Alfa Group to invest up to USD2 billion to enter Indonesian mobile market

21 Dec 2006

Russian holding company the Alfa Group plans to invest up to USD2 billion to enter the Indonesian mobile market, reports The Jakarta Post citing a spokesman for Alfa subsidiary Altimo, which is expected to carry out the plan on behalf of its parent. ‘The Asian mobile market is developing very rapidly and Indonesia is the leader here with its large population, making it the most prospective market,’ Altimo vice president Kirill Babaev told The Jakarta Post. ‘We have decided to enter this market’, he added.

It is understood that Alfa Group/Altimo plans to acquire a sizeable stake in one of the country’s larger mobile operators – the sector was split between Telkomsel (57.18%), Satelindo (25.07%), Excelcomindo (14.74%), and others (3.01%) at the end of September 2006 – although it has not decided on the best course of action and has not set a deadline, saying only that the plan will be realised next year.

Indonesia, Metrosel (Metro Selular Nusantara), Mobile-8 Telecom, Net1 Indonesia, Telkomsel (Telekomunikasi Selular), XL Axiata