Axiata Group Berhad, a leading Malaysian telecommunications company, has partnered with Indonesian conglomerate Sinar Mas to enhance digital solutions across Southeast Asia. The collaboration focuses on leveraging 5G, fintech, and digital infrastructure to support regional digital transformation, marking a pivotal step toward unlocking value in high-growth sectors.
Key Highlights of the Partnership
First Letter of Intent (LOI): Digital Ecosystems and Synergies
Axiata and Sinar Mas have signed two Letters of Intent (LOIs) to explore strategic collaboration in digital sectors. The first LOI outlines detailed market analyses, identifies potential synergies, and aims to drive growth in sectors like 5G, enterprise services, digital infrastructure, and fintech innovations. This collaboration focuses on evaluating the competitive landscape and capturing opportunities in Malaysia, Indonesia, and Southeast Asia.
Long-Term Commitment to Digital Transformation
Vivek Sood, CEO of Axiata Group, emphasized that these LOIs are a significant step in advancing the digital economy and fostering economic growth in Malaysia and Indonesia. Both companies aim to bridge the digital divide and contribute to the broader digital economy agendas of both nations, reinforcing the role of digital ecosystems in enhancing services and empowering businesses.
Second LOI: Merger of Telecom Giants in Indonesia
The second LOI reaffirms Axiata and Sinar Mas’s commitment to the proposed merger of PT XL Axiata Tbk, PT Smartfren Telecom Tbk, and PT Smart Telcom to form PT XLSmart Telecom Sejahtera Tbk (XLSmart). The merger, valued at IDR 104 trillion ($6.5 billion), is expected to enhance innovation, improve customer service, and strengthen Indonesia’s digital connectivity landscape. The transaction is expected to complete in the first half of 2025, subject to regulatory and shareholder approvals.
A Strong Future for Regional Collaboration
Franky Oesman Widjaja, Chairman of Sinar Mas Telecommunications and Technology, expressed confidence in the partnership’s ability to drive long-term value for stakeholders, empower businesses, and promote innovation. The collaboration aims to set a benchmark for regional cooperation, fostering a more interconnected and prosperous digital future for Southeast Asia.
Conclusion
This strategic collaboration between Axiata and Sinar Mas positions both companies at the forefront of digital transformation in Southeast Asia, offering innovative solutions in key sectors and laying the groundwork for sustainable growth in the region.
