Good day, and thank you for standing by. Welcome to Telkom earnings call, 9 months of 2023 results. At this time, all participants are in listen-only mode. After the speaker's presentation, there'll be question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You would enter an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Ms. Anetta Hasan, Vice President of Investor Relations. Thank you. Please go ahead, ma'am. Thank you. Ladies and gentlemen, welcome to PT Telkom Indonesia conference call for the unaudited results of third quarter 2023. My name is Anetta Hasan, and I'll be your moderator for today. There will be an overview from our CEO and followed by Q&A after the session. Before we start, let me remind you that today's call and the responses to questions may contain forward-looking statement within the meaning of safe harbor. Actual results could differ materially from projections and estimates or may involve risk and uncertainty that may cause actual results to be different from what we discuss today. Ladies and gentlemen, it is my pleasure now to introduce Telkom's board of directors who are joining us today. First and foremost, Mr. Ririek Adriansyah, President Director and CEO; Mr. Heri Supriadi, Finance and Risk Management Director; Mrs. Venusiana, Enterprise and Business Service Director; Mr. Bogi Witjaksono, Wholesale and International Service Director; Mr. Budi Setiawan Wijaya, Strategic Portfolio Director; Mr. Honesti Basyir, Group Business Development Director; Mr. Herlan Wijanarko, Network and IT Solution Director; Mr. Afriwandi, Human Capital Management Director; and Mr. Muhamad Fajrin Rasyid, Digital Business Director. Also present, the board of directors of Telkomsel here with us, Mr. Hendri Mulya Syam, President Director. We also have Mr. Mohamad Ramzy, Finance and Risk Management Director; Mr. Derrick Heng, Marketing Director. Last but not least, we also have Mr. Adi Winahyu Basuki Sigit, Sales Director. So, let me now hand over the call to our CEO, Mr. Ririek Adriansyah, for his overview. Over to you, sir. The floor is yours. Thank you, Anetta. We appreciate your participation in this call. Ladies and gentlemen, our journey in implementing the Five Bold Moves strategy is becoming more granular and start to have positive impact to Telkom Group financial and operational performance. We believe that the impact of the Five Bold Moves implementation result will be more significant year by year. We need to be ready in anticipating the unfavorable economic and political situation, which may have negative impact on the overall business. Entering the end of year 2023, the global macroeconomic situation is still facing serious challenges, especially from the economy of U.S. and China. The strong U.S. dollar and high inflation still force the Federal Reserve to imply hawkish policy to reduce inflation by raising U.S. interest rate. The slowing down of China economy and property crisis, such as Evergrande and Country Garden, put more pressure on China's unemployment and low inflation could cause China economy to be on deflation state. Our capital structure also has a low levels. The debt-to-equity ratio is 46.2%, providing Telkom with a low impact with the risk of interest rate volatility. The conversion gap of local currency versus foreign exchange, that is so high, so that our exposure to USD and foreign exchange is negligible. Finally, our contract with the big vendors, both local and global vendors, are mostly stated in IDR, so that Telkom's contract exposure to the forex exposure is also not material. Back to Telkom Group business and financial performance result during the 9 months of 2023, we saw positive result and believe that the Five Bold Moves strategy is working very well. On the B2C segment, with the FMC initiative, Telkomsel realizing synergy initiative by improving efficiency in many cost elements, as well as cross-selling revenue and product differentiation. OpEx initiative has been successfully implemented by merging mobile and in-home customer contact point, GraPARI and Plasa Telkom, and efficient joint marketing initiative. CapEx efficiency is created towards joint planning session with the mobile and fixed broadband expansion, planning, and revenues uplift is created through cross-selling and upselling among mobile and fixed broadband customers. Telkomsel also successfully launched the Telkomsel One to serve as a product differentiation strategy to reach various customer needs. On the B2B business, Telkom actively implement business strategy to expand and target B2B customers, ranging from infrastructure needs, data center, integrated B2B services, and digital services. B2B business expansion could be achieved by not only conducting organic activities and improvement on internal capabilities, but also through inorganic activities through collaboration with other B2B entities. M&A and hiring process to foster our B2B business. We hope that establishment of a company to manage infrastructure business or Infraco could be realized in 2023, as well as asset consolidation of our data center into Telkom Data Ekosistem, especially international data center, could be finished by end of 2023. B2B IT services alignment with the Sigma Cipta Caraka could provide quick win of our priority in handling the biggest market share of B2B IT service products. The result of 9 months, 2023, saw that Telkom still maintain revenue