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7 February 2024
Full Year 2023 Results
Total Revenue of IDR51,228.8 Bn, +9.6% YoY.
EBITDA of IDR23,938.0 Bn, +23.0% YoY. Sustained Net Profit of IDR4,506.4 Bn
PT Indosat Tbk. (“the Company”) continues to create value for its stakeholders by consistently delivering
organic net profit for 3 consecutive years. Profit For The Year Attributable To Owners Of The Parent was
IDR4,506.4 billion in the back of a stellar financial performance. This is seen in the 9.6% YoY increase in
total revenue to IDR51,228.8 billion while EBITDA of IDR23,938.0 billion increased by 23.0% YoY, due to a
combination of top line growth and cost optimization momentum. EBITDA margin stood at 46.7% in 2023.
The Company’s customer base declined by 3.4 million customers to 98.8 million compared to FY 2022.
This was mainly due to the company’s focus on sustainable customer acquisitions by increasing the
price of new SIM cards in early 2023. As a result, ARPU for cellular customers increased in FY 2023 to
IDR35.6 thousand, an increase of 5.3% or IDR1.7 thousand higher compared to FY 2022.
Data traffic saw an impressive 14.8% YoY rise in 2023 while the Company has expanded its network
infrastructure, boosting the 4G BTS count to 179k to effectively manage the growth in data traffic and
deliver the best customer experience for its users.
Financial Highlights
* excluding Right of Use Assets under PSAK 73
The Company announced the successful launch of its collaboration with Asianet (a Lightstorm group
company) and PT MNC Kabel Mediacom (MNC Play) in bringing world-class digital experiences to its
customers. This strategic move was made through the acquisition of MNC Play's customers, which is a
leading fiber-based network service provider in Indonesia. This confirms the Company's commitment to
providing superior home internet services to the public while adding video entertainment services
provided by MNC Play into one service.
As part of its efforts to revolutionize the digital landscape of Indonesia, the Company also announced
that BDx Indonesia, a joint venture between Indosat, BDx Data Centers (BDx), and Lintasarta, has agreed
to acquire a portfolio of carrier-neutral colocation and edge sites in major cities such as Jakarta,
Surabaya, Batam, Medan, Makassar, Bandung, and Semarang. This new portfolio will add to the
connected ecosystem being built by BDx Indonesia, which can significantly accelerate digital
transformation and enhance the digital experience of businesses, technology companies, and internet
users.
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FULL YEAR 2023
OPERATING AND FINANCIAL RESULTS
The Company has released its audited consolidated financial statements for the Year 2023 (“FY 2023”).
The audited consolidated financial statements have been prepared and presented in accordance with
Indonesian Financial Accounting Standards (IFAS).
Audited Consolidated Statements of Profit or Loss and Other Comprehensive Income
Key Indicators Annually Quarterly
(in IDR billion) FY 2023 FY 2022 Growth % 4Q 2023 3Q 2023 Growth %
Revenues 51,228.8 46,752.3 9.6 13,766.4 12,787.6 7.7
• Cellular 43,749.9 40,242.8 8.7 11,576.5 10,995.7 5.3
• MIDI 6,472.9 5,725.9 13.0 1,934.5 1,509.1 28.2
• Fixed Telecom 1,006.0 783.6 28.4 255.4 282.8 (9.7)
Expenses (40,801.1) (36,161.5) 12.8 (10,405.5) (10,486.6) (0.8)
Operating Profit 10,427.7 10,590.8 (1.5) 3,360.9 2,301.0 46.1
Other Expenses - Net (4,496.1) (4,055.0) 10.9 (1,031.5) (1,119.2) (7.8)
Profit for the Year
Attributable to Owners
of The Parent 4,506.4 4,723.4 (4.6) 1,719.3 878.7 95.7
EBITDA* 23,938.0 19,468.7 23.0 6,471.1 6,083.8 6.4
EBITDA Margin 46.7% 41.6% 5.1 47.0% 47.6% (0.6)
Financial Ratios
Formula FY 2023 FY 2022
Interest Coverage** EBITDA/Interest Payment 14.42 16.06
Net Debt to EBITDA*** (Debt - Cash & Cash Equivalent)/Total EBITDA 0.40 0.61
* EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-IFAS measure that management believes is a useful
supplemental measure of cash generated prior to debt service, capital expenditures and income tax. Investors are cautioned that
EBITDA should not be construed as an alternative to net income determined in accordance with IFAS as an indicator of the Company’s
performance or to cash flows from operations as a measure of liquidity and cash flows. EBITDA does not have a standardized meaning
prescribed by IFAS. The Company’s method of calculating EBITDA may differ from the methods used by other companies and,
accordingly, it may not be comparable to similarly titled measures used by other companies.
