Indonesian round-up: Indosat to reduce debt; Biznet boosts metroNet; Telkom to complete tower sale

17 Apr 2014

Alexander Rusli, the CEO of Indonesia’s number two telecoms provider by subscribers PT Indosat, says his company plans to repay debts totalling IRD2.3 trillion (USD201.1 million) in fiscal 2014, using its own cash resources. The telco reported revenue of IDR23.86 trillion in FY 2013, up 6% year-on-year.

Meanwhile, Indonesian fibre-based broadband provider Biznet Networks has reportedly upped its bandwidth availability for metroNET broadband services, Telecompaper writes, citing a company statement. metroNET is targeted primarily at the country’s SME segment, with Biznet Networks now offering end users high speed internet packages ranging from 1.5Mbps to 75Mbps.

Finally, state-owned telco Telekomunikasi Indonesia (Telkom) intends to finalise the details of its share sale of tower operator subsidiary Daya Mitra Telekomunikasi (Mitratel) in Q3 2014, the company’s director has said. Telkom is selling its 49% stake in the unit so that it can concentrate on its core business in the country. Mitratel owns and operates a total of 4,000 cellular towers in Indonesia; its total assets were valued at around USD410 million in September last year. As reported previously, Telkom is weighing up no fewer than five possible options: the spin-off of Mitratel as a separate company via an initial public offering (IPO); a sale to another publicly listed tower operator; a fully-fledged merger with a rival tower firm; a backdoor listing and doing nothing. It is understood to prefer an IPO or a backdoor listing.