GuarantCo completes its first transaction in Indonesia to support critical digital communication infrastructure development

GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided the first of two 100 per cent payment default guarantees that will, together, guarantee up to IDR 730 billion (c. USD 42 million) of bonds to be issued by PT Ketrosden Triasmitra Tbk (Triasmitra), a market-leading publicly listed telecommunications infrastructure company in Indonesia.

The proceeds of the bonds will support the development and construction of a greenfield subsea fibre optic cable system across the central Indonesian islands. The new 2,641km network will offer c. 5.3 million people improved access to internet services by connecting Bali, Nusa Tenggara and Sulawesi islands. The project is designed to bridge the gap between Indonesia’s central and western backbone cable networks, supporting the Indonesian Government’s broader initiative to enhance internet connectivity across the country.

At a broader level, this transaction will help drive greater competitiveness in the telecommunications infrastructure market in an inherently monopolised market. This will improve the availability and quality of bandwidth to individual and corporate end-users in the regions, which is important for economic recovery and a key factor in future productivity growth.

The first tranche of bonds, which has reached financial close, consists of 3-, 5-, and 10-year issuances totalling IDR 220 billion (c. USD 12.7 million). This transaction features two firsts in the country: the 10-year guaranteed bonds have the longest tenor of a financial product of its kind, and the first ever amortising guaranteed bonds, which are uniquely structured to support the funding of long-term digital infrastructure assets.

The guaranteed bonds were subscribed by major institutional investors, including Manulife Indonesia and Generali Indonesia. Manulife Indonesia was the anchor investor providing the largest subscription to the bonds. GuarantCo is proud to strengthen its longstanding institutional relationship with Manulife and Generali through its first guaranteed transaction in Indonesia. Indo Premier Sekuritas acted as the lead underwriter.

This transaction has also been supported by PIDG with technical assistance funding. The grants supported the legal and regulatory engagement work to develop the guarantor documentation for the bonds in line with international best practice.

This transaction has been assessed to make a direct contribution to the UN Sustainable Development Goals 8 (decent work and economic growth) and 9 (industry, innovation and infrastructure). As part of this transaction, Triasmitra has committed to the promotion of gender equality across its workforce in the currently male-dominated high value digital sector.

This is GuarantCo’s first transaction in Indonesia and follows significant strategic market engagement activities with government and regulatory bodies. Earlier this month, Fitch Ratings Indonesia affirmed GuarantCo’s National Insurer Financial Strength (IFS) Rating at ‘AAA (idn)’ with a Stable Outlook. GuarantCo also received its first rating from Indonesian ratings agency PEFINDO of ‘AAA Stable’ in November 2025.

At a Group level, PIDG has demonstrated its commitment to the Indonesian market. Most recently in July 2025 with an investment into the KINETIK fund, an initiative under the Australia-Indonesia Partnership for Climate, Renewable Energy and Infrastructure (KINETIK) supporting Indonesia’s net-zero goals.

Nishant Kumar, Managing Director of Asia Investments at GuarantCo and Head of Coverage – Asia at PIDG, said:

“GuarantCo’s market entry into Indonesia is an exciting moment for the team as we have targeted the market for some time knowing the market transforming sustainable impact that our credit enhancement solutions can deliver. The project aligns with Indonesian government objectives to expand nationwide connectivity and drive productivity growth across the lesser connected islands. Ultimately, this project enhances broadband capacity, speed and quality for end-users whilst crowding in private sector participation in critical infrastructure to create new competitive dynamics in an otherwise closed telecoms infrastructure market.

“I would like to thank PIDG owners, the Australian Government Department of Foreign Affairs and Trade and the UK Government’s Foreign, Commonwealth and Development Office for their crucial support in the stakeholder engagement work that made this deal possible.”

Titus Dondi Patria, President Director of PT Ketrosden Triasmitra Tbk, said:

“This Rp220 billion fundraising marks an important step in strengthening digital connectivity infrastructure across Central Indonesia. Through the development of the Submarine Cable System across Central Indonesia, we aim to connect strategic economic and tourism hubs while supporting the expansion of reliable, high-quality digital access in regions that continue to require stronger telecommunications infrastructure. With GuarantCo’s support, we are confident that this project will be implemented successfully and deliver a positive long-term impact on Indonesia’s telecommunications infrastructure. This project reflects our long-term commitment to supporting Indonesia’s digital transformation and national connectivity roadmap.”

Eban S. Banowo, Director at PT Indo Premier Sekuritas, said:

“We are very proud to have played a role alongside GuarantCo in the issuance of guaranteed bond by Ketrosden Triasmitra, which marked the first bond issuance in the Indonesian capital market backed by GuarantCo. GuarantCo’s recommendation to combine bullet payment and amortising principal repayment structures in Shelf Registration Program has helped reduce the issuance burden for the Issuer. We hope that many more prospective infrastructure issuers can be backed by GuarantCo and benefit from this type of bond structure.”