Indosat (ISAT) Divests Fibre Optic Business for Rp11.71 Trillion

Telecommunications issuer PT Indosat Tbk (ISAT) has announced the completion of a majority stake divestment in PT Infra Fiber Teknologi (IFT) to PT Nusantara Fiber Teknologi (NFT) valued at Rp11.71 trillion. The share disposal transaction became legally effective on 30 June 2026. Indosat, together with its subsidiary PT Aplikanusa Lintasarta, cumulatively sold 11,707,828 shares, equivalent to 84.9% of IFT’s total issued and paid-up capital, to NFT. In addition to the share sale, Indosat and Lintasarta also conducted an inbreng transaction for 2,083,223 shares, representing a 15.1% stake in IFT. In return, Indosat received 1,991,439 NFT shares, equivalent to 49.1% of NFT’s issued and paid-up capital, whilst Lintasarta received 32,132 shares, or a 0.8% stake. The company also disclosed that the transaction was followed by the signing of a Shareholders’ Agreement between Indosat, Lintasarta, NFT, and PT Ainfrastruktur Indonesia Raya. The agreement was signed on 6 May 2026 and became effective upon completion of the share sale and purchase transaction. This divestment follows a series of previously announced agreements, including an Investment Agreement signed on 23 December 2025 and subsequently amended on 6 May 2026, as well as a Conditional Share Sale and Purchase Agreement signed on the same date. Following the divestment, Indosat retains ownership of one share in IFT. Meanwhile, NFT becomes the majority shareholder with 13,791,051 shares in the company. Despite relinquishing its direct majority stake in IFT, Indosat maintains an effective direct and indirect ownership of 49.68% in IFT through the new shareholding structure, thereby retaining strategic exposure to the fibre optic infrastructure business operated by IFT. Indosat, alongside Arsari Group and Northstar, previously formed a joint venture in the fibre optic connectivity sector. Indosat transferred its fibre optic assets to the new company, which has a valuation of Rp14.6 trillion. This move allows Indosat to monetise its fibre assets into a 45% equity stake in the joint venture, whilst Arsari Group also holds a 45% stake, with the remainder owned by other consortium partners. President Director and CEO of Indosat Ooredoo Hutchison, Vikram Sinha, stressed that the collaboration has a broader objective of strengthening Indonesia’s overall competitiveness. He noted that research from the World Bank, McKinsey, and Indosat’s internal reports all indicate that fibre is the most critical component of digital infrastructure. He explained that the strategic partnership with Arsari, combined with Indosat’s spending capabilities, policies, and platform, is expected to help propel Indonesia towards an economic growth target of up to 8%.