growth by increasing 2.2% year-on-year to IDR 111.2 trillion, with EBITDA stood at IDR 59.1 trillion. EBITDA margin increased from 52.2% in the first half of 2023 to 53.1% in the 9 months of 2023. Net income grew 17.6% year-on-year to IDR 19.5 trillion. We are convinced that our improvement on revenue and profitability in the 9 months of 2023 will continue until the end of 2023. Since the commencement of FMC initiative marked by the legal day one of the FMC, the transition of IndiHome business ownership from Telkom to Telkomsel happened smoothly. The result could be seen that both mobile data and internet IT services revenue increased 4.8% year-on-year, while fixed broadband IndiHome continues to contribute positive growth on revenue by growing 4.3% year-on-year. Digital business revenue of Telkomsel grew 7.7% year-on-year, becoming the most significant contributor to the top line. This revenue segment performance increased its contribution to mobile revenue, 81% last year to 86.1% this year. Telkomsel consistently applied customer value maximization, or CVM, on the mobile business, and by this quarter, the quality mobile customer already achieved 158.3 million, increased significantly by 5 million QoQ, while relatively stable on ARPU at IDR 48,600 in third quarter of 2023. On IndiHome B2C, we successfully added around 205,000 additional customers that add up IndiHome B2C customers to a stunning number of 8.5 million customers. The ARPU of IndiHome B2C could be divided of IDR 257,000. On the product differentiation initiative, Telkomsel has launched a new product called Telkomsel One as a commitment in contributing the implementation of FMC initiative. Telkomsel One encourages a good distribution of digital connectivity for the community with a wide selection of customer-centric packages. Telkomsel One also offer broadband services with a variety of added value, reliable capabilities in one network. The convenience and advantage of Telkomsel prepaid allow all with IndiHome services in one bill, one apps, one touch point, one solution, including the hero package of 100 Mbps, 300 Mbps, and 1 Gbps package. The integration, which only started in 3 months, has been progressing on schedule, which include the cross-sell activities, service integration, platform cost and content synergy, no investment duplication, and customer touch point integration. Wholesale and international business segment serve as a enabler to the whole Telkom group business by providing connectivity and a backbone, both local and international. As one, as of 9 months of 2023, wholesale international business already contributed revenue of IDR 12.3 trillion, with the international wholesale voice business and digital infrastructure business serve as the major revenue, revenue driver. During the 9 months of 2023, wholesale and business, international business revenue increased by 9.1% year-on-year. The growing demand of data center capture the attention of digital business player, including Telkom. This is one of the focus of attention of Telkom, and has invested its CapEx on very significant amount. As of 2023, Telkom has a total of 32 data center facilities, with 27 located nationwide and 5 located overseas. The average utilization of our data center is 70%, with a total IT load capacity of 42 MW. Currently, our data center subsidiary, PT Telkom Data Ekosistem, or TDE, focus on hyperscale data center and enterprise data center to cater the needs of large corporation, while our edge data center serve as support local government, local ISP, and small and medium enterprise. Our data center business is also supported with cloud services to cater the diversity needs of our data DC customers. Data center integrated services with the cloud and connectivity enhance the customer experience and boost various digital solutions. Currently, Telkom handle Pusat Data Nasional Sementara. It is supported by our data center, cloud, and connectivity using Pay As You Go business scheme. Up to 9 months of 2023, our data center and cloud business has contributed revenue of IDR 1.4 trillion, which grew by 9.1%, year-on-year. Our Infraco initiative is one of the important strategic to optimize network utilization and CapEx, as well as increase monetization for infrastructure sharing by offering superior network and operational efficiency. We are confident that by having the Infraco, Telkom will be able to increase fiber network value, secure Telkom position as a telco network market leader, and improve EBITDA margin at Telkom group. Currently, Telkom is preparing a new entity to cater Telco Infraco business. We hope that in the fourth quarter of 2023, the organization for Infraco has been established and ready to commence its operational and commercial activities by 2024. Our subsidiary, Mitratel, is currently the largest tower operator in Southeast Asia, with a position of more than 37,000 towers and tenancy ratio of 1.5 in the 9 months of 2023, improved from the compared 1.44 last year. With the composition of tower location ex-Java higher than Java by 58% versus 42% respectively. Mitratel still has the opportunity to grow, driven by the increase of demand for mobile data and the upcoming 5G technology implementation. Also, Mitratel could support Telkomsel in its expansion and domination for ex-Java market. In 9 months of 2023, Mitratel recorded standalone revenue of IDR 6.27 billion, growing