Deals
It's Not Just Regulation Hampering Indonesian Telco Deals
- Valuations, technical factors are hindering consolidation
- Elections add uncertainty to revision of spectrum rule
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A planned ministerial rule revision intended to pave way for consolidation in Indonesia’s telecommunication industry won’t be enough to spark deal activity, according to analysts at Citigroup Inc., PT Danareksa Sekuritas and PT Yuanta Securities.
Communications Minister Rudiantara said this month he plans to modify local rules on mobile-communications airwaves, a stumbling block that has been holding back consolidation in Southeast Asia’s largest economy. That’s propelled shares of PT Indosat and PT Smartfren Telecom, two companies that have been at the focus of merger speculation.