I Squared Capital and Macquarie, a global asset manager, are said to be competing to acquire a stake in the fiber optic business of PT Indosat (ISAT) or Indosat Ooredoo Hutchinson (IOH), which is estimated to be worth up to US$1 billion (Rp16.43 trillion).

The sale plan comes amid growing global investor interest in digital infrastructure in Asia, driven by the rapid growth of artificial intelligence and cloud computing services.

Indosat, Indonesia's second-largest mobile telecommunications operator, plans to sell up to 75 percent of its fiber optic business. Sources said the final offering is scheduled for April 2025.

The final decision regarding the amount of shares released and the transaction time may still change depending on market conditions.

In addition to the two global asset managers, Profesional Telekomunikasi Indonesia (Protelindo), as the largest independent telecommunications tower owner in Indonesia, is also said to be one of the competitors in this process.

Previously, Indosat had appointed Citigroup to handle the sale process after receiving interest from various investors and potential partners looking to expand its fiber optic business.

Protelindo said it remains focused on organic and inorganic growth strategies, but did not comment on market rumors. Meanwhile, Indosat, Citi, I Squared and Macquarie did not respond to requests for comment on the transaction.

"All disclosure of information to the public will be carried out in accordance with applicable regulations," Anita Anwar, Director of Protelindo, said as quoted by Reuters on Wednesday, March 12, 2025.

IOH recorded a 9 percent increase in net profit in the previous year, reaching Rp4.91 trillion (US$298.66 million).

Its revenue also grew 9.1 percent to Rp55.9 trillion, driven by positive performance in the cellular, multimedia, data communications and internet sectors.

PT Indosat (ISAT) recorded a net profit of Rp4.91 trillion throughout 2024, an increase of 8.97 percent compared to the previous year which reached Rp4.5 trillion.

ISAT said that this achievement reflects its solid financial condition and its ability to provide added value to stakeholders.

The net profit growth was driven by an increase in ISAT's revenue by 9.09 percent throughout 2024 from Rp51.2 trillion in 2023 to Rp55.88 trillion in 2024.