Equity Research October 4, 2023

Mirae Asset Sekuritas Indonesia

Robertus Hardy robertus.hardy@miraeasset.co.id

TLKM IJ · Infrastructure (Telecommunication)

Telkom Indonesia
FMC and DigiCo to support TLKM's digital transformation
journey

(Maintain) Target price Upside Current price (10/03/23)

Trading Buy IDR4,350 15.4% IDR3,770

JCI Index 6,941 Market cap (IDRbn) 373,465 Shares outstanding (mn) 99,062 Free Float (%) 43.7

Report summary

FMC and DigiCo are aimed at increasing monetization and unlocking the value of TLKM’s digital network
To ensure sustainable growth, TLKM is initiating the 'Five Bold Moves' strategy. In this report, we will first discuss two of the five strategies
that we believe can support other business segments within the TLKM group in the future, especially in digital transformation:
1) Fixed Mobile Convergence (FMC), which is a strategy to consolidate its Fixed Broadband (IndiHome), Mobile Internet
(Telkomsel), and Fixed Wireless Access (Telkomsel Orbit) services, and
2) DigiCo, which is a development of several digital technology-based vertical business units to disrupt various sectors, including
B2B Procurement Ecosystem (PaDi UMKM), Agribusiness (Agree), and Logistics (Logee).
Maintaining a Trading Buy Recommendation with some positive changes to our projection figures
Due to the potential for higher monetization of its FMC strategy and the possibility of value unlocking from its DigiCo units, we have made
some positive changes to our previous forecast for TLKM's FY23 EBITDA figure. Thus, we maintain our Trading Buy recommendation for
TLKM with a TP of IDR4,350 (unchanged). The company is currently trading at an undemanding valuation, which is below its -1 standard
deviation from its average over the past 5 years.

Key data

Price performance Earnings and valuation metrics

(D-1yr=100)
JCI TLKM (FY Dec. 31) 2021 2022 2023F 2024F 2025F
105
100
Revenue (IDRbn) 143,210 147,306 153,519 160,965 169,553
95 EBITDA (IDRbn) 75,723 78,992 82,102 86,833 92,247
90
Net profit (IDRbn) 24,760 20,753 28,391 30,661 33,229
85
80 ROE (%) 20.4 16.1 19.9 20.2 20.5
75
10/22 12/22 2/23 4/23 6/23 8/23 10/23 P/E (x) 15.1 18.0 13.2 12.2 11.2
P/B (x) 3.1 2.9 2.6 2.5 2.3
EV/EBITDA (x) 5.3 5.1 4.8 4.5 4.3
(%) 1M 6M 12M Dividend yield (%) 4.5 4.0 4.4 6.1 6.6
Absolute 1.3 -9.2 -15.5 Net gearing (%) 25.3 24.1 16.0 13.9 11.6
Relative 1.9 -10.9 -14.5 Notes: NP is attributable to owners of the parent
Source: Company data, Mirae Asset Sekuritas Indonesia Research estimates

Analysts who prepared this report are registered as research analysts in Indonesia but not in any other jurisdiction, including the US.
PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES AND DISCLAIMERS IN APPENDIX 1 AT THE END OF THE REPORT.
Telkom Indonesia October 4, 2023

C O N T E N T S
Telkom Indonesia 1

Fixed-Mobile Convergence (FMC) as a low-hanging-

fruit to monetize TLKM’s large client base 3
Marked by the legal integration of IndiHome into Telkomsel 3
Followed by the roll out of ‘Telkomsel One’ platform.................... 3

Anticipating the value unlock of TLKM’s DigiCo 5

The development of several digital platforms 5
Which has potential to increase the value of TLKM group ........... 5

DigiCo’s ‘Leap’ strategy for efficiency and more robust growth .. 5

A brief update on Indonesia's digital industry 7

Possible acceleration in data consumption to support people's
daily activities ...................................................................................... 7

Valuation and recommendation 8

Maintaining a Trading Buy Recommendation 8
With some positive changes to our projection figures ................. 8

