Indosat Forms Strategic Partnership to Create Major Fiber Optic Platform

Creation of FiberCo

PT Indosat Tbk (ISAT), known as Indosat Ooredoo Hutchinson (IOH), has entered into a joint venture with Arsari Group and Northstar to establish FiberCo, a leading independent fiber optic infrastructure platform valued at Rp14.6 trillion ¹

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Source 2

https://investasi.kontan.co.id/news/indosat-isat-arsari-grup-dan-northstar-bangun-fiberco-senilai-rp-146-triliun

. This significant development is part of Indosat's broader strategy to optimize its assets and maximize their potential.

Scope of FiberCo Operations

FiberCo will operate an extensive fiber optic network exceeding 86,000 kilometers, encompassing backbone infrastructure, domestic submarine cables, and access to telecommunications tower infrastructure and business districts. The new entity will be created by separating nearly all of Indosat's domestic fiber optic assets, excluding international submarine cables, into FiberCo ¹

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Strategic Significance

The formation of FiberCo represents a major development in Indonesia's digital infrastructure landscape. By creating a carrier-neutral, open-access fiber optic platform, Indosat and its partners aim to support the country's growing digital economy and telecommunications needs. The platform is expected to play a crucial role in enhancing connectivity and supporting various digital initiatives across Indonesia.

Financial and Advisory Arrangements

In this transaction, Indosat has appointed Citi as its financial advisor, while Northstar Group has engaged Goldman Sachs as its exclusive financial advisor ²

. These appointments underscore the complexity and significance of the deal, highlighting the involvement of major international financial institutions.

Business Implications

The creation of FiberCo is expected to unlock significant value for Indosat and its partners. By separating its fiber optic assets into a dedicated entity, Indosat is adopting an asset-light approach that allows for greater flexibility and potential future growth opportunities. The partnership combines Indosat's telecommunications expertise with the investment capabilities of Arsari Group and Northstar.