Jakarta, 16 October 2020 – PT Telkom Indonesia (Persero) Tbk (Telkom) is restructuring its portfolio through its two subsidiaries, PT Dayamitra Telekomunikasi (Mitratel) and PT Telekomunikasi Selular (Telkomsel) as part of its effortsto  strengthen its telecommunications tower business. The restructuring was marked by the signing of a Conditional Sale and Purchase Agreement (CSPA) to transfer ownership of 6,050 telecommunication towers owned by Telkomsel to Mitratel. The transfer of ownership is carried out in stages with a completion target set at the end of the first quarter of 2021. Mitratel President Director Theodorus Ardi Hartoko and Telkomsel President Director Setyanto Hantoro signed the agreement in Jakarta (14/10).

Telkom Strategic Portfolio Director, Budi Setyawan Wijaya, said Mitratel and Telkomsel’s corporate actions are part of the TelkomGroup portfolio arrangement in order to optimize business and assets owned by Telkom and to ensure an optimal value for shareholders. It was also an effort for value creation of its tower business value and to ensure that each subsidiary can focus on strengthening its respective business lines.

Mitratel President Director, Theodorus Ardi Hartoko, said that the corporate action was a business strategy to increase capabilities from the telecommunications infrastructure aspect. "We are sure that the transfer of ownership of 6,050 telecommunication towers that Telkomsel owns will fundamentally strengthen Mitratel's business. This is a good potential and creates added value for Mitratel, which will have a positive impact on strengthening the national telecommunications industry, particularly the telecommunications tower sector," Theodorus said.
 
Moreover, Theodorus also said that the telecommunication tower business remains promising, given that to date, telecommunication operators are still expanding to improve network quality and expand their service coverage, so the company is confident that the telecommunication tower business will still record positive performance in the future, especially in anticipation of the 5G technology development that Indonesia will implement. Telkomsel President Director, Setyanto Hantoro, said that Telkomsel supports TelkomGroup portfolio arrangement with the transfer of its 6,050 telecommunications towers. "In the future, Telkomsel will focus on its main business as the leading digital telecommunication company in Indonesia with one of its business strategy priorities to strengthen the digital ecosystem by making the best digital connectivity services available and evenly distributed and developing the potential in the latest digital services and digital platforms for people in Indonesia,” Setyanto said.
 
With this transaction, effective from the meeting of all obligations based on the agreement and the signing of the deed of transfer between the two parties, Mitratel, a subsidiary of Telkom engaged in the provision of telecommunications infrastructure, now owns telecommunications towers located in various regions and serves all cellular operators in Indonesia with more than 22,000 telecommunication towers. This transfer of ownership of Telkomsel's telecommunication towers is one of TelkomGroup's moves to strengthen Mitratel's business fundamentals while at the same time making it one of the largest tower providers in Indonesia.