by 11.9% year-on-year, driven by tower leasing revenue. EBITDA and net income grew by 14.8% and 16.6% year-on-year. Both EBITDA and margin is expanding to 80.6%, increased by 2 PPT, and net income margin is at 20.8%, increased by 0.9 PPT. Colocation number and the number of tenant grew by 21.3% and 10.5% year-on-year, respectively. Mitratel has demonstrated a strong financial position with a relatively low leverage ratio of 1.9 times and net debt to EBITDA, that allows the company to withstand macroeconomic downturns. Mitratel is also expanding to fiber to the tower business as part of a strategy to strengthen its product portfolio to become a digital infrastructure company. Mitratel also strengthened the fiber optic business by deploying exceeding 1,000 km organically in the 9 months of 2023, bringing total fiber optic length to more than 39,000 km by end of 9 months of 2023. During the 9 months of 2023, enterprise business segment recorded a revenue of IDR 14.6 billion and grew by 6.6%. The biggest contribution to every segment revenue was B2B IT digital service and enterprise connectivity. Following the spin-off IndiHome to Telkomsel and further implementing of Five Bold Move strategy, enterprise segment to B2B digital ID service initiative has launched a new umbrella brand, namely Indibiz, in the third quarter of 2023 to focus on shifting the SMEs. Indibiz provide connectivity solution as well as digital platform and service to these SMEs and are categorized into Indibiz for shop house, Indibiz for multi finance, and Indibiz for school and for hotel. Through ESG and business sustainability programs, Telkom seeks to create synergies among six sectors to contribute to environmental preservation, social progress, government development, and business sustainability. Telkom was rated good category in Indonesia Minister of SOE, ESG integration assessment in 2023. Telkom also rated A by Morgan Stanley Capital International, or MSCI. This rate has been achieved for three years in a row, and previously in 2016 - 2020, the company achieved BB B rate. In Telkomsel, we have been developing Telkomsel Jagabumi as an umbrella campaign to unite the several of our environmental initiatives, connecting with our business and CSR program. Waste management, shrink plastic waste are processing into smartphone holder, distributed to the retail outlet, and came placing block to renovate and develop waiting facilities. Carbon offset donation, Telkomsel point exchange to support carbon offset activities, mostly in the form of tree planting, particularly in mangrove forest. Digitalization support initiative, Tahura Taman Hutan Raya, or Great Forest Park Digitalization program, with the IoT and dashboard monitoring and forest conservation education activities through the augmented and virtual reality technology. That is end of my remarks, and thank you for your kind attention. Thank you, Mr. Ririek. We'll now begin the Q&A session. When asking your questions, please state your name and your company. Also, kindly to speak clearly. So I think, operator, maybe we can have the first question, please? Certainly. Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Our first question comes from the line of Piyush Choudhary from HSBC. Please ask your question, Piyush. Yeah, hi. Good afternoon. Thanks for the opportunity. This is Piyush from HSBC. Two questions. In the third quarter, we saw mobile subscriber growth was quite strong at 3.3%. So does it reflect that company is going after low, mid-end consumer segment? Can you share a light on what is driving this? And if you can talk about the outlook for mobile ARPU as well. Secondly, can you share how has been the initial response to Telkomsel One offers? Are you able to share how cross-sell opportunities have helped in both IndiHome subs and mobile subs? And outlook for the IndiHome B2C subs growth. Thanks. Yes, thanks. Thanks, Piyush. Thanks for your question. Yeah, Telkomsel managed to have a 3.3% QoQ growth in terms of subscriber. We have consistently applied healthy market conduct. We have delivered smart customer acquisition strategy, optimizing CVM, and the focus is really on renewal, hence resulting in consolidation of customers, essentially healthy, productive subscribers. So besides that, we have the Indi-FMC integration that helped us in terms of a quick win, like cross-sell and up-sell, hence increasing the number of subs. So, we have secured a stable customer base, and we delivered improved customer quality that hence demonstrating a strong 11.4% year-on-year growth in terms of ARPU. Well, there is a decline QoQ, but this is purely due to seasonality. That's aligned to our strategy of promoting ethical conduct and industry pricing rationalization. So this total subs of data users really is a mix of legacy and data users. And we are driving the non-data to data customers and cleaning out the multi-SIM card customers from our base. Yeah. If I may add on the number two, how is our status today in terms of FMC, including Telkomsel One? We've seen that Telkomsel One are, of course, addressing some of the cross-sell, so as the new sales for combining between fixed and mobile. However, I think the cross-sell is not only based on the Telkomsel One, we also seen that because we have combined the channel as well as the sales channels, including the GrabMart in one, we have an opportunity to offer our customers both cross-sell