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Indosat continues value-driven growth with consistent dividend payouts
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any companies, including those in the telecommunications sector, are undergoing transformation and investing heavily in artificial intelligence (AI). These efforts require significant capital outlays in research and development, talent acquisition, infrastructure and strategic partnerships. This shift reflects a broader industry trend favoring long-term innovation over short-term profitability.
AI investments are widely regarded as drivers of long-term value and competitive advantage. They enhance productivity, increase market share and improve profit margins.
As a result, several leading global companies have reduced or even eliminated dividend payouts in favor of reinvesting in AI and innovation. This reinvestment strategy has supported their evolution into technology and AI leaders.
In contrast, PT Indosat Tbk (Indosat) continues to prioritize shareholder returns while advancing its transformation into an AI-driven technology company. The company is actively leveraging AI to improve operational efficiency and drive business expansion.
Indosat’s policy of maintaining consistent dividend payouts underscores its appeal to income-focused investors. This approach strengthens its credibility, bolsters investor confidence and signals confidence in the company’s future prospects.
At its 2024 Annual General Meeting of Shareholders (AGMS), the company reiterated its commitment to building a strong foundation for sustainable long-term growth.
Indosat’s commitment to rewarding shareholders was reaffirmed at the AGMS held on May 28, where shareholders approved a cash dividend payout totaling Rp 2.7 trillion (US$165.54 million), equivalent to Rp 83.3 per share.
This consistent dividend distribution underscores Indosat’s steady financial performance since the merger and reflects the company’s dedication to sustainable value creation. Since the merger in early 2022, Indosat has shown a strong trajectory of dividend growth, supported by improved profitability and a focused commitment on shareholder returns.
Further demonstrating this commitment, Indosat has set a clear dividend payout policy, targeting up to 70 percent of net profit by 2026. This policy reinforces the company’s long-term strategy to balance rewarding shareholders with continued investment in its transformation into an AI tech company (AI TechCo).
Vikram Sinha, Indosat’s president director and chief executive officer, stated: “As we grow into an AI TechCo, this dividend payout announcement demonstrates our strong balance sheet and commitment to delivering sustainable long-term value to shareholders. This reflects shareholders’ confidence in our direction and our team’s ability to execute a focused, customer-centric strategy to create measurable impact in line with our mission to empower Indonesia.”
As part of its transformation into an AI TechCo, Indosat has adjusted its business licenses in accordance with the 2020 Indonesian Standard Industrial Classification (KBLI). This step supports the expansion of its business activities, including AI-based programming and development, integrated ICT services, Internet of Things (IoT) initiatives and the creation of data-driven services in strategic sectors such as healthcare and digital finance.
Indosat has already reached several key milestones on its journey toward becoming an AI TechCo. Notably, it became the first operator in Southeast Asia to commercially implement AI-RAN technology. This achievement, unveiled at the 2025 Mobile World Congress in Barcelona, was made possible through strategic collaboration with Nokia and NVIDIA. The technology enhances 5G Cloud RAN efficiency while significantly reducing energy consumption. Indosat is also exploring AI adoption across various industry verticals, including through initiatives such as Indonesia AI Day, which highlights the potential of AI to improve productivity and efficiency in sectors like mining.
In addition to the dividend distribution, the AGMS also resolved several key agenda items. These included: Approval of the company’s annual report and ratification of the financial statements for the fiscal year ending Dec. 31, 2024; approval of the allocation of net profit for the same fiscal year; approval of the 2025 remuneration for the board of commissioners and delegation of authority to the board of commissioners to determine the 2025 remuneration for the board of directors; approval of the appointment of the company’s public accountant for the financial year ending Dec.31, 2025; approval of changes to the composition of the company’s board of directors and/or board of commissioners; discussion of the feasibility study report prepared by an independent appraisal office regarding the proposed addition of business activities in line with Financial Services Authority (OJK) Regulation No. 17/POJK.04/2020 concerning Material Transactions and Changes in Business Activities; approval of amendments to Article 3 of the company’s Articles of Association regarding its purposes, objectives and business activities.
