Indosat Ooredoo Hutchison has signed an investment agreement with a consortium comprising Arsari Group and Northstar Group to form a new joint venture focused on fiber digital infrastructure in Indonesia.
The new entity, referred to as FiberCo, will operate as an independent, open-access fibre platform and is expected to become one of the country’s largest standalone fibre infrastructure providers.
Under the deal, Indosat will spin off its fibre assets into FiberCo, valuing the business at an enterprise value of around IDR14.6 trillion (US$940 million). Indosat will retain an approximately 45% stake in the joint venture, while the consortium will hold the remainder.
Indosat said the transaction will allow it to monetise its fibre assets while continuing to benefit from long-term growth, with proceeds earmarked to support investment in 5G and the operator’s broader digital and AI strategy.
The fibre platform will operate a nationwide network spanning more than 86,000 kilometres, including backbone, domestic subsea and access infrastructure linking mobile towers and enterprise customers. Around 45% of the network footprint is located in Java, with the remaining 55% across non-Java regions.
FiberCo will operate on a wholesale, open-access basis, providing capacity to telecoms service providers across Indonesia. The partners said the model is designed to improve network availability, expand fibre coverage and support digital inclusion, particularly in underserved areas.
Indosat president director and CEO Vikram Sinha said the partnership supports the operator’s shift towards a more asset-light model while strengthening Indonesia’s digital backbone.
Arsari Group deputy CEO and COO Aryo P.S. Djojohadikusumo said the investment marks the group’s expansion into digital infrastructure, positioning connectivity as a core component of Indonesia’s long-term economic development.
The partners said the venture aligns with Indonesia’s national digital transformation goals, including efforts to reduce connectivity gaps between urban and rural regions and support the development of AI-enabled services.
Citi acted as financial adviser to Indosat, while Goldman Sachs advised Northstar Group on the transaction.
