A new era of consolidation may be unfolding in Indonesia’s telecom infrastructure space, as PT Dayamitra Telekomunikasi (Mitratel) and PT Tower Bersama Infrastructure explore a potential merger that could reshape the country’s digital backbone.
People close to the matter suggest that preliminary discussions have been initiated with advisers, with both companies evaluating the strategic value of combining forces. If successful, the merged entity could be valued at nearly 90 trillion rupiah (approximately $5.5 billion), making it one of Southeast Asia’s most significant telecom tower operators.
This marks the second time in a decade that the two firms have considered a merger, following a failed attempt in 2015. Now, in the wake of Indonesia’s evolving telecom landscape—highlighted by multi-billion-dollar deals like the XL Axiata-Smartfren and Indosat mergers—conditions appear more conducive to such a union.
Two Tower Giants, One Ambition
Mitratel, backed by state-owned PT Telkom Indonesia Persero, manages a robust portfolio of over 39,400 telecom towers across the archipelago. With Telkom’s majority control and Indonesia’s sovereign wealth fund Danantara holding a 52% stake in Telkom, the state remains deeply invested in Mitratel’s strategic direction.
Tower Bersama, founded in 2004 and publicly listed since 2010, operates more than 23,000 tower sites. Its parent holding, Bersama Digital Infrastructure Asia, is controlled by Provident Capital and Saratoga Investama Sedaya, with Macquarie Asset Management holding a notable minority stake following a $610 million investment in 2022.
Market Implications and Strategic Value
While both Mitratel and Tower Bersama have seen moderate stock declines this year—17% and 4% respectively—their similar market capitalizations (~45 trillion rupiah each) set the stage for an equal-weighted merger. The deal would also reflect broader global trends in digital infrastructure, where scale, coverage, and cost efficiency are increasingly vital in supporting 5G rollouts and rural connectivity expansion.
If successful, the transaction would:
- Create Indonesia’s largest tower operator by asset count.
- Unlock operational synergies in procurement, maintenance, and technology deployment.
- Strengthen pricing power and leasing attractiveness for mobile network operators.
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