small and medium business enterprises and
support more eicient activities,
cooperatives, the provision of TIMES facilities and the provision of business
ensure improved economic
opportunities for the public to become part of the business chain, Telkom
performance and the distribution
also actively plays its part in improving regional economies.
of economic value generated to
stakeholders as manifestation
THE DEVELOPMENT OF SOCIAL LIFE
of the economic dimension of
As a company that grows due to its harmonious relationship with its
sustainability. In 2013, Telkom
stakeholders, including employees and local communities, Telkom is
increased its economic value to
determined to improve employee performance, uphold Human Rights,
Rp84.32 trillion, a rise of 8.3% from
and improve its product and civic responsibility as the manifestation of
the Rp77.88 trillion of the previous
sustainability from the social dimension.
year.
22
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We distance ourselves from
customer satisfaction index with
LOOKING AHEAD
discrimination based on ethnicity,
optimum assessment results from
Telkom is committed to continue
religion, class and gender in the
year to year.
its support of eforts made by
management of human resources,
the global community to improve
while acknowledging diversity
Telkom also actively participates
environmental conditions and to
and providing equal rights for
in government eforts to improve
mitigate the efects of climate
employees to progress along their
the conditions of marginal
change, which remain the
career path out of respect for
communities, poverty alleviation,
primary issue in the context of
Human Rights. We have established
improving public health and
sustainability. The chain of extreme
Telkom Corporate University
providing satisfactory public
weather, climate change and global
(Telkom CorpU) to develop
facilities and infrastructure,
warming afects all human activities
excellent and digniied people for
improving regional operations that
and has business consequences
Telkom and assign employees to
encompass remote areas across
faced by all corporate entities,
participate in training to improve
Indonesia. These community
including Telkom. Potential
their competencies. In addition, we
development activities are realized
risks faced by Telkom include
have established various leadership
through the implementation of
network and telecommunication
development programs, in which
the Partnership and Community
infrastructure damage, which in
897 employees have taken part, to
Development Program, supported
turn has the potential to reduce the
prepare our leaders for the future.
by suicient funding.
company’s economic value in both
Telkom has also implemented
the short and long term.
entrepreneur training programs to
In 2013, Telkom disbursed funds for
prepare employees approaching
education and training amounting
For this reason, Telkom is
retirement age to provide them
to Rp20.96 billion, Rp18.82 billion
committed to actively participating
with skills for retirement.
for public, including religious
in mitigating the efects of global
facilities, Rp5.37 billion for the
warming through the reduction
Telkom also displayed consistent
provision of health facilities and
of carbon emissions from its
eforts in maintaining and
infrastructure, Rp6.63 billion aid
operational activities and supports
safeguarding its zero accident
for poverty alleviation and a total
environmentally friendly business
achievement in various operational
of Rp1.47 billion for aid to victims
activities based on development of
areas, an achievement reached
of natural disasters. This funding
the TIMES business. Through this
through the involvement of all
demonstrates Telkom’s active
method, Telkom can demonstrate
levels of employee in upholding
participation in the achievement of
its strong commitment to eforts
work regulations related to health
the 2015 Millennium Development
to responsibly and sustainably
and the awareness of the risk
Goals (MDGs) initiated by the
manage natural resources for
of workplace accidents. Telkom
government long ago.
a better future for the coming
understands its responsibility
toward the health of its customers
and continues to develop prime
services for its customers, as well
as selecting high quality vendor
products. With this approach, we
have successfully maintained our
generations.
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CLOSING
TOWARD 2014
At this time, we express our
We encourage all employees and
thanks to the shareholders, in
the management to work even
particular the SOE Ministry, which
harder in running environmentally
has provided direction to improve
friendly operations, improving
Telkom’s sustainability performance.
social care for employees and
We appreciate the advice and
society, and to improve the welfare
direction of Telkom’s Board of
of all stakeholders.
Commissioners, which has enabled
the entire workforce to improve
A bright future for Indonesia is a
the company’s sustainability
bright future for Telkom Indonesia!
performance in 2013.
The Telkom Board of Directors,
of course, expresses its highest
appreciation to all the employees
for their dedication and hard work
to ensure an improved sustainability
Arief Yahya
performance compared to the
President Director
previous year.
