PT Sarana Menara Nusantara Tbk

Okay, Pak. I think most of the participants have already joined. Is it okay if we start now?

Yes, please.

Okay, good afternoon, everyone. My name is Salvi. Welcome and thank you for joining us in the earnings call of PT Sarana Menara Nusantara. Here we have several directors, from Sarana Menara first of all is Pak Hathoratan Wijaya the director and group investor relations also we have Ibu Mona Lisa Irawan the head of corporate secretary and we also have Pak Ardan the head of sustainability welcome so without a further ado Pak I think I will hand over the Pak Harfono to start your presentation. The floor is yours.

Okay, thank you Selvi. Happy, can you help me to present the slide? Okay, today we try to come up with a slightly different presentation slide from the previous one so hopefully it will give us more insight about our company and of course welcome if there is any comment and suggestion for us so we can improve further so we can have a deeper understanding about the company so I start with this page This actually explains who we are. So if you can see that we are now as a digital infrastructure company with 37,000 towers and close to 183,000 fiber optic cable. We also have a defensive business model which is the catwalk is highly predictable supported with the long term and non-cancellable contract with the bona fide customers. In number 3 also we try to explain that our infra asset actually can be highly utilized through a multi-use ecosystem that create a different revenue stream from the same asset. so again this will be another slide in the following slide we can go through one by one on this and also we are strong we are investment grade rating of course it will create a very highly competitive with the low cost of fund and our net debt to EBITDA is less than 4 so our Our company actually the covenant with the bank is using the NetDev to EBITDA and the covenant with the bank is now is maximum to 5 and we are now at the with around 4 slightly before 4 so it's a quite a comfortable one. Again also with this asset and then the business model and investment rate rating so we can create a sustainable and strong cash generation which actually at the end can bring the deliver the shareholders return to dividend and valuation through the growth of the business next I repeat Now the second slide is talking about what we are. So as you can see, we have quite a scalable assets with 36,000 towers and 182,000 kilometer fiber. So it gives us the benefit for further cost expansion and also an efficiency in the CARPEX and OPEX. because we have enough scalable of the asset so it really give us a room to create that kind of benefit the second one also like I said we have 100 trillion remaining contracted revenue so it really give us the highly creditable cash flow and low volatility so because it's recurring Business Model 2 the next one is that we will talk in the following pages about this which is quite new with the presentation compared to the previous presentation so we can use we can show actually that the multi-use of our core asset tower and fiber to generate different multiple Revenue stream on it. The next one, we are investment rate rating so our borrowing cost is competitive low and we have financing flexibility as you can see that our net debt to EBITDA is below 4 and our government with the bank is up to 5. Now also talking about our ecosystem, In the following pages we can see that what is our total ecosystem within the Propel Indogroup or POWR. So we can have a deeper understanding what is our competitive compared to the industry. Next I think. Now we're talking about the tower first in here which I think most of you already familiar. So this is an ecosystem, sorry this is a total ecosystem. If you can see in the right hand side, we have a tower, we have fiber, and we have also a Vsat, it's a C-band, we have a five transponder which is a good complement to our fiber business later we can touch base on that and now we have a managed service as you know that starting this year we consolidate our subsidiary called PMG or BA so they are actually doing the to support the managed service for those assets so if you can see from the diagram here With the same asset like I said, tower, fiber and fissure, this is the revenue stream that coming up from those assets. So we have a tower, fiber to the tower, fiber to the home, connectivity solution and adjacent businesses. So I cannot, the reason we put this kind of picture in here, Even let's say if you say a connectivity solution you know that we have to do this connectivity solution we need let's say a POP. So we use most our POP is located in our tower. So this kind of synergy that we try want to share moving forward. Next I think. Yeah, this is the tower business model. This is, I think most of you already familiar with this. It's a built-to-suit model with the non-speculative context because we build on the order from the customer. So we have a guaranteed return on the contracted within the contracted period. And then followed by the collocation expansion. So if we have the second tenant, so the business model allows us to generate more EBITDA margin because one tower can be occupied by two or three tenants. And our tenant is of course the telecom operators, which is highly credit worthy. This our business model is 10 years leases with the non-cancellable one. And also I want to start to share that some of the question that come to my desk is about the is there any price escalation. Yes, we have the lease comprise of two things which is a CAPEX portion and an OPEX portion. So we have the price escalation on the OPEX one. next happy yeah this one is the new slides that we try to share so if you can see here the message of this tower fiber business is one cable one fiber optic cable can generate multiple revenue stream so when we deploy a cable It can contain between 12 to 48 cores inside one