Indonesian telco Indosat Ooredoo Hutchison (IOH) has spun off its fibre business into Infra Fiber Teknologi (IFT), an independent fibre infrastructure platform backed by Indosat and Arsari Group.

IFT will operate more than 86,000km of fibre infrastructure across Indonesia, including backbone, domestic subsea, and access networks. The platform will run on an open-access basis, serving telecoms operators, enterprises, hyperscalers and digital service providers.

The launch follows an investment agreement signed in December 2025, under which Indosat and PT Aplikanusa Lintasarta divested their stakes in IFT to PT Nusantara Fiber Teknologi (NFT), Arsari Group’s investment platform.

Following completion, Indosat and PT Aplikanusa Lintasarta collectively hold a 49.9% stake in NFT. The transaction allows Indosat to monetise its fibre assets while retaining a long-term interest in the platform.

IOH Group received gross proceeds of around IDR 11.7 trillion (US$650.55 million) from the deal, which it said will support further investment in core connectivity, 5G rollout and AI-ready digital services.

Vikram Sinha, president director and CEO of Indosat Ooredoo Hutchison, said IFT forms part of the company’s broader strategy to expand technology access across Indonesia. “By placing fibre infrastructure under an independent, open-access platform, we aim to broaden access to AI, cloud and next-generation digital services across Indonesia.”

Indonesia’s digital economy continues to grow, but access to high-quality connectivity remains uneven. Major urban centres have attracted significant infrastructure investment, while parts of Sumatra, Kalimantan, Sulawesi and eastern Indonesia still face connectivity gaps that can limit access to education, healthcare, financial services and economic opportunities.

IFT said 45% of its network coverage is in Java, with the remaining 55% across non-Java regions. The platform aims to expand fibre coverage, improve network availability and support demand for cloud, AI and other digital services.

IFT said its governance structure is intended to support independent operations, accountability and long-term investment. Its shareholder base brings experience across telecommunications, digital investment and capital markets, which could support partnerships, institutional investment and operational collaborations.

Hendry Syam, president director of PT Infra Fiber Teknologi, said IFT was established to expand infrastructure beyond already well-connected areas, focusing on underserved communities and businesses across Indonesia.

IFT’s near-term priorities include infrastructure deployment in underserved regions, expanding wholesale partnerships with telecoms operators and hyperscalers, and building capacity for high-capacity connectivity.

The platform also aims to improve network resilience and support cost efficiency.

Citi served as exclusive financial adviser to Indosat on the transaction.