Indonesian incumbent Telkom plans to spend Rp1trn (US$85.8m) to expand into Saudi Arabia and other Middle Eastern countries, according to CEO Arief Yahya.
The state-controlled telco will partner with local mobile network operators to serve as an MVNO in…
Indonesian incumbent Telkom plans to spend Rp1trn (US$85.8m) to expand into Saudi Arabia and other Middle Eastern countries, according to CEO Arief Yahya.
The state-controlled telco will partner with local mobile network operators to serve as an MVNO in the region via international subsidiary Telin, local media cited Yahya as saying.
The decision to expand into the Middle East was driven by the large number of Indonesian citizens living there, the CEO reportedly said.
“Our principle is that we will always follow the money, the people, the traffic and the network,” the Jakarta Post cited him as saying. “So we aim to get to any potential places that we’re not in yet.”
Telin president director Syarif Syahrial Ahmad reportedly said last year that Telkom had signed an MoU with Saudi-based conglomerate Al-Lama Group, which has operations in several sectors in the Middle East and Africa, including telecoms.
Telkom’s expansion plans also include collaborating with venture capitalists in California’s Silicon Valley, the Jakarta Post cited Yahya as saying.
The company’s annual capital expenditure averages US$2bn, he reportedly added.
Last December, Telkom dismissed local reports suggesting it could list its mobile unit Telkomsel. However, the company confirmed that it was looking for a strategic partner for its tower subsidiary Mitratel.