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Telkom Indonesia
Fixed-Mobile Convergence (FMC) as a low-hanging-fruit to monetize
TLKM’s large client base
IndiHome
Has ~9.5mn of customers as of
June 2023 with ARPU value of
IDR260k.
Telkomsel
Has ~153mn of customers as
of June 2023 with ARPU value
of IDR47.5k as of 1H23.
Both are market leaders in
their respective industries.
October 4, 2023
Marked by the legal integration of IndiHome into Telkomsel
Followed by the roll out of ‘Telkomsel One’ platform
Following the official legal integration of IndiHome into Telkomsel in July 2023, which
followed by an increase in capital injection by SingTel as TLKM’s strategic partner,
Telkomsel immediately launched its Fixed-Mobile Convergence (FMC) platform,
Telkomsel One, which enables customers to organize all their subscription packages in
the MyTelkomsel app. Scaling up FMC is important for TLKM considering that Mobile
Internet and Fixed Broadband contributed 48% and 20% to the group’s consolidated
revenue.
Despite the threat from the expansion of ISAT post the merger with Hutchison, as well
as the possibility of a merger between EXCL and FREN, IndiHome and Telkomsel's
market share is still dominant at ~75% and ~40%, respectively. Therefore, we see this as
a low-hanging fruit that has the potential to be monetized more quickly. This includes a
series of bundled product offerings that aim to accelerate data consumption growth.
TLKM has ~65% of the country’s data payload market share.
This consolidation also has the potential to further improve the efficiency of capital
expenditure and operational expenses, which have often been overlapping. Initial steps
that have been taken include merging billing services and customer loyalty programs
into the ‘Telkomsel One’ platform. The next step is the merger of ‘GraPARI’ service
centers with ‘Plasa Telkom’.
Telkomsel One is a converged service that provides the best connectivity of fixed
broadband (IndiHome), mobile broadband (Telkomsel) and fixed wireless access
(Telkomsel Orbit) networks in one service, for a seamless broadband experience and a
better digital experience, without being bound to a specific network technology. By
presenting this platform, Telkomsel can offer one solution, one application, one touch
point, and one bill that has the potential to further improve customer experience for
more seamless broadband connectivity access, to support various needs and digital
lifestyle activities that are increasingly needed today.
Telkomsel One provides various premium packages that are customer-centric to meet
customer needs, with prices starting from IDR120k for one month of subscription,
including through the Complete Package which includes IndiHome, Orbit, and Family
Quota (mobile package), then the Dynamic Package which includes IndiHome and
Family Quota (mobile package), and the Easy Package which includes Orbit and Family
Quota (mobile package). Telkomsel One packages can already be enjoyed by the public
in 501 regencies/cities in Indonesia starting from July 21, 2023.
Therefore, we believe that Telkomsel One can be one of the leading solutions that will
increasingly open more opportunities for Telkomsel customers to enjoy reliable digital
connectivity through the use of convergence of the best fixed and mobile broadband
services equipped with a variety of leading digital lifestyle services, including various
benefits in customer loyalty programs.
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Telkom Indonesia October 4, 2023

TLKM has a total of 173,961km of fiber optic backbone network (109,261km domestic +
64,700km international). It is equivalent to 4x of the world’s circle size.

Going forward, we see that TLKM’s FMC could tap into several new business growth
opportunities, which are:
1) Smart home solutions, which can be paired with various IoT (Internet of Things)
gadgets.
2) Fiber to the room (FTTR), to increase the connectivity of appliances in every
room inside a building.
3) High availability WiFi, to ensure seamless connectivity.
4) 5G Fixed Wireless Access (FWA), for the next reliable internet option.

