Indonesian telco Indosat Ooredoo Hutchison (IOH) has spun off its fiber business.
As part of this, Indosat's fiber business has relaunched as Infra Fiber Teknologi (IFT), an independent fiber infrastructure platform backed by Indosat and Arsari Group, an Indonesian-based investment firm.
IFT will operate more than 86,000km of fiber infrastructure across Indonesia. This is made up of backbone, domestic subsea, and access networks, as an independently governed, open-access platform.
The deal builds on an agreement signed by Indosat and Arsari Group back in December to form a fiber JV.
As part of that transaction, Indosat and its ICT arm Aplikanusa Lintasarta spun off their fiber business into a new entity called FiberCo, before selling their stakes in that to Nusantara Fiber Teknologi (NFT), which is the investment platform of Arsari Group. Indosat and Lintasarta collectively hold a 49.9 percent stake in NFT.
For Indosat, the fiber spin-off enables the company to monetize its fiber assets while retaining a long-term interest in the platform, bringing in around IDR11.7 trillion (US$651.3 million) for the deal.
"The launch of PT Infra Fiber Teknologi (IFT), in partnership with Arsari Group, marks an important milestone in that journey. By establishing an independently governed, open-access fiber platform, we are strengthening Indonesia's digital backbone while enabling greater collaboration across the ecosystem to accelerate AI, cloud, and next-generation digital services," noted Vikram Sinha, president and CEO, Indosat.
"More than just investing in infrastructure, this initiative is about expanding access to high-quality connectivity so that innovation reaches beyond major cities and unlocks opportunities throughout the nation."
According to IFT, around 45 percent of the fiber footprint is located in Java, while the remaining 55 percent is in non-Java regions.
“We are building infrastructure that reaches the places others have not reached, serving communities that have long been underserved through a trusted and reliable system, and enabling businesses that drive Indonesia's economy across the archipelago,” said Hendry Syam, president director, IFT.
While the fiber spin-off was announced last week, Indosat confirmed today (July 6) that its board of commissioners has voted to extend Sinha's tenure as CEO by an additional five years.
Sinha's extension will be formalized during the company's upcoming AGM. Sinha has been CEO of the telco since 2022, overseeing Ooredoo Indosat and Hutchison Asia Telecom Group's $6 billion merger.