Axiata and Sinar Mas Sign Two Agreements for Digital Transformation in Southeast Asia
KUALA LUMPUR, investortrust.id – Axiata Group Berhad, a leading telecommunications conglomerate in Asia, and Sinar Mas, a prominent Indonesian business group, have signed two Memorandums of Understanding at an event held in Petronas Twin Towers, Kuala Lumpur.
The ceremony was attended by Malaysian Prime Minister Dato’ Seri Anwar Ibrahim and Indonesian President Prabowo Subianto. The agreements aim to strengthen strategic cooperation in driving digital transformation across Southeast Asia.
The first MoU focuses on exploring synergies in telecommunications, financial technology (fintech), 5G solutions, business services, and digital infrastructure. This collaboration is expected to accelerate digital transformation across the region.
“This memorandum represents a significant step in enhancing regional partnerships to foster inclusive digital transformation in Southeast Asia,” said Vivek Sood, CEO of Axiata Group, in a statement shared with investortrust.id on Tuesday, Jan 28, 2025.
Sood added that the collaboration will address the digital divide while driving economic growth in emerging markets within the region.
Sinar Mas views the partnership as a significant opportunity to contribute to improved connectivity and innovation. “We believe this collaboration will deliver long-term value to all stakeholders and bolster the vision for a digital economy in Malaysia and Indonesia,” said Franky Oesman Widjaja, Chairman of Sinar Mas Telecommunications and Technology.
Merger Plan Between XL Axiata and Smartfren
The second MoU reaffirms the commitment to the merger plan between PT XL Axiata Tbk, PT Smartfren Telecom Tbk, and PT Smart Telcom. The merged entity, to be named PT XLSmart Telecom Sejahtera Tbk, will have a combined valuation of over Rp 104 trillion ($6.5 billion) and a pro forma revenue of Rp 45.4 trillion.
This merger aims to enhance customer service quality, improve digital connectivity, and foster greater competition in Indonesia’s telecommunications market. The process is pending regulatory and shareholder approval and is targeted for completion in the first half of 2025.
Government Support for Digital Connectivity
This strategic partnership has received strong support from the governments of Malaysia and Indonesia, reflecting a shared vision to create a more inclusive and dynamic digital ecosystem.
Axiata and Sinar Mas are optimistic about leveraging cutting-edge technology to deliver innovative solutions that advance digital transformation in Southeast Asia. Both companies have committed to providing updates on the partnership and merger progress through their official channels.