TMT Selected News

COMPANY RESULTS

BUKA (Buy, TP: Rp165) – Steady revenue but bottomline affected by restructuring costs

4Q24 earnings/losses

• BUKA delivered 4Q24 bottomline losses Rp958bn mainly due to soft Contribution Margin, losses from investment in BBHI and restructuring costs.
• Revenue came in Rp1.06tr (+7.5%qoq, -3.5%yoy) a positive sign of revenue health amid its transformation.
• Contribution margin reached Rp41bn (-32.7%qoq, -66.3%yoy) mainly due to lower gross profit.
• Operating loss reached Rp1.2tr amid higher losses from BBHI and restructuring costs of Rp426bn booked in 4Q24. No. of personnel is further reduced by ~200, reaching 1,018 currently.

 

FY24 loss

• BUKA delivered FY24 losses of -1.55tr (-13.3%yoy), underperforming ours and cons FY24 ests.
• Earnings call is set for the 20th Mar. at 10.30am. (Niko Margaronis & Kafi Ananta – BRIDS)

LOCAL NEWS

GoTo Financial may be spun off in potential Grab GoTo merger

Merger talks between Grab and GOTO are progressing, but GoTo Financial, which operates GoPay and GoPay Later, may be spun off and sold to a Japanese investor. While due diligence is underway by one of the Big Four accounting firms, the final deal is still taking shape, with completion targeted in 2025. Grab is considering a valuation of more than US$7bn for GoTo and considering an acquisition price of 100-110 rupiah per share. However, regulatory hurdles remain significant, as Indonesia’s KPPU and Singapore’s CCCS are scrutinizing the deal for potential monopolistic risks, citing concerns over market dominance, increased fares, and lower driver incentives. With antitrust regulations in focus, authorities may impose conditions or even block the merger unless Grab and GOTO can demonstrate sufficient competition remains, similar to arguments made during the 2018 Grab-Uber deal. (DealStreetAsia, Bloomberg)

 

Komdigi Explores Partnership with Amazon Kuiper to Expand Internet Access in 3T Areas

Komdigi is exploring a strategic partnership with Amazon Kuiper, Amazon's Low Earth Orbit (LEO) satellite project. This collaboration aims to enhance digital connectivity in Indonesia's frontier, outermost, and disadvantaged (3T) regions while supporting the country's national digital transformation. Additionally, Amazon Kuiper is currently applying for operational permits in Indonesia, including telecommunications licenses and satellite leasing rights, in accordance with new regulations that allow foreign companies to operate with a Business Identification Number (NIB). (Bisnis)

 

Regulations on Children's Age Restrictions in Social Media to Be Released Soon

Komdigi has announced that regulations on age restrictions for children in digital spaces are currently in the harmonization stage with the State Secretariat and the Ministry of Law. In discussions on these regulations, all digital platforms, including Meta, have been invited and involved. The government is focusing on three key aspects in formulating this rule. First, setting age limits for children accessing digital spaces. Second, ensuring data security for children in the digital environment. Third, requiring social media platforms to establish a reporting mechanism. (Bisnis)

 

TLKM Projects a 28% Surge in Traffic During Ramadan and Eid 2025

TLKM projects a broadband traffic surge to 20.35 Tbps, marking a 28% increase compared to the same period last year. To accommodate this growth, TLKM will expand its network capacity to 58.4 Tbps, an 11% increase from the previous year. TelkomGroup is also strengthening more than 234,000 4G and 5G Telkomsel BTS sites. During this Eid period, TelkomGroup customers can enjoy 5G services in 56 cities across Indonesia. Additionally, Telkom has conducted network rehearsals and drive tests along more than 17,000 kilometers of main roads, highways, railway routes, and ferry crossings. (Kontan)

 

Digital Realty and BDIA Form Joint Venture, Opening Access to 300 Global Data Centers

Digital infrastructure platform Bersama Digital Infrastructure Asia (BDIA) has announced a joint venture with global data center solutions provider Digital Realty, forming Digital Realty Bersama. This strategic partnership, equally owned (50:50), aims to develop and operate data centers across Indonesia. As part of the collaboration, BDIA will integrate Bersama Digital Data Centres (BDDC), a Jakarta-based carrier-neutral data center platform, into the joint venture. Major shareholders of BDDC include Provident Capital Partners, Saratoga Investama Sedaya, a consortium led by Macquarie Asset Management, and Distro Hub. The launch of Digital Realty Bersama marks an expansion of Digital Realty’s global data center network, which spans over 300 facilities in more than 50 cities across 25 countries. (Katadata)

