Jakarta, INTI - Telecommunications company PT Indosat Tbk (ISAT) has completed the divestment of PT Infra Fiber Teknologi (IFT) as part of its strategy to strengthen its focus on core telecommunications and digital businesses as of July 2, 2026.
Based on the company's disclosure, Indosat and PT Aplikanusa Lintasarta sold 11.70 million shares, representing 84.9% ownership in IFT, to PT Nusantara Fiber Teknologi (NFT). The transaction was valued at approximately Rp11.70 trillion.
Strengthening Financial Flexibility Through Fiber Asset Divestment
In addition to the share sale, ISAT and Lintasarta transferred their remaining 15.1% stake in IFT into NFT as a capital contribution. In return, Indosat received a 49.1% stake in NFT, while Lintasarta obtained a 0.8% ownership stake in the company.
Following the completion of the transaction, Indosat retains one direct share in IFT. Through its ownership in NFT, ISAT effectively maintains a 49.68% direct and indirect ownership position in IFT.
The transaction follows an investment agreement signed in December 2025 and amended in May 2026. The completion took place after all required conditions were fulfilled.
Retail Research Analyst at CGS International Sekuritas Indonesia, Andrian Saputra, said the transaction is significant as it increases Indosat’s pro forma cash position from Rp5.8 trillion to Rp17.5 trillion.
“Without taking on additional debt, ISAT will have greater financial flexibility to support future spectrum requirements,” Andrian said in a presentation on Monday, July 6, 2026.
Potential Special Dividend and Future Network Expansion
Indosat management expects the transaction to generate a one-time gain of around Rp1.65 trillion in 2026. Meanwhile, CGS International Sekuritas estimates Indosat’s after-tax one-off gain at approximately Rp1.2 trillion.
However, Andrian noted that excluding the one-time gain, the overall impact on Indosat’s business remains relatively limited, as higher lease expenses and depreciation costs are expected to be largely offset by lower interest expenses.
Equity Research Analysts at BRI Danareksa Sekuritas, Kafi Anantara and Erindra Krisnawan, said the Rp11.7 trillion cash proceeds from the transaction will strengthen Indosat’s capital allocation flexibility.
“The funds are expected to support upfront spectrum payments and additional capital expenditure for network development,” they wrote in a research report released on Monday, July 6, 2026.
The company’s upfront spectrum payment obligations are estimated at around Rp2.4 trillion under the base scenario or Rp1.7 trillion under an optimistic scenario. In addition, additional capital expenditure is projected to reach Rp4.4 trillion cumulatively during the 2026–2028 financial period.
According to BRI Danareksa Sekuritas, Indosat could have excess cash of around Rp4.9 trillion to Rp5.6 trillion, which could potentially be distributed as a special dividend. This amount is estimated to represent a potential dividend yield of approximately 7.6%–8.7%.
The analysts added that the transaction allows Indosat to unlock the economic value of its fiber assets while maintaining operational control and supporting its long-term open-access network strategy.
BRI Danareksa Sekuritas continues to maintain a buy recommendation on ISAT, with a target price of Rp3,000 per share. At the close of trading on Monday, July 6, 2026, ISAT shares ended at Rp1,885 per share, down 5.04% from the previous session.
Conclusion
Indosat’s fiber optic asset divestment provides the company with stronger financial flexibility while allowing it to continue supporting network expansion and digital infrastructure development. The transaction not only unlocks asset value but also creates potential opportunities for shareholder returns through a possible special dividend.
Read more: Infra Fiber Teknologi to Manage Indosat's Fiber Network Assets Under Hashim Group