INET Eyes New Heights: Sinergi Inti’s Strategic Expansion in Indonesia’s Digital Infrastructure

PT Sinergi Inti Andalan Prima Tbk, widely known by its ticker INET, is making significant waves in the telecommunications sector. As of mid-November 2025, the company has signaled an aggressive shift into its next growth phase. By expanding its digital infrastructure pipeline, INET isn't just looking to boost its short-term performance; it is positioning itself for a massive surge in long-term revenue visibility. This strategic move has caught the attention of market analysts who see plenty of room for the stock to climb even higher.

Valuation Gaps and Market Potential

Kiwoom Sekuritas has recently maintained a 'buy' recommendation for INET, setting a target price of Rp 620 over the next twelve months. What makes this target particularly interesting is the current valuation of the company. Even after a period of growth, analysts point out that INET is still trading at levels below its industry peers. At a recent closing price of Rp 515, the stock was trading at approximately 39.8 times its earnings and three times its book value.

To reach the projected Rp 620 target, the forward price-to-earnings (P/E) ratio would sit at 48 times, with a price-to-book (P/B) ratio of 3.65 times. For investors, this suggests that the market hasn't fully priced in the scale of the projects INET is currently undertaking. These extensive digital network projects are expected to drive a much stronger earnings trajectory, particularly as we move through the second half of the year.

Building the Backbone: The Submarine Cable Project

One of the most ambitious pillars of INET’s expansion is the development of a submarine cable system connecting Jakarta, Batam, and Singapore. The company has allocated between Rp 200 billion and Rp 300 billion for this high-capacity project, which boasts a staggering 20 Tbps capacity. This isn't just a speculative build; 50% of that capacity has already been secured by PT Integrasi Jaringan Ekosistem (IJE).

This partnership is a game-changer for INET's financial health. By securing half the capacity upfront, the company significantly strengthens its revenue visibility. More importantly, this infrastructure allows INET to reduce its internal IP transit costs, creating a leaner and more efficient operational model that directly impacts the bottom line.

Dominating the Bali-Lombok Corridor

Beyond the sea, INET is making heavy moves on land through its subsidiary, PT Garuda Prima Internetindo. In collaboration with PT Solusi Sinergi Digital Tbk (Starlite), the company is rolling out a Fiber-to-the-Home (FTTH) network across the Bali and Lombok regions. This project is targeting two million homepasses, offering state-of-the-art Wi-Fi 7 services with speeds reaching up to 2 Gbps.

Why Bali and Lombok? The strategy is surgical. These regions represent high-income demographics but currently suffer from low FTTH penetration—sitting well below 25 percent. By entering this premium broadband market early with high-speed, affordable packages starting at Rp 299,000 per month, INET is creating a dominant competitive position in a high-growth corridor.

Fueling Growth Through Rights Issues and Acquisitions

To fund these massive undertakings, INET has planned a substantial rights issue, aiming to raise Rp 3.2 trillion. The ratio is set at three for four, and the capital is already spoken for. The lion's share of these proceeds will be funneled into the Bali-Lombok rollout, while the rest will cover submarine cable payments, Java-based FTTH development, and general working capital.

Scale is the name of the game here. The recent acquisitions of PT Personil Alihdaya Tbk and PT Trans Hybrid Communication are integral to this strategy. These moves aren't just about getting bigger; they are about creating cost-efficiency opportunities. Analysts believe these acquisitions will help expand revenue more than tenfold, providing the necessary room for margin gains as the company streamlines its operations.

A Bright Financial Outlook

The numbers backing INET’s future are undeniably bullish. Analysts are projecting that the combination of network rollout and operational efficiency could lift net profit to Rp 100 billion this year alone. Looking further ahead, the estimates grow even more impressive, with net profit potentially hitting Rp 280.8 billion in 2026 and climbing to Rp 355.6 billion by 2027.

Investors have already started to react to this potential. INET shares have surged over 605 percent year-to-date, with a remarkable gain of over 86 percent in the last month alone. As the company continues to execute its infrastructure pipeline and scales its customer base, the journey toward the Rp 620 target price looks increasingly solid.