Sinar Mas and Axiata Group Berhad (Axiata) signed two Memorandums of Understanding (MoUs) to build a strong telecommunications and digital ecosystem in Southeast Asia in an event held in Kuala Lumpur, Malaysia, on Monday, January 27, 2025.
Ferry Salman, Managing Director of Sinar Mas, said that the synergy between the two entities will open up opportunities to strengthen the telecommunications and digital technology ecosystem throughout Southeast Asia.
“In Indonesia, we hope this can be a foundation to support the implementation of government programs in digitalization, financial inclusion, and upgrading of MSMEs,” Ferry said on Friday, January 31, 2025.
The first MoU serves as a basis for further discussions on specific projects and initiatives that foster potential collaboration in Malaysia, Indonesia and the Southeast Asia region.
Under the first agreement, Axiata and Sinar Mas will conduct an in-depth market analysis, evaluate the competitive landscape and identify unmet needs in priority markets.
By utilizing each party’s telecommunications ecosystem, Axiata and Sinar Mas seek to explore opportunities to provide added value in providing cutting-edge 5G solutions, services for businesses, digital infrastructure, and innovation in financial technology (fintech) in growing regions, which support digital transformation efforts in the region.
Vivek Sood, Group Chief Executive Officer of Axiata Group said, the MoU with Sinar Mas is an important step in advancing regional cooperation to shape the next wave of digital transformation in Southeast Asia and advance services in growing regions.
“By deepening and reaffirming our existing partnership with Sinar Mas, we seek to harness the transformative potential of 5G networks, business solutions and digital infrastructure to drive economic growth and bridge the digital divide in Malaysia, Indonesia and beyond,” he said.
Then, both entities evaluate core competencies in their respective ecosystems to prioritize opportunities and determine the optimal operating model to effectively capture market potential.
Meanwhile, both also facilitate strategic partnerships within their ecosystems to incubate new businesses and encourage innovation to ensure alignment between national and regional economic agendas.
Franky Oesman Widjaja, Chairman of Sinar Mas Telecommunications and Technology stated that the two MoUs signed with Axiata mark a new chapter in a shared vision to accelerate digital transformation in Malaysia and Indonesia.
“Sinar Mas looks forward to working with Axiata to explore new innovative opportunities while supporting the growing digital economy vision in Malaysia and Indonesia. Together we can set a benchmark for regional collaboration, creating an increasingly connected and prosperous future,” he explained.
Second, it aims to reaffirm the commitment of the two companies as stated in the Definitive Agreement jointly announced on December 11, 2024 to advance the merger plan of PT XL Axiata, PT Smartfren Telecom and PT Smart Telcom to form PT XLSmart Telecom Sejahtera (XLSmart) in Indonesia.
Currently, the merger process still depends on the approval of the government as regulator and shareholders, as well as the fulfillment of other general requirements. If all the requirements and conditions have been met, the completion of the merger is expected to occur in the first half of 2025.
