About Indosat

About > About Indosat

 

Indosat Tbk is a leading telecommunication and information service provider in Indonesia that provides nationwide cellular prepaid and postpaid services. Indosat also provides fixed telecommunication or fixed voice such as IDD, fixed wireless and fixed phone services. And together with its subsidiary companies, Indosat Mega Media (IM2) and LintasArta, Indosat provides fixed data or Multimedia, Internet & Data Communication Services such as IPVPN, MPLS, DRC/DRP, leased line and internet services. Indosat pioneered in introducing wireless broadband services using 3.5 G with HSDPA technology in Indonesia.

The company went dual listed n 1994 and now the company shares are listed in the Indonesia Stock Exchange (IDX: I SAT) and its American Depository Shares are listed in the New York StockExchange (NYSE:IIT).

 

Vission

To be the provider of choice for information and communication solutions in Indonesia

  • Offering a full range of quality information and communication products, services and solutions.
  • Being at customer's "Top-Of-Mind" for the provision of information and communications products, services and solutions.
  • Providing products and services which enhance the quality of life of the communities we operate in.

Mission

  • To provide and develop innovative and quality products, services, and solutions, which offer the best value to our customers.
  • To continuously grow shareholder values.
  • To provide better quality of life to our stakeholders.

 

Product and Services

Mobile Services

  • Matrix (GSM Postpaid)
  • Mentari (GSM Prepaid)
  • IM3 (GSM Prepaid)
  • Blackberry from Matrix
  • Indosat 3.5G Broadband

  Fixed Voice Services (Fixec Telecommunications)

  • 008 SLI and Indosat SLI 001: International call with premium quality of services to all countries
  • Indosat Flat Call 01016: International call to all countries at a budget flat tariff.
  • StarOne (CDMA Prepaid and Postpaid): StarOne is a wireless network of voice and data telecommunication using CDMA 2000 1X technology. StarOne offers the combination of fixed phone service (PRTN) and mobile.
  • Jagoan StarOne: A prepaid CDMA service that provides cheap calls.

Indosat Corporate Solutions (ICS)

INDOSAT was established in 1967 and owns the most comprehensive telecommunication infrastructure, products and services in Indonesia. The long track record in the industry molds Indosat as an expert in this field.

Indosat’s backbone network is currently the best in the country, comprising of fiber optic, undersea cabling, and on-land cabling (terrestrial network) or SKSO (Fiber Optic Communication System).

This Optical Fiber Media (OFM) spreads about 4,000 kilometers throughout Sumatra, Java, Kalimantan and Sulawesi islands. Indosat’s fiber optic has a pair or fibers as many as 24-72 cores for intercity networks, 96-216 for inner city and 4 for undersea cabling.

The OFM connects most provinces in Indonesia with a capacity of 2.5 Gbps to 10 Gbps with WDM (Wave-length Division Multiplexing) technology.

Indosat’s fiber optic infrastructure is also connected directly to the IP-based platform, allowing connectivity to various services with maximum efficiency and assurance in network availability.

Besides fiber optic, Indosat also has the Palapa-D and Palapa C2 satellite covers the whole of Indonesia, Asia, and Australia.

Almost all of Indosat’s telecommunication products operate on Indosat’s own backbone: cellular GSM (Mentari, IM3 and Matrix), fixed wireless CDMA (StarOne and Jagoan), internet service provider (IM2), and other derivative products from these main offers. All these products are supported by sophisticated telecommunication technologies such as GPRS, MPLS, and 3G, that bring massive data volume in high transfer speed.

The strength in backbone and the comprehensive products leverage Indosat as the leading telecommunication company. These values equip Indosat to provide the best efficiency and end-to-end solution for corporations. Just come to us to find the best solution for any telecommunication issues your company faces.

ICS

Today’s companies need integrated telecommunication services to smoothen its business processes. Indosat is highly experienced in serving this corporate need.

Our corporate integrated telecommunication service includes solutions for voice, mobile data, connectivity, value added services (VAS) and hosting.

These services will help companies in all industries to improve performance and effectiveness.

VOICE SOLUTIONS is a fixed- and mobile-based voice solutions tailored to specific corporate needs. Solutions offered: I-Phone, cellular, fixed wireless and combination of all three.

MOBILE SOLUTIONS offers corporate mobile solutions for a company’s employees and customers. Solutions include Corporate User Group (CUG), GSM PBX Integration, Mobile Banking and Vehicle Tracking.

CONNECTIVITY SOLUTIONS provides options to best telecommunication backbone network, including fiber optic, satellite or sophisticated wireless technology.

VAS & HOSTING SOLUTIONS provides VAS solutions to enrich your corporate telecommunication facilities. This includes SMS Bulk, Disaster Recovery Center, VAS applications and I-Ring Corporate.