fiber optic. So this can be used for fiber to the home, fiber to the tower, and also for the connectivity. Let's say, move to the right hand side, the top one, the fiber to the tower. So again, this is fiber to the tower, the business model is similar to the tower, it's a built to supply. It's a long term contract, 10-14 years, non-cancellable. So again, it's a non-speculative one with a predictable IRR. It's a day one return from the beginning. Now if you see from this fiber to the tower, what we use actually only two up to four cores only to generate our return. and you can see in the left hand side when we deploy we can deploy 12, 24, 48 even more cores in one single cable road so meaning that after we the capex for this already recovered by this contract for the built-in contract for the provider to the tower but we have extra cost or available cost or unused cost that we can generate revenue when utilizing let's say for the fiber to the home and for the connectivity too so it gives us a competitive advantage so first the capex let's say let's say when we receive a fiber to the home order after we We have this cable there. So we can use the extra cost to the fiber to the home also is applicable. So it gives us the efficiency in capex. It's less capex and faster deployment. The same thing also for the connectivity solution. So we can use also the cable that we already laid for the fiber to the tower and fiber to the home. So it's a five-phase and not only connectivity can use fiber to the home, but also fiber to the tower also can use the connectivity cable route. So it's a multi-use fiber cable. That's actually the message that we want to share about our fiber business model. So in the following page, we can start talking about each of them. What is the fiber to the tower? Tbk to the home and connectivity Next page happy? Okay so this is Previous slide talking about the About the Our ecosystem and Now we are talking about the asset So this is our tower asset Is from Cross Indonesia Java, Sumatra Kalimantan, Sulawesi Maluku and Papua So as of June we have close to 37,000 TOWs which is year on year is growth 3% and our tenancy is now around 1.65 tenancy ratio which is growth 5% year on year. In the bottom side you can see also the trend from back to the 2007 until this year so if you can see even the in the start in the early years of the tour business we can have like 5 or 10 operator and now become 5, 4 and now 3 but you can see despite of that consolidation we are still growing the the tower business healthily. So with the 37,000 towers tenancy with 1.65 times, it shows that we can handle all the issue whenever there is a merger in the operator. So now the operator become three now. So I think we believe the head team of this tower business already come to the end yeah next happy Tower business so we have this is a split of our fiber network Java Sumatra also quite dense there Sulawesi even Kalimantan now approaching to the 10,000 kilometer now so this is our fiber network across the main island of Indonesia and we have 800 POP to support our connectivity business and we have also submarine cable which is connecting to the major island Indonesia now the first one is skyblock to the tower in the right hand side in terms of the billable kilometer or kilometer generating revenue we now booked 234,000 km which is increasing 6.7% year on year compared to last year and the utilization ratio is 191% is increasing also from 180% last year I want to highlight on this utilization ratio like I tried to share in the previous page This 181% actually is not counting the cable that actually lay first for the activity but later on used by connectivity and fiber to the home. The reason we cannot calculate that because this is a different measurement like in the connectivity is we don't count the kilometer billable we start at the megabyte basis so it's not the same matrix, operational matrix that's why I just want to highlight this 191% is actually inside the FTPT only not excluded what the table that used for the FTPT is and connectivity Fiber to the Tower now reach 345 cities which is quite dense now almost across all the big cities and even the 2nd tier and the 3rd tier cities Fiber to the Home the second one we book more than 1.8 million home pass with the home plate penetration is 20% now also I want to share also about this you know that our fiber to the home in the following page we can see the business model it actually contain the whole style and then the B2C one we can walk through after in the following page here fiber to the home exist in 120 cities and the connectivity even to the 347 cities so it's actually it's in line with the story that I tried to share before that that connectivity actually can follow the path of the footprint of our fiber that already installed for FTPT or FTPH if you can see connectivity solution is is really Expanded very well. Next page Hattie. Okay, now this is also a new page we try to share. This is actually our ecosystem. This is adjacent business here. So start in the top is a project and services. This is mostly, you know, the company, our Subsidaries, BMG, in the tower we have the build to suit and collocation, fiber, container fiber to the tower, fiber to the home, the connectivity solution with the media can be used fiber, wireless, satellite, which is the transformer visa, and end to end, machine to machine. Software as a service also is heavily used by our subsidiary like Farnion in Bali or Nusanet in Medan which is the they find this is very useful for them to have the this Flapo or Keponet, Megalos as they bundling with our connectivity services so we find that with this bundling we can increase the stickiness of the customer and next one is digital infrastructure in the left hand below one we have white label ATM it is ATMI the company name is ATMI we have joint venture with 7 bank running the ATM business in Indonesia. We have now around 9,000 