between mobile and fixed, vice versa. And on top of that, we are now actually combining the sales force with the fixed and mobile, and that's gained some traction. As Derrick mentioned just now, one of the result, really result from the adding the subscribers or maintaining the subscribers and also maintaining the CHUR is for, due to of the cross-sell that we are doing between mobile and fixed, at the same time. So I think, this is still early stage. We are in the stabilization of the integration today, but we are gaining early traction from the FMC initiative as we go on. Sure. Thank you. But can I ask, like, understood that, 3Q ARPU was impacted by seasonality, but how should we look at, the outlook for the mobile ARPU? Is the competitive environment stable, and we should continue to expect improvement in the mobile ARPU? Yeah. So, we've seen that the competitive environment in the mobile ARPU are relatively stable, and some of the price adjustment are, have been realizations in Q3 and even recently, it's seen from the competitors which we have seen. So, going forward, I think we expect that the ARPU will be continuously stabilized on our side. Looking at the movement, of course, on each of the competitors in the mobile. And also, we are consistently, selectively doing the adjustment of pricing, and seeing the room for us to improve our ARPU from each of the portfolio. On top of that, with the FMC combination that we have, we actually are leveraging the ARPU, not only mobile and fixed as a separate ARPU, but we are looking at as a household and mobile ARPU as a ARPA for perspective. But this is still an early statement. We are consistently seeing the data from fixed subscriber and mobile subscriber and combining the ARPU as a one group of account going forward. Piyush? Yeah. Just to add, we will continue to further apply the right pricing and right offerings. We want to be simple, we want to differentiate via personalization. We want to scale up content through CVM, as well as to provide similar services in order to be relevant to our customer needs, and considering affordability as well as customer elasticity. Thank you, management. But, I- Back to you. All right. Thank you, Piyush. Our next question comes from the line of Kelsey Santoso from Goldman Sachs. Please ask your question, Kelsey. Hello, good afternoon, management. This is Kelsey from Goldman Sachs. Congratulations on the results. A few questions from my side. So firstly, on mobile, we can see Q2 growth in prepaid subs pick up further from Q2. So is it fair to say that we're already past the bottom for good when it comes to subscriber trend from your strategy to focus on quality user? And then number two, can I check if there's any changes to your full year guidance for group and Telkomsel revenue growth, EBITDA margin, and CapEx? And last question is, what are the opportunities and risks you see from Starlink's entry into Indonesia? I I understand that they have a partnership with you to do B2B now, but they are planning to do B2C as well. So do you see significant threat from this or any cannibalization risk to your core offerings? Thank you. Yes, I'd like to answer your question on how we are managing our subs growth as well as subscriber churn. So our objective was to really to acquire productive customers. So, we have examined our low value or low ARPU customers. They essentially have expenditure less than IDR 5,000. So the customers with this profile are often categorized as bonus seekers, and, they are rotational churners, so who prioritize promotions and temporary offers. So, with that, focus on acquiring productive customers, we have stabilized our overall, subscriber monthly churn, which was 6%-7% before the cleansing initiative. Now, the monthly churn rate is already below 5%, so we have stabilized the base. Okay, on the guidance for the growth for the, I think, this year, we don't change the guidance. We believe the growth of the revenue going to be about to mid single digit, and then we are going to be able to maintain our EBITDA margin. In the previous guidance, we said 50%+. Currently, you see around 53%. That are quite high base, and we try to continue to maintain that margin, as well as in the net income margin as well, around 17%+. In addition to that, we also plan to have CapEx spending around 22%-24% of the revenue. Of course, we love to see lower ratio with the same capacity that we are able to build in order to make our CapEx more efficient. I think that's about, I think, guideline. Mr. Ramzi, yours. For Telkomsel, as we already integrated the IndiHome to Telkomsel, we update on the revenue guidance. Previously, we put low single digits, but now in mid-teens, revenue growth. In term of EBITDA, we still maintain, mid-50% of EBITDA margin. And in term of the CapEx, slightly higher, because we also have some additional CapEx requirement to support our, FMC initiatives. So our CapEx ratio now at the range of 15%-16%. Thank you. So on the Starlink, I think we are, as a group, always monitor how is the movement on any technology, substitutions, going forward. And for us, seeing the Starlink, in Indonesia, of course, there's a potential that we need to always consider. But we've seen that so far the target and addressable market are different. And number two, we've also seen that across, I think the implementation that possibly we offering to the consumer, the