A Second Straight Clean Quarter, Plus a New Strategic Signal
H1 2024 extends Q1 2024's clean-comparison trend: revenue grew 13.4% YoY to Rp27,976.3 billion, the company's own EBITDA grew 17.8% to Rp13,412 billion, and net income attributable to owners grew 43.3% to Rp2,734.7 billion - genuinely comparable growth, since H1 2023's Rp722.4 billion tower sale-leaseback gain is now the only one-off complicating the base, and this site already normalized around it in H1 2023's own coverage. Measured against H1 2023's normalized profit of roughly Rp1,273 billion, growth is closer to 115%. Operating income grew a real 20.7% on a reported basis, or 42.3% against H1 2023's one-off-adjusted comparator.
The more significant development this half doesn't show up in the P&L at all: on June 20, 2024, Indosat held its first-ever Capital Markets Day, unveiling an explicit "Indosat AI NorthStar" strategy built on three pillars - "AI Native Telco" (embedding AI into core network operations), "AI TechCo" (building new AI-driven business lines), and "AI Nation Shaper" (positioning the company as a national AI-capability builder). This is the first concrete appearance of the AI-infrastructure ambitions this site's later coverage - Q1 2026's NVIDIA Nemotron and Google Gemini partnerships - would eventually cover; the strategic groundwork was laid two years earlier than those specific deals.
The Prescription
Indosat should attach specific, dated milestones and capital-allocation figures to the "AI Native Telco" roadmap in future disclosures - the Capital Markets Day materials describe the strategic direction clearly but don't yet commit to a capex figure or timeline specific to AI infrastructure, making it hard for a reader to judge how much of the company's investment budget this represents versus core network spend. What it should keep doing: sustaining genuinely clean quarterly comparisons - two straight quarters without a material one-off gain is the best disclosure-quality streak this site has tracked for Indosat since coverage began.
Key Financial Metrics
H1 2024 (six months ended June 30, 2024) vs H1 2023, consolidated
FX: Rp16,375 = US$1 (June 30, 2024) - period-end market quote, used only to convert the USD columns.
| Metric | H1 2024 (Rp) | H1 2024 (US$) | H1 2023 (Rp) | YoY (Rp) | YoY (US$) |
|---|---|---|---|---|---|
| Revenue | Rp27,976.3B | ~$1,708.6M | Rp24,674.8B | ✅ +13.4% | ✅ |
| EBITDA» (company-disclosed) | Rp13,412.0B | ~$819.1M | Rp11,383.0B | ✅ +17.8% | ✅ |
| Operating Income» (pre-financing subtotal; no one-off this half) | Rp5,752.7B | ~$351.3M | Rp4,765.8B (incl. Rp722.4bn one-off) | ✅ +20.7% (reported); ✅ +42.3% (vs. H1 2023 excl. one-off) | ✅ |
| Net Income (attributable to owners, no one-off) | Rp2,734.7B | ~$167.0M | Rp1,908.4B (reported, incl. one-off) | ✅ +43.3% (reported); ✅ +114.8% (vs. H1 2023 normalized ~Rp1,273bn) | ✅ |
| ...of which, consolidated total (incl. non-controlling interests») | Rp2,924.7B | ~$178.6M | Rp2,043.9B | ✅ +43.1% | ✅ |
| Free Cash Flow» (operating cash flow - capex) | Rp4,853.9B | ~$296.5M | Rp4,056.7B | ✅ +19.6% | ✅ |
| Total Cash | Rp4,569.6B | ~$279.0M | Rp5,341.3B (H1 2023 close) | ⚠️ -14.4% | ⚠️ |
Total debt fell to Rp13,913.2 billion from Q1 2024's Rp14,549.4 billion (-4.4% QoQ), continuing the slow, steady deleveraging Q1 2024 resumed after 9M-FY2023's near-stall. Cash fell as capex stepped up further (Rp4,797.6 billion for the half, +8.4% YoY), but operating cash flow (Rp9,651.5 billion, +13.8% YoY) still comfortably covered both capex and the debt reduction.
H1 2024's 43.3% profit growth is genuinely clean - no material one-off gain complicates the comparison on Indosat's own side this half. The half's real news is strategic: Indosat's first Capital Markets Day unveiled an "AI Native Telco" roadmap that foreshadows the NVIDIA and Google partnerships this site's later 2026 coverage tracks. See Beyond the Usual below.
Key Operational Metrics
H1 2024's located source documents don't include a numeric subscriber count or blended ARPU table in text-extractable form this half - not available; the Capital Markets Day materials focus on strategic positioning (ARPU-as-percentage-of-GDP benchmarking against regional peers, mobile data consumption trends) rather than Indosat's own current-period subscriber figures.
Segment Comparison
| Segment | Revenue H1 2024 | Revenue H1 2023 | YoY | Share of Revenue |
|---|---|---|---|---|
| Selular (cellular) | Rp23,601.1B | Rp21,177.7B | ✅ +11.4% | 84.4% |
| MIDI (enterprise/data/internet) | Rp3,916.4B | Rp3,029.2B | ✅ +29.3% | 14.0% |
| Telekomunikasi Tetap (fixed) | Rp458.9B | Rp467.8B | ⚠️ -1.9% | 1.6% |
| Total | Rp27,976.3B | Rp24,674.8B | ✅ +13.4% | 100% |
Selular
Grew 11.4%, consistent with Q1 2024's 13.6% pace and continuing the subscriber-growth-plus-ARPU-growth pattern that quarter first showed.
