Our success in our business growth has provided a strong foundation on realizing our commitment to meet our corporate social responsibilities (CSR).
2010, ones of many important year in TELKOM’s journey. It was a year in which we managed to implement our strategic agenda, despite considerable challenges, and achieve solid growth that exceeded our expectations.
This success was consolidated when we managed to control key costs in working towards the Company’s targets. Carried out by the spirit of transformation, we have continued to strengthen the foundations for the growth of our business, following the paradigm shift in our services from ‘standard’ telecommunications services to a broader scope that takes in Telecommunications, Information, Media and Edutainment (TIME) services.
This initiative yielded a very satisfactory business performance, with consolidated revenue growth of almost 1.4% compared to the previous year.
Our telecommunications services still dominate the Company’s revenues, contributing about 90%, but we are now beginning to see a growing contribution from the IME (Information, Media and Edutainment) sectors, which is in line with our expectations.
We are also proud to report the extraordinary performance of TelkomSpeedy, our broadband service, which recorded revenue growth of 38% and a 44% increase in subscribers. This achievement came on the back of smart investments in infrastructure and an aggressive marketing effort.
Our success in our business growth has provided a strong foundation on realizing our commitment to meet our corporate social responsibilities (CSR). In line with our CSR theme, ‘Developing a Smart Indonesia,’ we have tried to bring the benefits of communication and information technology to the nation, in the belief that a smart nation offers greater benefits and the chance for prosperity for us all.
We have also consistently taken strategic measures to improve our performance on the three principal aspects of CSR: economy, social and environment. Our customers, who are the most important stakeholders in our business, account for the greater share of our focus on social performance, particularly with regard to product responsibility. As presented in this Sustainability Report, we have implemented a number of strategies to win and retain customers’ trust.
Moreover, our customers are part of a global trend, in which customer choices and decisions are significant factors in various aspects of sustainability, including the issue of environment friendly technology and innovations in low-cost technology.
In addition, in line with our mission to become a model of management excellence for companies in Indonesia, we have continued to raise our standards with regard to our corporate governance practices.
We are a pioneered in the information technology usage in this country to improve good corporate governance, and all our internal control, procurement and whistleblower systems as well as many other operations and transactions are now IT-based. We have continued to focus on expanding and deepening our understanding of our risk exposure and planning effective measures to manage this. We also work proactively to identify, measure and reduce the impact of our activities on the environment and on the public.
Our commitment to transparency and good governance has also been recognized by the investor community. TELKOM’s 2009 Annual Report won second place in the Bapepam Annual Report Awards, up from third place in the previous years. We also won the title of “Most Trusted Company” from the Indonesian Institute of Corporate Governance, as well as a number of other awards that reflect our efforts to maintain the highest standards of business integrity.
Stakeholder trust in TELKOM’s economic, social and environmental performance is a great compliment for us. For this reason, the involvement of relevant stakeholders in formulating our business strategy is critical, and represents a challenge that we must address in the future to ensure that what is presented in our Sustainability Reports in the years to come embraces the interests of all stakeholders. In this way we will be able to achieve our sustainable development objectives and provide benefits for all.