ARPU are probably still much more higher compared to our current ARPU, if we compare to IndiHome today. And on top of that, we also need to consider the price that consumer need to pay for the CPE if they want to implement for a consumer basis. And we have an experience of 5G Fixed Wireless Access, for example. When we actually introduced that in the early days, the Fixed Wireless Access for 5G is still not yet take up because of the CPE is cost around IDR 6.5 billion. And if the technology of CPE is still that high, we don't think that it's gonna be threatening us in the consumer basis, in the very short period of time. Thank you. Right. Thank you. Very clear. Our next question comes from the line of Marissa Putri from UBS. Please ask your question, Marissa. Hi, management. Thank you for taking my question. This is Marissa from UBS. Just probably a follow-up question from the first question. If my calculation is correct, I think this is the first time where I see data volume per data subscribers actually down QoQ. So I think you mentioned something about your new subscribers are productive subscribers, but is this actually also related to the strong expansion of the number of subs, meaning that your... The bulk of the subs growth is basically came from the acquisition market? That's number one. Secondly, in terms of your mobile growth, excluding IndiHome, I think it's large competitor. So would you say that more of these market share loss actually coming from ex- Java or Java? Some color on competition will be helpful as well. And lastly, on cost, can you elaborate whether there was some kind of one-off element on the G&A costs, or the decline here is purely coming from the FMC synergy? Thank you. Yeah. Question on, from a, when we look at the ARPU perspective, right? From our new subscribers, we, we really want to emphasize CVM as a core component, how we are able to personalize offering, targeting at individual customers. Our, from ARPU perspective, I think our position remains stable, with a promising outlook for slight improvement in the future. So these improvements are contingent to macroeconomic conditions and the competitive landscape. What we are always calibrating is our pricing relevant to the ability to pay. So we are able to offer a range from a very affordable, a low denom in physical vouchers to customers who are looking for high quota and longer validity. So we are always offering a portfolio and range of price plans to across our very diverse customer segment. Yes. On the competition landscape, I think on the market shares, we've seen that in Java, our market are stabilized among the competitions that we have. However, I think on Java, with the current situation that we are now having the FMC, we also seen some opportunity that we can leverage from the higher market penetration or higher market shares on fixed. Give you an example, certain cities where we actually have the lower market shares on mobile, we have actually fixed broadband which are very dominant, so that will create our opportunity to do a process. In ex-Java, I think as we explained, we have also continuously leveraged our CPM. Our CPM are in the penetration around more than 65%. That help us to maintain our dominance on ex-Java. Of course, we always focus on how the pricings on the acquisition on other competition will affect us. But then I think, now we have also another weapon, using an FMC as a strength to lock in the customer with us. So, besides the lower segment addressing with the physical voucher or promo and all the low segment value that we are having, we are also maintaining our high-value customers through FMC as well as CPM. On the G&A costs, we can explain to you that, most of the, I think, the decline coming from the collection fee costs. It is coming from the ability for us to collect better, I think, revenue coming, especially from enterprise customer and so on. That reflected, actually, current trend. So that's causing a good, I think, progress for us in term of the collection. There's another cost in this, I think, G&A, including the consultant fees that we can quite maintain well, despite we have so many corporate action here. Of course, some synergy we do expect in the future. We did some, I think, cost efficiency coming from synergy by closing some, I think, our outlets that are redundant, which is around one kilometer, I think, in distance. We reduced around 190 closed stores that are also contributing to the efficiency. But if in, if you see in this G&A, mostly coming from the, I think, collection cost and consultancy cost. The synergy from the FMC currently mostly can be seen in the marketing cost, which is, I think we can stabilize the growth of the marketing cost. Even we have, I think, lower marketing cost because we can synergize all the activities. Yes. To add on the synergy realization, one of that to add is on the content cost. Previously, we have a different contract between fixed broadband and also cellular. Now, for the content, we aggregate that contract to become one, and it can be leveraged towards all of our customer base. So it also deliver some additional cost optimization in our first implementation quarter of FMC. Okay, thanks. Thank you. Our next question comes from the line of Arthur Pineda from Citi. Please ask your question, Arthur. Hi, t hanks for the opportunity. Several questions, please. Firstly, on the