WIFI IJ recently announced 2 corporate updates related to the ongoing deployment of its fiber optics network. These are namely:
i. Signing of MOU with Lintasarta and Trans Hybrid Communication (THC) for dark fiber utilization, and
ii. Engagement of PT Prasetia Dwidharma and PT Sarida Utama for the deployment of the network outside the Greater Jakarta region
The MOUs with Indosat’s Lintasarta and THC is expected to pave the way for both entities to lease dark fiber from WIFI IJ. Based on our discussions with management, there has been indicative demand for 6 cores or c.4.2% of total network capacity
Management shared that the key deliverables from Prasetia and Sarida are the completion of the FO network outside of the Greater Jakarta region by the end of 2021
Separately, local media reported that WIFI’s FO subsidiary, IJE had secured an investment credit facility from BBNI IJ to the tune of IDR256.6bn. Details on the facility have not yet been released, but previous discussions with management point to a 5-year tenure with an interest rate of about 9-10% per annum.