Indosat Ooredoo Hutchison is transforming into an AI-native technology company to drive business impact and improve its earnings before interest, taxes, depreciation, and amortization.
This shift represents a strategic move for the Jakarta-based provider to evolve from a traditional telecommunications operator into a "techco." By embedding artificial intelligence across its entire operational framework, the company aims to move beyond small-scale AI pilots to achieve measurable revenue growth.
CEO Vikram Sinha said the company is focusing on creating a sovereign AI leader for Indonesia. This transition follows a major telecom merger and the launch of a comprehensive AI program in 2024 [1].
The company has prioritized workforce readiness to support this transition. More than 2,000 employees, representing approximately 75% of the total staff, have now become AI-certified [2].
According to company reports, the integration of AI across operations has already delivered a positive impact on EBITDA within the first year of the program [2]. The strategy involves utilizing AI to optimize internal processes and enhance service delivery, a move intended to secure a competitive edge in the Southeast Asian market.
IOH is collaborating with Microsoft to facilitate this transformation [1]. The partnership focuses on utilizing AI to drive the shift toward a tech-centric business model, ensuring that the infrastructure can support the increasing demand for data and intelligent services in Indonesia [1].
“Indosat Ooredoo Hutchison is transforming into an AI-native technology company.”
The transition of a major national carrier from a telco to a 'techco' signals a broader trend in the global telecommunications industry. As traditional connectivity margins shrink, providers are leveraging AI and sovereign cloud capabilities to create new revenue streams and operational efficiencies, effectively repositioning themselves as infrastructure layers for the broader digital economy.
