Indonesian telecoms operator PT Indosat has announced plans to raise up to IDR1.5 trillion (USD163.8 million) in bonds to fund its mobile network expansion in the country. It is understood the amount will be divided as IDR1 trillion in conventional debt and IDR500 million in ‘sharia’ bonds. Indosat is 40%-owned by Asia Mobile Holdings which itself is 75% controlled by Singapore’s state-owned investment arm Temasek Holdings, with Qatar’s Qtel owning the remaining 25%.
According to TeleGeography’s GlobalComms database Indosat’s mobile unit Satelindo had around 22 million mobile users at the end of September 2007, a market share of 26%, behind market leader Telkomsel with 44.45 million users, or 52%. Satelindo upped its planned CAPEX for 2007 to USD1.2 billion in August to meet increased demand for wireless services. Around 15%-20% of the total was earmarked for network expansion, including work on new base transceiver stations (BTSs), while the remainder is being used to improve services. Indosat announced in September 2007 it was borrowing USD213 million from a local bank to help fund its plans.