Table 1. Number of cellular users vs. Population (Mn)

Mobile Network Operators 1H22 1H23 Chg YoY (%) to population (%) to total users (%)
• Telkomsel (a subsidiary of TLKM) 169.7 153.3 -9.7 55.2 44.2
• Indosat Ooredoo Hutchison Tbk (ISAT) 96.2 100.0 4.0 36.0 28.8
• XL Axiata Tbk (EXCL) 57.2 58.0 1.4 20.9 16.7
• Smartfren Tbk (FREN) 32.5 35.5 9.2 12.8 10.2
TOTAL 355.6 346.8 -2.5
Country population 275.4 277.8 0.9
Cellular users per 100 people 129.1 124.8 -3.3
Source: Company data, Mirae Asset Sekuritas Indonesia Research

Figure 1. Telkomsel’s customer services Figure 2. Plasa Telkom that used to be a Figure 3. The slogan and branding of
at GraPARI separate operation from GraPARI ‘Telkomsel One’ platform

Source: Company data, Mirae Asset Sekuritas Indonesia Source: Company data, Mirae Asset Sekuritas Indonesia Source: Company data, Mirae Asset Sekuritas Indonesia
Research Research Research

Figure 4. Revenue contribution as of 1H23 (%) Figure 5. Possible configuration of a smart home system

Cellular data & internet Indihome

Cellular & fixed line telephone Interconnection
Others

18.7

6.1
47.9

7.8

19.6

Source: Company data, Mirae Asset Sekuritas Indonesia Research Source: Parametric Architecture, Mirae Asset Sekuritas Indonesia Research

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Telkom Indonesia October 4, 2023

Anticipating the value unlock of TLKM’s DigiCo

The development of several digital platforms

Which has potential to increase the value of TLKM group
TLKM, through its investment arm, Telkom Indonesia Digital Venture, invests in
technology-driven startups that disrupt traditional business models. It also established
Indigo Creative Nation, an incubator and accelerator program for startups. One of the
startups from this program is PT Run System Tbk (RUNS), which went public in 2021.

TLKM is aggressively focused on building digital businesses in three main areas:

connectivity, platforms, and services. This is part of its 'Five Bold Moves' transformation
strategy, which aims to make TLKM a world-class digital telecommunications company.

One way TLKM is achieving this is through DigiCo, an accelerator program that supports
the development of digital businesses. DigiCo is currently focused on developing and
planning to unlock the value of its first three digital startups, which are:
• PaDi UMKM, a B2B procurement platform;
• Agree, a platform for the agricultural ecosystem; and
• Logee, a transportation and distribution platform.

At the ASEAN Indo-Pacific Forum, Indigo and MDI Venture presented five startups:
• Privy.id, a digital authentication tool;
• Pajak.io, a tax payment platform;
• Automa, a green supply chain enabler;
• MallSampah, a waste management platform; and
• PRIEDS, a supply chain management software.

DigiCo’s ‘Leap’ strategy for efficiency and more robust growth

TLKM has initiated the "Leap" strategy to orchestrate its digital businesses and avoid
overlap and competition. This strategy includes three main activities: early detection,
implementation, and decision.
• In the early detection phase, TLKM DigiCo ensures that no new products
overlap with existing products in terms of arena, ecosystem, or value chain. This
is done by mapping market opportunities and selecting solutions that are
compatible with the specific vertical.
• In the implementation phase, TLKM consolidates strengths across the group
or connects existing capabilities with required capabilities. This can be done
through three strategies: building new products, acquiring existing companies,
or partnering with other companies. TLKM hopes to be a platform that sits in
the middle, enabling collaboration with all elements in the digital ecosystem.
• In the decision phase, TLKM evaluates overlapping products to determine the
best course of action. This may involve turning off one of the products, merging
them, or consolidating them into the strongest one. TLKM's goal is to maximize
the benefits of all its digital efforts, regardless of which unit is responsible for
them.

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Telkom Indonesia October 4, 2023

TLKM formulated the "Leap" strategy because it had previously produced many digital
products that were small in scale and had overlapping scope. This was due to the
company's dominant market share and its ability to capture opportunities for
digitalization in various aspects. However, this led to redundant innovation, which
ultimately resulted in competition between products that were created to solve the same
problem. The "Leap" strategy is designed to address this issue by ensuring that TLKM's
digital products are complementary and not overlapping.

