Herbert Smith Freehills’s Indonesian associate firm Hiswara Bunjamin & Tandjung (HBT) has advised Indonesian telecommunications operator PT Telekomunikasi Selular (Telkomsel), a joint venture between Telkom and Singtel, on the IDR10.3 trillion sale and leaseback of 6,050 telecom towers to PT Dayamitra Telekomunikasi (Mitratel).
“The digitalisation of Indonesia has accelerated since the start of the pandemic,” said partner Sakurayuki. “This deal is a sign of the increasing investment in digital infrastructure that we’re seeing, which underpins that transformation and anticipates the future rollout of 5G connectivity.”
“Towers are critical infrastructure for efficient data delivery across the Indonesian archipelago, from news to telemedicine, and from city to rural,” said partner Teguh Arwiko. “The deal also marks a reorganisation in the towers sector as the major telecom companies refocus on data and connectivity.”
Telkomsel and Mitratel are both subsidiaries of Telkom, the largest telecommunications company in Indonesia. This deal is part of Telkom’s ongoing business restructuring. By selling its towers to Mitratel, Telkomsel can refocus on its cellular business as a telecommunications operator, while Mitratel can expand its towers business.
HBT partners Sakurayuki and Teguh Arwiko led the transaction, assisted by HBT associates Maydiba Thandi and Cahya Buana Arief in Jakarta and by Herbert Smith Freehills partner Mark Robinson, senior associate Matthew Wentz and associate Clare Hubert in Singapore.