JAKARTA. PT Indosat Tbk (ISAT) is applying for a suspension of PNBP (Non-Tax State Revenue) payment to the Indonesian government, due to poor cash flow caused by the COVID-19 pandemic.
Gilang Hermawan, Corporate Secretary of ISAT, explained that the proposal had been made since July 2020, together with a number of entrepreneurs and telecommunications operator associations.
"The Ministry of Communication and Information has agreed to extend the deadline of the Radio Frequency Spectrum fee payment from 14 September 2020 to 14 November 2020," said Hermawan in information disclosure published on the Indonesia Stock Exchange's website.
Previously, Hermawan admitted that the COVID-19 pandemic had indeed increased ISAT's data traffic. On the other hand, the company is trying to accelerate investment and maintain service quality.
ISAT's management is also trying to obtain fiscal incentives to improve its cashflow.
For the record, ISAT recorded revenue of IDR 20.6 trillion, growing 9.2% Year on Year (YoY) during the period of January-September (9M) 2020. Meanwhile, at the end of September 2020, the company's cash position was at the level of IDR 4.35 trillion, 35.32% lower than its position at the beginning of the year (IDR 5.88 trillion).
Currently, 65% of ISAT shares are controlled by Ooredoo Asia Pte. Ltd., followed by public investors (20.71%) and the Indonesian government (14.29%). (KR/AR)