2013 Sustainability Report
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24
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G4-3 | G4-4 | G4-5 | G4-6 | G4-8
About Telkom
PT Telekomunikasi Indonesia
PRODUCTS AND SERVICES
(Persero), Tbk is a State Owned
As a company providing TIMES services, we continue to innovate in sectors
Enterprise (SOE), with its head
other than telecommunications, as well as to develop synergies between all
oice at Gedung Grha Merah Putih,
products, services and solutions, moving from a legacy business to a New
Jalan Japati No. 1 Bandung and
Economy Business (NEB).
with branches spread across the
whole of Indonesia.
Our business portfolio is grouped into several lines of business, as follows:
See Pages 47-53 of the Telkom 2013 Annual Report.
Per 31 December 2013, we owned
a total of 572 customer service
1. Telecommunication Business
a. Fixed Wireline Services
oices (Plasa Telkom) spread
Products under the ixed wireline services are Plain Old Telephone
across 34 provinces and 511
Services (POTS), value added services (VAS), Intelligent Network
towns/regencies across Indonesia
(IN) services and Session Initiation Protocol (SIP) service. IN
supported by 25,011 employees.
services are internet protocol (IP) based network services connected
to the Telkom telecommunication network and exchange system.
SIP services are based on IP Multimedia Subsystem (IMS) that
integrates wireless and wired voice and data communication.
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
Prioritizing
Customers
b. Fixed Wireless Services
GRI G4
Core Index
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
25
access through a wireless internet connection
Services under the brand Telkom Flexi or Flexi
supported by our hotspot infrastructure.
make use of limited mobility CDMA technology
Services can be easily accessed through all
and are managed under the Wireless Broadband
Wi-Fi enabled equipment merely through the
Division.
use of a FlexiNet Unlimited or Flexi Mobile
c. Cellular Services
Cellular communication services are implemented
through the subsidiary, Telkomsel, and make
use of GSM technology on the 3.5G frequency.
Cellular products and services are divided into
two models, post-paid services through the
Broadband username and password, which are
available at every hotspot.
- Virtual Private Network (VPN), is a private
network using media such as internet to safely
connect to a remote site.
- Astinet, provides high quality internet access
kartuHalo product, and pre-paid services through
using a default internet gateway and public IP
the simPATI and Kartu As products.
address for a dedicated, ixed communication
d. Network Services
The Telkom network services encompass satellite
line 24 hours a day.
- VoIP, Telkom provides afordable international
transponder leasing, satellite broadcasting,
call services through our premium VoIP service
VSAT, audio distribution and satellite-based and
package “Telkom Global-01017”, while “Telkom
terrestrial-based leased lines.
e. Broadband and Internet Services
- Broadband internet is ofered under the
Save” provides regular international calls.
- ISDN PRA is a digital network to facilitate
multimedia telecommunication services making
commercial name “Speedy” and provides
use of wider bandwidth and inter terminal
broadband internet and non cellular services.
digital systems to provide voice, data and video
- Cellular data communication. Telkomsel
communication through a single channel with
provides internet and data communication
high speed, quality and capacity. Telkom also
through its cellular network under the
provides ISDN-based internet access.
commercial name Flash.
- SMS services for cellular and ixed wireless
telephone subscribers.
- Dial up internet connection is provided under
the name “TelkomNet instan”.
- Wi-Fi/hotspot is a wireless access solution for
- DINAccess is a communication service
with dedicated access to provide LAN
interconnection services and multimedia
services at a speed adjustable to customer
needs.
- Global Datacom is a data communication
mobile internet data services in certain areas
service that lets corporate customers connect
utilizing Telkom’s and other ISP’s payment
their headquarters with branch oices or clients
facilities, or in bulk using Customer Premises
across the globe. Telkom works with global
Equipment (CPE)-based Wi-Fi technology. In
partners through Telin, a subsidiary, to provide
2012, we launched the Indonesia Wi-Fi service
to meet public need for Wi-Fi-based internet
this service.
