Axiata inks strategic deal with Sinar Mas


From left: President of Indonesia Prabowo Subianto, chairman of Sinar Mas Telecommunications and Technology Franky Oesman Widjaja, chairman of Axiata Tan Sri Shahril Ridza Ridzuan and Prime Minister Datuk Seri Anwar Ibrahim.

PETALING JAYA: Axiata Group Bhd has announced that it has signed two letters of intent (LOIs) with Indonesia-based Sinar Mas for a series of strategic collaborations.

Sinar Mas is involved in pulp and paper, agribusiness and food, financial services, real estate development, telecommunications and technology, energy and infrastructure, and healthcare.

In a statement, the telecommunications giant said the first LOI outlines specific projects and initiatives that will drive collaboration in Malaysia, Indonesia and South-East Asia.

“Leveraging our respective telecommunications ecosystems, both parties will explore opportunities in advanced 5G solutions, enterprise services, digital infrastructure and fintech innovations,” Axiata said.

It noted that both parties will jointly conduct detailed market analysis, evaluate competitive landscapes and identify unmet demand across priority markets.

The strategic partnership also aims to incubate new businesses and solutions, ensuring alignment with national and regional digital economy agendas.

According to Axiata, the second LOI reaffirms their commitments set out in the definitive agreements announced on Dec 11, 2024, to advance the proposed merger of PT XL Axiata Tbk, PT Smartfren Telecom Tbk and PT Smart Telcom, forming PT XLSmart Telecom Sejahtera Tbk (XLSmart) in Indonesia.

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“The LOI confirms their shared intent in this landmark transaction, which stands to give XLSmart a combined pre-synergy enterprise value of over US$6.5bil, symbolising a strong collective vision to foster innovation, improve customer service quality and enhance digital connectivity in Indonesia, while contributing to a healthier and more competitive market,” Axiata said.

The LOI also aims to support XLSmart in exploring the optimal strategic approaches for integration, including the “hold and grow” strategy, adopting an “asset-right/light” model and pursuing potential network-sharing opportunities to maximise value and operational efficiency.

Axiata’s group chief executive officer Vivek Sood said both LOIs represent a pivotal step in advancing regional collaboration to shape South-East Asia’s next wave of digital transformation and advance services in high-growth areas.

“We deeply appreciate the steadfast support of the governments of Malaysia and Indonesia, whose forward-looking policies on connectivity and digital inclusion have set a strong foundation for such partnerships,” he noted.

“By aligning our shared ambitions with national and regional digital economy agendas, we are laying the groundwork for a vibrant and inclusive digital ecosystem that delivers transformative services, empowers businesses and enriches lives.”

Sinar Mas Telecommunications and Technology chairman Franky Oesman Widjaja said the group is keen to collaborate with Axiata to explore new innovative opportunities, while supporting Malaysia and Indonesia’s vision of a thriving and inclusive digital economy.

“We are confident in our ability to unlock synergies, deliver long-term value for stakeholders and make a meaningful impact on the region’s digital economy by enhancing connectivity, fostering innovation and empowering businesses and communities,” he noted.

“Together, we aim to set a benchmark for regional collaboration, creating a more interconnected and prosperous future.”

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