PT Indointernet Tbk (EDGE) has injected an additional Rp422 billion into its subsidiary, PT Digital Gayana Ekagrat (DGE), to strengthen its business operations and capital structure.

According to Donauly Elena Situmorang, Corporate Secretary of Indonet, the capital was provided “for capital expenditure needs,” as stated in an official disclosure on Wednesday, October 29.

Capital Support to Strengthen Digital Business Operations

Donauly explained that the capital infusion is aimed at supporting DGE’s operational expansion. The subsidiary plays a crucial role in advancing Indointernet’s position within Indonesia’s digital infrastructure and technology sector.

The additional funding, she added, aligns with Indointernet’s long-term strategy to enhance service capabilities and ensure sustainable growth in its core technology business.

The capital injection qualifies as both an Affiliated Transaction and a Material Transaction because the value exceeds 20 percent of EDGE’s equity.

However, Donauly clarified that the transaction is exempt from mandatory valuation requirements under OJK Regulation No. 42/2020 and OJK Regulation No. 17/2020, as EDGE holds 99.99 percent ownership of DGE.

“This transaction does not have a negative impact on the company’s financial condition,” Donauly emphasized, ensuring investors that the move will not burden Indointernet’s balance sheet.

The disclosure underscores the company’s confidence in maintaining financial stability while expanding its digital portfolio through internal funding mechanisms.

EDGE Stock Experiences Minor Fluctuations After Announcement

As of 13:57 WIB on Wednesday, EDGE shares declined 2.68 percent to Rp4,360 per share.

Despite the short-term dip, the technology issuer’s stock has shown a 1.12 percent movement over the past five days and has gained 2.33 percent over the past month, reflecting moderate investor confidence amid market volatility.

PHOTO: FREEPIK

This article was created with AI assistance.