- Metro Link is a Metro-network-based
services in public places, such as airports,
connectivity service that accommodates point-
shopping malls, hospitals, universities/schools,
to-point, point-to-multipoint and multipoint-to-
cafes and other public places, with a target of
1 million access points in 2013. Indonesia Wi-Fi
multipoint communications.
- Metro I-net is a high capacity data network
has been rolled out with a minimum speed of
solution based on IP (Internet Protocol) or
10 Mbps to accommodate roaming, oloading,
ethernet that provides lexibility, ease of use
retail and other needs.
and efectiveness, as well as quality assurance
- FlexiNet, is our internet access service that
uses the Telkom Flexi network. In 2011, we
for corporate and SME customers.
- Port Wholesale provides wholesale rental
launched our “Flexi Hotspot” service for
of port remote access servers to internet
customers wishing to enjoy high speed internet
service providers, content service providers
and corporate customers to sell on to their
subscribers.
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
26
2013 Sustainability
Performance
Overview
- Value-added service. Datacom provides
f.
About
This Report
About Telkom
Economic
Growth
Telkom Shares
2. NEB Portfolio and Strategic Business
additional facilities ofering added value for
Opportunities
data communication customers.
Portofolio NEB dan Strategic Business Opportunities
Interconnection Services
mencakup:
Telkom also earns revenue from other
a.
IT Outsourcing or Managed Application, which
telecommunication operators that utilize our
consists of cloud-based and server-based
extensive infrastructure network in Indonesia,
management services, as well as IT consultation
both for calls that end at or transit through our
services.
network.
g. Ancillary Services
b.
e-Payment/Payment Services, covering:
- Billing Payment is a service that facilitates
We have exclusive agreements with several
customers making payment transactions for
investors under revenue sharing arrangements
service providers or goods, such as PT PLN,
to expand ixed line phone services, public card
Telkom, PDAM, PT KAI and other services,
phones (including their maintenance), data and
through collecting agents such as banks,
internet networks, and ancillary facilities related
cooperatives, BPR, convenience stores and
to telecommunications.
other agents;
-
Remittance is a money transfer service where
In addition, we also have several supporting and
neither the sender nor the receiver needs a
ancillary businesses, which include the lease and/
bank account to complete the transaction
or supply of BTS to other cellular operators and the
as transfers can be accomplished using only
provision of various support facilities. We manage
mobile equipment;
our telecommunications tower business through our
subsidiary, Mitratel.
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
Prioritizing
Customers
GRI G4
Core Index
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
27
G4-9 | G4-12
-
-
c.
e-Money provides services to customers who
d. Portal services facilitate content aggregation
wish to manage money electronically through
and distribution. In addition to sales and
certain media (cell phone, prepaid card, or a
payments related to the company’s products
virtual account that can be accessed via the
and services conducted through our
Internet) for use in electronic transactions;
e-commerce portal, our e-store portal and on-
and
device portal services also facilitate the sale and
e-Voucher or Telkom Voucher is a single
distribution of content and applications, such
voucher issued by Telkom that can be used to
as games, applications, news, sport information,
purchase or reill services provided by Telkom
education content, music, ring back tones, SMS
Group, such as Kartu As, simPATI, Flexi
content and others that can be downloaded
Trendy, post-paid TelkomVision services and
directly on the customer’s mobile device or web.
Speedy Hotspot.
This content and application can be obtained
IT enabler services include business process
either for payment or free of charge.
outsourcing and knowledge process
outsourcing, which consists of:
-
Network-centric value added services,
COMPANY SCALE
comprising IT-based value added services
for data and phone, security services,
and server and storage for connectivity
25,011
25,683
77,143
- Total Liability (Rp billion)
50,527
44,391
Equipment (CPE), applications and software,
- Total Equity (Rp billion)
60,542
51,541
as well as computer hardware.
