Tuesday, April 16, 2024

Mitratel seeks partners, suppliers, vendors for fiber-optic, telecommunication tower projects

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Gusty da Costa





State-owned telecommunications tower operator PT Dayamitra Telekomunikasi Tbk (Mitratel) has allocated IDR9.9 trillion for capital expenditures (Capex) in 2022. Currently, the company has managed more than 28,000 telecommunication towers all over Indonesia. 

Established in 1995, Mitratel is a subsidiary of state-owned enterprise PT Telkom Indonesia (Persero) Tbk, which owns 78% of the company’s shares. Mitratel has been in the telecommunications tower business since 2008. All Indonesian cellular operators have become tenants by placing their BTS (base transceiver stations) devices in Mitratel towers.

According to Hendra Purnama, Director of Investment at Mitratel, the Capex will be used for organic development. This includes the construction of telecom towers, providing and managing the co-location tower and fiber optics, as well as acquiring new buildings. 

“We set a goal to build 3,000 towers this year,” he said in a public expose on April 22, 2022. 

Purnama said the company currently has a total of 28,206 towers and 42,594 tenants, making it one of Indonesia’s largest telecommunication tower companies. More than 58% of the company’s tower portfolio is located outside Java. Furthermore, Mitratel intends to invest approximately IDR500 billion to IDR1 trillion in fiber optic cable infrastructure this year as part of its 2022 Capex.

CEO Theodorus Ardi Hartoko said the company was transforming into a digital infrastructure company, with fiber optics as one of its portfolios. Mitratel is currently developing around 2,000 kilometers of fiber optic cable in Indonesia and approximately 30% of the project has been completed.

“We have set a deadline shortly and all mobile network operators will use our cable,” he added.

Hartoko said that all funds for Mitratel investments, including the fiber optic project, will come from the company’s Initial Public Offering. In November 2021, the company raised approximately IDR18.8 trillion through its IPO.

Purnama said Mitratel was open to foreign and domestic banks participating in financing its projects.

“Due to foreign exchange hedging costs, we prefer domestic banks,” he said.

All vendors, suppliers and potential partners are welcome to participate in Mitratel’s existing projects. “Mitratel wants to cooperate with all parties, especially in improving the quality of the services, including upcoming developments and tower maintenance, ” Hartoko said.

Gusty da Costa






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