Gemcorp Capital (Gemcorp), based in London, has announced the completion of an investment agreement aimed at acquiring control over the fiber-to-the-home (FTTH) provider, PT Garuda Prima Internetindo ("Flynet"), a leading provider of future internet technology in Bali, Indonesia, through cash investment. Flynet offers FTTH services to residential users in Bali, Indonesia. Gemcorp has made the first cash payment as per the terms of the agreement.
Gautam Sahdev, Gemcorp Partner responsible for completing the transaction, stated that this transaction represents a significant step forward in Gemcorp's telecommunications activities in Indonesia. This investment will be our second investment in the region, following a significant investment made in 2019.
This investment also follows up on the Memorandum of Understanding (MOU) signed with APJII, an organization representing internet service providers ("ISPs") in Indonesia, where we demonstrated our willingness to provide investment to local ISPs, including FTTH players.
"We are also working on several deals in the telecommunications sector in this region and are in the process of setting up special facilities to channel our investment. Our goal is to arrange investments that will support the backbone of Indonesia's broadband infrastructure, which we believe is fundamental to the country's digital future," Sahdev added, on Tuesday (27/2/2024).
Purwo Handoko, Gemcorp's Special Envoy for the Southeast Asia region, also added that Gemcorp's strategic initial step to invest in Indonesia as the first country in ASEAN is a testament to its confidence in the country's economic fundamentals and favorable investment climate. Hopefully, this will be the first step in developing its investment in Indonesia and other Southeast Asian regions.
Meanwhile, Muhammad Arif Angga, the leader and majority shareholder of Flynet, stated that they started Flynet with the goal of providing top-class internet services to the people of Bali through an advanced fiber network.
"We are very pleased with the progress this business has made since its inception. We are delighted to welcome Gemcorp as a partner and impressed with their ambitions, both in the business and telecommunications sectors. We are proud to be the first ISP to enter into an investment agreement since they signed the MOU with APJII in January 2023," he concluded.