Jakarta, Indonesia – Indosat Ooredoo Hutchison has entered into an investment agreement with a consortium formed by Arsari Group and Northstar Group to establish an independent fibre infrastructure company, FiberCo, in Indonesia.
The joint venture is intended to strengthen national data connectivity by expanding fibre capacity and improving network availability across the country at a time of increasing demand for reliable digital infrastructure.
The proposed entity will consolidate fibre assets into a standalone platform designed to support the delivery of high-capacity data services nationwide. By adopting an open-access wholesale model, the platform is expected to improve interconnection between telecommunications providers, enhance network resilience, and accelerate the roll-out of digital services for consumers, enterprises and public sector users throughout the archipelago.
“Empowering Indonesia requires strong collaboration and a long-term view of digital infrastructure,” Vikram Sinha, president director and CEO of Indosat Ooredoo Hutchison, stated.
He added, “Through a more agile and asset-light approach, the partnership with Arsari Group and Northstar Group allows us to build a stronger and more independent fibre platform that unlocks value, enhances resilience, and prepares networks for future digital services.”
The partnership is structured to broaden fibre coverage and reinforce Indonesia’s digital backbone through shared ownership and long-term governance arrangements. It is expected to support the expansion of cloud services, data-intensive applications, and emerging technologies by providing more consistent and scalable connectivity, including in underserved regions outside major urban centres.
As part of the transaction, Indosat plans to transfer its existing fibre assets into the new company. The arrangement is intended to allow the operator to unlock capital for further network investment, including next-generation mobile services, while ensuring continued access to high-quality fibre infrastructure to support its operations.
FiberCO is expected to operate an integrated fibre network of more than 86,000 kilometres, covering backbone, domestic subsea, and access infrastructure that connects towers and business customers. With a substantial proportion of the network located outside Java, the venture is positioned to contribute to more balanced data connectivity and help reduce disparities between regions.
“Under this partnership, Arsari Group intends to serve as part of the physical backbone of Indonesia’s next growth phase, supporting enterprise productivity, digital inclusion, public service delivery, and the emergence of AI-driven economic activity,” Aryo P.S Djojohadikusumo, deputy CEO and COO of Arsari Group, commented.
He shared, “The partnership represents expansion of Arsari’s portfolio into digital infrastructure, reflecting a long-term view that connectivity is becoming as fundamental to economic resilience as energy and physical logistics.”
By bringing together telecommunications, investment and industrial groups, the initiative is also aligned with broader national objectives to improve digital inclusion and economic participation. The involvement of private sector partners is expected to complement public sector efforts to extend connectivity, particularly in areas where commercial and logistical challenges have historically limited fibre deployment.
Overall, the joint venture is intended to enhance the efficiency, reach, and reliability of Indonesia’s fibre infrastructure, supporting long-term growth in data traffic and enabling wider access to digital services across the country.
