Merger of Indosat and Tri Benefits Indonesia's Digital Economy
Rancakmedia.com – Merger Indosat and Tri to become PT Indosat Ooredoo Hutchison (IOH) which is effective January 4, 2022 is believed to be a momentum for telecommunication operators in the country.
The merger of Indosat and Tri attracted public and investor interest throughout 2021 because it was finally completed during the COVID-19 pandemic with a transaction value of USD 6 billion or around IDR 86 trillion (exchange rate of IDR 14,333 per USD).
With this merger, IOH is expected to become the second largest telecommunications company in Indonesia with various advantages and innovations to be created.
As quoted on January 6 2022, Chairman of the Indonesian Digital Empowering Community (Idiec) M. Tesar Sandikapura said, "The consolidation of Indosat and H3I is a strategic step by bringing together complementary businesses to create world-class digital telecommunications. and internet company for Indonesia.
Momentum for Indosat and Tri Operators to Become More Efficient
According to Tesar, corporate activities Indosat Ooredoo very good because it has organically reduced the number of cellular operators to only four significant corporations.
The merger of Indosat and Tri which combines various advantages and features, especially Indosat as a telecommunication network operator with Tri's strong base on data applications, can open opportunities for the company to become the largest operator in Indonesia.
Wider frequency spectrum, better cost efficiency, and stable supply of capacity, speed and service are all guaranteed by the Indosat-Tri merger.
More than 70% Indonesian people have experienced an increase in internet literacy as a result of the impact of the pandemic. Almost all community and corporate activities, including the government, are related to the digital domain which is in line with the development of the national economic digitization program.
IOH CEO Armand Hermawan said that this merger will benefit all customers because IOH's current financial strength allows it to provide better services than before.
"There is an increase in efficiency because companies can divert investment to other areas, outside the areas where our signals are already packed," said Armand.
With this merger, post-merger IOH is expected to generate annual sales of up to USD 3 billion (approximately IDR 42.7 trillion) (approximately IDR 42.7 trillion).
Approximately USD 1.3 billion is estimated to represent total EBITDA (earnings before interest, taxation, amortization and amortization) (approx. IDR 18.5 trillion).
Similarly, IOH had 104 million subscribers in the third quarter of 2021, compared to 173.5 million Telkomsel subscribers and 57.98 million XL Axiata subscribers in the third quarter of 2021.
VP Director of Sarana Menara Nusantara, Adam Ghifari, appreciates the government's digital transformation which includes the expansion and improvement of wireless telecommunication networks in Indonesia.
According to him, the IOH consolidation shows that in the telecommunications business, mutually beneficial cooperation is needed to help develop services and innovations offered to the public.
"We are also dedicated to helping meet the demands of operators, especially those currently consolidating like IOH, to look forward to their future to become even bigger and stronger operators," added Adam.
Offer Improved Services for Indosat and Tri Customers
According to data, around 95 percent of internet access in Indonesia is carried out in wireless mode, which means that the telecommunications infrastructure network must continue to be strengthened and expanded because it means that people who are increasingly digitally familiar need more support. for telecommunications networks, including towers and fiber towers.
"Currently we are assisting Indonesian telecommunications operators to increase the development of 4G networks throughout the country, and 5G in the future will be present on a larger scale than in 2021," he added.
In 2022, one of the obstacles will come from the macroeconomic situation with the possibility of an increase in interest rates as the economies of many countries have recovered from the pandemic.
The scope for innovation growth will also be greater so that the customer's digital experience will be more secure. It is hoped that this merger will accelerate ISAT's ascent to best practices around the world.
As a result, the two companies combined will provide enough spectrum to significantly increase 5G deployments.
The company's capital will be strengthened for 5G implementation as a result of this joint venture. In other words, through this merger, a lot of dollars can be saved so that the investment funds can be used for the development of a better network and infrastructure.
Conclusion
The merger of Indosat and Tri attracted public and investor interest throughout 2021. The merger was completed during the COVID-19 pandemic with a transaction value of around IDR 86 trillion (around IDR 42.7 trillion). Post-merger IOH is expected to generate annual sales of up to USD 3 billion.
IOH had 104 million subscribers in the third quarter of 2021, compared to Telkomsel's 173.5 million subscribers and XL Axiata's 57.98 million subscribers. It is hoped that this merger will accelerate ISAT's ascent to best practices around the world.
Thus the information about the merger of Indosat and Tri benefiting Indonesia's digital economy, I hope the article above can be useful and helpful for all of you.
