Tuesday, 28 July 2026

Indosat Posts Rp30.7 Trillion Revenue, AI Transformation Drives Digital Growth

AHMAD ZULFIKAR SAGALA - Tuesday, 28 July 2026 21:00
Indosat Posts Rp30.7 Trillion Revenue, AI Transformation Drives Digital Growth
PHOTO: Doc. Indosat IOH
INDOSAT’S GROWTH PERFORMANCE: Indosat recorded positive business growth in the first half of 2026 with revenue reaching Rp30.7 trillion while strengthening AI-driven digital transformation to support Indonesia’s digital economy.

JAKARTA | INDATANEWS.COM- PT Indosat Tbk (Indosat Ooredoo Hutchison/IOH) recorded strong financial and operational performance in the first half of 2026. The company delivered positive growth supported by continuous transformation driven by artificial intelligence (AI). This strategy not only strengthens Indosat's business foundation but also lays the groundwork for the continued expansion of Indonesia's digital economy.

For the six-month period ending June 30, 2026, Indosat recorded revenue of Rp30.7 trillion, representing a 13.1 percent year-on-year (YoY) increase compared with the same period last year.

Indosat's earnings before interest, taxes, depreciation, and amortization (EBITDA) also showed positive momentum. EBITDA increased by 14 percent YoY to Rp14.6 trillion. As EBITDA growth outpaced revenue growth, the company maintained a healthy EBITDA margin of 47.6 percent.

Meanwhile, normalized net profit attributable to the owners of the parent company rose 49.2 percent YoY to Rp3.2 trillion. This achievement was supported by sustainable business growth, disciplined cost management, and improved operational efficiency across various business segments.

AI Transformation Enhances Digital Customer Experience

President Director and Chief Executive Officer of Indosat Ooredoo Hutchison, Vikram Sinha, said AI-driven transformation has become a key strategy for the company in creating long-term growth.

"Our AI North Star drives long-term value creation by transforming Indosat from a connectivity provider into an AI-powered technology company. The double-digit growth we have achieved is strong evidence that our strategy is being successfully implemented while reflecting the positive momentum of our transformation journey. This achievement strengthens our confidence to accelerate the next phase of transformation by developing capabilities that will serve as future growth engines while contributing to the development of Indonesia's AI ecosystem," Vikram Sinha said.

Indosat continues to integrate AI technologies into various digital services to improve customer experiences. Through features such as Anti-Spam and Anti-Scam, Sahabat-AI, Gemini AI, and Adobe Express, the company provides digital solutions designed to make society more productive, creative, and secure.

The improvement in digital user experience also contributed to annual data traffic growth of 19.9 percent. At the same time, average revenue per user (ARPU) increased by 17.3 percent to Rp46,000.

During the same period, Indosat maintained a stable mobile subscriber base, reaching 93.4 million customers.

AI STRATEGY DRIVES INDOSAT TRANSFORMATION: President Director and Chief Executive Officer of Indosat Ooredoo Hutchison, Vikram Sinha, highlights the AI North Star strategy as the driving force behind Indosat's transformation into an AI-powered technology company. (PHOTO: Doc. Indosat IOH)

Infrastructure Investment and AI Cloud Become New Growth Engines

Strong operational performance has enabled Indosat to accelerate investments in preparation for its next phase of growth. The company continues to strengthen its technology capabilities through strategic initiatives that support long-term expansion.

One of the key achievements in the first half of 2026 was the establishment of PT Infra Fiber Teknologi (IFT) in partnership with the Arsari Group. Through the transfer of management of more than 86,000 kilometers of national fiber optic infrastructure, Indosat generated approximately Rp11.7 trillion in proceeds while implementing an asset-light business model.

This strategy provides Indosat with greater financial flexibility to accelerate investments in high-growth business opportunities, particularly those supporting the company's technology-based transformation.

At the same time, Indosat continues expanding its AI Cloud business amid increasing industrial demand for AI technologies. In the first half of 2026, AI Cloud generated revenue of US$33 million, surpassing its total annual revenue in 2025 of US$28 million.

The growth of the AI Cloud business reflects rising demand for sovereign AI infrastructure and strengthens the position of this service segment as one of Indosat's new growth sources.

To support the development of Indonesia's AI ecosystem, Indosat also expanded network capacity through additional frequency spectrum totaling 80 MHz in the 700 MHz and 2.6 GHz bands. This expansion improves service quality and network capacity to meet society's growing demand for AI-based digital experiences.

Through these investments and its continued focus on Customer Love, Indosat is confident in delivering more reliable, intelligent, and personalized digital experiences. The network expansion also creates new monetization opportunities through Indosat 5G services, including Fixed Wireless Access (FWA).

Indosat North Sumatra Records Highest Data Traffic Growth

In line with national growth trends, Indosat's North Sumatra region recorded the highest increase in data traffic across the Sumatra region during the first half of 2026. Data traffic in the region grew 36.3 percent YoY.

This growth reflects increasing public demand for digital services and reliable connectivity to support various activities, ranging from communication and business to education and entertainment.

To meet this demand, Indosat continues strengthening network infrastructure in North Sumatra and surrounding areas. By the end of the second quarter of 2026, the company operated more than 15,000 4G base transceiver stations (BTS) and expanded its 5G network with support from more than 360 5G BTS units.

As part of its #LebihBaikIndosat commitment, the company continues implementing programs to bring the benefits of digital technology closer to communities. One of the initiatives was the SheHacks 2026 event in Medan, which provided women entrepreneurs in the small and medium enterprise (SME) sector with training on utilizing AI for business development.

Indosat is also expanding service accessibility through the opening of integrated Gerai-IM3 and 3Store outlets in Aceh Singkil, Lubuk Pakam, and Padang Sidempuan. In addition, IM3 and Tri participated in the Pekan Raya Sumatera Utara (PRSU) 2026, allowing visitors to directly experience Indosat's 5G network services.

These initiatives reflect Indosat's commitment to providing digital services that are closer to communities, delivering relevant solutions, and creating greater value for society across Sumatra.

ENHANCING DIGITAL EXPERIENCE: Indosat North Sumatra strengthens digital infrastructure with more than 15,000 4G BTS units and over 360 5G BTS units to improve digital experiences for communities across Sumatra. (PHOTO: Doc. Indosat IOH)

Sustainability and AI Talent Development

Beyond strengthening its digital business, Indosat continues advancing environmental sustainability efforts and human resource development.

Through AI-powered network optimization and intelligent energy management, the company reduced carbon emission intensity by 50.89 percent. This commitment was recognized through Indosat's inclusion in three KEHATI ESG indices: SRI-KEHATI, ESG Sector Leaders, and ESG Quality 45 for the June-November 2026 period.

Indosat is also increasing investment in building Indonesia's AI ecosystem through partnerships with the Indonesian Ministry of Manpower (Kemnaker RI) and the Wadhwani Foundation.

Through this collaboration, Indosat plans to develop one million digital talents and 100,000 AI-based entrepreneurs by 2029. The initiative forms part of the company's long-term strategy to establish a leading role in AI through responsible innovation, sustainable growth, and inclusive talent development.

With continuously expanding business performance, infrastructure development, and accelerated AI-driven transformation, Indosat reaffirms its commitment to playing a central role in advancing Indonesia's digital economy. (IDNC)

REPORTER: Sri Endang Lasmiaty | EDITOR: Fik Sagala

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