Folago Global Nusantara (IRSX IJ)

Unlocking Mass MSME Advertising

• Folago (IRSX) is a leading TikTok MCN partner, expanding its business into AI-based advertising as well as film production and music concert.
• IRSX plans to conduct a Rp3.7tr rights issue, with Rp2tr (55%) allocated toward the acquisition of LT commercial rights for 526 influencers.
• As part of its growth strategy, IRSX aims to introduce affordable AI-driven advertising solutions targeting Indonesia’s 25-30mn MSMEs.

Diversifying Folago’s integrated digital monetization ecosystem

Folago Global Nusantara (IRSX) operates as an integrated Multi-Channel Network (MCN) that is expanding to an AI-based advertising. Management guides FY26F revenue contributions will comprise 50-60% from advertising, 30-40% from commerce, and the remainder from entertainment. Advertising will be driven by AI Digital Twin, while commerce comprises of MCN affiliate, digital vouchers, live streaming, concerts, and film-related investments. The entertainment segment will be supported by the proprietary content applications, “Tidak Tidur.” As of FY25, revenue remains largely concentrated in MCN and early-stage concert activities, with broader ecosystem monetization expected to scale post-rights issue in FY26F.

Rights Issue to secure long-term commercial rights of key artists

IRSX plans to conduct a rights issue in FY26 amounting to Rp3.7tr at an exercise price of Rp300/share. Approximately 55% of the proceeds (Rp2tr) will be allocated to the acquisition of LT commercial rights for 526 artists, influencers, and affiliates. Under these agreements, IRSX is expected to secure exclusive rights over both digital and offline commercial activities of these talents, with contract durations ranging from 4-5 years. IRSX intends to monetize these through two channels: (i) corporate brand engagements, including TVC and brand ambassador, and (ii) AI-based monetization via the development of digital twins. Management targets a payback period of 3 years for the rights acquisition investment.

Upside growth from large untapped MSME advertising market

3Q25 marked the first consolidation of Folago, with IRSX posting Rp107bn revenue and Rp25bn net profit, mainly driven by its MCN business which generated Rp1.0tr GMV in 9M25. Despite a modest 1–3% take rate model for MCN, we still see growth potential in this segment supported by the rising TikTokShop e-commerce, with GMV projected to grow at a 15.3% CAGR in FY26–31F. Looking ahead, the key growth driver will come from AI-based advertising targeting Indonesia’s 25–30mn MSMEs, which management views as a largely untapped market. With average MSME marketing spend of ~Rp4.2mn/year, the company’s AI ads offering—priced from Rp100k/generated content—positions IRSX to capture strong growth from this large addressable market.

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