Optical Fiber on Solusi Tunas Agenda
Solusi Tunas Pratama, a telecommunication infrastructure provider, has set aside Rp 500 billion ($53 million) for capital expenditure this year, which it plans to spend on technology and acquisitions.
“The capital expenditure will be funded by internal cash and bank loans, with the remaining funds being some of the proceeds from our IPO,” president director Nobel Tanihaha said in Jakarta on Monday.
The company raised Rp 340 billion last October in its initial public offering.
According to a company filing with the Indonesia Stock Exchange, as of April, the company had Rp 183 billion of those proceeds that had yet to be spent.
The Jakarta-based company had so far spent about half of its budgeted expenditure for the year, Nobel said.
He added that Solus would use its capital expenditure to lay optical fiber cable below the ground, and also for acquisitions.
Earlier this year, the company acquired Platinum Teknologi, a company that controls a network of optical fiber cables in Jakarta.
Late last year, the company acquired a controlling stake in Sarana Inti Persada, a telecommunications tower operator in West Java, for Rp 100 billion.
Nobel said acquisitions were needed to meet rising consumer demand. But beyond acquisitions, the company will also continue with its organic growth plan.
“This year, we are planning to build 300 new towers,” he said.
As of the end of December, the company operated a total of 1,309 telecommunication towers on Java and Sumatra, with 2,114 tenants.
The company has forecast its net income to grow 50 percent this year from last year’s Rp 330.9 billion.
Shares in Solusi were unchanged at Rp 4,950 on Tuesday in Jakarta.
They have gained 17 percent so far this year on the Indonesia Stock Exchange.