Top firm PT Telekomunikasi Indonesia Tbk (Telkom) said 2004 revenue would grow 20 percent, in line with analysts' estimates, spurred by increased spending during the country's parliamentary and presidential elections.
Rival PT Indonesian Satellite Corp Tbk (Indosat), the second-biggest operator, said earlier in the day it expected to book more than 10 trillion rupiah ($1.2 billion) in 2004 revenue, up from an estimated eight trillion in 2003.
Indosat closed up 3.95 percent at 15,800 rupiah, while Telkom, the biggest stock with a market value of about $9 billion, jumped seven percent to 7,550 rupiah. The broader market gained 2.98 percent.
The number of mobile users in Indonesia has grown rapidly in recent years, but the penetration rate is still among the lowest in the region at around seven percent, meaning there is significant growth potential.
Consumer demand, which has been a key driver of Indonesia's economic growth in recent years, is expected to grow this year as some 24 political parties move into campaign mode and spend more money wooing voters, largely at the grass roots level.
Telkom, which owns the country's top mobile player, PT Telekomunikasi Selular (Telkomsel), expected its wireless subscriber base to expand by 40 to 50 percent this year. Last year's growth figure was not immediately available.
"The elections will boost the number of subscribers," Telkom President Kristiono told reporters.
Analysts estimate Telkom to have posted 27 trillion rupiah in 2003 revenue, against 21.4 trillion rupiah in 2002 and a forecast 32.5 trillion this year.
Stablemate Indosat, 42 percent owned by Singapore telecom group ST Telemedia, expected 2003 net profit to jump 2.5 to three times from 336.3 billion a year earlier. It said this year's net profit would rise 30 to 40 percent.
The firm's estimates were in line with analysts' expectations. They forecast Indosat's net profit at 938 billion rupiah for 2003 and 1.37 trillion in 2004, while last year's revenue was seen at 8.3 trillion with 10.07 trillion this year.
"Around 65 to 75 percent of (2004) revenue will come from the cellular business," Indosat President Widya Purnama told reporters. In 2002, the firm's mobile businesses contributed less than half of its total revenue.