Indosat to tap IDR1tn loan from state-owned lender

31 Oct 2013

Indonesian’s second largest telecoms operator by subscribers and revenue, PT Indosat, is poised to take a IDR1 trillion (USD90 million) loan from an unnamed state-owned lender, online journal Kontan cites the carrier’s head of investor communication divisions, Andromeda H Tristanto, as saying. Although the report is unconfirmed, it is understood that Indosat intends to use the loan to pay debt and help finance its 2014 capital expenditure programme. In total, the telco is looking to invest IDR8 trillion in its networks and services in 2014, unchanged from this year.

Earlier this month Indosat, a unit of Qatar-based Ooredoo Group, launched a new network to provide its customers with faster mobile broadband access. Dubbed ‘IM3 Super Internet Service’ and running on the carrier’s UMTS 900MHz network, Indosat is offering its subscribers packaged mobile broadband services with stronger signals, both outdoor and indoor, as well as delivering wider network coverage and faster internet access. The launch of IM3 Super Internet initially covers Bali – chosen because of the island’s popularity as a world tourism destination, and the high demand for a reliable communication and data services there. Following the successful trials of 900MHz UMTS technology in Padang, Bukittinggi and West Sumatra in 2012, the carrier says its Network Modernisation Programme will continue to install the IM3 Super Internet Service across Indonesia, including Jabotabek (Greater Jakarta) and other major cities in Java.

Indonesia, Indosat Ooredoo (incl. IM2)