Officially Merged, Indosat-Tri Gets Mandatory Tasks From The Ministry Of Communication And Information

The Merger of Indosat and Tri is officially done. (photo: Kemenkominfo YouTube screenshot)

JAKARTA - Indonesia's cellular operators, PT Indosat Tbk and PT Hutchison 3 Indonesia officially carry out a merger and acquisition. However, these two companies are required to carry out the duties of the Ministry of Communication and Information (Kemenkominfo).

"We hope that this merger and acquisition will provide services for Indonesian telecommunications, our ability to provide support for national digital transformation, the involvement of the people in the use of our national digital space will be better in the future," said the Minister of Communication and Information, Johnny G. Plate in a virtual press conference.

Thus, this merger gave birth to a new entity called PT Indosat Ooredoo Hutchison. However, the merger decision as stated in the Decree of the Minister of Communication and Information Number 7 of 2022, all rights and obligations of PT. Hutchison 3 Indonesia, which is related to telecommunications operations, has become the rights and obligations of PT. Indosat Tbk.

The following are the obligations that must be carried out by PT. Indosat Tbk, is contained in the following eight matters:

1. The right to use telecommunications numbering.
2. Obligations to build telecommunications networks and services.
3. The obligation to ensure continuity of service to customers.
4. Cooperation with other telecommunications operators.
5. Obligation to pay Non-Tax State Revenue in the form of fees for the right to operate telecommunications, fees for the right to use radio frequency spectrum.
6. Universal Service Obligation (USO) contribution.
7. Including but not limited to legal obligations.
8. Fulfillment of employee rights in accordance with the provisions of the legislation in the field of manpower.

In addition, PT Hutchison 3 Indonesia's data communication system service license will also be transferred to PT Indosat Tbk's data communication system service license.

According to Johnny, PT Indosat Tbk after the merger and acquisition must fulfill two commitments. First, add the number of new sites.

"There are at least 11.400 sites until 2025, so that the total number of PT Indosat Tbk sites is at least 52,885 sites in 2025," said Johnny.

Then second, related to the expansion of the coverage area served by cellular services at least as many as 7,660 new villages and sub-districts until 2025.

"So the total coverage area served by PT Indosat Tbk's cellular services is at least 59,538 villages and sub-districts in 2025," explained Johnny.

"And improve service quality until 2025 at least 12.5 percent for download throughput and 8 percent for upload throughput," he added.

Radio Frequency Band Switching

Furthermore, this acquisition will also involve the transfer of PT Hutchison 3 Indonesia's Radio Frequency Band License (IPFR) to PT Indosat Tbk for several radio frequency bands, and this process has also been approved by the Ministry of Communication and Information.

“The first is the radio frequency band in the range of 1732.5 to 1742.5 MHz paired with the range from 1827.5 to 1837.5 MHz. Second, the radio frequency band in the range of 1920 to 1925 MHz is paired with the radio frequency band in the range of 2110 to 2115 MHz," said Johnny.

In the next range, the radio frequency band in the range 1925 to 1930 MHz is paired with the radio frequency band in the range 2115 to 2120 MHz, and the radio frequency band in the range 1930 to 1935 MHz is paired with the radio frequency band in the range 2120 to 2125 MHz.

"The transfer of the Radio Frequency Band License (IPFR) does not change the terms of validity period and the obligation to pay the fee for the right to use the radio frequency spectrum for each license to use the radio frequency spectrum," said Johnny.

Based on this agreement, PT Indosat Tbk is required to return the 5 MHz radio frequency band in the range 1975 to 1980 MHz in pairs with 2165 to 2170 MHz, provided that PT Indosat Tbk can still use the radio frequency band in the range 1975 to 1980 MHz in pairs with 2165 to 2170 MHz not later than one year from the enactment of the Ministerial Decree or until January 4, 2023.

"All Radio Station Permits (ISR) in the name of PT Hutchison 3 Indonesia are set to be in the name of PT Indosat Tbk," said Johnny.