Indosat Ooredoo Hutchison (Indosat) and the consortium between Arsari Group and Northstar Group announced Tuesday the signing of an Investment Agreement to form a joint venture to create one of the leading independent fiber infrastructure platforms in Indonesia (FiberCo).
Indosat said in a statement that this partnership marks a significant milestone in the collective effort to reinforce Indonesia’s digital backbone, arriving at an opportune time as the nation’s digital ecosystem reaches an inflection point.
Through this partnership, the parties share a common commitment to strengthening national connectivity, enabling world-class digital services, and supporting Indonesia’s accelerating digital transformation initiatives.
Vikram Sinha, President Director and Chief Executive Officer of Indosat Ooredoo Hutchison, said the collaboration aligns with a shared vision among the partners.
“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,” he added.
According to the statement, the partnership is structured to deliver substantial benefits for Indonesia, Indosat and its shareholders, and FiberCo.
For Indonesia, this initiative is a pivotal step in advancing its digital ambitions by improving telecommunications quality and network availability.
The partnership is also designed to expand fiber coverage nationwide and strengthen the development of Indonesia’s digital backbone through shared ownership, governance, and long-term alignment.
It will help foster an artificial intelligence (AI)-enabled economy, in line with the Golden Indonesia 2045 vision, and expand connectivity for more people and businesses across the archipelago through an open-access network model.
For Indosat and its shareholders, the transaction unlocks significant value.
Indosat plans to spin off its fiber assets into FiberCo. Valued at an enterprise value of approximately IDR 14.6 trillion ($869.87 million), this transaction allows the firm to monetize its fiber assets while retaining around a 45 percent stake in FiberCo.
This strategic transaction is instrumental in advancing Indosat’s growth objectives and effectively future-proofing its business, with the proceeds fueling crucial investments in 5G rollout and acting as a foundation for Indosat’s AI north star.
This will also allow Indosat to sharpen its focus on core operations, strengthening its position as a leading telecommunications operator dedicated to enhancing customer experience and expanding its product solutions.
Aryo P.S Djojohadikusumo, Deputy Chief Executive Officer and Chief Operating Officer Arsari Group, said through this collaboration with Northstar and Indosat, the group is committed to a long-term nation-building platform.
“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,” he added.
Furthermore, this partnership enables the private sector to support the Indonesian government’s national development agenda, said the statement.
It is noted while digital connectivity is essential in Indonesia, disparities remain between urban and rural areas.
Addressing this challenge benefits from the active involvement of multiple stakeholders, including the private sector.
Through this partnership, private entities contribute to bridging the fiber coverage gap, while complementing government efforts, accelerating inclusive digital development, and unlocking sustainable market opportunities across the archipelago.
Regarding the implementation, the new entity will operate a comprehensive and integrated network spanning over 86 thousand kilometers across Indonesia, comprising backbone, domestic subsea, and access infrastructure connecting towers and enterprises.
With 45 percent coverage in Java and 55 percent across non-Java regions, the platform is positioned to play a vital role in enabling inclusive and balanced digital connectivity across the country.
As an independent entity, FiberCo will operate on an open-access basis, offering wholesale access to all telecommunications service providers to maximize infrastructure potential and accelerate digital inclusion.
This strategic partnership marks the beginning of a broader collaboration among the parties to strengthen digital infrastructure, expand access, and support Indonesia’s digital transformation.
It is also noted that fiber infrastructure is a critical enabler of digital services, and the joint venture enhances operational agility, financial flexibility, and long-term growth potential for all stakeholders, while supporting cost efficiency and high service standards.
Through this collaboration, the partners reaffirm their shared commitment to advancing digital inclusion, improving service quality, and supporting Indonesia’s long-term economic and technological development—underpinned by world-class digital infrastructure and sustainable collaboration.