Jakarta, INTI - PT Indosat Tbk (ISAT) is expected to see its cash and cash equivalents surge by 218% to Rp17.5 trillion following the completion of its fiber optic asset divestment in early July 2026. The increase represents a significant jump from the company's Rp5.5 trillion cash position reported at the end of the first quarter of 2026.
According to Abdul Haq Al-Faruqy, Founder of Sekolah Saham Indonesia, the stronger liquidity position will provide Indosat with greater financial flexibility to fund capital expenditures while reducing its reliance on debt financing and interest expenses.
"This level of liquidity will give Indosat greater flexibility to finance capital expenditures while reducing its dependence on borrowing costs and net debt," Abdul said during the Insight Emiten Kabar Bursa webinar on Friday, July 17, 2026.
He added that the transaction significantly strengthens the company's ability to pursue future expansion without taking on additional debt.
The corporate action involved the sale of a 100% stake in PT Intra Fiber Teknologi (IFT) to PT Nusantara Fiber Teknologi (NFT), generating Rp11.7 trillion in proceeds. Through the divestment of approximately 86,000 kilometers of fiber optic assets, Indosat also recorded a one-time gain of Rp1.64 trillion from the deconsolidation of the business.
Greater Financial Flexibility After Asset Divestment
The increase in cash reserves expands Indosat's capacity to finance operations and future business expansion. One potential use of the additional capital is participation in the Ministry of Communication and Digital Affairs' commercial radio spectrum auction, which is expected to support the rollout of Indonesia's 5G infrastructure.
The divestment also eliminates recurring maintenance costs associated with managing the fiber network. During the first quarter of 2026, fiber maintenance expenses reached approximately Rp1.5–2 trillion per quarter, accounting for around 33.9% of the company's total cost of goods sold (COGS).
"Based on the first-quarter financial report, maintenance costs reached around Rp1.5 to Rp2 trillion every quarter. Divesting the fiber business creates significant operational efficiencies for Indosat," Abdul explained.
Following the transaction, Indosat's cellular business continues to be its primary revenue driver, contributing 83.5% of total revenue. Meanwhile, the fiber business under the Multimedia, Data, and Internet (MIDI) segment contributed 15.1% before being transferred under a long-term leaseback arrangement.
Asset-Light Strategy Supports Long-Term Growth
The leaseback model shifts a portion of operational spending toward a more predictable fixed-cost structure while enabling Indosat to focus on its core telecommunications business.
Abdul noted that the strategy differentiates Indosat from competitors such as Telkomsel, which operates under a heavier asset ownership model requiring substantial maintenance expenditures. By adopting an asset-light approach, Indosat is expected to improve its return on investment while strengthening EBITDA margins over the long term.
Investor sentiment has also remained positive. ISAT shares closed 1.86% higher at Rp1,920 on Friday, with trading activity reaching Rp20 billion. Technically, the stock is approaching a key resistance level at Rp1,950.
Indosat currently trades at an Enterprise Value-to-EBITDA (EV/EBITDA) multiple of approximately 4x. Analysts expect proceeds from the asset sale, which will be reflected in the company's third-quarter 2026 financial results, to lift the theoretical valuation multiple to around 5x, implying a fair value estimate of Rp2,350 per share.
According to Abdul, a sustained breakout above Rp1,950 could open the way toward the next technical target of Rp2,080, while the Rp2,350 valuation represents a potential 25% upside over the next 12 months.
Conclusion
Indosat's Rp11.7 trillion fiber asset divestment marks a strategic shift toward an asset-light business model that enhances financial flexibility, lowers maintenance costs, and supports future investment in 5G and digital infrastructure. With stronger liquidity and improved operational efficiency, analysts believe the company is well positioned for sustainable long-term growth and stronger shareholder value.
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