Kuala Lumpur: Malaysia and Indonesia are reaffirming their commitment to foster continued cooperation between their respective energy giants, Petroliam Nasional Bhd (Petronas) and PT Pertamina (Persero), as announced by Malaysian Prime Minister Datuk Seri Anwar Ibrahim. This announcement was made during a joint press conference with Indonesian President Prabowo Subianto, marking the president’s inaugural state visit to Malaysia.
According to BERNAMA News Agency, the leaders highlighted the significance of this collaboration, emphasizing the exploration of new business areas and innovative directions. The signing of two letters of intent (LOIs) between Axiata Group Bhd and Indonesia-based Sinar Mas was also witnessed by Anwar and Prabowo. These agreements aim to advance strategic collaborations and explore potential synergies across Malaysia, Indonesia, and Southeast Asia.
Axiata and Sinar Mas expressed their intention to leverage their telecommunications ecosystems to unlock value in high-growth areas such as advanced 5G solutions, enterprise services, digital infrastructure, and fintech innovations. The companies believe these advancements will support digital transformation initiatives across the region, enhancing economic growth and bridging the digital divide.
Vivek Sood, Axiata Group’s CEO, emphasized that the LOIs are a critical step towards advancing regional collaboration and shaping Southeast Asia’s digital transformation. The partnership aims to harness the transformative potential of 5G and digital infrastructure to drive sustainable growth in Malaysia, Indonesia, and beyond.
The second LOI strengthens Axiata’s and Sinar Mas’ commitments to the proposed merger of PT XL Axiata Tbk, PT Smartfren Telecom Tbk, and PT Smart Telcom into PT XLSmart Telecom Sejahtera Tbk in Indonesia. This transaction is expected to create a combined enterprise value of over 104 trillion rupiah (RM28 billion), enhancing innovation, customer service, and digital connectivity in Indonesia. The LOI underscores the parties’ shared vision and commitment to fulfilling the conditions outlined in the Definitive Agreements, ensuring the transaction’s smooth progression.