 

OTHER FOREIGN TRENDS

Shopee, TikTok Shop fee hikes to squeeze vendors’ profits in Vietnam

Shopee and TikTok Shop are set to increase platform fees in Vietnam (at least) starting next month, impacting small vendors who may be forced to raise prices or exit the market. TikTok Shop will hike commission rates for regular shops from 1-3% to 1-4% and for mall shops from 1-5.78% to 1.21-7.7%, while Shopee’s fees will rise from 4% to as high as 10%, significantly affecting categories like fashion and electronics. The hikes come amid Vietnam's increasing e-commerce taxation, driving some vendors to shut down or return to social media sales. Analysts predict the changes will benefit large brands while squeezing out smaller sellers, with Shopee citing investment in resources and customer incentives as justification. Meanwhile, industry experts advise vendors to adapt by cutting costs, building brand presence, or shifting sales channels, as the government drafts an e-commerce law to address seller protection. (VNExpress)

 

Alphabet spins off Taara Satellite, a competitor for Starlink

Light-based internet project Taara is spinning off from Alphabet’s X moonshot incubator into an independent company, with Alphabet retaining a minority stake and Series X Capital providing funding. Taara’s laser-based technology, which can transmit data at up to 20 Gbps over 20 km distances, offers a cheaper and faster alternative to fiber, particularly for connecting remote areas, and positions itself as a rival to Elon Musk’s Starlink. Currently operating in 12 countries, Taara has played a role in projects ranging from improving connectivity in the Democratic Republic of Congo to supporting the 2024 Coachella festival. The company, founded by Mahesh Krishnaswamy, evolved from Alphabet’s now-defunct Loon project and is expected to launch a more compact version of its technology by 2026. (TheVerge)

 

US Commerce department bureaus ban China's DeepSeek on government devices

The U.S. Commerce Department has banned Chinese AI model DeepSeek on government devices, warning staff not to download, access, or use related applications or websites due to security concerns, according to an internal message seen by Reuters. While the extent of the ban across the U.S. government remains unclear, lawmakers have raised alarms about potential data privacy risks and national security threats. Congressmen Josh Gottheimer and Darin LaHood have introduced legislation to prohibit DeepSeek on government devices and urged state governors to implement similar bans, warning that the AI tool could expose sensitive information to the Chinese Communist Party. (Reuters)

 

Nvidia announces two ‘personal AI supercomputers’

Nvidia has unveiled two new "AI personal supercomputers," DGX Spark and DGX Station, at GTC 2025, powered by its Grace Blackwell chip platform. CEO Jensen Huang introduced the machines, designed for AI model prototyping, fine-tuning, and deployment at the edge, calling them the future of computing. DGX Spark, featuring a GB10 Grace Blackwell Superchip, delivers up to 1,000 trillion operations per second and is available now, while the DGX Station, equipped with a GB300 Ultra Desktop Superchip and 784GB of memory, will launch later this year through partners like Asus, Dell, and HP. (TechCrunch)

 

An AI model from over a decade ago sparked Nvidia’s investment in autonomous vehicles

At GTC 2025, Nvidia CEO Jensen Huang revealed that the 2012 breakthrough of AlexNet, a neural network that revolutionized image recognition, inspired the company’s deep investment in autonomous vehicle technology. Nvidia has since become a critical player in the self-driving industry, supplying GPUs, digital twin solutions, and its Drive Orin system-on-chip to major automakers like Tesla, Mercedes, and Toyota. The company also announced an expanded partnership with GM, reinforcing its role in advancing AI-powered transportation. (TechCrunch)

 

Google to Acquire Wiz for $32B in Multicloud Security Play

Google has announced its largest acquisition yet, acquiring cloud security firm Wiz for $32 billion in an all-cash deal to strengthen its Google Cloud security offerings. Wiz, known for its Cloud-Native Application Protection Platform (CNAPP) and multicloud approach, will remain available across major cloud platforms, including AWS, Azure, and Oracle Cloud. Google Cloud CEO Thomas Kurian emphasized the acquisition's role in accelerating multicloud cybersecurity adoption and integrating Wiz's capabilities with Google Security Operations. Industry analysts see the move as a strategic effort to enhance Google’s competitive position in cloud security, particularly against AWS and Azure. The deal, subject to regulatory approvals, is expected to close next year. (DarkReading)

 

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