JAKARTA – PT Dayamitra Telekomunikasi Tbk (MTEL), a subsidiary of PT Telkom Indonesia Tbk (TLKM), is planning dividend distribution for the fiscal year (FY) 2023 of IDR 1.5 trillion, or 75% of total net profit of 2023.

It is worth mentioning that the dividend payout ratio of 75% actually consists of 70% for cash dividend, worth IDR 1.4 trillion, and 5% for special dividend, worth IDR 500 billion.

With total listed shares of 83.6 billion shares, MTEL’s dividend for FY 2023 is set to approximately IDR 18.3 per share.

This is a 15% decrease compared to the dividend of FY 2022 of IDR 21.38 per share, in line with the decline of MTEL’s dividend payout ratio from 99% in FY 2022 to 75% in FY 2023.

In fact, it does not align with MTEL’s net profit surge, which soared 12.6% year-on-year (yoy) to IDR 2 trillion. According to Mitratel management, it is caused by an increase in fund allocation for business expansion.

“This year, we project that 23% of the profit will be maximised for business development,” said Hendra Purnama, Director of Investment of MTEL, when met at Annual Public Expose last Friday (31/5).

This year, Mitratel is said to focus on increasing the number of tenants to 4000 tenants, while its fibre optic network will be extended to 10 thousand km.

In the meantime, in order to meet the demand for connectivity in IKN, MTEL is readying 30 towers that will be erected at KIPP 1A IKN, which should be completed in June to be commercially operated on August 17, 2024, according to the mandate of President Joko Widodo.

Referring to MTEL’s price during last Friday’s (31/5) closing bell of IDR 610 per share, the dividend yield reaches 3%. (ZH)