Jakarta Globe | March 14, 2011 | Francezka Nangoy & Reuters
Saudi Telecom plans to increase its shares in Axis Indonesia and set up a five-year plan for the Indonesian provider, it announced on the Saudi bourse over the weekend.
STC said its plans to increase its share in Natrindo Telepon Seluler, the company that manages Axis, from 51 percent to 80 percent. It will do so by lending $370 million as Axis prepares to expand in the Indonesian market.
“Saudi Telecom has shown interest in taking this opportunity to increase its shares in [Natrindo] due to the growth prospects in the Indonesian economy,” STC said on Saturday.
Indonesia’s economy is expected to grow 6.4 percent this year. However, according to one analyst, the telecommunications sector is not expected to grow as much as the last five years.
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