PT Indosat Tbk. (ISAT) has joined with Arsari Group and Northstar to form a joint venture in fiber optic connectivity (23/12).

Indosat transferred its fiber optic assets to the new company, which has a valuation of Rp14.6 trillion. Through this move, Indosat converts the assets into a 45% stake, while Arsari Group also holds 45%, and the remaining shares belong to other consortium partners.

Monetizing Fiber Assets to Strengthen Indonesia’s Digital Infrastructure

Indosat Ooredoo Hutchison President Director and CEO, Vikram Sinha, said the collaboration aims to improve Indonesia’s competitiveness.

“All research, from the World Bank, McKinsey, to internal Indosat reports, shows that the most crucial component of digital infrastructure is fiber,” Sinha said.

Driving Economic Growth Through Strategic Collaboration

Sinha explained that the partnership with Arsari, combined with Indosat’s platform capabilities, procurement, and policies, is expected to support Indonesia’s goal of reaching 8% GDP growth.

“Today, this strategic partnership with Ansari, and especially Indosat, and the platform we have built, will help us move toward 8% GDP growth,” he stated.

Deputy CEO and COO of Arsari Group, Aryo P.S. Djojohadikusumo, said the investment aligns with the company’s philosophy of creating value for shareholders and for Indonesia.

AI and Renewable Energy as Core Components of the Collaboration

Aryo noted that artificial intelligence is both the biggest challenge and opportunity of the 21st century. Quoting NVIDIA CEO Jensen Huang, he identified five main AI components: energy, chips, digital infrastructure like fiber optics and data centers, AI models, and applications.

He emphasized that the joint venture envisions a national AI ecosystem using Indosat-Arsari fiber infrastructure and powered by renewable energy.

“AI karya anak bangsa running on Ansari Indosat infrastructure and fiber powered by Ansari clean energy, secepatnya,” Aryo said.

Alignment with Global Telecommunications Trends

Deputy Minister of Communication and Digital Affairs, Nezar Patria, highlighted that the collaboration follows global telecom trends. He noted that separating infrastructure companies (infraco) from service providers (servco) is a common practice internationally.

“I think this is a very strategic partnership, and Indosat is following the global trend of separating infraco from servisco,” Nezar said.

PHOTO: SHUTTERSTOCK/YESSI FRENDA

This article was created with AI assistance.