DigiCo's strategy to unlock its value

DigiCo takes the lead in developing digital products by incubating new ideas and then
inviting investors to validate the viability of those ideas. This approach ensures that its
products are aligned with market demand and have the potential to be successful.

DigiCo has identified three focus industries to disrupt and develop:

• B2B procurement,
• agriculture, and
• logistics.
These areas are all important to the Indonesian economy and represent significant
opportunities for digital innovation.

A brief story of PaDi UMKM

PaDi UMKM allows small and medium enterprises (SMEs) to connect with the
procurement market of state-owned enterprises (SOEs). When a company, including
SOEs, wants to bring transparency to its business governance, digitization is the
solution. Not only transparency, but also from an environmental aspect, for example.
The "paperless administration and paperless verification" feature in PaDi UMKM, cuts
down on the need for paper, which was previously an environmental burden. When
paper usage is minimized, in addition to having a positive impact on the environment,
the efficiency and effectiveness of the process will also be improved. For information, to
become one of the vendors at an SOE, the requirements are to submit quite a lot of files
and it takes up to two weeks for administration and verification. But with the digital
platform of PaDi UMKM, all of that can be done in minutes.

Regarding transparency, access to information on PaDi UMKM is open. Sellers, in this

case SMEs, can see the procurement process for goods and services at SOEs
transparently. They can also monitor it in real-time. When the goods are packed,
shipped, and where they are located. Similarly, the data needed is more structured and
tends to be easier to analyze and secure. All of these are forms of governance in ESG.

On the social side, PaDi UMKM gives opportunities for SMEs to improve their economic
conditions. Zulkarnain Samiun is a desk maker in Medan, North Sumatra. His products
are offered to offices in the city. He has successfully obtained transaction values of up
to IDR4bn on the PaDi UMKM platform in the last two years, with the smallest
transaction value reaching IDR200mn. Before knowing PaDi UMKM, Zulkarnain had a
problem when borrowing the flag of his friend's company, which turned out to have tax
problems so that the payment results from the employer worth more than IDR100mn
could not be obtained because it had to resolve the existing tax arrears.

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Telkom Indonesia October 4, 2023

A brief update on Indonesia's digital industry

Possible acceleration in data consumption to support people's daily activities
A report by Google, Temasek, and Bain found that Indonesia has a sizeable digital
market, with 204mn internet users and 170mn social media users as of FY22. The
country is also home to a growing number of digital unicorns, including Tokopedia,
Bukalapak, and Gojek.
• E-commerce is the most widely adopted digital service in Indonesia, with 89%
of urban digital users using online platforms to make purchases.
• The report also found that 59% of urban digital users in Indonesia are using
online grocery platforms to purchase their food items.
• Transport and food delivery platforms are also popular, with 80% and 79% of
users adopting these services, respectively.
• Video-on-demand and music-on-demand services are also gaining traction in
Indonesia, with over half of urban digital users adopting these services. This
trend is likely to continue as people increasingly turn to digital platforms for
entertainment and content consumption.
• Gaming is also popular in Indonesia, with 48% of urban digital users using
gaming services. This presents an opportunity for gaming companies to expand
their operations in the country and connect with new users through digital
platforms.
Although there is a possibility of a decline in the above figures this year due to the high-
base effect of last year, we believe that consumers will continue to accelerate their
consumption of data to support their daily activities, such as learning, working, and
entertainment.

Figure 6. Some of the furniture for office use sold at PaDi UMKM

Source: Company data, Mirae Asset Sekuritas Indonesia Research

Figure 7. Some of Agree’s services Figure 8. Logee’s network

Source: Company data, Mirae Asset Sekuritas Indonesia Research Source: Company data, Mirae Asset Sekuritas Indonesia Research

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Telkom Indonesia October 4, 2023

Valuation and recommendation

Maintaining a Trading Buy Recommendation

With some positive changes to our projection figures
Due to the potential for higher monetization of its FMC strategy and the possibility of
value unlocking from its DigiCo units, we have made some positive changes to our
previous forecast for TLKM's FY23 EBITDA figure.

