Sinergy Inti Andalan Prima (INET IJ)

In Transition Phase Toward FTTH Monetization

• INET expands to B2C FTTH, FTTH contracting, and IRU Submarine; The main driver to be B2C FTTH supported by a targeted 2.8mn HP rollout.
• The Rp4.2tr capital raising and acquisitions will support this expansion; Management indicating that further acquisitions may be pursued.
• Earnings ramp-up is expected from FY27F as the FTTH rollout begins; dependency on a single ecosystem remains a key risk.

New expansion to B2C FTTH, FTTH contracting, and IRU Submarine

INET is expanding its business into three key growth pillars: FTTH contracting, B2C FTTH, and submarine cable IRU. In the FTTH contracting, INET will support the FTTH rollout of Surge/WIFI, targeting the construction of 2mn home-passes through FY28, implying a total contract value of ~Rp540bn. In parallel, INET plans to commence its submarine cable IRU in Apr26, securing 20 Tbps of total capacity, with 10 Tbps locked in by WIFI as an anchor customer, while the remaining capacity will be monetized to other ISPs. INET’s total investment for this IRU is estimated at Rp250-350bn. The largest growth driver is expected to come from the B2C FTTH segment, scheduled to begin operations in FY27F, targeting 2mn home-passes in Bali-Lombok and 800k home-passes in West Kalimantan, with targeting 60-70% take-up rate.

Capital raising and strategic acquisitions enable FTTH scale-up

To support its expansion, INET raised capital through a Rp3.2tr rights issue and Rp1tr bond issuance, of which Rp3.8tr earmarked for its B2C FTTH rollout, implying an estimated capex of Rp1.4mn/home-pass. In addition, the company remains active in pursuing inorganic growth, with acquisitions of PT Trans Hybrid Communication (THC) and PT Personel Alih Daya Tbk (PADA IJ). THC provides existing backbone infrastructure in West Kalimantan, supporting INET’s planned FTTH expansion in the region, while PADA operates as an outsourcing services provider, supplying manpower for WIFI’s FTTH and FWA deployment. Management has indicated that further acquisitions may be pursued to accelerate expansion across its FTTH businesses.

Ramp-up expected from FY27F; Dependency and commercialization risk

In conclusion, three new business pillars remain highly operationally linked to WIFI, with execution risk—particularly service quality & churn—largely borne by INET in the FTTH contracting. We expect a meaningful acceleration in revenue and earnings from FY27F, driven by the rollout of B2C FTTH, although uncertainty around the commercialization structure remains a key downside risk. Based on consensus forecast, INET currently trades at 15.1x/9.4x FY26F/FY27F EV/EBITDA, which we view as fair for an ISP/ FiberCo.

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