Telkom Sees Strong Value Creation from GOTO Investment Despite Share Price Decline

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JAKARTA, Investortrust.id — PT Telkom Indonesia Tbk (TLKM) has expressed satisfaction with its investment in PT GoTo Gojek Tokopedia Tbk (GOTO), emphasizing that the value generated from the partnership exceeds expectations—despite the decline in GOTO’s share price since Telkomsel first entered as an investor.

Speaking at a media gathering in Jakarta on Tuesday, Director of Wholesale & International Service Honesti Basyir explained that the focus of Telkom’s investment through Telkomsel is not on GOTO’s stock performance, but rather on the broader value created from service integration.

“Our investment in GOTO through Telkomsel isn’t measured by the stock price. The benchmark for us is how much value creation we can generate from leveraging Telkomsel’s services,” said Honesti during the event with national media editors.

GOTO Value Surpasses Expectations

According to Honesti, the synergy between Telkomsel and GOTO has resulted in value creation of approximately Rp 1.5 trillion ($91.5 million) per year, significantly exceeding initial projections.

“In terms of the value we’ve gained compared to our capital injection, the outcome has surpassed expectations,” he said.

Despite recent speculation about the potential interest of Danantara—a state-backed investment firm—in acquiring a stake in GOTO, Honesti emphasized that Telkom will align with strategic decisions as needed. Nonetheless, he reiterated that the company is satisfied with its current investment position.

Unrealized Losses vs Strategic Gains

Telkom’s 2024 financial report noted that Telkomsel had recorded an unrealized loss of Rp 380 billion ($23.2 million) on its GOTO shares, up from Rp 119 billion ($7.3 million) in 2023. This was based on GOTO’s year-end share price of Rp 70, down from Rp 86 at the end of 2023.

Telkom is estimated to hold approximately 23.72 billion GOTO shares. Telkomsel initially entered the investment through a $150 million zero-coupon convertible bond in 2021, which was later converted into equity following the merger of Gojek and Tokopedia.