JAKARTA – PT Sarana Menara Nusantara Tbk (TOWR) is positioned for solid long-term growth, supported by a strategic group restructuring currently in full swing. As the telecommunications sector evolves, the company’s expansion into fiber services and the rollout of 5G infrastructure are expected to serve as primary catalysts for its future performance.
The company is accelerating its restructuring initiative by steering two subsidiaries—PT Solusi Tunas Pratama Tbk (IBST) and PT Inti Bangun Sejahtera Tbk (SUPR)—toward delisting and transitioning into private entities. SUPR successfully secured shareholder approval during its General Meeting of Shareholders (RUPS) on May 20, 2026. Meanwhile, IBST is awaiting similar authorization, with an Extraordinary General Meeting of Shareholders (RUPSLB) tentatively scheduled for June 5, 2026.
Sukarno Alatas, Senior Equity Research Analyst at Kiwoom Sekuritas, believes this transformation will significantly bolster TOWR’s long-term operational efficiency. “Delisting and taking IBST and SUPR private is a positive move for TOWR. It simplifies the group’s structure, enhances operational efficiency, and strengthens the integration between its tower and fiber business segments,” Sukarno noted on Tuesday (May 26, 2026). He added that this transition provides the company with greater flexibility in managing assets and pursuing future business expansion.
While market participants are closely monitoring the funding requirements for the tender offer, the fundamental shift is viewed as a strategic efficiency play. Looking ahead to 2026, the growth trajectory for TOWR is underpinned by surging demand for data and fiber infrastructure. Furthermore, as telecommunications operators continue to expand their networks, the potential for an increased tenancy ratio remains a significant opportunity for the company.
Market analysts from Maybank Sekuritas Indonesia, led by Etta Rusdiana Putra, believe that the competitive landscape of 5G services acts as a tailwind for tower companies like TOWR. As operators shift their focus from mere coverage expansion to improving network quality, the demand for tower infrastructure and fiber-to-the-tower (FTTT) services is set to accelerate. Projections indicate that TOWR will add approximately 500 new towers between 2026 and 2027, each maintaining a tenancy ratio of 1.6 times.
“We identify integrated services, particularly FTTT, as a key growth driver for the industry. TOWR maintains a robust position here, with major clients like PT XL Axiata Tbk (EXCL) and PT Indosat Tbk (ISAT) accounting for 42% and 34% of its 2025 revenue, respectively,” Etta stated in an April 21, 2026, research note.
Despite these favorable prospects, challenges remain. Sukarno points out that the ongoing consolidation among telecommunications operators could potentially constrain growth. Furthermore, investors should remain cautious regarding risks such as lease contract renegotiations, high interest rates, and the possibility of foreign capital outflows affecting domestic defensive stocks.
Conversely, Steven Gunawan, an analyst at KB Valbury Sekuritas, highlights the non-tower business as a key engine for growth. In a research report dated April 6, 2026, Steven projected a 12.0% year-on-year increase in non-tower revenue to IDR 5.2 trillion. Meanwhile, the core tower leasing business is expected to grow by 1.7% year-on-year to IDR 8.9 trillion, bolstered by additional tenancies following the EXCL merger.
TOWR’s financial foundation remains stable; the company reported a revenue of IDR 13.32 trillion in 2025, a 4.64% increase from IDR 12.73 trillion in 2024. Consequently, net profit rose by 10.27% to IDR 3.67 trillion, up from IDR 3.33 trillion in the previous year. Looking at the full-year outlook for 2026, Steven forecasts a 5.2% revenue growth to IDR 14.0 trillion, with net profit expected to climb by 7% to reach approximately IDR 3.93 trillion.
Regarding investment recommendations, perspectives vary. Sukarno suggests that, from a technical standpoint, TOWR remains in a downtrend, favoring a “buy on weakness” strategy with a near-term target price of IDR 450 to IDR 500 per share. Meanwhile, both Steven Gunawan and Etta Rusdiana Putra maintain a “buy” recommendation, with target prices set at IDR 700 and IDR 880 per share, respectively.
Summary
PT Sarana Menara Nusantara Tbk (TOWR) is pursuing long-term growth by streamlining its corporate structure through the delisting and privatization of subsidiaries IBST and SUPR. This consolidation is designed to enhance operational efficiency and improve the integration of its tower and fiber business segments. Supported by the ongoing rollout of 5G infrastructure and rising demand for fiber-to-the-tower services, the company is well-positioned to capitalize on the evolving needs of major telecommunications operators.
Financially, TOWR maintains a stable trajectory, with projected revenue and net profit growth for 2026 driven by both core tower leasing and non-tower business segments. While analysts highlight potential risks such as industry consolidation, high interest rates, and lease contract renegotiations, market outlooks remain generally optimistic. Consequently, several financial institutions have issued positive investment recommendations, signaling confidence in the company’s strategic expansion and continued expansion of its network infrastructure.