Mitratel owns and operates 6,260 cellular towers across the country, which it rents out to sister company Telkomsel. (JG Photo/Fajrin Raharjo)
Telkom's Mitratel to Spend Rp 1.8t for Tower Expansion
BY :FARID FIRDAUS
JULY 22, 2015
Jakarta. State-controlled Telkom will spend Rp 1.8 trillion ($135 million) this year building 2,000 new telecommunications towers through a subsidiary, Dayamitra Telekomunikasi Indonesia, or Mitratel.
Mitratel has already built 1,000 cellular towers this year using its own funds, president director David Bangun said earlier this week. The funding for the new towers will come from bank loans.
The building spree is part of Mitratel’s bid to achieve revenue growth of 50 percent this year, David said.
Mitratel owns and operates 6,260 cellular towers across the country, which it rents out to sister company Telkomsel, Indonesia’s biggest cellular carrier.
Telkom last October planned to swap a 51 percent stake in Mitratel with 13.7 percent of shares in rival Tower Bersama, majority-owned by investment firms Saratoga Capital and Provident Capital.
However, the State-Owned Enterprises Ministry and the House of Representatives have not agreed to the deal. The government owns a 51 percent stake in Telkom.
The government has asked the State Development Finance Comptroller (BPKP), the Attorney General’s Office, the Supreme Audit Agency (BPK) and Corruption Eradication Commission (KPK) to review the share-swap offer, which expires at the end of March 2016.