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Indosat, Tri to team up for stronger position in Indonesia’s competitive telecom industry
A planned collaboration between Indonesian telecommunication company PT Indosat and PT Hutchison 3 Indonesia, also known as Tri, is expected to produce a stronger company amid fierce competition among providers and strengthen the country’s telecommunications industry as a whole, according to experts.
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The logo of telecommunication provider Indosat Ooredoo is pictured in front of its office in Central Jakarta. (Shutterstock/Dominic Dudley)
A planned collaboration between Indonesian telecommunication company PT Indosat and PT Hutchison 3 Indonesia, also known as Tri, is expected to produce a stronger company amid fierce competition among providers and strengthen the country’s telecommunications industry as a whole, according to experts.
Qatar-based company Ooredoo Q.P.S.C has entered into an exclusive and nonbinding memorandum of understanding (MoU) on Monday with Hong Kong-based CK Hutchison Holdings Limited to combine their respective telecommunications businesses in Indonesia, Indosat and Tri. The company stopped short of detailing whether the process would be done through merger or acquisition.
“Ooredoo is in the early stages of assessing the merits of such a potential transaction,” the company said in a statement, adding that the exclusivity period for the MoU was valid until April 30, 2021.
The company went on to say that “no binding agreement in relation to the possible combination has been entered into” and that the company would announce the decision “when appropriate.”
Stocks of Indosat, traded at the Indonesia Stock Exchange (IDX) with the code ISAT, soared on Monday prior to the official statement being issued, prompting the bourse to temporarily halt trading of the stocks. ISAT fell 5.21 percent as of 11:56 a.m. Jakarta time on Wednesday and has gained 150 percent over the past three months.
Indosat director and chief financial officer Eyas Naif Assaf said that, as of Tuesday, “there is no further information to disclose.”
