Indonesia’s Telecom Titan Grows Bigger

Mitratel, Indonesia’s largest tower company, is making headlines this week with its latest strategic expansion. The company has acquired 803 telecom towers from local infrastructure provider Gametraco Tunggal, a move that not only bolsters its already impressive portfolio of over 37,000 towers but also significantly extends its geographic presence across Indonesia.

A $113 Million Deal to Widen Coverage

This acquisition, valued at $113 million, is set to enhance Mitratel’s network, particularly beyond the Java island, marking a significant step in the company’s expansion efforts. These newly acquired towers are expected to bring in 1,327 new tenants, significantly bolstering Mitratel’s client base.

Strategic Expansion Beyond Java

Mitratel’s President Director, Theodorus Ardi Hartoko, emphasized the importance of this expansion in a recent press conference. “Our strategic focus is to enhance connectivity outside Java, aligning with the growing internet needs in these regions,” Hartoko stated. He highlighted the company’s plans to focus on Sumatra in the near term and eventually extend to eastern parts of Indonesia, such as Papua and Maluku.

Leveraging IPO Funds for Growth

This move comes on the heels of Mitratel’s substantial $1.76 billion initial public offering two years ago. Since then, the company has strategically invested these funds to amplify its infrastructure reach. This includes the acquisition of over 600 kilometers of fiber optic networks, a key element in supporting their tower operations.

Fiber Optics and the Road to 5G

Hartoko underlined the importance of this fiber optic network in advancing Indonesia’s 5G capabilities. “The acquisition of optical fiber networks is a pivotal step in accelerating our move towards 5G adoption, a primary objective for Mitratel in the coming years,” he said earlier this year. This move is seen as crucial for supporting Indonesia’s journey towards digital sovereignty.

Navigating Indonesia’s 5G Landscape

Indonesia’s progression into the 5G era has been gradual, with delays in the allocation of necessary spectrum by the government. However, there is anticipation for a spectrum auction in the 700MHz and 26GHz bands, expected to take place in August of the following year, which could further propel the nation’s 5G development.