 

History

PT Indosat Tbk was established by the Government on November 10, 1967 as a foreign investment company to provide international telecommunications services in Indonesia and began commercial operations in September 1969 to build, transfer and operate an International Telecommunications Satellite Organization, or Intelsat, earth station in Indonesia to access Intelsat’s Indian Ocean Region satellites for a period of 20 years. As a global consortium of international satellite communications organizations, Intelsat owns and operates a number of telecommunications satellites.
 

Following regulatory changes in the Indonesian telecommunications industry in 1999 and 2000, we began implementing a strategy designed to transform us from being Indonesia’s primary international telecommunications provider into a leading, fully integrated telecommunications network and service providerin Indonesia. In 2000, the Government’s introduction of the Telecommunications Law, which encourages industry liberalization, directly impacted our business. In 2001, as part of the Government’s initiative to restructure the telecommunications industry, we entered into an agreement with Telkom to eliminate our respective crossshareholdings in several operating subsidiaries, including:

  • our acquisition of Telkom’s 22.5% ownership interest in Satelindo;
  • Telkom’s acquisition of our 35.0% ownership interest in Telkomsel; and
  • our acquisition of Telkom’s 37.2% ownership interest in Lintasarta and the purchase of Lintasarta’s convertible bonds held by Telkom.

Subsequent to the agreement with Telkom, we acquired an effective 45.0% ownership interest in Satelindo, through our acquisition of PT Bimagraha Telekomindo, or Bimagraha, in 2001 and acquired the remaining 25.0% ownership interest in Satelindo from DeTe Asia in June 2002. To strengthen Satelindo’s capital structure and remove certain restrictive covenants arising from Satelindo’s indebtedness, we made an additional capital contribution to Satelindo totaling US$75.0 million in July 2002

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In August 2002, we entered the domestic telecommunications sector by obtaining a license to provide local fixed network services in the Jakarta and Surabaya areas. We deployed approximately 13,000 lines in those areas to provide local fixed telephone services and announced our strategic objective to become a leading fully integrated telecommunications network and service provider in Indonesia. In 2002, the Government divested 517.5 million shares, representing approximately 50.0% of our outstanding Series B shares at the time, in two stages. In May 2002, the Government sold 8.1% of our outstanding shares through an accelerated global tender.

In December 2002, the Government divested 41.9% of our outstanding Series B shares to a former subsidiary of STT. As of March 31, 2009, the Government owned 14.29% of our outstanding shares, including the one Series A share, and ICLM and ICLS owned approximately 65.0% of our outstanding Series B shares. ICLM and ICLS are owned by Qtel. The remaining 20.71% of our outstanding Series B shares is owned by public shareholders as of March 31, 2009. See “Item 6: Directors, Senior Management and Employees—Share Ownership.”

On November 20, 2003, we merged with Satelindo, Bimagraha and IM3 and all assets and liabilities of such legacy subsidiaries were transferred to us on such date. Since entering the Indonesian cellular market through our acquisition of Satelindo and establishment of IM3 and the subsequent integration of such companies in 2003, cellular services have become the largest contributor to our operating revenues.

On June 22, 2008, Qtel purchased all of the issued and outstanding shares of capital stock of each of ICLM and ICLS, pursuant to a Share Purchase Agreement dated June 6, 2008 between Qtel and STT, a company incorporated in Singapore. Pursuant to the Share Purchase Agreement, Qtel, through its subsidiary, Qatar South East Asia Holding S.P.C., acquired the capital stock of ICLM and ICLS from Asia Mobile Holdings Pte. Ltd., or AMH, a company incorporated in Singapore, which is 75.0% indirectly owned by STT Communications Ltd. and 25.0% indirectly owned by Qtel. Following this acquisition, a change of control occurred in Indosat and Qtel, and its wholly owned subsidiaries, ICLS and Qatar South East Asia Holding S.P.C., conducted a mandatory tender offer to acquire up to 1,314,466,775 Series B Shares, representing approximately 24.19% of our total issued and outstanding Series B Shares (including Series B Shares represented by ADSs), at a purchase price of the U.S. dollar equivalent of Rp369,400 per ADS and Rp7,388 per Series B Share, net to the seller in cash (without interest and subject to any required withholding of taxes). Following settlement of the tender offer on March 5, 2009, Qtel and its subsidiaries hold approximately 65.0% of our outstanding share capital.

 

Subsidiary Companies

PT Aplikanusa Lintasarta Lintasarta is 72.36% owned by Indosat and it provides high-speed data communications services and corporate network services.

PT Indosat Mega Media IndosatM2 is 99.85% owned by Indosat and provides Multimedia and Internet services, including Cable TV, IP-based multimedia, Internet, and IP-based LAN & WAN network communications services.