INET and WIFI Pivot: Strategic Restructuring Over Fiber Optic Deals and the Rise of IP Transit

In the fast-paced world of digital infrastructure, shifts in strategy are often more about evolution than termination. This is precisely the case with the recent updates from PT Sinergi Inti Andalan Prima Tbk (INET). While headlines might suggest a cancellation of their fiber optic cooperation with PT Integrasi Jaringan Ekosistem (IJE)—a subsidiary of PT Solusi Sinergi Digital Tbk (WIFI)—the reality is a sophisticated restructuring designed to strengthen their long-term position in the market.

The Shift from Fiber Optic to IP Transit

On January 2, 2026, INET officially reported the cancellation of its fiber optic cooperation with IJE. Following this, IJE returned a deposit of IDR 61 billion on January 6. However, this wasn't an end to the relationship between the two tech giants. Instead, the focus has shifted toward a more robust partnership through INET’s subsidiary, PT Pusat Fiber Indonesia (PFI).

This transition follows a previous IP transit service agreement between PFI and IJE dated March 25, 2025. Although that specific agreement was also adjusted and eventually cancelled on February 16, 2026, with the deposit returned, it paved the way for a much larger deal. The collaboration has now moved up the corporate ladder to IJE’s parent company, PT Jaringan Infrastruktur Andalan (JIA).

A Massive 10,000 Gbps Commitment

The new contract between PFI and JIA is anything but small. It involves a subscription to IP transit services with a staggering capacity of 10,000 Gbps, spanning a 10-year period. To reflect the expanded scope of this cooperation, the deposit value has been significantly increased to IDR 269.2 billion. This move signals a high level of confidence in the digital demand within the region.

Management at INET explained that JIA is the strategic entity overseeing both the Fiber-to-the-Home (FTTH) business lines, managed through IJE, and the Fixed Wireless Access (FWA) projects. By aligning directly with JIA, INET is positioning itself as the primary bandwidth supplier for the entire business group, ensuring a more streamlined operational flow.

The RISING-8 Submarine Cable Infrastructure

At the heart of this deal is the RISING-8 submarine cable system. This critical piece of infrastructure spans 1,132.5 kilometers, connecting the digital hubs of Singapore, Batam (Tanjung Bemban), and Jakarta (Tanjung Pakis). The contract stipulates that this system must be ready for use before July 31, 2026.

INET and PFI are working on an ambitious timeline, targeting the end of May 2026 for the system to become fully operational. This submarine cable is expected to provide the backbone needed to support the massive data requirements of the 10,000 Gbps contract, reinforcing Indonesia's connectivity with international gateways.

Strategic Focus: Why FWA is Winning

The restructuring also reflects a broader strategic shift within the WIFI group. As previously reported, WIFI is prioritizing Fixed Wireless Access (FWA) projects—often referred to as the "Internet Rakyat" (IRA) project—over traditional FTTH networks. This decision is driven by the need to optimize cash flow and accelerate deployment to underserved areas.

JIA also oversees PT Telemedia Komunikasi Pratama (TKP), the operator behind these FWA initiatives. By pivoting to IP transit, INET is directly supporting WIFI’s focus on FWA, providing the necessary bandwidth to power widespread internet access across the archipelago without the heavy CAPEX immediately required for full FTTH rollouts.

No Impact on Expansion Plans

INET’s management has been clear: these changes are a restructuring, not a termination. The move is based entirely on business and operational considerations to fortify the company’s role in the national digital ecosystem. Shareholders and market observers should view this as a strategic "level up" rather than a setback, as it secures a decade-long partnership with a massive capacity commitment and advanced submarine infrastructure.