PT Dayamitra Telekomunikasi Tbk (Mitratel), a subsidiary of PT Telkom Indonesia Tbk (TLKM), is preparing a strategic corporate move to consolidate its operations. The company plans to merge two of its subsidiaries, PT Persada Sokka Tama (PST) and PT Ultra Mandiri Telekomunikasi (UMT), into the parent entity. This integration is targeted to take effect on July 1, 2026.
While the boards of commissioners for Mitratel, PST, and UMT approved the plan on May 6, 2026, the consolidation remains subject to final approval from each company’s general meeting of shareholders and the declaration of effectiveness by the Financial Services Authority (OJK). This streamlining effort coincides with Mitratel’s aggressive expansion strategy outside of Java, raising questions about the company’s business potential in a rapidly evolving telecommunications landscape.
Market analysts are taking note of these developments. Panin Sekuritas analyst Aqil Triyadi highlighted that Mitratel’s tenancy ratio—the average number of tenants per tower—rose to 1.57 times in the first quarter of 2026. This growth is driven by a 11.3% year-on-year surge in colocation, reaching 23,006 units. According to Aqil, this efficiency gain is bolstered by mobile operators expanding their footprints beyond Java, a move that aligns perfectly with Mitratel’s portfolio, where over 59% of its towers are located outside of Java, including in the 3T (Frontier, Outermost, and Underdeveloped) regions.
“The rising tenancy ratio, amid significant consolidation within the telecommunications industry, demonstrates Mitratel’s capability to meet the complex needs of its strategic partners,” Aqil noted on May 8. He further projects that this upward trend will continue as Fixed Wireless Access (FWA) programs, such as Internet Rakyat, gain momentum. These technologies rely heavily on telecommunications towers to deliver reliable internet signals to households.
The expansion targets set by FWA providers like MyRepublic and PT Solusi Sinergi Digital Tbk (WIFI) suggest that leasing existing infrastructure from providers like Mitratel is a far more efficient path than building new sites independently. As Aqil emphasizes, collaboration between tower providers and FWA ecosystems is inevitable, as these operators prioritize faster, more cost-effective deployment.
By the end of the first quarter of 2026, Mitratel managed 40,327 towers, marking a 1.9% annual growth. With such an extensive asset base, increasing the colocation rate is now more strategic than merely increasing the tower count. Aqil points out that growth from colocation is of higher quality, as it boosts revenue without significantly altering the company’s cost structure, thereby leading to higher profit margins.
Financial performance for the first quarter of 2026 reflects this operational success. Mitratel recorded revenue of Rp 2.29 trillion, a 1.4% year-on-year increase, with net profit rising by 3.6% to Rp 545 billion. The company maintained a robust EBITDA margin of 82.7%. Beyond tower assets, Mitratel is aggressively strengthening its fiber optic network, which saw a 17.3% growth to 72,842 km of billable length, essential for supporting low-latency 5G services and high-capacity network demands.
From a liquidity standpoint, Mitratel remains in a strong position, reporting net cash flow from operating activities of Rp 4 trillion for the period. The company’s cash and cash equivalents reached Rp 2.84 trillion, supported by a total asset base of Rp 60.56 trillion and equity totaling Rp 33.66 trillion.
Reflecting this stability, Mirae Asset Sekuritas has maintained a buy recommendation for MTEL shares, setting a target price of Rp 760. This valuation is based on a 9.9x FY26F EV/EBITDA, with analysts citing Mitratel’s stable earnings growth, healthy balance sheet, and the promising outlook for 5G fiberization and FWA demand as key pillars for future value.
Summary
PT Dayamitra Telekomunikasi Tbk (Mitratel) is set to consolidate its subsidiaries, PT Persada Sokka Tama and PT Ultra Mandiri Telekomunikasi, by July 2026 to streamline operations. This strategic shift complements the company’s focus on high-quality growth through an increased tenancy ratio, which reached 1.57 times in early 2026. With over 59% of its tower portfolio located outside Java, Mitratel is well-positioned to benefit from the expansion of Fixed Wireless Access and the growing demand for colocation services.
The company continues to demonstrate strong financial performance, reporting a net profit of Rp 545 billion and a robust EBITDA margin of 82.7% in the first quarter of 2026. Mitratel is also rapidly expanding its fiber optic network to support 5G deployment, further solidifying its infrastructure dominance. Supported by these operational efficiencies and a healthy balance sheet, analysts maintain a buy recommendation with a target price of Rp 760 per share.
