London-based Gemcorp Capital (Gemcorp) has finalized an investment agreement to acquire a controlling stake in PT Garuda Prima Internetindo (Flynet), a provider of fiber-to-the-home (FTTH) technology in Bali, Indonesia. This move marks a significant step for Gemcorp in the Indonesian telecommunications sector, following a substantial investment made in 2019.
The acquisition of Flynet by Gemcorp is a part of the company’s broader strategy to support the backbone of Indonesia’s broadband infrastructure, aiming to enhance the country’s digital future. This investment follows a Memorandum of Understanding (MOU) signed with the Indonesian Internet Service Providers Association (APJII), expressing Gemcorp’s intention to invest in local ISPs, including FTTH players.
Gautam Sahdev, a partner at Gemcorp responsible for the transaction, highlighted the investment as a significant advancement in Gemcorp’s telecommunications activities in Indonesia. This investment represents Gemcorp’s second foray into the region, underscoring its commitment to the sector.
The strategic investment aligns with Gemcorp’s goal to support Indonesia’s broadband infrastructure, which is considered fundamental for the country’s digital future. Plans are underway to work on several deals in the telecommunications sector across the region.
Purwo Handoko, Gemcorp’s Special Envoy for Southeast Asia, emphasized the investment in Indonesia as a testament to the firm’s confidence in the economic fundamentals and favorable investment climate of the ASEAN region. This move is intended to spearhead further investments in Indonesia and Southeast Asia.
Muhammad Arif Angga, leader and majority shareholder of Flynet, expressed enthusiasm for the partnership with Gemcorp. He praised the ambition of Gemcorp in the business and telecommunications sectors and expressed pride in Flynet being the first ISP to sign an investment agreement following the MOU with APJII.
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The investment by Gemcorp is expected to catalyze advancements in Indonesia’s digital infrastructure, facilitating high-quality internet services for residential users in Bali and potentially across Indonesia. This strategic move is poised to enhance digital connectivity and accessibility, aligning with Indonesia’s broader digital transformation goals.
Gemcorp’s acquisition of Flynet signifies the strengthening of Indonesia’s digital infrastructure, promising enhanced internet connectivity and services. This development is likely to foster greater business opportunities and improved telecommunications services within the region, contributing to ASEAN’s digital economy.
Gemcorp Capital has completed an agreement to acquire a major stake in Indonesian internet service provider Flynet, marking a significant expansion into Indonesia’s telecommunications sector. This investment, aimed at enhancing broadband infrastructure, underscores Gemcorp’s commitment to Indonesia’s digital future and signals potential growth in ASEAN’s digital connectivity and services.
Source: CNBC Indonesia Viva.co.id (2024)
