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Leading Indonesian law firm Hiswara Bunjamin & Tandjung has advised Telkomsel, Indonesia's largest cellular operator, on the IDR6.188 trillion (US$434 million) sale and leaseback of 4,000 telecom towers to mobile tower company Mitratel.
Under the deal, Telkomsel will transfer ownership of the towers to Mitratel, a subsidiary of one of its parent companies, then lease them back for use. The transaction follows on the heels of another recent deal, in which Hiswara Bunjamin & Tandjung advised Telkomsel parent company Telkom on the transfer of 798 towers to Mitratel in exchange for 3.56 billion shares.
"We’re delighted to have helped Telkomsel complete the transaction in a very short timeframe," said partner Sakurayuki. "This deal increases the assets held by Mitratel, making it a more robust player in the national telecommunications industry and beyond."
"Mobile towers are some of the most important infrastructure in Indonesia, bringing together hundreds of millions of people spread out over tens of thousands of islands," said partner Teguh Arwiko.
"As more of Indonesian life moves online, telecommunications infrastructure becomes ever more crucial for our nation, and transactions such as this serve to increase the effectiveness of this critical system."
Telkomsel is a joint venture between Telkom and Singtel, with a customer base of some 170 million in a country of 270 million people. Mitratel is a subsidiary of Telkom, which is majority owned by the Indonesian government.
Sakurayuki and Teguh led the team advising Telkomsel, assisted by senior associate Randitya Adiguna and associate Maydiba Thandi. Associates Intan Fauzia Rembah and Indira Dewi Kantiana helped lead a large-vendor due diligence team including Dimas Adji Syailendra, Dessy Tesha Arisanti and Prita Setya Kusuma Dewi.
With the closing of this latest transaction, Hiswara Bunjamin & Tandjung has in recent years assisted in the sale of more than 20,000 towers in Indonesia worth more than US$2.5 billion (including, among others, Telkomsel in 2020 and Indosat in 2021 and 2019).