Indosat Makes Rp14.6 Trillion Fiber Optic Business with Prabowo's Sister Company
JAKARTA - Indosat Ooredoo Hutchison has signed an investment agreement to establish a joint venture (joint venture), together with Arsari Group and Northstar Group, to build a leading digital fiber optic platform in Indonesia (FiberCo).
The joint venture company, which will operate under the name FiberCo, is designed as an open-access digital infrastructure platform, which aims to strengthen the national digital backbone.
In addition, this initiative is expected to expand and strengthen connectivity in the country, by providing global standard digital services, as well as supporting the acceleration of digital transformation.
"The digital platform that we are doing today is not just a corporate transaction, but a strategic step to build a national digital infrastructure platform," said Deputy CEO and COO of the Arsari Group, Aryo P.S. Djojohadikusumo, in a press conference on Tuesday, December 23 at the Indosat office, Jakarta.
Through this cooperation, Indosat will transfer its optical fiber assets to FiberCo with an investment value of around IDR 14.6 trillion. This transaction allows Indosat to monetize these assets while retaining around 45% of FiberCo's ownership.
Later, FiberCo will operate an 86 thousand kilometer fiber optic network, which includes backbone connections, domestic submarine cables, and infrastructure access that connects telecommunication towers and business areas, with a network composition of 45% on the island of Java, and 55% outside Java.
"This initiative supports the transformation of Indosat into an AI-based company, as well as contributing to the progress of the industry in providing high-quality digital experiences," added President Director and CEO of Indosat Ooredoo Hitchison, Vikram Sinha.
Through this new entity, Arsari Group, Indosat, and Northstar Group target the creation of world-class digital infrastructure that is capable of supporting AI-based economic growth, increasing digital inclusion, and strengthening economic resilience in the long term.