TOWR 2015

The corporation was established in 2 June 2008 at Kudus, central java, it main business is operating tower lease at across Indonesia and Netherlands. In the same year, the company did horizontal integration, the company acquired protelindo which operates in same business.

In 2015, despite there was slower economic growth with 4.7 % growth; the company still added towers to enhance their revenue for the future. Two of its clients were closing down their business; it consisted of Bakrie Telecom and Telkom flexi. As the result of that the company cancelled 874 site lease for bakrie telecom and 185 site leases for Telkom Flexi.

In its tower lease business, the company owned sites and towers and it leases those assets to telco which installs its equipment such as antenna and microwave at the tower. The company has three main clients; they are Hutchison 3 indonesia, Telkomsel and XL axiata.

SMN recruited contractors from at around tower to minimize cost of maintenance. It also adopted build to suit strategy in tower development which allows the Telco to choose the tower location as their needs. The company also implemented asset light strategy to increase colocation.

Business expansion has still been done gradually until at recent, at the end of 2015 the company had more than 12,200 towers in Indonesia and Netherlands.

In 2015 the company was able to advance its revenue 8.9 % up in comparison with revenue in 2014. The gross margin slightly increased, from 94.2 % in 2014 to 95.9 % in 2015.  The decrease in its cost of sales was attained from renegotiation of maintenance cost with its supplier.

Meanwhile increase in its operating cost was caused by acquisition of iforte which increase salaries and compensation. In addition, the increase in investment properties was occurred due to increase in number of tower. The company added its tower portfolio. The main contribution for its revenue growth was contributed by Telkomsel. The biggest part of revenue was from Hutchison 3 Indonesia which was 39% of its total revenue.

 For its debt financing ratio, the company decreased its debt financing ratio from 54 % in 2014 to46 % in 2015.