Thus, we maintain our Trading Buy recommendation for TLKM with a TP of IDR4,350
(unchanged), implying 5.5x/5.2x of its 23F/24F EV/EBITDA ratio. The company is currently
trading at an undemanding valuation, which is below its -1 standard deviation from its
average over the past 5 years.

Table 2. Changes to our forecast (IDRbn)

(IDRbn) 2023 PF 2023 CF Chg (%)
Revenue 148,426 153,519 3.4
Operating profit 46,352 49,781 7.4
EBITDA 78,245 82,102 4.9
Net profit 26,325 28,391 7.8
Net profit, normalized 25,744 27,810 8.0
Note: PF; Previous Forecast, CF; Current Forecast
Source: Company data, Mirae Asset Sekuritas Indonesia Research Estimate

Figure 9. TLKM’s forward EV/EBITDA band

8.0
EV/EBITDA Average +1SD +2SD -1SD -2SD

7.0

6.0

5.0

4.0
3/20
9/18

12/18

3/19

6/19

9/19

12/19

6/20

9/20

12/20

3/21

6/21

9/21

12/21

3/22

6/22

9/22

12/22

3/23

6/23

9/23

Source: Company data, Mirae Asset Sekuritas Indonesia Research Estimate

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Telkom Indonesia October 4, 2023

Telkom Indonesia (TLKM)

Income statement (summarized) Balance sheet (summarized)

