Indonesia’s equity landscape saw a mixed performance today, with the IHSG posting modest gains as foreign investors injected capital. Against this backdrop, telecommunications infrastructure provider PT Sinergi Inti Andalan Prima (INET) emerged as a focal point, announcing a substantial rights issue designed to accelerate its ambitious digital expansion plans, immediately sending its stock soaring.

Indonesia Market Snapshot: Navigating Mixed Signals

The broader Indonesian market demonstrated resilience as the IHSG climbed 0.30% to close at 8,123. Foreign capital inflows provided a significant boost, reaching a robust IDR 555.6 billion. Currency markets saw the USD/IDR exchange rate dip slightly by 0.36% to 16,680, reflecting dynamic shifts in global and local economic sentiment. Commodity prices presented a varied picture: Gold shone brightly with a 1.05% increase to 3,849, while Oil softened 1.13% to 68.4. Coal gained 1.56% to 110.5, CPO nudged up 0.05% to 4,400, and Nickel experienced a minor retraction of 0.68% to 15,175.

INET’s Bold Capital Raise: Propelling Digital Infrastructure Forward

In a strategic move poised to significantly reshape its operational landscape, PT Sinergi Inti Andalan Prima (INET) has unveiled plans for a substantial rights issue. The company aims to issue up to 12.8 billion new shares at an execution price of IDR 250 per share. This pricing represents a premium of 9.6% over INET’s stock price as of Friday, September 26. Shareholders will subscribe based on a 3:4 ratio, meaning for every three existing shares, an investor can acquire four new shares. This aggressive capital expansion could lead to a dilution effect of up to 57.14%.

The corporate action, which received shareholder approval during an Extraordinary General Meeting of Shareholders (EGMS) on June 12, 2025 – though the final execution price remained undisclosed at that time – underscores INET’s commitment to capturing growth opportunities in Indonesia’s burgeoning digital economy.

Fueling Future Growth: A IDR 3.2 Trillion Investment Roadmap

The rights issue is projected to raise approximately IDR 3.2 trillion. This capital infusion is strategically earmarked for several key initiatives:

• Approximately IDR 2.8 trillion will be injected into a subsidiary to construct a massive Fiber-to-the-Home (FTTH) network, targeting 2 million homepasses across the high-potential markets of Bali and Lombok. This investment positions INET at the forefront of expanding digital access in these regions.
• Another IDR 213 billion is allocated for a subsidiary’s capital injection, specifically for settling indefeasible right of use (IRU) costs related to its crucial undersea cable network infrastructure. This ensures long-term operational stability and capacity.
• A further IDR 135 billion will fund a subsidiary’s capital increase dedicated to developing FTTH networks in the densely populated areas of Java, further broadening INET’s domestic reach.
• The remaining funds will bolster the company’s working capital, providing financial flexibility for ongoing operations and future strategic maneuvers.

Shareholder Commitment and Warrants: A Comprehensive Capital Strategy

In a strong vote of confidence, PT Abadi Kreasi Unggul Nusantara, the controlling shareholder, has committed to fully exercising its rights and will serve as a standby buyer, ensuring the success of the capital raise. The rights trading period is slated for December 1-5, 2025.

Further sweetening the deal for investors, the rights issue will be accompanied by the issuance of approximately 3.1 billion warrants. These warrants come with a subscription ratio of 25:6 and an exercise price of IDR 300 per share. Investors will have a generous window to exercise these warrants, from June 3, 2026, to June 2, 2028, offering long-term upside potential.

Building Bridges: INET’s Strategic Partnerships Reinforce Growth Trajectory

INET’s proactive approach to expansion is not new. The company, through its subsidiaries, has been meticulously forging strategic partnerships, laying the groundwork for its current ambitious capital initiatives. These alliances underscore INET’s vision to become a dominant force in Indonesia’s digital backbone, detailed in its Q2 2025 report.

• On March 25, 2025, PT Pusat Fiber Indonesia, an INET subsidiary, inked a 10-year cooperation agreement with PT Integrasi Jaringan Ekosistem, a subsidiary of Solusi Sinergi Digital (WIFI). This partnership is focused on the critical provision of IP Transit services, enhancing connectivity solutions.
• Continuing this momentum, on May 2, 2025, PT Pusat Fiber Indonesia further solidified its network capabilities through a 15-year cooperation agreement with PT Jejaring Mitra Persada, a subsidiary of Ketrosden Triasmitra (KETR). This agreement involves the provision of fiber optic core for vital inter-island and international connections, specifically the Batam-Singapore and Jakarta-Batam routes, utilizing an indefeasible right of use (IRU) scheme.
• Just weeks later, on May 20, 2025, PT Internet Anak Bangsa, another INET subsidiary, entered into a 3-year cooperation agreement with PT Integrasi Jaringan Ekosistem (WIFI subsidiary). This collaboration is dedicated to developing telecommunications infrastructure and supporting facilities, reinforcing INET’s expanding ecosystem.

Market Validation: INET’s Stock Surges on Rights Issue Announcement

The market’s reaction to INET’s ambitious capital raising plan was swift and decisively positive. Following the announcement, the company’s shares experienced an auto reject atas (upper limit price increase) of a staggering 24.56%, closing at IDR 284 per share. This sharp uptick signals strong investor confidence in INET’s strategic direction and its capacity to execute its expansion initiatives successfully, perceiving the rights issue as a powerful catalyst for future value creation.

As INET gears up for its rights issue and leverages its growing network of strategic alliances, the company stands at a pivotal juncture. Its aggressive investment in FTTH and critical undersea cable infrastructure positions it as a key enabler of Indonesia’s digital transformation, promising significant long-term growth for its stakeholders in a rapidly evolving telecommunications landscape.