Telkomsel strikes $701 million tower deal

Telkomsel strikes $701 million tower deal

Indonesian operator Telkomsel announced an IDR10.3 trillion ($701 million) deal to sell 6,050 towers to tower company PT Dayamitra Telekomunikasi (Mitratel), a deal to support its focus on main parts of the business.

A stock exchange filing detailed PT Dayamitra Telekomunikasi increased its tower portfolio to more than 22,000.

In a translated statement, Telkomsel said the transfer of the towers will be carried out in stages and completed by the end of Q1 of 2021. Both companies are subsidiaries of Telkom Indonesia.

Setyanto Hantoro (second from right), Telkomsel president director, said going forward “Telkonsel will focus on its main business” and continue as “the leading digital telecommunication company in Indonesia”.

He added the IDR10.3 trillion from the deal will go towards maximising and developing Telkomsel’s digital ecosystem.

Theodorus Ardi Hartoko (second from left), PT Dayamitra Telekomunikasi president director added the addition of the towers “will fundamentally strengthen Mitratel's business” and bring positive impact to the national telecommunications industry.

Kartika Wirjoatmodjo (middle), Deputy Minister of BUMN II RI, explained: "The agreement between Telkomsel and Mitratel for 6,050 towers is a major step in restructuring the Telkom Group portfolio for the long-term sustainability of the company. This is also part of a government initiative that seeks to restructure SOEs (state-owned enterprises) in restoring the core business of each company and creating added value through a more ideal corporate structure."

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