Jakarta, August 2, 2022 – PT Dayamitra Telekomunikasi, Tbk. (Mitratel) and PT Telekomunikasi Selular (Telkomsel) have signed a Sales & Purchase Agreement (SPA) concerning the exchange of ownership rights for 6,000 telecommunications towers from Telkomsel to Mitratel, (7/29). This acquisition was structured as a Sales and Lease Back, entailing the transfer of 6,000 telecommunications tower units; hence, adding Mitratel’s telecommunications towers ownership to more than 34,800 towers. In addition to the transfer of telecommunications towers ownership, the agreement comprised a commitment to commission of new towers from Telkomsel to Mitratel totaling 1,000 towers in the next three years. Additionally, numerous business initiatives are arranged such as leveraging IoT (Internet of Things), Green Energy services, and other New Ecosystem Tower Business.
The agreement between these two companies entails prior corporate actions executed in 2020 and 2021 with a total of 10,050 telecommunications tower units.
Hendri Mulya Syam, President Director of Telkomsel, stated “The signing of Sales & Purchase Agreement for the transfer of ownership of 6,000 telecommunications towers to Mitratel, reflects a pivotal step in bolstering our company transformation endeavors. This initiative underscores our commitment to bolstering the company’s portfolio in digital business more consistently and comprehensively; thus, strengthening our commitment to providing service innovation extensively. Additionally, this must be taken into consideration in order to open more value-added opportunities for the digital lifestyle ecosystem of Indonesian society in a more inclusive manner. As the leading digital telecommunications company in Indonesia, Telkomsel also hopes to further accelerate the enhancement of a more ideal corporate structure, ensuring the implementation of the three digital pillars currently serving as a reliable provider of digital connectivity, platforms and services that remain relevant to the advancement of digital ecosystem which is more customer-centric.”
Director of Strategic Portfolio of PT Telkom Indonesia (Persero) Tbk. (Telkom), Budi Setyawan Wijaya emphasized “This corporate initiative depicts TelkomGroup’s efforts to strengthen its position in the telecommunications tower business. By doing so, Telkom aims to bolster its competitive advantages and increase value creation for its stakeholders.”
“The transfer of 6,000 telecommunications towers can be the main capital for market expansion to support the accelerated implementation of the 5G network in Indonesia, increase Mitratel’s production equipment, and solidify Mitratel’s position as the largest Tower Provider company in Southeast Asia,” explained Mitratel President Director Theodorus Ardi Hartoko, commonly known as Teddy Hartoko.
As part of the agreement, Mitratel will implement Telkomsel’s IoT and Data Analytics services to facilitate real-time operational management of telecommunications towers and proactively optimize power consumption. This collaborative initiative is anticipated to significantly contribute to the reduction of carbon emissions and their impacts, aligning with Telkomsel’s commitment to Environment, Social and Governance (ESG) initiatives.
Teddy Hartoko further elaborated that in line with Mitratel’s vision and mission to become a leading Digital Infrastructure Company dedicated to continuously support its customers and business partners in enhancing and expanding their services, Mitratel has prepared telecommunications infrastructure, including towers, fiber optic and power-to-tower across Indonesia, particularly outside Java This deployment aims to facilitate telecommunications operators and non-operators in accessing Mitratel’s comprehensive and integrated solutions.
The acquisition of 6,000 towers strategically located across Indonesia by Mitratel reinforces the acceleration of additional collocation potential and fosters the development of Tower Related Business. Leveraging Telkomsel’s position as the primary long-term tenant with considerable collocation potential from other telecommunications operators, this agreement is believed to yield benefits exceeding industry average, ensuring Mitratel towards a position of Leading Sustainable Growth.
Currently, Mitratel possess telecommunications towers across various regions, solidifying its position as a market leader in tower ownership within Southeast Asia. With Telkomsel, the prominent mobile operator industry with the largest customer, Mitratel strives to continue serving all mobile operators in Indonesia by providing appealing business schemes.
“This sustainable corporate action between Telkomsel and Mitratel is anticipated to strengthen the momentum of both companies, ensuring the creation of asset management and expansion of business lines. This initiative encourages the enhancement of company performance that is increasingly ideal, productive, effective, efficient and relevant amidst technological development,” concluded Teddy Hartoko.