ATM machines across the across the Java, Sumatra mostly in Java, Sumatra. Now I want to highlight also this white label ATM is not only the infrastructure the machine but also the money inside the ATM machine. It belongs to us also. So it operates like a bank actually. It's a white label ATM meaning that even you have a card let's say from BCA or from Mandiri or from Vienna you can you can you can do the transaction in this machine it's like at the end of summer also we have payment gateway which is e-fortepay the reason we come to this business also first this is a complement to our Connectivity Business, so it gives our customer is additional method of payment for their bill from us. It's E4Pay and we have energy solution which is a green energy, now it's a rooftop panel, power as a service and genset solution. Genset solution is managed by Bach, our subsidiary. We also start enter to the AI type of thing, like we have apps data center, cloud computing solution. We have, we manage to like the H200 GPU in our, one of our data center. to provide the cloud computing solution IOT also one of our subsidiary Integracea is heavily involved in the IOT things they can use different technology here like mainly LoRa at the moment so this is actually the business lines within the Protelindo group or TOWR so this is hopefully it can give more understanding about our company next okay this is the performance the revenue is year on year grow by 12.7% now reach to 7.2 trillion for the first half of the year the EBITDA grow 4.8% Now why the revenue is growing 12 and then the EBITDA is growing by 4.8% because starting this year we start consolidating the financial for our BAM or BMG which is BMG has a different business model which generate the lower EBITDA market so in terms of EBITDA market is quite bringing down the EBITDA margin but in term of the rupiah is quite healthier net income is grow by 12.4% year on year again this is also already taking into account the BMG for 6 months next thing This page show us actually the growth by each sector, each business line, as we understand the world, the revenue reduced by 3.3% from last year, mainly because of the repricing when we do the deal with the Excel smart merger. However, I want to highlight also here that with the agreement that we reached with XLS that yes, there is a slightly repricing on the lease price, but the contracted revenue actually reset to 10 years from the beginning. So that's also the reason that our remaining contracted revenue is exceed 100 trillion. Also, there's no churn from the merger of Excel and Smart. That's also the key that I want to highlight here. FTTT grows steadily 3% year on year. FTTH 2%. Now, the connectivity has grown 33% from last year. So, this connectivity business is steadily in the last 5 years. The KGAR growth is around 20% so this is one of the driver also within the within the total revenue it contributes meaningfully also adjacent business now 766 billion mainly coming from BAH BAH Multiglobal that only start to to be consolidated early this year that's why it's compared to last year it's significantly done next now this is try to share the how is our contracted revenue as I mentioned is exceeded 100 trillion which give us the is a long term guaranteed recurring revenue it's around 9 years 9 years of revenue and if you see the comment in the last paragraph is around 2.2 times of the loan as of June this year okay next also want to to share the our loan that the balance sheet we have a very low financing cost during the first half is our blended borrowing rate and then our net debt leader is like i said be slightly be below four and then our loan yeah if you if we exclude the the revolver one so the fixed rate now comprise of almost half half with the floating rate the fixed rate is 47.5% compare the floating rate of 52.5% in the loan most of it is the IDR loan we have around 15% non-IDR loan but actually it's a fully hedged so there is no exposure on the FX movement. Next, this explain our rating, so we are BBB- from S&P and BBB with Fitch and the national rating is AAA. ESG, later in the following pages, Mona will Nusantara Tbk Nusantara Tbk Nusantara Tbk I want to highlight also the revenue is increased by 12.7% and our gross income 5.8% mainly because of different cost structure with the BMG which start consolidating this year the operating income still increased by 4.3% yeah the EBITDA If you see in the bottom line, the EBITDA is around 5.5 trillion, which is growth year-on-year is 12.7%. The EBITDA margin, I said, decreasing from 83% to 77%, mainly because of the consolidating of BAR, which has a different cost structure. the at the last the net income margin is steadily healthy at above 25% next yeah this is the balance sheet yeah I touch base already mainly about the loan next now this is actually the my favorite pages yeah my favorite page actually so in here we can see that in the first six months we generate the 3k flow of close to 5 trillion and this can be used for three different buckets one is to maintaining the growth the new capex to maintain the growth the second is to service the debt and the third one is the shareholder return meaning the dividend payout so we can see that from 5 trillion free cash flow we spend 2.7 trillion for the cartridge, ground list, expansion and acquisition the second bucket for the interest and debt we can see that we still be able to to decrease the loan by repayment of loan quarter of 255 billion rupiah. And then dividend payout is 400 billion. So this is actually, for me personally, this is the most interesting part, yeah. So we can see that how the, what is the free cash flow generating and then how it being used. So, like I said, this is what I mean about the sustainable shareholder return. So, we try to, from time to time, we try to find the good mix about how, which is the correct for growth, for the deleveraging, and also for the dividend payout.

