Jakarta. Indosat Ooredoo Hutchison has partnered with Northstar Group and Arsari Group to establish a joint venture aimed at developing a national digital fiber optic platform, the companies announced on Tuesday.

Arsari Group is founded by Hashim Djojohadikusumo, the younger brother of President Prabowo Subianto.

The new entity, branded FiberCo, is designed to strengthen Indonesia’s connectivity infrastructure, deliver global-standard digital services, and accelerate the country’s long-term digital transformation.

Indosat president director and chief executive Vikram Sinha said the collaboration would enable the company to build an independent, resilient, and value-accretive fiber platform through an agile, asset-light business model.

“FiberCo will serve as a differentiated AI infrastructure player and act as a catalyst for Indonesia’s progress as a digital nation,” Vikram said at the announcement event in Jakarta.

He added that the initiative aligns with Indosat’s broader transformation into an artificial intelligence-driven technology company, while also supporting the expansion of high-quality digital services across the archipelago.

Under the transaction structure, Indosat will transfer its fiber optic assets into FiberCo Raya at an estimated value of Rp 14.6 trillion, or about $869.4 million. The move allows Indosat to monetize its infrastructure assets while retaining an ownership stake of around 45% in FiberCo.

Vikram said proceeds from the transaction would be used to accelerate Indosat’s 5G rollout and strengthen its AI capabilities, positioning the company for future growth.

Deputy chief executive of Arsari Group Aryo Djojohadikusumo said digital infrastructure was becoming a critical driver of productivity, digital inclusion, public service quality, and the growth of AI-based economic activity.

“This partnership also marks Arsari Group’s expansion into digital infrastructure, reflecting our belief that connectivity is now as fundamental to economic resilience as energy and physical logistics,” Aryo said.

Once operational, FiberCo will manage an integrated fiber optic network spanning more than 86,000 kilometers, including national backbone infrastructure, domestic subsea cables, and access networks connecting telecommunications towers and business districts.

With around 45% of the network located on Java and 55% outside the island, FiberCo is expected to play a strategic role in narrowing Indonesia’s digital connectivity gap.

In the transaction, Indosat appointed Citigroup as its financial adviser, while Northstar Group is being advised exclusively by Goldman Sachs.

The partnership announcement was attended by Arsari Group founder Hashim and Indosat president commissioner Nezar Patria, who also serves as Indonesia’s vice minister of communication and digital affairs.

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