IOH Spins Off Indonesian Fibre Assets For US$652 Million To Fund 5G And AI Services
IOH said its completed fibre-network spinoff with Arsari Group creates PT Infra Fiber Teknologi, an open-access platform with more than 86,000 kilometres of infrastructure. IOH expects about 11.7 trillion rupiah, or US$652 million, in gross proceeds, while customer commitments and deployment timing remain outside the public record.
Indosat Ooredoo Hutchison has turned a large part of its Indonesian fibre network into a separate wholesale platform, using the fibre assets spinoff to raise capital for 5G rollout and AI-ready digital services while retaining a minority stake.
Indosat Ooredoo Hutchison said the completed transaction with Arsari Group established PT Infra Fiber Teknologi, or IFT, as an independent open-access fibre business.
The company expects about 11.7 trillion Indonesian rupiah, or US$652 million, in gross proceeds from the deal.
IOH Fibre Asset Spinoff Creates PT Infra Fiber Teknologi
The transaction moves control of the fibre optic network to a joint venture rather than keeping the infrastructure fully inside the mobile operator.
The operator and its subsidiary PT Aplikanusa Lintasarta first announced the partnership in December 2025 with Arsari Group and Northstar Group.
The completed deal leaves the operator and Lintasarta with a combined 49.9% minority holding in the new company, according to Light Reading.
Citi served as exclusive financial adviser to Indosat on the transaction.
IFT operates more than 86,000 kilometres of fibre infrastructure across Indonesia.
The network covers backbone, domestic subsea and access links.
More Than 86,000 Kilometres Of Fibre Shift To Open Access
The disclosed network footprint is not concentrated only around Java.
The company said 45% of the infrastructure is located in Java, while 55% is deployed across non-Java regions including Sumatra, Kalimantan and Sulawesi.
IFT is being positioned as an open-access wholesale platform for telecom operators, enterprises and cloud providers.
Indosat President Director and CEO Vikram Sinha said the independent platform is intended to keep AI, cloud and next-generation digital services from being confined to a small number of users.
The proceeds are earmarked for core connectivity investment, 5G rollout and AI-ready digital services.
The operator has already used infrastructure monetisation before: It sold tower assets to Mitrael and Dhost in 2023 and to EdgePoint in 2021, netting about $850 million.
Arsari And IOH Name Underserved Regions As Fibre Priority
IFT's immediate priorities include accelerating infrastructure deployment in underserved regions, expanding wholesale partnerships with telecom operators and hyperscalers, and preparing for demand for high-capacity connectivity.
Aryo P.S. Djojohadikusumo, Arsari Group's deputy CEO and COO, said the venture brought together people able to build and operate infrastructure at scale.
IFT President Director Hendry Syam said the mandate includes reaching places others have not reached and serving long-underserved communities.
Those statements describe the intended national coverage role of the platform, but they do not provide commercial proof.
Named wholesale customers, hyperscaler contracts, regional buildout dates, pricing terms and committed capacity orders for the new fibre company remain outside the public record.