Next.

Okay, now ESG, Mona can help me to walk through this, Mona, please.

Yes, thank you, Pak Hartono. Okay, let me briefly highlight ASM and sustainability progress and how it supports our long-term business resilience and value creations. So, for us, sustainability is not about the CSR or environmental initiative that stand alone. I would say it is increasingly linked to our operational efficiency, risk management, and long-term business performance. From the perspective of reporting, it is also important to highlight that now SMN is in Tier 1 for the implementation of SPT1 and SPT2. It is a new reporting framework that will be effective starting from 1 January 2027. I think I will elaborate more on this in the next slide. For this slide, on the environmental slide, I would say energy efficiency and transition to cleaner energy are the key priorities for us. So until December 2025, our subsidiary E40 Energy has generated More than 6000 MWh of green energy and we also using solar panel as an alternative system to support our infrastructure while progressively deploying lithium batteries as an alternative to conventional diesel based backup power. We also implement the digitalization and IoT-enabled monitoring, in this case smart lock technologies, which allow us to monitor and manage our infrastructure remotely. I see this initiative, as I mentioned earlier, not only support the transition energy, but also give us more efficient energy management and operational resilience. On the resource efficiency, we also improve the resource efficiency in our infrastructure development through compact car design. We try to optimize structure and footprint of our tower and use material more efficient. We also promote the reuse and recycle of material from our dismantled tower and fiber optic assets this to support more circular and as I mentioned source efficient approach to the entire our business operations on the next slide yes on the socio side I think we continue to leverage our core digital capabilities to to create more social impact. I would say Propelindo Sky is one of the example where we think this is the area where our core capability can create direct impact to the digital inclusions. people around surrounding our tower site can have access to the education information and broader economic opportunities. During 2025, our program reached approximately 14,000 beneficiaries with a total fund realizations of 4.3 billion. And this CFS program are structured around four key areas, which is as you can see, education, natural conservation, health, and disaster relief and donations. Yeah, I think that's all from this slide. We can move to other area of the social impact that we introduce around the cultural development and community engagement. We call it Pandelaran Sabang Merauke, is one of the key program. We see this as a program goes beyond the performance themselves because I think through this program the group shows full support on the cultural preservation and also promotes diversity and inclusion. The program allows participation of young generations, schools, universities, Cultural Communities and I think multi-stakeholder collaboration throughout the overall performing arts. During 2025, this program has reached more than 20,000 domestic audience and more than 300 internationals and the broader program itself involved more than 14 communities and schools, had more than 100 volunteers Local MSA and also we also involve the employees children to the show This one is touch on the governance I think it's important because we believe the governance is a important foundation for the overall our sustainability commitment So during this year we continue strengthening our sustainability governance and disclosure practices. We enhance stakeholder engagement through materiality assessment and continue align this with the sustainability reporting with GR standard and global ESG rating framework. We also obtain third party assurer and also Continue expansion of our reporting scoop and as mentioned SMN is in tier 1 for the SPT 1 and SPT 2 Therefore while we are continue With our existing sustainability program. We also are strengthening the underlying governance I think I will not elaborate on the recognition from the third parties as you can see on screen. but ultimately this recognition is only we see this as a part of the journey rather than the end goal or remain continuously strengthening the more transparency and accountability and compliance around the sustainability management I think that's all Pak Hartono I hand it over to you Thank you Mona I forget something I'm happy can you go back to the slide number 6 Maybe I was too fast on that. Yes, yes, this one.