mobile business, can we get clarity on this side? You've seen significant improvement in terms of net adds, maybe 5 million, but ARPUs had actually gone down, even though you mentioned you're looking at the quality users. What's driving down the decline in ARPU, which in turn is offsetting the benefit of subscriber gains on revenue? That's the first question. The second question I had is with regard to IndiHome consumer momentum. That's also improved quite a bit. Are we seeing this now as the baseline level going forward, or do you see this as improving even further in the subsequent quarters? And third question I had is with regard to the synergies. I recall in the prior quarter, you mentioned targeting around IDR 0.5 trillion in synergies for the second half of this year. Just wondering, in terms of the cost recognition or reduction that you've seen in the third quarter, has any of that been built in yet? How much is, how much will be realized into the fourth quarter? Thank you. Thanks, Arthur. I'll answer the first question on mobile. Yeah, the ARPU slightly declined QoQ, but that's purely in the context of seasonality. So going forward, we will expect the ARPU to be stable, and expected to increase in line with usage improvement, as well as the festive season in Q4 2023. Well, we have always talked about Indonesia data price is considered one of the lowest in the world, right? So, telco operators here need to have the rationalization to be able to sustain and fulfill our commitment to customers, as their requirements are now a lot more demanding than before. So this is our approach to drive better quality with a more for more strategy. On the IndiHome expectation, I think we've seen this early stage of our integration. And having Telkomsel manage IndiHome with also an option of fiber access for B2B to really penetrate the market. We've seen that at least these numbers of Q3 is one of the additional, I mean, the baseline today, but we are also looking at room of improvement going forward. We also seen that the Orbit as a temporary solution is still an early stage, and that can accelerate us on the penetration of home broadband. And as well as if we can also address some of the segments besides the ABC segments going forward. We are looking for further solution for home broadband penetration where we actually address more than 15% today. So the room are still there. Now, I think it's in term of the execution and speed of selling it is the one that we believe is the key from us to success. And this market, I think, the key is actually the first mover are always winner. So we believe Telkom Group will always trying to be a first mover in this home broadband segment into penetration across nation. Yeah, on the third question of the synergy realization, as mentioned by Mr. Ririek earlier, we expect that the realization for this year is around IDR 500 billion. In which, based on our first quarter implementation, we realize align with our target. Some part is also exceeding our target. It is not only comes from the revenue, but also on the expense side. In some of the expenses, as your question, the synergy comes from the integration of the content contract that previously we run in two separate entities. The second part is the alignment of the outlet or stores that previously each Telkom and Telkomsel own their own store. So, we are in alignment to normalize or realize 196 out of not... Sorry, 196 out of 191 outlets that we targeted to be consolidated. Those are the synergy that we already realized. On the other part is also about the cross-sell and up-sell, that based on the four quadrant that we presented to some of you. It's already been realized both on the quadrant one and quadrant two, as well as quadrant three. So that seems that we are aligning our target, and we expect to realize the whole IDR 500 billion synergy value by the end of this year. Thank you. So sorry, if I could just have one follow-up. On the Infraco, because it was mentioned earlier that it's expected to be formed by the end of this year. Just wondering, how do you envision this to benefit Telkom? Is it because of additional revenues on wholesaling, any target to that? Or is it mainly because you expect to be able to spin off and realize higher multiples from the asset? I'm just wondering what your thought process is on the Infraco. Okay. Thank you, Arthur. This is Budi Setiawan. As we already know, the delivery strategy is a part of a global telco strategy. Our Infraco strategy is in line with those global telco strategy. Our main objective on Infraco strategy is to increasing overall our fiber network revenue by optimizing utilization of our fiber assets. If we look to the low penetration on the household broadband in Indonesia, it will create bigger opportunity, not only for Telkom Group, but also for other service provider. So by offering this kind of fiber service to other service provider, we can create the new revenue driver from existing fiber assets. Thank you. And then, for the progress, actually, we are in the process of set up a new company for this year. Thank you. And this should be ready for commercial operations by 1Q 2024, is that right? Yeah. Actually, we start to commercialize through wholesale division. Okay, I will just a bit add on that one. Well, the company will be established, hopefully by end of this year, and it will be start out operation early