** Calculated using EBITDA and interest payment for the years ended 31 December 2023 and 2022.
*** Net debt excludes lease liabilities.
AUDITED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Revenues of IDR51,228.8 billion were recorded for FY 2023, an increase of IDR4,476.5 billion or 9.6% higher
compared to FY 2022. The Company’s Cellular, MIDI, and Fixed Telecommunication business each
contributed 85.4%, 12.6%, and 2.0%, respectively to the consolidated operating revenues for the year
ended 31 December 2023.
• Cellular Revenues increased by 8.7% compared to FY 2022, attributable to increase in Data, Value
Added Service and Interconnection revenue offsetting with decrease in Voice revenue.
• MIDI Revenues increased by 13.0% compared to FY 2022, attributable to increase in IT Services, Fixed
Internet and FTTH Revenue, offsetting with decrease in Fixed Connectivity revenue.
• Fixed Telecommunication Revenues increased by 28.4% compared to FY 2022 driven by increase in
International Call revenues.
Expenses of IDR40,801.1 billion were recorded for FY 2023, an increase of IDR4,639.6 billion or 12.8% higher
compared to FY 2022. This increase was mainly due to increase in Depreciation and Amortization,
Marketing Expenses, and decrease in Other Operating Income offset by decrease in Cost of Services,
Personnel, and General and Administration Expenses.
• Cost of Services: decreased by IDR64.4 billion or 0.3% lower over FY 2022, mainly due to decrease in
frequency fee, maintenance, and installation, offsetting with higher interconnection, rent
expenses, lease line, and SIM cards.
• Depreciation and Amortization: increased by IDR918.0 billion or 6.7% higher over FY 2022,
mainly due to impact of depreciation from additional fixed assets and right of use
assets from network roll out.
• Personnel Expenses: decreased by IDR87.5 billion or 2.3% lower over FY 2022
mainly due to one-off employee cost related to rightsizing in 2022.
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• Marketing Expenses: increased by IDR279.6 billion or 20.0% higher over FY 2022, mainly due to increase
in subscriber acquisition cost with expansion of rural distribution, and promotion as impact from higher
activities to support revenue growth, offset by decrease in channel marketing, and marketing agency
expenses.
• General and Administration Expenses: decreased by IDR120.5 billion or 12.6% lower over FY 2022 mainly
due to decrease in provision for impairment of trade receivables, insurance, and public relation
expenses as part of ongoing cost optimization initiatives offset by increase in professional fees.
• Other Operating Income: decreased by IDR3,714.4 billion or 77.0% lower over FY 2022 mainly due to
one-off net gain associated with the loss of control of a subsidiary holding data center assets and
gain on remeasurement of equity interest from a step acquisition in 2022 offset by net gain on assets
sale and leaseback of towers and data center in 2023.
Other Expense - net: The Company recorded expenses of IDR4,496.1 billion, increased by IDR441.1 billion or
10.9% higher over FY 2022. This increase was due to an increase in finance costs of IDR379.6 billion mainly
due to higher finance charges under lease liabilities and increase in loss on foreign exchange by IDR 274.8
billion, offset by increase in interest income by IDR213.4 billion.
Profit for the Year Attributable to Owners of the Parent: The Company recorded net profit of IDR 4,506.4
billion, decreased by IDR 217.0 billion primarily due to decrease in one-off gains in other operating income,
increase in depreciation and amortization, and increase marketing expenses offset by increase in revenue
and decrease in cost of services, personnel expenses, and general & administrative expenses.
AUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Key Indicators (in IDR billion) FY 2023 FY 2022* Growth %
ASSETS
Current Assets 15,479.7 18,683.1 (17.1)
Non-Current Assets 99,242.5 94,974.2 4.5
TOTAL ASSETS 114,722.2 113,657.3 0.9
LIABILITIES
Current Liabilities 34,134.3 35,874.0 (4.8)
Non-Current Liabilities 46,879.1 46,414.7 1.0
TOTAL LIABILITIES 81,013.4 82,288.7 (1.5)
TOTAL EQUITY 33,708.8 31,368.6 7.5
TOTAL LIABILITIES & EQUITY 114,722.2 113,657.3 0.9
*as restated, see Note 35 to Audited Consolidated Financial Statements
• Current assets decreased by 17.1% to IDR15,479.7 billion, mainly due to a decrease in cash and cash
equivalent offset by increase in trade receivables and inventories.
• Non-current assets increased by 4.5% to IDR99,242.5 billion, mainly due to increase in fixed assets and
intangible assets offset by decrease in long-term prepayments.
• Current liabilities decreased by 4.8% to IDR34,134.3 billion mainly due to decrease in current maturities
of long-term debt, and unearned revenues, offset by increase in accrued expenses, and taxes
payable.
