Indosat Oordeeo sets aside USD654m to expand 4G network in 2020

13 Mar 2020

The Jakarta Post writes that domestic mobile operator PT Indosat (Indosat Ooredoo) is setting aside IDR9.5 trillion (USD654 million) in capital expenditure in 2020, up 11.8% from IDR8.5 trillion in 2019, to fund its ongoing 4G network rollout across Indonesia. Indosat Ooredoo director and COO Vikram Sinha is cited as saying that the expansion of its 4G network is central to the operator’s business strategy for the next two years. ‘Our 4G network now covers more than 90% of the population. This year, we will focus on improving our indoor coverage, improving our latency [rates],’ Vikram told the paper, confirming that the company had expanded its 4G footprint to close to 90% of Indonesians at end-2019, up from the 44% figure reported in 2017.

The ongoing expansion is part of a three-year business strategy being undertaken to help drive the shift towards a more digital economy in Indonesia. The programme kicked off last year, Vikram noted, and will see total investment of around USD2 billion ‘to grow, create jobs and build Indonesia’s digital economy’, including by building competitive video-grade mobile networks and empowering its regional leadership teams, rather than becoming an organisation that is ‘top-heavy’, he said. As part of its strategy to improve network services, the company sold its 3,100 telecommunication towers to Dayamitra Telekomunikasi (Mitratel) and Professional Telekomunikasi Indonesia (Protelindo) in 2019 for IDR6.39 trillion.

Indonesia, Indosat Ooredoo Hutchison (IOH)