Indonesian telecom operator Indosat Ooredoo Hutchison (IOH) has completed the carve-out of its fibre infrastructure business into a new independent wholesale platform backed by Arsari Group, monetising the assets in an 11.7 trillion rupiah (around $649.84 million) transaction while retaining a sizeable minority interest in the business.
The completion also marks the official launch of PT Infra Fiber Teknologi (IFT), which the partners describe as an independent, open-access fibre infrastructure platform that will own and operate more than 86,000 km of backbone, domestic subsea, and access fibre networks across Indonesia.
IFT will operate on an open-access wholesale model, serving telecommunications operators, enterprises, hyperscalers, and digital service providers rather than competing directly for retail customers.
The deal completes an investment agreement first announced in December 2025, when Indosat agreed to separate its fibre assets into a standalone company—earlier referred to as a FiberCo—and bring in Arsari Group as a strategic investor. The transaction reflects a broader trend among telecom operators to unlock value from infrastructure assets while recycling capital into higher-growth areas such as 5G and artificial intelligence (AI) services.
Under the transaction, Indosat and subsidiary PT Aplikanusa Lintasarta sold an 84.9% stake in IFT to PT Nusantara Fiber Teknologi (NFT), an investment vehicle backed by Arsari Group, for 11.7 trillion rupiah in cash. They contributed the remaining 15.1% stake to NFT in exchange for newly issued shares, leaving the two companies with a combined 49.9% ownership in NFT.
Following completion of the deal, NFT becomes the controlling shareholder of IFT, while Indosat retains an effective direct and indirect ownership of about 49.7% in the fibre company. The telecom operator also continues to hold one share directly in IFT.
The IOH group received gross proceeds of approximately 11.7 trillion rupiah from the transaction, which it said will support further investment in its core telecommunications business, including 5G rollout, connectivity infrastructure, and AI-ready digital services.
“Our purpose has always been to empower every Indonesian through technology. IFT is a direct expression of that conviction,” said Vikram Sinha, president director and chief executive officer of Indosat Ooredoo Hutchison, in a statement on Thursday.
“By placing world-class fibre infrastructure in the hands of an independent, open-access platform led by industry experts, we are ensuring that the benefits of AI, cloud, and next-generation digital services are not confined to a few. This is technology for all,” he added.
Indonesia’s digital economy continues to expand rapidly, but connectivity remains uneven outside major cities. IFT said about 45% of its network footprint is in Java, while the remaining 55% is spread across other parts of the country, positioning it to expand digital infrastructure in underserved regions.
Its immediate priorities include extending fibre deployment, expanding wholesale partnerships with telecommunications operators and hyperscalers, and supporting growing demand for AI-ready connectivity.
Hendry Syam, president director of IFT, said the company was established to broaden access to digital infrastructure across the archipelago.
“IFT was not established to serve only those already well-connected. Our mandate is broader than that. We are building infrastructure that reaches the places others have not reached, serving communities that have long been underserved through a trusted and reliable system, and enabling businesses that drive Indonesia’s economy across the archipelago,” said Syam.
Arsari Group, a diversified investment company controlled by businessman Hashim S. Djojohadikusumo, said the partnership was aimed at strengthening Indonesia’s digital backbone and long-term competitiveness.
“True national competitiveness is built on the principle that no one is left behind,” said Aryo P.S. Djojohadikusumo, deputy CEO and COO of Arsari Group.
“We have brought together people who understand not just how to build and operate infrastructure at scale, but why it matters, for the communities it connects, for the enterprises it enables, and for Indonesia’s long-term standing in the digital economy,” he added.
IFT said it aims to accelerate fibre deployment in underserved areas, deepen partnerships with telecommunications operators and cloud providers, and attract long-term institutional capital through its independently governed platform. Citi acted as Indosat’s exclusive financial adviser on the transaction.
The transaction completes an investment agreement first announced in December 2025 and subsequently amended in May this year. Citi acted as Indosat’s exclusive financial adviser on the deal.
