Telecommunication compant PT Indosat (ISAT) has announced plans to expand into several new business lines − pending shareholders’ approval − meant to significantly support Indonesia’s ongoing digital transformation, with new ventures focusing on artificial intelligence (AI), Internet of Things (IoT), defense and security technologies, and market research.

In an official disclosure to the Indonesia Stock Exchange (BEI), Indosat revealed intentions to add business lines in AI-based programming, resale of telecommunications services, defense-related technologies, IoT consulting and design, payment system support services, advertising, and market research.

The company said that this expansion aligns with Article 3, Paragraph 1 of Indosat’s Articles of Association, which allows the company to operate in the fields of information and communication technology, wholesale trade, workforce-related activities, and financial services.

To ensure the viability of the new business initiatives, Indosat appointed Yanuar, Rosye dan Rekan (Y&R), a Public Appraisal Services Firm, to conduct an independent feasibility study.

“In preparing this report, Y&R acted independently, without any conflict of interest, and is not affiliated with Indosat or any related parties,” the management noted in the BEI disclosure on Monday, May 26, 2025.

The feasibility study, which began on December 31 last year and remains valid until June 30, 2025, evaluates a wide range of factors including macroeconomic trends, market potential, technical aspects, business models, management structures, and financial projections.

Y&R applied three core methods in the evaluation process:

● Primary Data Collection – involving corporate data, business permits, and future plans;

● Macroeconomic Analysis – to assess how the new business lines could influence ISAT's performance;

● Feasibility Analysis – examining market opportunities, technical viability, business models, management approach, and financial implications.

Y&R concluded that the market prospects for these new business activities are highly promising, considering Indosat’s strong presence in telecommunications and IT sectors. Several emerging market segments have already been identified as key targets for 2025.

According to analysts, the business transformation does not require special funding, as it is expected to be financed through the company’s existing working capital. The initiative has already passed the feasibility assessment stage and received a positive outlook from analysts.

Projected revenue growth stands at 10 percent in 2026, with a steady annual increase of around 3–5 percent between 2027 and 2029.

“Based on our evaluation of market, technical, business model, management, and financial aspects − as well as future projections under established assumptions − it can be concluded that Indosat’s proposed business expansion is feasible,” the company wrote in the disclosure.

This strategic pivot reflects Indosat’s ambition to evolve beyond traditional telecommunications into a key player in emerging digital technologies.