Wedoany.com Report-Dec.25, Indosat Ooredoo Hutchison (IOH) and a consortium comprising Arsari Group and Northstar Group have signed an Investment Agreement to establish a joint venture named FiberCo. This new entity will create one of Indonesia's leading independent fiber infrastructure platforms.

The signing took place in Jakarta. The partnership aims to strengthen the country's digital backbone at a time when Indonesia's digital ecosystem is experiencing rapid growth.

The collaboration reflects a shared commitment to improving national connectivity, delivering high-quality digital services, and advancing digital transformation initiatives across the archipelago.

FiberCo will operate an open-access model, providing wholesale access to all telecommunications service providers. This approach maximises infrastructure utilisation and promotes digital inclusion nationwide.

The platform will manage a comprehensive integrated network exceeding 86,000 kilometres. It includes backbone infrastructure, domestic subsea cables, and access networks connecting telecommunications towers and enterprise locations. Coverage consists of approximately 45 per cent in Java and 55 per cent in non-Java regions, supporting balanced connectivity development.

For Indonesia, the initiative contributes to national digital objectives by enhancing telecommunications quality, network availability, and coverage expansion. It supports the growth of an AI-enabled economy and aligns with long-term national development aspirations.

Indosat plans to transfer its fiber assets into FiberCo at an enterprise value of approximately IDR 14.6 trillion. IOH will retain around a 45 per cent stake in the new entity while monetising these assets. Proceeds from the transaction will support key investments in 5G deployment and serve as a foundation for Indosat's AI-focused strategy.

This structure allows Indosat to adopt a more agile, asset-light model. It enables sharper focus on core operations, improved customer experience, and expanded product offerings as a leading telecommunications provider.

Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison, said: "Empowering Indonesia requires strong collaboration and a long-term view of digital infrastructure. Through a more agile and asset-light approach, the partnership with Arsari Group and Northstar Group allows us to build a stronger and more independent fiber platform that unlocks value, enhances resilience, and prepares networks for future digital services. It supports Indosat's transformation into a leading AI-driven company, while contributing to the broader industry progress in delivering high-quality digital experiences nationwide. FiberCo will act as a truly differentiated AI Infra player and a key catalyst for advancing Indonesia's national digital ambitions."

Aryo P.S Djojohadikusumo, Deputy CEO and COO of Arsari Group, said: "Under this partnership, Arsari Group intends to serve as part of the physical backbone of Indonesia’s next growth phase—supporting enterprise productivity, digital inclusion, public service delivery, and the emergence of AI-driven economic activity. The partnership represents expansion of Arsari's portfolio into digital infrastructure, reflecting a long-term view that connectivity is becoming as fundamental to economic resilience as energy and physical logistics."

The joint venture enhances operational agility, financial flexibility, and long-term growth potential for all parties. It promotes cost efficiency, high service standards, and sustainable collaboration in Indonesia's digital infrastructure sector.

This strategic partnership marks an important step in fostering inclusive digital development and supporting the country's technological progress through robust fiber infrastructure.