Mitratel, a subsidiary of PT Telkom Indonesia Tbk (TLKM), is preparing a strategic consolidation of its business units. The tower provider plans to merge two of its subsidiaries, PT Persada Sokka Tama (PST) and PT Ultra Mandiri Telekomunikasi (UMT), into the parent company. This corporate restructuring is targeted to become effective by July 1, 2026.
While the merger received approval from the boards of commissioners of MTEL, PST, and UMT on May 6, 2026, the finalization of the plan remains subject to approval from the respective General Meetings of Shareholders (RUPS) and an effective statement from the Financial Services Authority (OJK).
As Mitratel accelerates its expansion, particularly in regions outside Java, market analysts are closely observing the company’s business potential. Panin Sekuritas analyst Aqil Triyadi noted that Mitratel’s tenancy ratio—the average number of tenants per tower—reached 1.57 times in the first quarter of 2026. This growth aligns with a significant 11.3% year-on-year increase in colocation, bringing the total number of shared tenancy points to 23,006 units.
Aqil attributes this improved tenancy ratio to the aggressive expansion of mobile operators into regions outside Java. Notably, over 59% of Mitratel’s tower portfolio is situated outside Java, including in the 3T regions (Frontier, Outermost, and Disadvantaged areas). According to Aqil, the rising ratio demonstrates Mitratel’s capability to meet the infrastructure needs of strategic partners amid ongoing consolidation within the telecommunications industry.
The growth trajectory for Mitratel is further bolstered by the government’s Internet Rakyat program, which utilizes Fixed Wireless Access (FWA) technology. As FWA requires reliable tower infrastructure to transmit internet signals to residential households, Mitratel stands to benefit from the expansion plans of operators like MyRepublic and PT Solusi Sinergi Digital Tbk (WIFI). Analysts suggest that renting existing infrastructure from providers like Mitratel is a more efficient solution for these operators than building independent networks from scratch.
By the end of the first quarter of 2026, Mitratel managed 40,327 towers, a 1.9% year-on-year increase. Given this scale, focusing on colocation growth has become a more strategic priority than merely expanding the tower count. Aqil emphasizes that colocation-driven growth is higher quality because it boosts revenue without significantly altering the company’s cost structure, thereby leading to higher profit margins from incremental tenants.
Financial performance in the first quarter of 2026 reflects this efficiency, with Mitratel recording revenues of IDR 2.29 trillion—a 1.4% increase year-on-year—and a 3.6% rise in net profit to IDR 545 billion. The company maintained a robust EBITDA margin of 82.7%. Beyond tower assets, Mitratel continues to strengthen its fiber optic network, which grew by 17.3% to reach 72,842 km of billable length, supporting the increasing demand for network capacity, low latency, and 5G development.
On the financial front, Mitratel reported net cash from operating activities totaling IDR 4 trillion in the first quarter of 2026. With cash and cash equivalents rising to IDR 2.84 trillion, total assets amounting to IDR 60.56 trillion, and equity of IDR 33.66 trillion, the company maintains a solid balance sheet.
In light of these developments, Mirae Asset Sekuritas has maintained a buy recommendation for MTEL shares, setting a target price of IDR 760 per share, equivalent to 9.9 times the FY26F EV/EBITDA. Mirae highlights that Mitratel’s stable profit growth and healthy financial position, driven by 5G fiberization and surging demand for FWA services, remain key catalysts for the company’s future performance.
Summary
Mitratel is undergoing a strategic consolidation by merging its subsidiaries, PT Persada Sokka Tama and PT Ultra Mandiri Telekomunikasi, with the parent company by July 2026. This restructuring coincides with a robust operational performance, marked by a tenancy ratio of 1.57 and a significant tower portfolio presence outside Java. The company is strategically prioritizing colocation growth over pure tower expansion to improve profit margins, bolstered further by the government’s Internet Rakyat program and increasing demand for Fixed Wireless Access infrastructure.
Financially, Mitratel demonstrated resilience in the first quarter of 2026 with a 3.6% increase in net profit and a strong EBITDA margin of 82.7%. The expansion of its fiber optic network by 17.3% positions the company well for future 5G development and increased network capacity requirements. Consequently, analysts maintain a buy recommendation with a target price of IDR 760 per share, citing the firm’s stable profit growth and healthy balance sheet as key drivers for long-term value.