Jakarta, CNBC Indonesia – Ooredoo QPSC (Ooredoo) and CK Hutchison Holdings Limited (CK Hutchison) officially announced the signing of a definitive transaction agreement for the proposed merger of their respective telecommunications businesses in Indonesia, namely PT Indosat Tbk (ISAT) and PT Hutchison 3 Indonesia (H3I) or Tri Indonesia .
With the merger of the two telecommunications companies, the name will be PT Indosat Ooredoo Hutchison Tbk (Indosat Ooredoo Hutchison). The company will be jointly controlled by the two companies.
The development of Indosat as a telecommunications company in Indonesia has always received public attention. Starting from the initial establishment until now joining a telecommunications operator, and ready to become a market leader.
CNBC Indonesia has summarized several important decisions in Indosat’s 50+ years of working in Indonesia.
The official website notes that Indosat was founded in 1967 as a foreign investment company that provides international telecommunications services in Indonesia.
Indosat is one of the first PMA companies since the enactment of the Foreign Investment Law in Indonesia. American Cable & Radio Corporation (ACR), a subsidiary of a US telecommunications company called International Telephone & Telegraph Corporation (ITT), started Indosat with a capital of US$6 million.
Then in 1980, the Indonesian government decided to acquire Indosat’s shares to support the New Order satellite program at that time. This decision also experienced resistance from several parties who were afraid that nationalization would have a negative impact on foreign investment because the government was actively raising foreign funds for development.
After becoming a state-owned company, the company was listed on the stock exchange in 1994 and managed to raise IDR 724.85 billion of IPO funds from an offering of 103.55 shares (35%) at a price of IDR 7,000 per share.
A year later, Indosat and Telkomsel established a joint venture company which was one of the first cellular operators and to this day dominates the Indonesian cellular telecommunications industry, Telkomsel.
A few years later this partnership broke up, with Telkom becoming the sole controller of Telkomsel after buying Indosat’s shares. Meanwhile Indosat acquired Satelindo shares and established IM3 to compete with Telkomsel.