Telkom to expand to Silicon Valley

PT Telekomunikasi Indonesia (TLKM IJ, BUY, TP: IDR3,200) intends to expand its business to Silicon Valley, USA by collaborating with venture capitals such as Fenox Venture Capital. Fenox will act as mentor and mediator in the Corporate Venture Capital (CVC). TLKM will have to invest USD200m in gradual with USD25m as the initial investment phase. TLKM through subsidiary of PT Metra Digital Investama will enter Silicon Valley market to focus on managing information-media-edutainment portfolio. Management has stated that the CVC will strengthen TLKM’s device-network-application (DNA) solution ecosystem.