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UK investment firm Gemcorp acquires Indonesia’s Flynet broadband
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ondon-based Gemcorp Capital has announced the conclusion of a cash investment agreement that will pave the way for it to acquire control over Denpasar-based PT Garuda Prima Internetindo.
The fiber-to-the-home (FTTH) provider operates under the brand name Flynet and serves residential customers in the island province of Bali.
The British firm had finished making its initial cash payment according to the terms of the agreement, said Gemcorp partner and portfolio manager Gautam Sahdev, who was responsible for finalizing the transaction.
"This transaction marks a significant step forward in Gemcorp's telecommunications activities in Indonesia,” Sahdev said.
“This investment will be our second in this region, following the significant investment made in 2019. It also follows up on the Memorandum of Understanding [MOU] we signed with APJII, an organization representing internet service providers [ISPs] in Indonesia, where we demonstrated our willingness to invest in local ISPs, including FTTH players," he added.
"We are also working on several telecommunications deals in this region and are in the process of setting up specific mechanisms to channel our investments. Our goal is to structure investments that will support Indonesia's broadband infrastructure backbone, which we believe is fundamental to the country's digital future," said Sahdev.
Purwo Handoko, Gemcorp's Special Envoy for Southeast Asia, said: "Gemcorp's strategic initial step to invest in Indonesia as the first country in ASEAN is a clear demonstration of its confidence in the country's economic fundamentals and favorable investment climate. Hopefully, this will be the starting point for expanding its investments in Indonesia and other Southeast Asian regions."
Muhammad Arif Angga, the CEO and majority shareholder of Flynet, commented: "We started Flynet with the aim of providing top-class internet services to the people of Bali through an advanced fiber network. We are very pleased with the progress this business has made since its inception.
“We are delighted to welcome Gemcorp as a partner and are impressed by their ambitions, in both business and telecommunications. We are proud to be the first ISP to enter into an investment agreement since [Gemcorp] signed its MOU with APJII in January 2023."
