Page 39 - XL Axiata Integrated Anual Report 2020 ENG

2020 Integrated Annual Report
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GDP of Information and Communications Sector Proved Resilient
The information and communications sector was one of the few sectors with positive growth levels in 2020, even as high as 10.61% (yoy) in quarter three. This reflected the rapidly increasing demand for information and communications during the pandemic, coupled with the readiness of the infrastructure to meet the demand, such as the Palapa Ring and the widely available 2G/3G/4G networks. With this growth, the sector was able to contribute 4.66% of the total national GDP.
Strong Digitalization Growth
The pandemic proved to provide new momentum for Indonesia’s digital growth. Mobility restrictions promoted a massive internet adoption wave, including in the education sector, which traditionally relied on face-to-face in-class interactions. A Hootsuite and We Are Social report said there were 175.4 million Indonesian internet users as of January 2020. By November 2020, the number had hiked to 196.71 million users according to an Association of Indonesian Internet Providers (APJII) report, a penetration rate of 73.7%,
which was up from the 64.8% APJII identified in 2018. The APJII report also said that most users accessed the internet using their smartphones,
with an overwhelming 97.1% relying on data packages from their preferred cellular operators. The increase was consistent with a new report from Google, which said that 37% of Indonesian digital service users were new to the digital world. More than just for meeting leisure-oriented needs, digital apps are also now used to meet primary needs, such as for work, purchasing food, and performing banking transactions. The same report from Google suggests that this digital behavior, which flourished during the pandemic, will stay in the coming years.
Momentum for the Telco Industry
The developments in 2020 certainly brought new opportunities for the telecommunications industry. With high usage of smartphones, industry players had a chance to significantly expand their market shares and introduce new innovations to bring customers’ experiences to the next level. While consumer purchasing power was low, prospects for recovery show that this was the right time
to get ready for a new era ahead. Growth momentum was evident from, among other things, smartphone penetration at an estimated level of 70.15% in 2020, up from just 28.6% in 2015.
BUSINESS STRATEGY
In 2020, XL Axiata maintained its dual-brand strategy whereby the Company focused on XL and AXIS, each serving different customer segments – XL for white- and blue-collar workers and AXIS for young people. This strategy is followed by various initiatives to revamp services in ways that accurately address their needs in line with the market situation. Using information technology systems, artificial intelligence, and data analytics, XL Axiata was able to identify the unique needs of those segments. The results are attractive new offers such as XTRA UNLIMITED TURBO and Unlimited 1 Hour for pre-paid XL customers, Edu-pack for AXIS customers, and myPRIO
x unlimited for Prioritas customers. The Company also refined its customer service platforms, myXL and AxisNet.
Another focus of the Company was operational excellence. This strategy
increase the Company’s value for shareholders and to create ample financial room for future growth and investments. To realize operational excellence, XL Axiata has grouped its business strategies into three. First, aligning capital allocation with strategic goals to optimize risk-return portfolios and drive growth in each business line. Second, driving operational excellence for greater efficiency and agility. Third, promoting and safeguarding the interests of all stakeholders. The Company also seeks to become the most converged industry player. To that end, the Company seeks to integrate business processes and services with digital platforms.
aims to
TRANSFORM FASTER TO EMERGE STRONGER – GIVING BACK TO THE NATION PT. XL AXIATA TBK