en.Wedoany.com Reported - On July 6, Indonesian telecommunications operator Indosat Ooredoo Hutchison completed the spin-off of its fiber optic business, restructuring the related assets into an independent fiber optic infrastructure platform, Infra Fiber Teknologi (IFT). The new platform is jointly supported by Indonesia's Indosat and Indonesian investment firm Arsari Group, operating a fiber optic network spanning over 86,000 km, covering backbone networks, domestic submarine cables, and access networks.
This spin-off is not merely an asset adjustment; rather, Indosat is separating the fiber optic network from the traditional operator structure, transitioning it into a platform model more suitable for open access and infrastructure sharing. IFT will operate under independent governance, providing fiber optic connectivity to telecom operators, internet service providers, cloud service providers, enterprise customers, and digital service companies. For a country composed of numerous islands like Indonesia, the fiber optic network is not only the underlying infrastructure for mobile communications and broadband access but also directly impacts whether cloud services, AI applications, data center interconnection, fintech, and public digital services can reach more regions.
Of the 86,000 km of fiber optic assets, approximately 45% are located on the island of Java, while the remaining 55% are distributed across non-Java regions. This structure gives IFT significant regional coverage. Java is the most concentrated area for Indonesia's population, economy, and digital services, but network coverage in non-Java regions is equally crucial for determining the balance of national digital infrastructure. By integrating the backbone network, domestic submarine cables, and access networks into a single platform, IFT can more clearly open capacity to external customers, while also helping to reduce redundant construction and cross-regional network access costs.
This transaction continues the arrangement established by Indosat and Arsari Group to create a fiber optic joint venture platform. After Indosat and its ICT business entity, Aplikanusa Lintasarta, inject the fiber optic business into the new entity, the relevant equity will be taken over by Nusantara Fiber Teknologi, an investment platform under Arsari Group. Indosat and Lintasarta collectively hold a 49.9% stake in Nusantara Fiber Teknologi. Through this transaction, Indosat received approximately IDR 11.7 trillion, equivalent to around USD 651 million, while retaining long-term interests in the fiber optic platform.
Following the spin-off of the fiber optic assets, Indosat can focus more on mobile communications, enterprise services, digital platforms, and customer-facing operations. IFT, in turn, will concentrate on the construction, operation, and open access services of the underlying fiber optic network. The platformization of operator infrastructure has become a common path in telecommunications markets across many countries: mobile towers, data centers, fiber optic networks, and submarine cables are gradually transforming from internal operator assets into infrastructure platforms that can be independently financed, independently operated, and opened to multiple parties. This model can unlock asset value and make network construction more attractive to long-term capital.
The growth of Indonesia's digital economy is increasing the demand for fiber optic networks. Mobile internet, cloud computing, data centers, video content, financial payments, enterprise digitalization, and AI applications all require more stable backbone connections and regional access capabilities. Relying solely on mobile base station coverage is insufficient to support high-quality digital services; base station backhaul, urban networks, inter-island transmission, and enterprise dedicated lines all depend on fiber optic infrastructure. After operating a network of over 86,000 km, IFT will become a crucial carrying platform in the upgrade of Indonesia's telecommunications network.
Indosat's management has simultaneously secured an extension arrangement. The company's board of directors has voted to extend the term of CEO Vikram Sinha by five years, with the decision to be formally confirmed at the shareholders' meeting. Sinha has served as Indosat's CEO since 2022, during which he drove the merger of Ooredoo Indosat and Hutchison Asia Telecom Group. With the spin-off of the fiber optic business completed, Indosat's organizational structure is clearer: communication services, digital businesses, and infrastructure assets will operate on different platforms.
IFT will next focus on operations centered around open access, inter-island connectivity, and network coverage in non-Java regions. The fiber optic network of over 86,000 km has completed its platform restructuring. Indosat retains long-term interests while obtaining asset monetization funds, and Arsari Group enters the Indonesian fiber optic network operation sector through its infrastructure investment platform. As demand for cloud services, AI applications, and enterprise digitalization continues to grow, this fiber optic network will undertake more tasks in data transmission, regional connectivity, and digital service deployment.
