Page 38 - XL Axiata Integrated Anual Report 2020 ENG

36
2020 Integrated Annual Report
MANAGEMENT REPORTS
Corporate Strategy &
Market Overview
XL Axiata seeks to realize an Operational Excellence that focuses on profitability and to support Indonesia in its journey of recovery during this difficult time.
MACROECONOMIC REVIEW
The global economy experienced a massive setback in 2020 with the COVID-19 pandemic causing slumped growth performance across the board – from manufacturing, exports and imports to transportation and tourism, to mention a few of the most heavily impacted sectors. Overall, global gross domestic product (GDP) was estimated to have declined as low as minus 4.8% in 2020. At the time this report was compiled, the pandemic was not under control. Despite some promising developments in the health sector, the air remains thick with uncertainties. In this situation, XL Axiata endeavored to maintain its performance and productivity levels by implementing strategies for Operational Excellence. There were also a number of business development activities linked to the Company’s broader longer-term strategy that had to be accelerated in light of the current situation. The agility to adapt was the key for XL Axiata to continue its growth trajectory.
Global Growth Zone (Percent)
Indonesia was Impacted, Yet Outlook is Promising
Inevitably impacted by the challenges mentioned above, Indonesia posted 2.97% YoY growth in
the first quarter of 2020 followed by growth contraction in the two subsequent and consecutive quarters. Nevertheless, the numbers showed the contraction was in fact narrowing from quarter to quarter, which indicated economic recovery, albeit gradual. Recovery was driven mainly by a sharp increase in public spending, especially in the third quarter when spending grew by 9.8% YoY. Higher public spending was
a part of the government’s National Economy Recovery program and was carried out to bolster the people’s purchasing power. It also served
as a buoy for businesses. At the same time,
the government continues its health response efforts. Assuming that the path to recovery can be maintained, Bank Indonesia forecasts that Indonesia may grow by at least 4.8% in 2021.
6.4
4.3
1.7
2011
5.4
5.1 4.7 4.6 4.8
4.3 4.5
6
5.2
3.9
2020*
Emerging Market & Developing Economies
World
Advances Economies
*Projections
3.5 3.5 3.6 3.5 3.4 3.8 3.6
2.1 2.3 2.5 2.3 1.2 1.4 1.7
2012 2013 2014 2015 2016 2017 2018
3.7
2.8
1.7
2019
-3.3
-4.4
–5,8
2020
Source: IMF, World Economic Outlook October 2020
PT. XL AXIATA TBK TRANSFORM FASTER TO EMERGE STRONGER – GIVING BACK TO THE NATION