- Total Assets (Rp billion)
127,951
111,369
Integration services, comprising integration
services for network and hardware
associated with Customer Premises
Number of Employees (People)
2012
82,967
customers; and
-
2013
Net Revenue (Rp billion)
Total Capitalization:
Media and Edutainment business portfolio,
Pay TV ofering packets or a la carte provided
RELATIONSHIP WITH SUPPLIERS (SUPPLY
CHAIN)
through satellite or cable or IPTV (Internet
G4 has introduced a number of new approaches, one
protocol-based television) with premium
of which is a concept related to the organization’s value
content including news, sport, entertainment
chain. The deinition of the GRI G4 supply chain is a
and others. This service is managed by our
sequence of activities or parties that provide products
subsidiary, Indonusa Telemedia, under the brand
or services to the company. This concept, as deined in
TelkomVision. Meanwhile, commercial IPTV
GRI G4, is an important aspect both inside and outside
services were launched in August 2011 under the
the company.
comprising:
a.
brand Groovia TV and are currently available
b.
c.
in all regions included in the service provision
We recognize the importance of parties who act as
license, namely Jabodetabek, Bali, Bandung,
suppliers in the sustainability of our operations. Positive
Semarang and Surabaya. Per 31 December 2012,
reciprocal interaction and mutual support between
the Company had 1.2 million Pay TV subscribers.
us and the suppliers has a positive impact on our
UseeTV - Over the Top TV (OTT TV) is a TV
performance, thus ensuring the sustainability of the
service accessible for subscribers over the
company. Therefore, our partners / suppliers are part
internet.
of the business operations’ chain.
Advertising is a commercial service for the
promotion of products or services owned by a
third party that is presented through digital or
print media, such as radio, television, internet,
newspapers, brochures/lealets and billboards.
28
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
2013 Sustainability
Performance
Overview
About Telkom
About
This Report
Economic
Growth
Telkom Shares
G4-13 | G4-14
In order to fulill the need for goods / services
a road map to develop Entity Risk Management as
implemented by our partners, we apply the integrated
follows:
supply chain concept. In addition, the procurement
and partnership process is computer-based to minimize
-
2013 : increased ERM Maturity Level to initial Stage
-
2014 : increased ERM Maturity Level to intermediate
-
2015 : increased ERM Maturity Level to advanced
-
2016 : increased ERM Maturity Level entering
Quantiied Level.
physical contact between suppliers / partners with us
to facilitate fairness and transparency.
Stage Quantiied Level.
SIGNIFICANT CHANGES
There have been no signiicant changes during the
stage Quantiied Level.
Optimized Level.
reporting period to the ownership structure or to the
ield of business. We remain committed to continuing
fundamental and comprehensive transformation at all
The company’s vision related to risk management
levels of business.
implementation is, “Making risk management an
INHERENT CULTURE in the implementation of business
processes and operations”. Therefore, since 2008, we
MITIGATION PRINCIPLE APPROACH
have built and developed the following:
Since 2006, we have been committed to applying
risk management based on the Enterprise Risk
-
Structural aspects, encompassing the development
Management framework. In practice, risk management
of a risk management vision, mission, commitment,
is an inseparable part of a company’s GCG application
tone at the top, conducive internal environment,
and internal control. Moving ahead, we have compiled
policies, competency development, IT tools and
systems.
Telkom Preserves
the Environment
Telkom’s
People
Telkom
Governance
Prioritizing
Customers
GRI G4
Core Index
2013 Sustainability Report
PT Telekomunikasi Indonesia, Tbk
29
G4-7 | G4-15 | G4-16
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of Risk Acceptance Criteria, Risk Assessment
MEMBERSHIP IN INDUSTRY ASSOCIATIONS
AND OTHER ORGANIZATIONS
implementation and the development of risk
Telkom actively participates in several national and
management for speciic functions.
international associations. In the national arena, we are
Aspects of care, encompassing monitoring risk
members of:
management implementation, periodic risk
1.
reporting, ensuring sustainable competency
2. The Indonesian Satellite Association (ASSI);
development, as well as conducting reviews through
3. The Telecommunications Interconnection Clearing
Operational aspects, encompassing determination
a Risk Management Index, Risk Culture Survey
and evaluation of Implementation Maturity Levels.
The Indonesian Infocomm Society (MASTEL);
Association (ASKITEL); and
4. Corporate Forum for Community Development
At this time, risk management implementation
(CFCD).
has reached a level whereby risk management is
integrated across all subsidiaries.
In the international arena, Telkom is a member of
associations inclu