MIDI
Grew 29.3% cumulatively for the half, an even sharper full-half acceleration than Q1 2024's already-strong 35.5% single-quarter pace - now clearly the company's fastest-growing large segment, consistent with the enterprise/AI/data-center strategic push flagged at the Capital Markets Day.
Telekomunikasi Tetap
Declined 1.9% cumulatively, a much smaller decline than Q1 2024's single-quarter -10.7% - suggesting Q2 alone returned to growth, though the segment's nine-period growth streak through FY2023 hasn't yet clearly resumed.
Beyond the Usual
Indosat Unveiled an Explicit "AI Native Telco" Strategy at Its First Capital Markets Day
On June 20, 2024, Indosat held its first Capital Markets Day, presenting an "Indosat AI NorthStar" framework built on three pillars: "AI Native Telco" (embedding AI into core network operations), "AI TechCo" (new AI-driven business lines), and "AI Nation Shaper" (positioning as a national AI-capability builder), alongside a stated goal of narrowing the urban-rural spend gap in tier-2/3 cities by 2027. This is a genuinely new strategic direction, not previously disclosed in the quarterly filings this site has covered, and the specific NVIDIA and Google partnerships Q1 2026's coverage documents appear to be concrete execution of a roadmap first announced here, two years earlier.
The Roadmap Doesn't Yet Attach a Specific Capex Figure or Timeline to the AI Strategy
The Capital Markets Day materials describe the AI strategy's direction and market positioning in detail but stop short of committing to a specific capital-expenditure figure or delivery timeline tied to it - a gap worth watching in future filings, since Q1 2026's coverage shows the eventual NVIDIA/Google partnerships arrived without much advance quantification either.
The Enterprise/ICT Portfolio Explicitly Now Spans Security, Cloud, IoT, and AI
The Capital Markets Day materials describe Indosat's "Enterprise ICT" business as including "security, network, cloud, IoT, AI" - a broader stated portfolio than the MIDI segment label alone conveys, and useful context for why MIDI's growth has accelerated so sharply this half.
Target Valuation Range
Bottom line: roughly Rp75,300-Rp119,900 fair-value enterprise range (bear-to-bull, annualized EV/EBITDA-based, implying roughly Rp8,650-Rp13,900 nominal per share) against a Rp10,700 actual nominal close - the stock traded near the middle-low of that range, still not pricing in a meaningfully higher multiple despite two straight clean quarters and a new strategic narrative.
Note on price data: Indosat's shares closed at a split-adjusted Rp2,675.00 on June 28, 2024 on a historical price basis - Indosat completed a 1-for-4 forward stock split in October 2024, so that historical close is stated on a post-split basis. Multiplying by 4 recovers the actual nominal price quoted on the exchange that day, the same convention used throughout this site's 2023-2024 ISAT coverage.
| Market cap → enterprise value | H1 2024 (period-end) |
|---|---|
| Share price (period-end, nominal) | Rp10,700 |
| Shares outstanding (pre-split) | 8,062,702,739 |
| Market capitalization | ~Rp86,270.9B (~$5,268.5M) |
| Plus: total principal debt (loans, bonds, sukuk; excl. lease liabilities) | Rp13,913.2B |
| Less: cash and cash equivalents | Rp4,569.6B |
| Enterprise value | ~Rp95,614.5B (~$5,839.4M) |
| Peer/multiple sanity check | H1 2024 (annualized) | Q1 2024 (annualized) |
|---|---|---|
| EBITDA (annualized) | Rp26,824.0B | Rp26,036.0B |
| EV / EBITDA | ~3.56x | ~3.72x |
| Net debt (total debt - cash) | Rp9,343.6B | Rp6,699.9B |
| Net debt / EBITDA | ~0.35x | ~0.26x |
| P/E (annualized, reported EPS) | ~15.8x | ~17.4x |
| Scenario | Key assumption | Multiple | Implied EV | Implied nominal price |
|---|---|---|---|---|
| Current (H1 2024 close) | actual market price | ~3.56x annualized EBITDA | ~Rp95,615B | Rp10,700 |
| Bear | AI-strategy capex spending pressures free cash flow without a clear near-term payoff | ~2.9x | ~Rp77,790B | ~Rp8,652 |
| Base | Growth continues near this half's pace, AI strategy stays a longer-dated option value | ~3.6x | ~Rp96,566B | ~Rp10,819 |
| Bull | MIDI/enterprise AI momentum accelerates and re-rates the stock toward regional-peer multiples | ~4.5x | ~Rp120,708B | ~Rp13,867 |
Net debt/EBITDA ticked up slightly to ~0.35x from Q1's ~0.26x, in line with the company's own disclosed 0.36x - still comfortably low, the modest rise reflecting cash consumed by stepped-up capex rather than any renewed debt growth. Still no multi-year DCF: two clean quarters is a better base than one, but this site would want to see whether the "AI Native Telco" strategy attaches real capital commitments before building a standalone projection around it.
PT Indosat Tbk's unaudited interim consolidated financial statements for the six-month period ended June 30, 2024, together with the accompanying notes, the company's H1 2024 investor presentation, and its June 20, 2024 Capital Markets Day materials.