Protelindo secures nearly 1,900 new tenancies and commitments with 1,000 tower purchase from Indosat Ooredoo
Jakarta, October 15, 2019 | Source: Company

On October 14, PT Profesional Telekomunikasi Indonesia (“Protelindo”) signed a sale and purchase agreement for 1,000 towers from PT Indosat Tbk (“Indosat Ooredoo”). The towers include nearly 1,900 tenancies and commitments. Indosat Ooredoo serves as the anchor tenant on all towers and has signed a 10-year lease back agreement.

Protelindo will pay IDR1.95 trillion in an all-cash transaction. Payment for the acquisition will be from a combination of cash on hand and additional debt. The additional debt will have limited impact on Protelindo’s reported leverage with net debt to annualized EBITDA expected to be around 2.5x.

“The price per tenant of IDR1.03 billion is similar with previous asset purchases,” commented Adam Gifari, Deputy Vice President of Protelindo. “The transaction adds nearly IDR2 trillion in contracted revenue and further diversifies our revenue stream and colocation potential.”

"Acquiring nearly 1,900 new tenancies with this transaction cements Protelindo’s position as the largest owner and operator of telecommunication towers in Indonesia with nearly 20,000 towers and over 32,000 tenants,” said Ferdinandus Aming Santoso, President Director of Protelindo. “Our large scale of operations will allow us to operate the additional towers efficiently and the purchase will generate positive financial results from day 1.”

The addition of nearly 1,900 tenancies from the transaction is expected to add over IDR270 billion to Protelindo’s total annualized run-rate revenue. More than 50% of the towers are located in Java with an ex-Java concentration in Sulawesi and Kalimantan.

The transaction is anticipated to complete before the end of the year.


Redpeak Advisers acted as Protelindo’s financial adviser for this transaction.

SMN, owner of Protelindo, is traded under the ticker "TOWR" on the Bursa Efek Indonesia.



About PT Profesional Telekomunikasi Indonesia

Protelindo is a 99.9997% owned subsidiary of PT Sarana Menara Nusantara Tbk, a company listed on the Indonesia Stock Exchange (under “TOWR”). Protelindo is currently the largest independent tower company in Indonesia, operating over 18,200 towers with over 30,400 tenancies under long term lease agreements with major wireless communications companies in Indonesia. In addition, the Protelindo group has more than 17,300 km of revenue generating installed fiber optic cable network throughout Indonesia and offers VSAT services to a broad array of customers.

For other information about Protelindo, please contact:

Adam Gifari – Vice President Director

+62 21 2358 5500