I just want to repeat against this one, this fiber business model, which is quite new in the presentation slide. So, fiber to the tower, I just want to talk about what is the fiber to the tower. So, Fibers to the tower actually you know that traditionally between the tower, between the side the operator use the microwave to connect each other and then because of the usage is already quite high so they need is becoming congested and then they need to either they put a set of the additional microwaves or they completely replace it with the fiber optic so this fiber to the tower actually a business that release the fiber connecting the tower replacing the microwave as a back hole So, that's actually the fiber to the tower. So, of course, the user is the operator just connecting the tower. The lease is based on the rupiah per kilometer per month for two costs or four costs. It's 10 to 14 years non-cancellable lease. Nusantara Tbk Nusantara Tbk Nusantara Tbk this is model so this is a build to suit one which is ordered by the telco operator to us so they ask to build the home passes for them exclusively for them yeah 10 years non-cancellable same this is a build to suit again because they order to us to build a specific home passes so we build for them from the OLT until the OMT inside the customer premises. So the telco operator actually the one who sell the product using the infra that provided by E4Pay. Again, this is a build to suit. The HomePass build is exclusively for them. That's why there's a minimum payment from them. so you know that the fiber to the home the business model is the payment is based on the home connect or the activation right number of activation but since this is a built-in model still they pay the some rupiah or a certain money as a per home connect but with the guaranteed home connect Home Connect to us. So there's a minimum payment and then let's say 12%, 15%, 20% or 25% that's the wholesale business model that currently what they're doing. So out from 1.9 million home class, 1.8 million actually fall into this wholesale business model. Now the second one is a build to serve model. now this is yeah it's not run by the E4P but it's run by the our subsidiary like Nusanet Nusanet, Farnion, Remala later on like this so but the targeting is a C- and D market and also an exclusive area connectivity is yeah it's a connectivity solution is the charging is based on the NBPS the megabyte per second with the contract and this is actually a dedicated internet with the corporate client so it's considered as a B2B the period is 1 to 5 years but with the auto renewal meaning that usually like you at home that you list Indovision or whatever the contract is 1 year but after 1 year it's still you keep paying that you keep paying the subscription fee so this is I want to this is a new slide that apologize I've been too fast on this before and now I come back and then try to walk through about this business model fiber to the tower fiber to the home and the connectivity solution again the method for this is we can utilize the same fiber optic can be for the three different revenue stream fiber to the tower fiber to the home and connectivity so that's why what we mean and if you see in the left hand side is a high operational leverage with a minimal incremental cost to use the available force that we have Okay, I think that's it. Okay, I think that's it from me.

Okay, thank you so much Pak Hartono and also Ibu Mona Lisa for the comprehensive presentations. So for all participants who like to ask the questions directly, please just press your raise hand button. and or you can also type it on the chat box please allow me to okay before I go to the Q&A for the participants please allow me to take the first question about the telco operator but that just increased the guidance on the capex spending after they acquire a new spectrum right So could you give us any color part or any potential for the new orders for the build to suit and also the color patient part for towers and FPVP?

Okay. So yeah, as we know there's a new spectrum already distributed to the three player is 702.6. We see that this is a very good catalyst for for the tower business and fiber business as you know the purpose of this new spectrum actually to to increase the coverage and also to increase the quality of the of the services from the operators to be able to achieve that they need more towers and fiber optics for sure so we see this is a very good catalyst to our company and I also can elaborate more like this we have if you see that we have financing flexibility second we have a long good relationship with them and we have proven that we can do the roll out you know that in the previous yeah our we can build and buy it so in this case it's a built one so we are proven that we can we can build if there is any order from them so we are ready to take the order from them again this is this tower business fiber to the tower and then wholesale of the fiber to the home this is a customer driven business meaning that they actually give us the order we are quite passively waiting for the orders but if you can see in the last previous quarters you see after the consolidation from 5 to 4 to 3 you see the ARPU is if you see the report is federally is improving meaning that they become should be become healthier so it gives us the operator the engine to to grow it's a better uh better situation because the the price war I think is is quite manageable now so if we're talking about the hot look is we are uh is a customer driven business so but if the time comes we are really we believe that we are we are capable to do that so we already received several questions in the chat box the first is from the NIP expand diary

She has two questions. The first one is, can we get updates on XL Smart post-merger sites? How has the site allocation and unrenewed site process progressed so far? And how many sites have been impacted?