next year. But the big bang is not gonna be at that point, because most of the asset will still be in Telkom and we gradually probably transfer the asset to the company. So the big impact may not be coming in the day one, but it will be gradually increase along the way. Understood. Thank you very much. All right. Thank you. Our next question comes from the line of Ranjan Sharma from JP Morgan. Please ask your question, Ranjan. Hi, good afternoon, and thank you for the presentation. Two quick questions from my side. There are a bunch of moving parts, so if you could just quantify what your underlying, clean net profits are, excluding any one-off gains and losses. The second is that we have seen pretty significant improvement in certain costs like G&A, but also O&M cost as well. I know you talked about closing some stores, but if you can also help us explain what some of the other drivers are, and if they are sustainable. Thank you. Okay, Ranjan, I think on the net income, net profit, maybe we need to consider by two ways. If you see that, inside of the net profit, we also have the kind of unrealized loss or gain that may come from our investment in GoTo, for example. That's going to becoming also factor going to determine the net income of the company up to the end of the year. In which we don't really have the control of the what is the stock price of GoTo. But when you see the net income coming from, like, from the operational, that's supposed to be quite predictable. You can predict that one based on our result up to the third quarter. I think that trend going to be sustainable up to the end of the year, so we don't expect to see any other, like, surprise in the net income coming the operation. And in fact, actually, when we talk further on, on the dividend, we always consider from, I think, what we need to return to the investor based on, I think, dividend per share, and also yield, and so on. And then, on realized loss or gain is not really coming as a cash. So we have quite good, let's say, yielding ratio that enable us both to invest, continue, and also maintain the, the payoff, the dividend payout. And then, on the G&A cost, I think it is if we see the two main contributor to this is actually coming from collection cost and consultancy cost. It is supposed to be in term of the collection cost, it is supposed to be very predictable based on the current performance, what is our collection cost? It is, I think, very predictable. And we believe this trend going to sustain based on the percentage of the revenue. Hope that answer you, Ranjan. Contributed cost in the O&M cost? O&M cost. I think on the O&M cost, this year we have quite big increase coming from the spectrum cost. The other cost, actually pretty much in line with the capacity and our operation. We believe this cost, after we have this cost, we don't really ever predict any new spectrum next year. Maybe 700 spectrum can come next year, but not supposed to be kind of consideration in term of how we going to manage our operation and maintenance costs. Without new, I think new spectrum coming to our cost, our cost is supposed to be very pretty much I think stable based on the customer base that we have, based on the I think network that they we need to build. That's going to be quite stable. I think it is supposed to be in line as well, with the growth of the revenue. Hello, Ranjan, are you following me? Thank you. Ranjan, your line is distorted. You may wish to reconnect. Our next question comes from the line of Niko Margaronis from BRI Danareksa Sekuritas. Please ask your question, Niko. Yeah, hello. Good afternoon, management. Thank you, thank you for the opportunity. My first question, and if you can basically confirm about there is an uptick on the enterprise segment, if this is correct, and what's driving it, and yeah, what's the outlook on that segment? Thank you. In terms of- I'm sorry. Yes. Okay, from the enterprise segment, actually, the revenue growth 6.6 contribute coming from the enterprise connectivity, and then, IT service and then fixed in from the Indibiz. So sorry, it wasn't clear. Can you repeat, Ms. Venusiana? Okay. From the enterprise, actually grew 6.6%, coming from the biggest one, is the enterprise connectivity, IT service, digital solution, and the fixed income from the Indibiz. Maybe for another question on the Infraco comments earlier. It's gonna close by end of this year. How many km of fiber? I understand that you have to set up a new unit, and you're gonna transfer the assets there, so I'm assuming it's about fiber. What kind of... How many kilometers that is in total? And is it only backbone or includes FTTH or also FTTT? Yeah. Thank you. Thank you. Yes, as Mr. Ririek already mentioned before, we will start the MVP on this year. But, for the commercial aspect, actually, we already start selling the service via the wholesale division. And then, what can, and how many km of asset actually, to date, we are still in the process of analyzing what is the optimum scenario to transfer the asset, not only for the asset itself, but also the momentum. Because, we need some approval or governance that we have to follow, since the asset is quite huge from our stakeholder. So, and then the element of the asset that we will put as part of Infraco strategy. Of course, we will start from the last mile, but of course, it's not close the opportunity also for other fiber