Solusi Tunas Pratama, a listed telecommunications tower company, plans to invest $100 million to add 1,000 new telecommunications towers next year, boosting its total by a third, in a bid to boost revenue.
Bank loans will provide the funding, according to Nobel Tanihaha, STP’s managing director.
The company has secured a long-term loan of $171.04 millions and Rp 1 trillion ($83 million) from DBS Bank and Standard Chartered Bank. Standard Chartered also provided loan facilities of $21.45 million and Rp 300 billion to STP.
STP has withdrawn all funds from its long-term loan facility, according to the company’s third-quarter financial report.
Nobel said that STP will use the money to add 1,000 new towers, which will lift company’s tower to 3,900 units next year.
“We’ve added 1,200 towers this year that’s targeted to push our revenue up to over Rp 800 billion – 50 percent over last year’s,” said Nobel. The company’s revenue reached Rp 600.34 billion in the first nine months of this year.
The company will use the remainder of the loan to repay Rp 1.08 trillion in maturing debt, according to Juliawati Gunawan, STP’s corporate secretary.
STP is one of the country’s leading providers of telecommunication infrastructure. Its rivals include Tower Bersama Infrastructure, which is partly owned by Saratoga Group, and Djarum Group’s Sarana Menara Nusantara. Tower Bersama and Sarana Menara have expressed interest in buying a stake in Dayamitra Telekomunikasi, a telecommunication tower company and subsidiary of Telekomunikasi Indonesia, as part of their expansion plan next year.
STP owns and operates tower sites for lease to mobile phone operators. Its clients include Axis, Bakrie Telecom, First Media, Telkomsel, Smart Telekom. The company boasts a large presence in Jakarta and the Greater Jakarta region. It was established in 2006 to take advantage of the rapid growth in Indonesia’s wireless communication industry.
Shares of STP were unchanged at Rp 8,150 on the Indonesia Stock Exchange on Tuesday, compared with the 1.5 percent gain for the main stock index.
(Source: Jakarta Globe)