(IDRbn) 2022 2023F 2024F 2025F (IDRbn) 2022 2023F 2024F 2025F
Revenue 147,306 153,519 160,965 169,553 Cash 31,947 34,278 35,474 37,120
EBIT 39,581 50,535 54,046 58,007 Receivables 8,634 11,166 11,278 11,391
Profit before tax 36,339 47,136 50,612 54,539 Prepaid taxes & others 14,476 16,740 16,907 17,076
Profit after tax 27,680 37,320 40,178 43,407 Total Current Assets 55,057 62,184 63,659 65,587
Net profit 20,753 28,391 30,661 33,229 Property & equipment 173,329 191,263 200,827 210,868
EBITDA 78,992 82,102 86,833 92,247 ROU & intangibles 28,638 31,656 31,972 32,292
Operating profit 45,737 49,781 53,284 57,261 LT Inv, def tax & others 18,168 22,373 22,597 22,823
Total Non-current Assets 220,135 245,292 255,396 265,983
Growth (%) 2022 2023F 2024F 2025F Total Assets 275,192 307,476 319,054 331,569
Revenue 2.9 4.2 4.9 5.3
EBIT -16.8 27.7 6.9 7.3 Payables 18,457 14,602 14,762 14,924
Profit before tax -16.8 29.7 7.4 7.8 Loans & lease liabs 21,974 19,346 19,152 18,961
Profit after tax -18.5 34.8 7.7 8.0 Accruals & others 29,957 56,635 57,258 57,888
Net profit -16.2 36.8 8.0 8.4 Total Current Liabilities 70,388 90,583 91,173 91,773
EBITDA 4.3 3.9 5.8 6.2 Pension benefits 10,272 10,585 10,701 10,819
Operating profit 4.2 8.8 7.0 7.5 Loans & lease liabs 41,067 37,772 37,394 37,020
Others 4,203 3,681 3,722 3,763
Margin (%) 2022 2023F 2024F 2025F Total Non-current Liabilities 55,542 52,038 51,817 51,602
EBIT 26.9 32.9 33.6 34.2 Total Liabilities 125,930 142,621 142,990 143,375
Profit before tax 24.7 30.7 31.4 32.2 Net debt (cash) 31,094 22,839 21,073 18,861
Profit after tax 18.8 24.3 25.0 25.6
Net profit 14.1 18.5 19.0 19.6 Capital stock 4,953 4,953 4,953 4,953
EBITDA 53.6 53.5 53.9 54.4 Additional paid-in capital 2,711 2,711 2,711 2,711
Operating profit 31.0 32.4 33.1 33.8 Other equity 9,697 9,794 9,892 9,991
Retained earnings
Per share data 2022 2023F 2024F 2025F App 15,337 15,337 15,337 15,337
EPS (IDR) 209 287 310 335 Unapp 96,560 109,776 119,166 129,321
BPS (IDR) 1,305 1,439 1,535 1,638 Net equity attributable to:
DPS (IDR) 150 168 229 248 Owners 129,258 142,571 152,059 162,313
NC interest 20,004 22,285 24,006 25,881
Cash flows 2022 2023F 2024F 2025F Total Equity 149,262 164,856 176,064 188,194
Chg in net working capital 1,113 15,399 311 319 Total Liabilities & Equity 275,192 307,476 319,054 331,569
Net profit 20,753 28,391 30,661 33,229
Net CF from Operation 21,866 43,790 30,972 33,548
Chg in nc assets -4,228 -25,157 -10,103 -10,587 Key valuation metrics/ratios 2022 2023F 2024F 2025F
Net CF from Investment -4,228 -25,157 -10,103 -10,587 P/E (x) 18.0 13.2 12.2 11.2
Chg in nc liabs -7,112 -3,504 -221 -215 P/B (x) 2.9 2.6 2.5 2.3
Chg in Equity -3,447 2,378 1,819 1,974 EV/EBITDA (x) 5.1 4.8 4.5 4.3
Dividend -14,856 -16,602 -22,713 -24,529 Dividend payout ratio (%) 60.0 80.0 80.0 80.0
Others 1,413 1,427 1,441 1,456 Dividend yield (%) 4.0 4.4 6.1 6.6
Net CF from Financing -24,002 -16,301 -19,674 -21,314 ROA (%) 7.5 9.2 9.6 10.0
Net Cash Flows -6,364 2,331 1,195 1,646 ROE (%) 16.1 19.9 20.2 20.5
Cash beginning balance 38,311 31,947 34,278 35,474 Net debt-to-equity ratio (%) 24.1 16.0 13.9 11.6
Cash ending balance 31,947 34,278 35,474 37,120 Current ratio (%) 78.2 68.6 69.8 71.5
Source: Company data, Mirae Asset Sekuritas Indonesia Research estimates

Mirae Asset Sekuritas Indonesia Research 9

Telkom Indonesia October 4, 2023

Appendix 1

Important disclosures and disclaimers

Two-year rating and TP history
Company Date Rating TP (IDR)
(IDR) TLKM Analyst's TP
Telkom Indonesia (TLKM IJ) 10/4/2023 Trading Buy 4,350
8/3/2023 Trading Buy 4,350 6,000
4/11/2023 Trading Buy 5,100 5,000
3/29/2023 Trading Buy 4,600
1/31/2023 Trading Buy 4,500 4,000

3,000

2,000
Oct-21 Oct-22 Oct-23

Stock ratings Sector ratings

Buy Expected 12-month performance: +20% or greater Overweight Expected to outperform the market over 12 months
Trading Buy Expected 12-month performance: +10% to +20% Neutral Expected to perform in line with the market over 12 months
Hold Expected 12-month performance: -10% to +10% Underweight Expected to underperform the market over 12 months
Sell Expected 12-month performance: -10% or worse

Rating and TP history: Share price (─), TP (▬), Not Rated (■), Buy (▲), Trading Buy (■), Hold (●), Sell (♦)
* Our investment rating is a guide to the expected return of the stock over the next 12 months.
* Outside of the official ratings of PT Mirae Asset Sekuritas Indonesia, analysts may call trading opportunities should technical or short-term material developments arise.
* The TP was determined by the research analyst through valuation methods discussed in this report, in part based on estimates of future earnings.
* TP achievement may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions.