• Non-current liabilities increased by 1.0% at IDR46,879.1 billion mainly due to increase in obligation under
finance lease offset by decrease in non-current portion of loans and bonds payables.
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Cash Flow and Capital Expenditure
Key Indicators (in IDR billion) FY 2023 FY 2022 Growth %
Net Cash Flows Provided by Operating Activities 17,680.5 15,676.8 12.8
Net Cash Flows Used in Investing Activities (10,771.2) (4,012.4) 168.4
Net Cash Flows Used in Financing Activities (11,111.0) (6,154.6) 80.5
Net Foreign Exchange Differences from Cash and Cash Equivalents (116.6) 209.1 (155.8)
Net (Decrease) Increase in Cash and Cash Equivalents (4,318.3) 5,718.9 (175.5)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 9,507.9 3,789.0 150.9
CASH AND CASH EQUIVALENTS AT END OF THE YEAR 5,189.6 9,507.9 (45.4)
Capex in FY 2023 amounted to IDR12,783.4 billion (excluding IDR7,779.5 billion of Right of Use Assets).
Approximately 84.7% of the Capex was allocated to cellular, to support data services demand and the
remaining balance was allocated to MIDI and IT Capex.
STATUS OF DEBT
Total outstanding debt: As of 31 December 2023, the Company had total outstanding gross debts
(excluding unamortized transaction costs and lease liabilities) of IDR14,803.0 billion. The Company’s cash
position as at 31 December 2023 stood at IDR5,189.6 billion and net debt is at IDR9,613.4 billion. The
composition of the Company’s gross debt, excluding lease liabilities, is as follows:
Debt Proportion (Principal amount) FY 2023 FY 2022 Growth %
IDR Loans (billion) 7,420.0 13,727.3 (45.9)
IDR Bonds (billion) 7,383.0 7,596.0 (2.8)
Total maturing debt: in the next twelve months, IDR2,487 billion of the Company’s debt is maturing. The
average tenor of debt is 2.7 years as of 31 December 2023.
OPERATIONAL RESULTS
Annually Quarterly
Key Indicators
FY 2023 FY 2022 Growth % 4Q 2023 3Q 2023 Growth %
Customers - Postpaid (million) 1.6 1.6 (0.8) 1.6 1.6 (0.2)
Customers - Prepaid (million) 97.2 100.6 (3.4) 97.2 97.8 (0.6)
Customers - Total (million) 98.8 102.2 (3.4) 98.8 99.4 (0.6)
ARPU (Postpaid) (IDR thousand) 74.4 68.2 9.1 80.8 76.8 5.2
ARPU (Prepaid) (IDR thousand) 35.0 33.3 5.2 37.8 34.7 8.9
ARPU (Blended) (IDR thousand) 35.6 33.9 5.3 38.5 35.4 8.9
MoU (minutes) 7.3 11.0 (33.6) 6.9 7.0 (1.2)
Data Traffic (PB) 14,417 12,561 14.8 3,716 3,674 1.1
SMS Traffic (bn) 3.3 2.8 20.8 0.6 1.0 (40.1)
In 2023, the company’s customer base declined by 3.4 million customers to 98.8 million compared to FY
2022. This was mainly due to the company’s focus on sustainable customer acquisitions by increasing the
price of new SIM cards in early 2023.
As a result, ARPU for cellular customers increased in FY 2023 to IDR35.6 thousand, an increase of 5.3% or
IDR1.7 thousand higher compared to FY 2022.
Average Minutes of Usage (MOU) per customer decreased to 7.3 minutes, a 33.6% decrease compared to
FY 2022 in-line with the decrease of industry trend related to traditional voice services.
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NETWORKS
As of 31 December 2023, the Company has operated ~179K 4G BTS (adding ~42K 4G BTS during 2023) and
90 5G BTS.
Annually
Key Indicators
FY 2023 FY 2022 % Change
Base Transceiver Stations (BTS) 2G 50,361 39,875 26.3
3G - 3,121 (100.0)
4G 179,070 137,037 30.7
5G 90 90 -
ESG FRAMEWORK: DRIVING SUSTAINABLE GROWTH
The Company believes that businesses have a vital role to play in creating a better and more sustainable
world. Guided by Company’s mission to “connecting & Empowering every Indonesian”, the Company
maintains its strong commitment to have positive social impact with our Environmental, Social, and
Governance (ESG) framework, fueling sustainable growth and positive impact in Indonesia's
telecommunications landscape. Our ESG strategy rests on three pillars:
1. Practicing Environment Safeguard: We are deeply committed to reducing greenhouse gas
emissions and fostering sustainability. Our approach includes behavior changes to lower energy
consumption, such as installing solar panels, high-efficient batteries, intelligent cell sleep mode at
mobile base stations. These eco-conscious practices reduce our carbon footprint, driving a more
sustainable future for Indonesia and aligning with global climate change efforts.
