What's Happening?
Indosat Ooredoo Hutchison, an Indonesian telecommunications company, has announced the successful spin-off of its fibre business, which has been relaunched as Infra Fiber Teknologi (IFT). This new entity is an independent fibre infrastructure platform
supported by Indosat and the Arsari Group. IFT will manage over 86,000 km of fibre infrastructure across Indonesia, including backbone, domestic subsea, and access networks. The network is distributed with 45% in Java and 55% in non-Java regions. This move follows an investment agreement from December 2025, where Indosat and its ICT arm, Aplikanusa Lintasarta, spun off their fibre business into FiberCo and sold their stakes to Nusantara Fiber Teknologi, the investment platform of Arsari Group. Indosat and Lintasarta retain a 49.9% stake in the new entity. The transaction generated approximately IDR11.7 trillion (US$651.3 million) in gross proceeds for Indosat, which will be used to invest in core connectivity, 5G rollout, and AI-ready digital services.
Why It's Important?
The creation of IFT is a strategic move to enhance Indonesia's digital infrastructure by providing open-access connectivity across the country. This development is crucial for addressing the connectivity gaps in regions like Sumatra, Kalimantan, Sulawesi, and Eastern Indonesia, which have been underserved compared to major urban centers. By establishing an independent platform, Indosat aims to monetize its fibre assets while maintaining a long-term interest in the infrastructure. This initiative is expected to foster partnerships with telecom operators, enterprises, and digital service providers, thereby strengthening Indonesia's digital backbone. The move also aligns with the broader goal of expanding access to AI, cloud, and next-generation digital services, ensuring these benefits are not limited to a few urban areas.
What's Next?
IFT is tasked with expanding fibre infrastructure to underserved areas, which will involve building networks in regions that have not been previously reached. This expansion is expected to support businesses and communities across Indonesia, driving economic growth. The focus will be on creating a reliable and trusted system that can support the country's digital economy. As IFT deepens its wholesale partnerships, it will likely attract more investment and collaboration opportunities, further enhancing Indonesia's position in the digital landscape. The success of this initiative could serve as a model for other countries looking to improve their digital infrastructure.
