en.Wedoany.com Reported - Indonesia's second-largest telecom operator, Indosat Hutchison Ooredoo (IOH), has reached an agreement with the Arsari Group to relinquish control of its fiber optic network, freeing up capital to fund next-generation services. The Arsari Group is held by Hashim Djojohadikusumo, the brother of Indonesian President Prabowo Subianto.

Under the agreement, initially announced in December 2025, IOH and its subsidiary PT Aplikanusa Lintasarta agreed to partner with the Arsari Group and the Northstar Group to spin off the fiber optic network into an independent open-access fiber platform. Upon completion of the transaction, the parties jointly established PT Infra Fiber Teknologi (IFT), a new entity positioned as an open wholesale platform serving telecom operators, enterprises, and cloud service providers. IOH and Lintasarta collectively hold a 49.9% minority stake in the new company.

As a new entity, IFT operates over 86,000 kilometers of fiber optic infrastructure across Indonesia, encompassing backbone networks, domestic submarine networks, and access networks. Of this infrastructure, 45% is located on the island of Java, while the remaining 55% is distributed across regions outside Java, such as Sumatra, Kalimantan, and Sulawesi. IOH President and CEO Vikram Sinha stated that by placing world-class fiber optic infrastructure into the hands of an independent open-access platform led by industry experts, the benefits of artificial intelligence, cloud computing, and next-generation digital services can be ensured not to be limited to a select few.

IOH is expected to receive total proceeds of approximately IDR 11.7 trillion (USD 652 million) from the transaction. These funds will be used to support further investments in core connectivity, 5G deployment, and AI digital service development. This latest agreement reflects an industry trend where telecom operators monetize infrastructure assets to finance next-generation services.

Previously, Indosat had sold thousands of telecom towers to multiple infrastructure companies through a "sale-and-leaseback" model to streamline operations and focus on its core business. Records show that in 2021, Indosat sold 4,200 towers to PT Epid Menara AssetCo (an affiliate of Edge Point) for USD 750 million (approximately IDR 10.9 trillion). In 2023, IOH sold a total of 1,630 towers to Mitratel (a subsidiary of Indonesian telecom company PT Telkom) and Dhost Telekomunikasi Nusantara, with Mitratel acquiring approximately 997 towers for IDR 1.64 trillion and Dhost obtaining 663 towers.

In addition to towers, in January 2024, IOH sold and leased back dozens of data centers to BDx Indonesia for IDR 2.6 trillion. Through the sale-and-leaseback of towers, the divestiture of data center operations, and the spin-off of fiber optic assets into an independent entity, Indosat is increasingly focusing on its core business. This allows it to position itself as a more aggressive competitor in 5G and AI-based services, while supporting Indonesia's digital transformation goals, in line with the "Golden Indonesia 2045" vision.