Okay. The deal with XL Smart is a combined deal actually, TOWO and cyber. We managed to to close the deal with them and then we are happy because we believe this is a very win-win for both parties. So with the deal with XL Smart is we agree on a no-chain basis for the tower. Yes, there is the agree on the slightly repricing on the lease price. But with the reset of the lease becoming 10 years from the from the execution date that is from the tower side together with the fiber side also they give us another deal that again the same is slightly decrease on the price on the FTTH one but at the same time they give us new order on the FTTP So it's a package deal. We believe this is a very good deal for both parties. No churn, you can see. And the relocation, yes, there is slightly different with what we do previously with IOH. In here, there is a deal that they can relocate to our existing sites, which is we have 37,000. And the second question is about FWA part

How many orders have you received so far and how does the FWA pricing compare to the typical colocation?

FWA, we start engaging with one of them. So far we received around 2000 to, we hope that, we received already around 2000 to 2200 order from them so far and again that we don't build for them This is only for the co-location only, meaning that we don't build the tower specifically for their requirement, but instead that we offer them the co-location on our existing tower. The price is pretty close to the one tenant in the traditional tower list. you know that FWA there is you know that 360 right depending on whether they want to put across 360 or they only want to put to cover 120 degree but if this is a full stack which is covered the whole the surrounding area the lease price is the same with the traditional tenant in tower the same also 10 years non-cancellable contract

Okay, thank you, Pak. We move to the second participant. The questions come from Steven Suntoso. The first question is, with the FL smart negotiation mostly finalized, Pak, do you expect improvement in the lease rate from this point on? And what the lease rate that you are getting for the new tower contracts?

Okay. Yes, I mentioned that in the tower list frame, the list is comprised of two, which is the CAPEX portion and the OPEX portion. The CAPEX portion is flat over the contract period, but for the OPEX one, there is a yearly escalation clause, which is tied mostly to the inflation index. And for the moving forward the lease rate, I don't think we can, I think should be steady at the current level. Because the consolidation in the tower provider also have an impact of this.

And for the second question, Pak, could you please give some color on the ROIC or return on the invested capital for the FTDP business, Pak?

Yeah. It's a double digit. But when you see the ROIC, you should see it's not only for the beginning of the contract, yeah? So it's a steady one, it's a double digit. We expect a double digit one.

3. Can you please share your guidance for the number of the tower and also the tenancy ratio and the capex guidance?

The capex guidance for this year is combined around 4 to 5 trillion this year. But I want to put a note that part of it actually is for the connectivity business. which is the one-time CAPEX there. I can say that quite a lot, a big amount actually to secure the submarine cable, which can be used for 15 years. So it's one of 4 to 5 trillion this year, including the one of CAPEX for the connectivity.

Okay, not this part.

But don't forget our CAPEC I mentioned is mostly is a built-in supply. So whenever we spend the CAPEC is non-speculative one. It's also always coming with a day one return.

We move to the question from Calvin Kurniawan. Can you share the POWR big picture vision and plan to capture the AI and data center plans?

Data Center always the always the path for the for our industry you know that the path is toward fiber and of course data center yeah data center always been an area that we are interested to coming in But we still looking at the correct way to enter to this business. But we agree that data center is important for our ecosystem. So we are reviewing it and then at the right time and the right project we are very interested to come to the data center business.

And for the second question, how is the company?

Sorry, by the way, about data center, as you know, data center has two different business models, the co-location and then the hyperscale. As you know, we have actually several edge data centers. Currently we have it, but for the purpose actually to serve our connectivity business. You know that we have We serve close to 10,000 enterprise customers for the connectivity business. So they need also data center, small data center, edge data center. So we have data center, several data center, edge data center, which is actually to support our connectivity business as a co-location type of business.

How is the company positioning in the fiber industry after the corporate action happening in the industry? Do you expect any noticeable change in the business? How is the company's positioning in the fiber industry?

we see that especially after this new spectrum and then 5G things coming in they need more towers and more more fibers right and then I also touched this before that in terms of financing we have a flexibility our debt to EBITDA only less than four from the five companies with the bank so we are able in terms of financing the second we have the ability also to get the There is also a follow up question from Danis

What is your estimate on potential FW orders in the next few years?

