Telkomsel, Mitratel Continue Towards Ownership Diversion

Telkomsel and PT Dayamitra Telekomunikasi "Mitratel" continue to be consistent in strengthening and developing the transformation of the business portfolios of the two companies through corporate actions in addition to the ownership diversion of Telkomsel's telecommunication towers to Mitratel, which now carried out as many as 6,000 units.

The agreement to continue the ownership diversion was marked by the signing of a Sale and Purchase Agreement (SPA) between PT Telekomunikasi Selular (Telkomsel) and PT Dayamitra Telekomunikasi (Mitratel), which was held in Jakarta on July 29, 2022.

The agreement between the two companies completes the corporate action to ownership diversion of telecommunication towers which had previously been carried out in 2020 for as many as 6,050 telecommunication tower units and in 2021 for 4,000 telecommunication tower units. Overall, the total number of Telkomsel telecommunication towers that have changed ownership to Mitratel has reached 16,050 units of telecommunication towers.

President Director of Telkomsel Hendri Mulya Syam said, "With the agreement of the sale and purchase agreement for the transfer of ownership of 6,000 telecommunication towers to Mitratel, Telkomsel further strengthens the company's transformation efforts through the development of a company portfolio in the digital business that is more consistent, comprehensive and strengthens the company's commitment to providing more innovative services. Telkomsel, as the leading digital telecommunication company in Indonesia, also hopes to accelerate further the strengthening of an ideal corporate structure in ensuring the implementation of the three digital pillars that are being carried out, namely as a reliable provider of digital connectivity, digital platforms and digital services that are always relevant to the development of the digital ecosystem. Diverse to open up more value-added opportunities for the digital lifestyle ecosystem of the Indonesian people in a more inclusive manner."

Telkomsel and PT Dayamitra Telekomunikasi "Mitratel" continue to be consistent in strengthening and developing the transformation of the business portfolios of the two companies through corporate actions in addition to the ownership diversion of Telkomsel's telecommunication towers to Mitratel, which now carried out as many as 6,000 units.

As part of the agreement, Mitratel will also deploying Telkomsel leading edge Internet of Thing (IoT) and Data Analytics services to provide real time management of the Towers and proactive optimization of power consumption. This partnership will certainly contribute to reduction of carbon emission and footprint and once again demonstrate Telkomsel’s commitment to Environment, Social, and Governance initiatives.

Director of Strategic Portfolio of PT Telkom Indonesia (Persero) Tbk (Telkom), Budi Setyawan Wijaya, explained, "This corporate action is one of TelkomGroup's efforts to strengthen its position in the telecommunications tower business to strengthen the company's competitive advantages and increase value creation for stakeholders."

"The ownership diversion of 6.000 telecommunication towers can be our main capital for market expansion and to support the acceleration of 5G implementation in Indonesia, increase Mitratel's production equipment, and strengthen Mitratel's position as the biggest tower provider in Indonesia and one of the largest in Southeast Asia. Along with the transaction, we also agreed to explore Tower Ecosystem business with Telkomsel by utilizing Internet of Things (IoT) to support service operation and business expansion that encompasses Green Energy service and other New Ecosystem Tower Business.", as stated by Mitratel CEO, Theodorus Ardi Hartoko.

This ongoing corporate action from Telkomsel and Mitratel is also expected to strengthen the momentum of the two companies in ensuring the creation of asset management and expansion of business lines that can encourage growth in company performance that is increasingly ideal, productive, effective, efficient, and relevant to every technological development.

"Telkomsel, as the leading digital telecommunications company in Indonesia, always hopes to strengthen further an ideal corporate structure in ensuring the implementation of the three digital pillars that are being carried out. Namely as a provider of digital connectivity, digital platforms, and digital services that are reliable and always relevant to developing a more digitally customer-centric ecosystem," said Hendri.