ISAT - Plans to spend IDR13 tn in capex

Indosat Ooredoo Hutchison (ISAT) is planning to spend IDR13 tn in capex, or higher than last year's of IDR12 tn. The capex will be spent for 4G expansion as well as 5G network. In present, ISAT's 5G network has been launched in 8 cities along with use case initiation in these cities. (Source : Bisnis Indonesia) Comment: ISAT's higher capex spending indicates its aggressiveness to maintain its position to be the second biggest MNO's following its merger with Hutch Tri. In addition to higher capex, ISAT is also planning to expand into ex-Java areas to seek new growth and cement its footprint in the areas, supported by strong balance sheet. Meanwhile, its closest competitor, EXCL is lowering its capex spending that we deem as conservative move in maintaining its leverage ratio.