INET Acquires 60% of SGI, Targeting Submarine Cable Business and Regional Expansion
PT Sinergi Inti Andalan Prima Tbk (INET) is expanding its digital infrastructure business by acquiring a 60% stake in PT Sarana Global Indonesia (SGI), a company specialising in the engineering, procurement, construction (EPC), and maintenance of submarine cable systems.
This corporate action is a strategic move by INET to strengthen its position in the submarine cable infrastructure business while building integrated capabilities, ranging from planning and construction to the operation and maintenance of undersea cable networks.
Through SGI, INET gains not only access to EPC capabilities but also a proven track record in submarine cable deployment and maintenance across various regions in Indonesia. SGI possesses specialised cable vessels such as the Pacific Guardian, the Nostag 10 cable-laying barge, and cable warehouse facilities in Kupang.
SGI has been operating since 2000 and transformed into an EPC company in 2010. The company has experience in several national submarine cable network projects, including the West Palapa Ring (1,744 km), the East Palapa Ring (2,071 km), the East Palapa Ring expansion (1,247 km), and the Sabang-Lhokseumawe-Medan route (625 km).
Furthermore, SGI has managed projects such as the Aceh-Sibolga-Batam-Larantuka route (769 km) and the Luwuk-Tutuyan route (342 km).
SGI’s capabilities are expected to complement INET’s plans to develop a national fibre-optic backbone network spanning approximately 21,800 km. Within this network, submarine cable infrastructure serves as a critical component for connecting Indonesia’s many islands.
Beyond new network construction, SGI maintains a maintenance business supported by long-term contracts. This includes a contract with PT Palapa Timur Telematika spanning 15 years since 2019, covering approximately 4,571 km of the East Palapa Ring network.
SGI also holds maintenance contracts with PT Len Telekomunikasi Indonesia for the Central Palapa Ring network (1,807 km) and with PT Mora Telematika Indonesia for the Sape-Ende-Kupang-Bajo route.
These contracts provide a recurring revenue base for SGI, meaning the acquisition has the potential to add long-term revenue streams to the INET ecosystem.
Additionally, SGI’s expertise extends beyond fibre-optic cables. The company has a track record in installing submarine power cables, including a 36 km three-circuit power cable project for PLN-WIKA, the Singapore-Malaysia interconnection project, and circuit recovery and repair works for the 2023-2025 period.
With the integration of SGI, INET has the opportunity to expand its business scope from telecommunications infrastructure to submarine power cables. This expansion allows the company to capitalise on the growing demand for inter-island energy infrastructure as electricity interconnection needs increase.