12 Jan 2022
JAKARTA, investor.id – PT Transkon Jaya Tbk (TRJA), a company engaged in vehicle rental and internet service provider (ISP) services, is set to officially spin off its internet service provider segment (PACNet) on February 25, 2022, through the establishment of a subsidiary with a 90% ownership stake. This strategic move is aimed at accelerating the internet service provider business line.
In 2011, TRJA expanded its business by introducing the “PACNet” brand, providing internet network services focused on remote areas, particularly in Kalimantan and Eastern Indonesia, targeting primarily plantations and residential areas. Over the 11 years of its operation, the Internet Service Provider (PACNet) segment has experienced rapid growth in Balikpapan, supported by five product advantages, including Wireless Broadband Internet, Fiber Optic services, IPVPN MPLS, Web & Mail Hosting, and VSAT IP. These services provide internet access that covers entire regions in Indonesia, including remote areas.
“Combined with the plan to move the new capital city (IKN) to East Kalimantan, it gives an indication of profitable business opportunities for the Internet Service Provider segment, considering the increasing infrastructure development with the establishment of new companies in East Kalimantan, both in remote and urban areas, which will certainly require good internet network access for their business operations,” stated Annastintatia Polii, Head of Corporate Affairs at Transkon Jaya, in an official statement on January 12.
Despite the challenges posed by the COVID-19 pandemic, the Internet Service Provider segment has maintained its existence and, by the end of 2021, expanded its customer base to include companies in areas that had not yet received internet access throughout Indonesia, including Sulawesi. So far, PACNet has successfully developed an extensive network covering the provinces of East Kalimantan, North Kalimantan, South Kalimantan, and Central Kalimantan.
“It is expected that the planned separation of the Internet Service Provider business segment by forming a subsidiary can strengthen and drive an increase in the company’s revenue prospects,” added Annastintatia.
The separation of the Internet Service Provider segment is part of TRJA’s plan to inject capital into the subsidiary, where the company intends to hold a 90% stake in the entire issued and paid-up capital of the subsidiary. Additionally, 5% of the subsidiary’s issued and paid-up capital will be owned by DIS, and another 5% by MSJ.