Indosat, Arsari Group, and Northstar Group to establish independent fibre digital infrastructure

Source: IOH. Representatives from IOH and Arsari Group pose for a picture after the signing ceremony.

Indosat Ooredoo Hutchison (IOH) and a private-sector consortium have signed an investment agreement to form a joint venture to create an independent fibre infrastructure platforms in Indonesia (FiberCo). All parties involved - IOH, the Arsari Group and the Northstar Group - share a commitment to strengthen national connectivity, enabling world-class digital services and supporting Indonesia’s accelerating digital transformation initiatives. 

As an independent entity, FiberCo will operate on an open-access basis, offering wholesale access to all telecommunications service providers to maximise infrastructure potential and accelerate digital inclusion.

Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison, said the collaboration aligns with a shared vision among the partners. “Empowering Indonesia requires strong collaboration and a long-term view of digital infrastructure. Through a more agile and asset-light approach, the partnership with Arsari Group and Northstar Group allows us to build a stronger and more independent fibre platform that unlocks value, enhances resilience, and prepares networks for future digital services. 

"It supports Indosat’s transformation into a leading AI-driven company, while contributing to the broader industry progress in delivering high-quality digital experiences nationwide. FiberCo will act as a truly differentiated AI infra player and a key catalyst for advancing Indonesia’s national digital ambitions.”  

The partnership is designed to expand fibre coverage nationwide and strengthen the development of Indonesia’s digital backbone through shared ownership, governance, and long-term alignment. It will help foster an AI-enabled economy, in line with the Golden Indonesia 2045 vision, and expand connectivity for more people and businesses across the archipelago through an open-access network model.

For IOH, the transaction is instrumental in advancing Indosat’s growth objectives and futureproofing its business. The proceeds fuelling investments in 5G rollout and acting as a foundation for IOH's AI North Star. 

Indosat plans to spin off its fibre assets into FiberCo. Valued at approximately IDR14.6 T, this transaction allows IOH to monetise its fibre assets while retaining around a 45% stake in FiberCo. This strategic transaction will also allow IOH to sharpen its focus on core operations, strengthening its position as a leading telecommunications operator dedicated to enhancing customer experience and expanding its product solutions.

Aryo PS Djojohadikusumo, Deputy CEO and COO, Arsari Group, an Indonesia-based diversified investment group, said: "Under this partnership, Arsari Group intends to serve as part of the physical backbone of Indonesia’s next growth phase—supporting enterprise productivity, digital inclusion, public service delivery, and the emergence of AI-driven economic activity. The partnership represents expansion of Arsari’s portfolio into digital infrastructure, reflecting a long-term view that connectivity is becoming as fundamental to economic resilience as energy and physical logistics."   

The new entity will operate a network spanning over 86,000 km across Indonesia, comprising backbone, domestic subsea, and access infrastructure connecting towers and enterprises. With 45% coverage in Java and 55% across non-Java regions, the platform is positioned to play a vital role in enabling inclusive and balanced digital connectivity across the country.