asset. Thank you. Thank you, sir. And maybe one more question from me. From the 158 million new subscribers for Telkomsel, there's also 8.5 million IndiHome. I'm assuming this is some of them are from Telkomsel One, yeah? How many of the 158 million is coming from the new IndiHome product? Yes, Mr. Niko. So when we look at Telkomsel One, we categorize them as multi-product holders, meaning they have both mobile as well as IndiHome. That's currently constituting about 30% of our base. And this is our clear strategy moving forward to increase this percentage through our cross-sell and upsell segments. Yeah. And to add to that, Mr. Niko, I think as we mentioned earlier, the Telkomsel One is just one of the portfolio initiative for us to gather the fixed and mobile convergence subscriber. However, we've also seen that existing IndiHome customers, we also able to cross-sell with the mobile and faster. That may not be as a Telkomsel One customers as a product, but we consider also as a converged pro customers between mobile and fixed in our base today. So we are currently not really want to differentiate between the product portfolio and the converged customers in which we define our customers going forward. Right. But some of that 158 million is also have IndiHome, right? This is my question. Y eah. And I mean, our strategy of Telkomsel One is not just from a product holding perspective. There is seamless connectivity, seamless experience from a one app and one customer touchpoint perspective. In fact, the content offering that we are going to market to our customers is a multi-screen offering already. So it is not a silo mobile or the TV offer. So that's where we see this adding value to our customers. So this is really our holistic Telkomsel One strategy. Right. Thank you, Mr. Derrick. One question on the EBITDA margin. It's now at 53.1%, and Mr. Heri mentioned that maybe this is the maximum, this is how should I get it? Or, because we have some more synergies, therefore, there is a upside on the EBITDA margin some more? Yeah. Thank you. Okay. Thank you, Mr. Niko. On this one, I think this is in area of this level, yeah. Because in the same time, we also have the revenue coming from legacy that hopefully some cost in terms of, I think, investment and so on. So we believe if we maintain this one, that's also going to be good for us. If we can do better, of course, we want to do better. But in the optimum one, that's supposed to be also based on the market competition that we are facing later on. We try to also to keep our profitability as good as possible while maintaining the long run, I think, competitiveness of the company. Thank you, Mr. Niko. Thank you, Mr. Heri. Thank you. Thank you. Thank you. Operator, in the interest of time, I think we'll only take one final question before hitting the one-hour mark. Certainly. So the next follow-up question comes from the line of Piyush Choudhary from HSBC. Please go ahead, Piyush. Yeah, hi. Thanks a lot. Just one question. Could you share your thoughts on outlook for the timing of spectrum auction in the 700MHz-3,500 MHz band? When is the most likely probability for these auctions? Piyush, I think last August, the ICT Ministry sent a letter to operator regarding the interest of operator towards the spectrum and 26 Gb. And all operators voice their interest in participating in the auction. Sorry, we can't hear you properly. Sorry. Okay. We can't hear you properly. Okay. In August this year, ICT Ministry sent a letter to the operator regarding the interest of operators towards related to the 700 MHz spectrum and 36 GHz spectrum. Our operator voiced their interest in participating in the upcoming auction. However, they are conducting studies, analysis, and waiting for policies to be issued by the government regarding the selection point. I think the selection process will be first quarter next year. But we are all operators waiting to coincide instead of the 36 GHz. This also we are informed to the ICT Minister. We are more interested in with the 700 MHz and 2.6 GHz, because we know 3.5 GHz, I think, is quite difficult. 2.6 GHz, I think, will be released in the quarter next year. Okay, thank you. So 2.6 GHz will be released, you're saying, end of 2024? Yes. What I have, it is what I have, that, 2.6 GHz will be released, Piyush, I think the release date is not fixed yet. But the other point that we need to inform you is that, because of the new regulation, actually, the way the government will charge the spectrum is used to be cash, but now we're discussing, can we kind of also not in cash, but a combine between cash and some probably kind of commitment to the network. It's still being discussed, but the point is that the government aware that they are. Their intention is to ease all the industry on this spectrum case. We don't know yet, at this point, how we can, we will come up with the plan, but I think I do believe that it will help the industry, including all the operators. Got it. Thanks a lot. Thank you, Piyush. I think we are hitting an hour mark. So I guess we just gonna conclude the call here. Thank you everyone for participating in today's call. We apologize for those, those questions that cannot be addressed just yet. Should you have any further questions, please do not hesitate to contact us directly. Thank you so much, ladies and gentlemen. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.