I read some of the articles that you know that to get this spectrum for them is quite expensive and also they have a yearly fee for the spectrum is also quite expensive. logically they have to roll out they have to roll out to the quite a sizable amount before they can to cover that fixed cost the spectrum fee is a fixed cost for them so we believe they will become very aggressive to achieve that but also on the same time we know this is a new technology yeah this is their first year so we hope and we believe they can be success on this new technology FWA and then we can grow together with them so but so far our strategy is we don't build the new build new tower for them we just try to maximize the existing tower because if you know that the FWA they need the space for rent is not as high as the normal tenant they need only around 25 meters only and then our tower height average is 60 to 70 meters so that that tells us that actually we have the available space there so that actually that will be compliment to us if they start aggressively roll out the project.

The second question is more specific on one tenant which is Indosat. Could you provide the updates how the orders from Indosat have been trending recently? Are you seeing any acceleration or improvement in order flow from Indosat?

Yes, this year we see some orders coming from Indosat after the consolidation after the merger. But this year is still like a relocation, still some of that. But we believe that this year will be the last year for the relocation. It's become finished. So starting next year, we hope to see that more orders Thank you, Pak.

So, again, participants, if you would like to ask questions directly, you also can press your right-hand button. We still have another question in the chat box, follow-up question from Calvin. From the disclosed segmental report, the non-tower business seems to generate much higher ROE and ROE compared to the tower business. With the recent corporate action in the industry, do you expect this trend to continue? The non-tower business part in the segment generates much higher ROA and ROE compared to the tower. How about this trend will continue?

yeah okay yeah I think tower and fiber should be generate good ROA and ROE however maybe because tower is is slightly because of the merger of the because the merger of the operators in the normal days I think I believe that the tower and the fiber is as good as in term of the ROA and ROE yeah but because of the consolidation in the operator which slightly impact the tower it makes the ROA decreasing but in the long run I think both generate very good ROA and ROE thank you Pak okay if we have no more

Question left in the chat box. Maybe I can also add one question part. About the adjacent business part. Currently it's already 10% contribution. How do you see this segment in the future? How company expect the contribution or the growth for the next 2 or 3 years with it going bigger in the contribution?

yeah the adjacent business the big one is if you see the result of the first six months is from BAH multi global right it is 700 billion most big portion of it is coming from BMG yeah we see BMG is there is quite room to to increase if you see that BAH Let me tell you the story about why we acquired Vahya. Maybe 5 to 6 years ago, when I thought Protelindo to manage the power site, they used several vendors to manage the power site. And then as you know that from time to time we try to be more efficient on the OPEC. So we tried to negotiate and find a way to reduce the site maintenance expense. And after several attempts, we don't see any room again to be more efficient. And then we come up with the idea that why don't we just pick one of them and give all the orders to one vendor. So the scale really can take place and then they can give a better price for us for the tower so in the beauty contest and the best is BMG so we give all the tower site maintenance to BMG at the same time we believe that we need to have an influence on this company that's why we now become a counter link shareholder of BMG because all the site is managed by this company which is the important role of the power business now what you see suppose we try also to give more fiber maintenance to BMG in the longer run so we hope that this we believe that still a bigger room for BMG to grow And also if you see the other business of BMG is the genset. Genset contain of the some big portion of it's a mini surface genset which is a recurring vector also BMG. That's also a promising area that BMG can explore. The other one also I think Selvi we ever discuss about this about the solar energy right. Thank you Mr. Hartono we have no question left but here so before we end the call maybe any closing remarks from Fahakono or the team yeah I want to summarize also that starting this quarter if you see the presentation slide is slightly changes from the previous one We try because we believe that if you see our non-tower business now represent more than one-third of the total revenue. So we believe that we need to disclose more on the non-tower business. This is the first time that we changed the format. We understand that it's still some information that we can share. for our knowledge but feel free that if you have any suggestion or that how we can improve the way or the information that we can share to all of you so please drop me an email or happy or Mona so we can look at that

Thank you so much Pak Hartono, Ibu Mona Lisa, and Pak Arden. Thank you everyone for joining us in this afternoon call. Have a great long weekend. Thank you.

Thank you everyone.

Bye.