PT Mora Telematika Indonesia (Moratelindo), an internet provider operator and had won some tenders in the Palapa Ring projects, is seeking to raise up to Rp3 trillion (US$209.79 million) in two years period - Photo: Special

JAKARTA (TheInsiderStories) – PT Mora Telematika Indonesia (Moratelindo), an internet provider operator and had won some tenders in the Palapa Ring projects, is seeking to raise up to Rp3 trillion (US$209.79 million) in two years period. Part of it is targeting comes from the Islamic bonds issuance worth of Rp1 trillion, its president director said in Jakarta yesterday (06/12).

The SUKUK offered in three-year and five-year time with coupon rate in the range 9.4 percent to 10.5 percent. The offering period of the bond is conducted on June 12 – 19 and is expected to get an effective statement Financial Services Authority on June 26.

It said, the bond will be listed on the Indonesia Stock Exchange on July 8. Moratelindo has appointed PT Sinarmas Sekuritas and PT Mandiri Sekuritas as underwriters of the bond sales.

The president director Galumbang Menak, said around 90 percent of the bonds proceeds will be used for investments. Moratelindo, he said, aimed to develop fiber optic cables that currently use an aerial cable system with a pedestal to the underground using an integrated channel in Bandung, West Java and in Yogyakarta to support smart city.
 
He revealed, project in Bandung will be carried out jointly by the regional company, PT Bandung Infra Investama with an investment value of Rp1.2 trillion and will be executed in the near future.
  
This year, the company has budgeted capital expenditure worth of Rp2.6 trillion. Most of these funds will be allocated for the ducting project and also use to build towers for 5G networks.

Moratelindo is a telecommunications infrastructure and service provider. It has international links connecting Jakarta and Singapore, and domestic submarine and inland backbones serving mainly telecommunications operators and wholesale customers. It expanded to the fiber to-the-home market to maximize the use of its network under the “Oxygen” brand.

Its shareholders were PT Candrakarya Multikreasi (57.5 percent stake), which belongs to PT Infrastruktur Bisnis Sejahtera; PT Gema Lintas Benua (27.6 percent), and PT Sumber Aneka Sukses (14.9 percent).

Its subsidiaries, PT Palapa Ring Barat and PT Palapa Timur Telematika, have been awarded by the government to construct and manage two national priority projects, the Palapa Ring West package in 2015 and the Palapa Ring East package in 2016. Palapa Ring project its expect to provided broadband access to remote areas in the easternmost and westernmost parts of the country.

PEFINDO projected that Moratelindo will obtain significant and long-term cash flows from the government for the operation of the Palapa Ring West fiber optic backbone package covering Riau and Riau Islands, and Palapa Ring East fiber optic backbone package covering East Nusa Tenggara, Maluku, Papua, and West Papua.

The contracts for the two packages are estimated to be around Rp17.5 trillion, with concession periods of 15 years. The projects are guaranteed by PT Indonesia Infrastructure Guarantee Fund within 12 years from the date of commercial operation.

In 2018, the company revenues increased by 75.34 percent to
Rp4.66 trillion. The increase is mainly caused by an increase in the amount of income non-telecommunications operations, namely
recognition of interest and construction income from the Palapa project Western and Eastern package rings and increasing revenue from fiber tower projects provider.

In addition, operating income telecommunications also increased by 17.98 percent to Rp965.44 billion along with increasing market requirements. Moreover, the net profit rose 485.22 percent to Rp601.61 billion compared to the previous year.

During 2018, Moratelindo also succeeded completed the West Palapa Ring package project through a subsidiary of PT Palapa Barat Ring and add optical fiber network to be along 36,951 kilometers.

US$1: Rp14,300

Written by Staff Editor, Email: theinsiderstories@gmail.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here