Disclosures
As of the publication date, PT Mirae Asset Sekuritas Indonesia (“MASID”) and/or its affiliates do not have any special interest in the subject company and do not own 1% or
more of the subject company's shares outstanding.

Analyst certification
The research analysts who prepared this report (the “Analysts”) are certified to the Indonesia Financial Services Authority and are subject to Indonesian
Capital Market regulations. They are neither registered as research analysts in any other jurisdiction nor subject to the laws or regulations thereof. Each
Analyst responsible for the preparation of this report certifies that (i) all views expressed in this report accurately reflect the personal views of the Analyst
about any and all of the issuers and securities named in this report; (ii) no part of the compensation of the Analyst was, is, or will be directly or indirectly
related to the specific recommendations or views contained in this report; and (iii) The report does not contain any material non-public information. Except
as otherwise specified herein, the Analysts have not received any compensation or any other benefits from the subject companies in the past 12 months and
have not been promised the same in connection with this report. Like all employees of MASID, the Analysts receive compensation that is determined by
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Mirae Asset Sekuritas Indonesia Research 10

Telkom Indonesia October 4, 2023

have long or short positions in any of the subject securities at any time and may make a purchase or sale, or offer to make a purchase or sale, of any such
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information regarding company-specific information as it pertains to the representations and disclosures in this Appendix 1, please contact
researchteam@miraeasset.co.id or +62 (21) 5088-7000.

Distribution
United Kingdom: This report is being distributed by Mirae Asset Securities (UK) Ltd. in the United Kingdom only to (i) investment professionals falling within
Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), and (ii) high net worth companies and other
persons to whom it may lawfully be communicated, falling within Article 49(2)(A) to (E) of the Order (all such persons together being referred to as “Relevant
Persons”). This report is directed only at Relevant Persons. Any person who is not a Relevant Person should not act or rely on this report or any of its contents.
United States: MASID is not a registered broker-dealer in the United States and, therefore, is not subject to U.S. rules regarding the preparation of research
reports and the independence of research analysts. This report is distributed in the U.S. by Mirae Asset Securities (USA) Inc., a member of FINRA/SIPC, to
“major U.S. institutional investors” in reliance on the exemption from registration provided by Rule 15a-6(b)(4) under the U.S. Securities Exchange Act of 1934,
as amended. All U.S. persons that receive this document by their acceptance hereof represent and warrant that they are a major U.S. institutional investor
and have not received this report under any express or implied understanding that they will direct commission income to MASID or its affiliates. Any U.S.
recipient of this document wishing to effect a transaction in any securities discussed herein should contact and place orders with Mirae Asset Securities (USA)
Inc. Mirae Asset Securities (USA) Inc. accepts responsibility for the contents of this report in the U.S., subject to the terms hereof, to the extent that it is
delivered to a U.S. person other than a major U.S. institutional investor. Under no circumstances should any recipient of this research report effect any
transaction to buy or sell securities or related financial instruments through MASID. The securities described in this report may not have been registered
under the U.S. Securities Act of 1933, as amended, and, in such case, may not be offered or sold in the U.S. or to U.S. persons absent registration or an
applicable exemption from the registration requirements.
Hong Kong: This report is distributed in Hong Kong by Mirae Asset Securities (HK) Limited, which is regulated by the Hong Kong Securities and Futures
Commission. The contents of this report have not been reviewed by any regulatory authority in Hong Kong. This report is for distribution only to professional
investors within the meaning of Part I of Schedule 1 to the Securities and Futures Ordinance of Hong Kong (Cap. 571, Laws of Hong Kong) and any rules
made thereunder and may not be redistributed in whole or in part in Hong Kong to any person.
India: This report is being distributed by Mirae Asset Capital Markets (India) Private Limited (“MACM”) in India to the customers based in India and is personal
information only for those authorised recipient(s). MACM is inter alia a Securities and Exchange Board of India (“SEBI”) registered Research Analyst in India
and is not registered outside India. MACM and Mirae Asset, Korea are group entities. MACM makes no guarantee, representation or warranty, express or
implied, as to the fairness, accuracy, completeness or correctness of the information and opinions contained herein. The user assumes the entire risk of any
use made of this information. This report has been provided for assistance only and is not intended to be and must not alone be taken as the basis for an
investment decision. Recipient must read the entire Appendix 1 to the report carefully for Important Disclosures & Disclaimers.
All other jurisdictions: Customers in all other countries who wish to effect a transaction in any securities referenced in this report should contact MASID or
its affiliates only if distribution to or use by such customer of this report would not violate applicable laws and regulations and not subject MASID and its
affiliates to any registration or licensing requirement within such jurisdiction.