2. Enhancing Social Impact: We harness the power of digital initiatives to uplift communities, bridging
the digital divide across Indonesia and promoting gender diversity in our leadership. Our social
responsibility drives inclusive development and empowers individuals.
3. Responsible Corporate Governance: We are actively working on strengthening our privacy and
data protection systems to ensure its alignment with the high standards we strive to uphold. We
recognize the paramount importance of having robust measures in place to safeguard the privacy
and data of our customers and stakeholders.
Through these pillars, we are resolute in our pursuit of sustainable growth and a brighter, inclusive future
for Indonesia and beyond, creating long-term value for our stakeholders.
About Indosat Ooredoo Hutchison
Indosat Ooredoo Hutchison (Indosat, IDX: ISAT) has the vision to become the most preferred digital telecommunications company in
Indonesia. Together with its subsidiaries and affiliates, Indosat provides cellular services, ICT solutions, data centers, Fiber to the Home
(FTTH), electronic payment services, financial services, and other digital services. Indosat has a larger purpose of empowering Indonesia,
and with the spirit of Gotong Royong, Indosat wants to be the main collaborator in realizing it and creating meaningful change.
https://ioh.co.id/
Ticker: ISAT; Closing Price: IDR9,375; Market Capitalization: IDR75.6 trillion; Ratings: Pefindo idAAA (Stable);
Fitch AA+(idn) (Positive);
Page 6
AUDITED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
For The Years Ended 31 December 2023 and 2022
(Expressed in Billions of Rupiah)
Growth
Description 2023 2022
(%) (1)
REVENUES
Cellular 43,749.9 40,242.8 8.7
Multimedia, Data Communication, Internet (“MIDI”) 6,472.9 5,725.9 13.0
Fixed Telecommunications 1,006.0 783.6 28.4
TOTAL REVENUES 51,228.8 46,752.3 9.6
(EXPENSES) INCOME
Cost of Services (21,084.9) (21,149.3) (0.3)
Depreciation and Amortization (14,621.2) (13,703.2) 6.7
Personnel (3,694.6) (3,782.1) (2.3)
Marketing (1,676.6) (1,397.0) 20.0
General and Administration (834.7) (955.2) (12.6)
Share of Net (Loss) Profit of Associates and Joint Ventures (72.0) 28.2 (355.9)
Loss on Foreign Exchange - net (1.4) (5.6) (76.0)
Net Gain on Assets Sale and Leaseback 1,342.5 - 100.0
Net Gain Associated with the Loss of Control of a Subsidiary - 3,494.6 (100.0)
Net Gain on Remeasurement of Equity Interest from a Step - 1,002.8 (100.0)
Acquisition
Amortization of Deferred Gain on Sale and Leaseback of - 84.8 (100.0)
Towers
Others - Net (158.2) 220.5 (171.8)
TOTAL EXPENSES (40,801.1) (36,161.5) 12.8
OPERATING PROFIT 10,427.7 10,590.8 (1.5)
Interest Income 331.0 117.6 181.4
Finance Costs (4,724.6) (4,345.0) 8.7
(Loss) Gain on Foreign Exchange - net (102.5) 172.3 (159.5)
Gain on Change in Fair Value of Derivatives - net - 0.1 (100.0)
OTHER EXPENSES - Net (4,496.1) (4,055.0) 10.9
PROFIT BEFORE INCOME TAX 5,931.6 6,535.8 (9.2)
INCOME TAX EXPENSE (1,155.9) (1,165.6) (0.8)
PROFIT FOR THE YEAR 4,775.7 5,370.2 (11.1)
PROFIT FOR THE YEAR ATTRIBUTABLE TO:
OWNERS OF THE PARENT 4,506.4 4,723.4 (4.6)
NON-CONTROLLING INTERESTS 269.3 646.8 (58.4)
TOTAL 4,775.7 5,370.2 (11.1)
1) Percentage changes may vary due to rounding.
Disclaimer
This document contains certain financial information and results of operation, and may also contain certain projections, plans,
strategies, and objectives of Indosat Ooredoo Hutchison, that are not statements of historical fact which would be treated as forward-
looking statements within the meaning of applicable law. Forward looking statements are subject to risks and uncertainties that may
cause actual events and Indosat Ooredoo Hutchison's future results to be materially different than expected or indicated by such
statements. No assurance can be given that the results anticipated by Indosat Ooredoo Hutchison, or indicated by any such forward
looking statements, will be achieved.
The financial information provided herein is based on Indosat Ooredoo Hutchison’s consolidated financial statements in accordance
with Indonesian Financial Accounting Standards .
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