INTERNAL STARTUP VALUATION OF PT TELEKOMUNIKASI INDONESIA (CASE STUDY: COMPANY V)

• Main Author: Rais Azka, Ghani
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/45872
• Institution: Institut Teknologi Bandung

The current industry 4.0 era is digital transformation of industrial sectors. Every company competes to adapt digital technologies so they can continue to exist. PT Telekomunikasi Indonesia Tbk (Telkom) as the largest telecommunications company in Indonesia began to focus on innovating. One obvious form performed by Telkom to boost innovation is establishing Amoeba (internal startup), which is an innovation team that consist of people who have high desire to innovate. By providing funds to its employees to realize their ideas that Telkom has assumed can streamline costs or become a new source of income in the future. Company V is one of the Amoeba and successfully fostered by Telkom. Company V run their business by providing chatbot platform to help business owner leverage their communication and engagement with their customers using Bots and AI technology. As investors, Telkom needs to find out whether Company V is still eligible to remain incubated or not. Therefore it is necessary to do a valuation process for company V to provide information what the value of company V is and how much funding should be given. The method used to solve the problem in this paper is risk-based new venture valuation technique. As the AI industry was considered to be a newly developing market in Indonesia, this method was considered relevant to find out the level of risk that the investor hold. Risk-based new venture valuation technique was able to overcome information asymmetry for both entrepreneur and investor by using real option theory to commercialization risk. In this paper, the result shows that Company V is in the milestone 2 after completely finish the milestone 1, which development risk (market survey). Approximately the valuation of Company V is 83,16 billion IDR. This value will continue to increase if Company V can complete the market validation (sales acquisition channel) become 231,05 billion IDR. If market validation is complete and normal risk is applied, the valuation of Company V will reach 568,23 billion IDR starting from year 3, month 5. The estimation capital requirement by company V after take over by Telkom is 4,25 billion IDR, which 1,8% of the valuation generate by Company V. It can be concluded that Company V deserves to be fostered continuously by Telkom may even be a new business unit or BAU (Business as usual) because Company V has great potential as a new income source of Telkom.