Indosat maintains 2012 CAPEX level at USD721m

18 Nov 2011

Indonesian telecoms operator PT Indosat will keep its capital expenditure level for fiscal 2012 at around IDR6.5 trillion (USD721 million), the same level as this year. Indosat president Harry Sasongko said that whilst the proposed CAPEX is unchanged on this year’s spend, the company is committed to increasing its spending in the coming years. Indosat’s president added that the group’s expenditure programme would focus on improving Indosat’s overall network quality. ‘Rapid network growth and high data usage have challenged us to improve our network’s quality,’ he said. Alongside the ongoing CAPEX plans, Indosat is also looking to secure additional funding to provide more services, and the firm is also reportedly in exclusive talks with Tower Bersama Infrastructure, concerning the sale of telecoms towers worth USD500 million. Although Harry Sasongko declined to confirm whether or not it was Tower Bersama in the frame, he did say that his firm is ‘still negotiating the number of towers and their locations,’ and that ‘We expect the sale of the towers to improve our asset value.’ An agreement on the tower sale is expected by mid-December.

Indonesia, Indosat Ooredoo (incl. IM2)