Tower Facilities Budget Rp600 Billion to Build New Telecommunication Tower

INDUSTRY.co.id - Jakarta - PT Sarana Menara Nusantara Tbk (TOWR) will allocate Rp600 billion to finance the construction of new telecommunication towers by 2018. The company has signed a cooperation contract with PT XL Axiata Tbk and Hutchison 3.

"The company's new telecom tower investment will depend heavily on the needs of telecommunication companies, which are the clients of the company," said Adam Gifari, Vice President Director of TOWR, in Jakarta, recently.

Adam said, the company will be very careful to build new towers. That's because the investment spent to build one telecommunication tower can reach Rp900 million to Rp 1 billion.

"The investment fund used to finance the construction of telecommunication towers will come from the allocation of capital expenditure in 2018 which is worth a total of Rp2 trillion," said Adam.

Adam said that to build the new telecommunication tower, the company expects the growth of new areas requiring the existence of new telecommunication towers to reach the population growth.

"Despite budgeting capital expenditures for new tower development, the company is also eyeing increases in several other service lines such as the addition of equipment to the tower and the addition of a new infrastructure of network reinforcement," said Adam.

Adam explained that TOWR revenue is targeted to increase between 5-9% in 2018. The percentage increase follows the growth of the national telecommunications industry, especially corporate actions conducted by XL Axiata and Hutchison 3.

"Approximately 27% of the company's consolidated revenue comes from the cooperation contract with XL Axiata and 30% comes from the cooperation contract with Hutchinson 3," said Adam.

Besides expanding its business organically, the company will also expand inorganic, through the acquisition of similar companies. However, Adam was reluctant to explain in detail about the company being explored by the company for the acquisition. (Abraham Sihombing)