TBIG - Plans to spend IDR3 tn in capex

Tower Bersama Infrastructure (TBIG) plans to earmark IDR3 tn in capital expenditure for 2023 which the company has spent IDR750 bn as of 1Q23 for the establishing 165 tower sites and 143 collocations as well as FTTT network. The company also eyes to add 30,000 Kms of fiber optic this year as it is shifting its focus to fiber expansion to keep up with higher demands. (Source : Bisnis Indonesia) Comment : Amid consolidation, we think there is urgency for tower companies to shift its focus to fiber expansions. This is also helped by penetration of data users that reach c. 70% of total customers, and growing scale of digital economy. For TBIG in particular, it needs to accelerate fiber expansion to cater demands as fiber assets still small compared to competitors. We still maintain our neutral view on tower sector in the midst of consolidation phase and headwinds from high interest rates.