Indonesia’s Mitratel to buy 6,000 towers from Telkomsel for $700m

Photo by Tony Stoddard on Unsplash

Indonesian telecom tower company PT Dayamitra Telekomunikasi (Mitratel) on Friday announced that it will acquire Telkomsel’s 6,050 tower assets worth Rp10.3 trillion ($700 million), according to a disclosure statement on Indonesia Stock Exchange (IDX).

Both parties – who are subsidiaries of state telecom operator PT Telekomunikasi Indonesia Tbk – have entered into a conditional sale and purchase agreement to the effect.

Following the completion of the deal, Mitratel’s total tower capacity would be over 22,000.

“The transfer of these towers will strengthen Mitratel’s core business and increase its value, as well as help achieve its long-term plans. In the future, Telkomsel will focus on its core business as the leading digital telecom company in Indonesia by creating a digital ecosystem and providing the best digital connectivity experience for Telkomsel’s customers. This transaction is part of Telkom’s business portfolio structuring to ensure optimal value for shareholders,” according to the statement.

Mitratel CEO Theodorus Ardi Hartoko said, in a company release, the telecom tower business is still promising as operators expand network quality and service range. He added the tower business will continue to record positive performance in the future given the developments related to 5G technology in Indonesia.

We had recently reported on Telkom’s plans to consolidate its tower operation business under its subsidiary Mitratel. The restructuring exercise was aimed to strengthen the state-owned tower company before Mitratel makes a public market debut eventually.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.