Telkom Indonesia to triple broadband spend in 2015; offloads tower unit to TBI

17 Oct 2014

Dominant full service provider PT Telekomunikasi Indonesia (Telkom Indonesia) has revealed that it is tripling its investment in high speed internet next year to IDR45 trillion (USD3.69 billion) under its national broadband plan, according to the Investor Daily. The carrier’s chief executive officer Arief Yahya confirmed the three-fold increase on this year’s CAPEX of IDR15 trillion, saying that 30% will be spent on building out transmission networks, 50% to improve local access and the remaining 20% for convergence projects.

In a separate development, Telkom Indonesia announced it will sell off a 49% stake in its tower subsidiary – Telkom’s Dayamitra Telkom (Mitratel) – to Tower Bersama Infrastructure (TBI) in a share swap that will see the former gaining an equity interest of up to 13.7% in the tower operator. Mitratel owns and operates 3,928 towers in Indonesia and generated IDR1.5 trillion in revenue in 2013. The deal will make TBI, currently Indonesia’s second largest tower company with 10,159 towers, ahead of rival Protelindo with 10,795 towers.

Indonesia, Telkom Indonesia