Mirae Asset Sekuritas Indonesia Research 11

Telkom Indonesia October 4, 2023

Mirae Asset Securities International Network

Mirae Asset Securities Co., Ltd. (Seoul) Mirae Asset Securities (HK) Ltd. Mirae Asset Securities (UK) Ltd.
One-Asia Equity Sales Team Units 8501, 8507-8508, 85/F 41st Floor, Tower 42
Mirae Asset Center 1 Building International Commerce Centre 25 Old Broad Street,
26 Eulji-ro 5-gil, Jung-gu, Seoul 04539 1 Austin Road West London EC2N 1HQ
Korea Kowloon United Kingdom
Hong Kong
Tel: 82-2-3774-2124 Tel: 852-2845-6332 Tel: 44-20-7982-8000

Mirae Asset Securities (USA) Inc. Mirae Asset Wealth Management (Brazil) CCTVM PT. Mirae Asset Sekuritas Indonesia
810 Seventh Avenue, 37th Floor Rua Funchal, 418, 18th Floor, E-Tower Building District 8, Treasury Tower Building Lt. 50
New York, NY 10019 Vila Olimpia Sudirman Central Business District
USA Sao Paulo - SP Jl. Jend. Sudirman, Kav. 52-54
04551-060 Jakarta Selatan 12190
Brazil Indonesia
Tel: 1-212-407-1000 Tel: 55-11-2789-2100 Tel: 62-21-5088-7000

Mirae Asset Securities (Singapore) Pte. Ltd. Mirae Asset Securities (Vietnam) LLC Mirae Asset Securities Mongolia UTsK LLC
6 Battery Road, #11-01 7F, Saigon Royal Building #406, Blue Sky Tower, Peace Avenue 17
Singapore 049909 91 Pasteur St. 1 Khoroo, Sukhbaatar District
Republic of Singapore District 1, Ben Nghe Ward, Ho Chi Minh City Ulaanbaatar 14240
Vietnam Mongolia

Tel: 65-6671-9845 Tel: 84-8-3911-0633 (ext.110) Tel: 976-7011-0806

Mirae Asset Investment Advisory (Beijing) Co., Ltd
2401B, 24th Floor, East Tower, Twin Towers
B12 Jianguomenwai Avenue, Chaoyang District
Beijing 100022
China
Beijing Representative Office
2401A, 24th Floor, East Tower, Twin Towers
B12 Jianguomenwai Avenue, Chaoyang District
Beijing 100022
China
Shanghai Representative Office
38T31, 38F, Shanghai World Financial Center
100 Century Avenue, Pudong New Area
Shanghai 200120
China

Tel: 86-10-6567-9699 Tel: 86-10-6567-9699 (ext. 3300) Tel: 86-21-5013-6392

Ho Chi Minh Representative Office Mirae Asset Capital Markets (India) Pvt Ltd
7F, Saigon Royal Building 1st Floor, Tower 4, Equinox Business Park,
91 Pasteur St. LBS Marg, Off BKC, Kurla (West), Mumbai - 400 070
District 1, Ben Nghe Ward, Ho Chi Minh City India
Vietnam

Tel: 84-8-3910-7715 Tel: 91-22-62661300 / 48821300

Mirae Asset Sekuritas Indonesia Research 12