Indosat Tbk PT: Bull and bear case analysis of the new AI infrastructure platform

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

07 August 2026

Indosat Tbk PT

Overweight

Bull and bear case analysis of the new AI infrastructure

platform

ISAT gained 14% (JCI: 1%) on the announcement of a new AI infrastructure

platform in collaboration with Oordoo, Nokia, and NVDIA. Our analysis shows

that in a bull case scenario, the new platform could result in double-digit EPS

accretion for ISAT. However, there are a number of unknowns and risks. These

include the risk of oversupply from builds within Indonesia and around the region.

Underutilization or pricing compression could result in shareholder value

destruction and earnings headwinds for ISAT.

Zankore targets up to 1GW AI infrastructure platform. Indosat

launched Zankore by Indosat in collaboration with Oordeoo Group, Nokia, and

Nvidia. Zankore plans to initially deliver ~200MW of AI capacity in 1H27

using NVIDIA GB300 NVL72 servers. The deployment eventually targets 1

GW capacity. As per media reports, Ooredoo will have a 49% stake and will

commit $800m to Zankore’s launch and initial development (link).

The unknowns. The company said it has a capex budget of ~$650m for 22MW

of compute infrastructure from NVIDIA. Using that as a benchmark, 200MW

implies a cost of $5.5-6bn. This raises the question of how Zankore will be

capitalized as we calculate an initial equity commitment of ~$1.6bn (simply

taking double of Ooredoo’s commitment) would result in a debt to equity ratio

of 2.4-2.5x. Moreover, after its own neocloud and 5G investments, ISAT might

have to raise debt and/or sell its contracted neocloud receivables to invest in

Zankore. The next major question is on demand. ISAT release stated Zankore

will be a regional AI infrastructure platform that will enable “agentic and

enterprise AI adoption at scale”. However, there is a large data center and

compute build happening in ASEAN, especially Malaysia and Thailand. The

reason to seek compute from Indonesia is not clear to us at this point, especially

as ISAT’s recent neocloud indicated elevated pricing. Moreover, AI

infrastructure investment in Indonesia has seen a step change with Firmus and

CoreWeave announcing investments recently.…