REPUBLIKA.CO.ID, JAKARTA -- In the third round of presidential debate, candidate No. 2, Joko 'Jokowi' Widodo said that he wanted to buy back shares of one of Indonesia's largest telecommunication operator, PT Indosat Tbk (ISAT) from foreign investors if he became the president. State owned enterprises' observer, Said Didu said that the buyback assets would be unprofitable.
In strategic aspect, Didu assessed that current Indosat condition was different from the first time when the company had a satellite. In business aspect, the new government is better to develop Telkomsel - the largest telecommunication operator in Indonesia - rather than to buy back shares in Indosat.
"Buy back shares in Indosat will be unprofitable," Didu said on Tuesday.
Telkomsel and Indosat have similar core business. In other foreign countries, they only have one telecommunication company. The new government can raise full control in Telkomsel shares. Currently, Telkomsel is still dominated by Singapore owned telecommunication company, Singtel.
"Telkom should be developed. Indosat market share is also small and now everyone has satellite," Didu said.
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