Indonesia’s Indosat, the country’s second-largest mobile carrier, is seeking about US$2 billion in loans to buy advanced chips for its domestic operations, according to people familiar with the matter.

Citigroup is arranging the financing.

The financing reflects growing lender interest in AI beyond data centers and into the chips and other hardware that power it, even as investors debate whether current AI spending levels are sustainable.

Bloomberg Intelligence said 84% of Indosat’s revenue comes from mobile connectivity, suggesting the chip purchase is part of the company’s effort to diversify beyond its core telecom business.

Its balance-sheet profile may support additional borrowing.

Fitch upgraded Indosat’s Long-Term Issuer Default Rating to investment-grade BBB with a stable outlook in February 2025.

Execution could still depend on chip supply and trade restrictions.

A January 2025 US export-control regime affecting 120 countries imposed caps or licensing requirements on advanced AI chips, though the available summary did not specify Indonesia’s status.

🔗 Source: Bloomberg

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