With a goal of becoming the largest digital infrastructure company in Indonesia, Jakarta-based PT Dayamitra Telekomunikasi Tbk (Mitratel) reported that it acquired 803 towers, along with 1,327 tenants, from infrastructure operator PT Gametraco Tunggal for roughly $113 million. Of the 803 towers acquired, 241 towers or 30 percent are located on the island of Java while the remaining 562 towers were outside Java.
“Apart from strengthening Mitratel as a tower provider that covers all regions of Indonesia, this acquisition also increases the tenancy ratio,” said Mitratel President Director Theodorus Ardi Hartoko. “Expanding market share outside Java has become a strategic agenda for a number of telecommunications operator companies. As the main player in this business and part of a BUMN [state-owned enterprise], of course, we have to be at the forefront in helping their expansion.”
On that basis, Hartoko commented that the company will continue to add assets, both in the form of towers and fiber optics, including acquiring divested assets from telecommunications operators. At the end of September 2023, Mitratel also completed the purchase of dozens of towers, the majority of which were located on Sumatra Island.
At the end of 3Q23, Mitratel reported ownership of 37,091 towers, an increase of almost six percent over the 35,051 towers at the end of 3Q22. The company has built 481 towers year-to-date. This tower count makes Mitratel the second largest tower company in Southeast Asia, behind Kuala Lumpur, Malaysia-based edotco Group, according to Inside Towers Intelligence. Colocations grew to 18,613, up 21 percent year-over-year.
In a separate transaction, Mitratel acquired PT Power Telecom’s 600-mile fiber optic network on the island of Java, for roughly $5.5 million, from a 2023 capex budget of more than $450 million, of which 58 percent has been spent through the end of 3Q23.
Hartoko explained that the acquisition of fiber optics was intended to increase the company’s market share while strengthening its position as a strategic partner for the telecom operators in Indonesia. The company expects further expansion through both organic and inorganic growth to support its tenants’ goals.
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