SMNUF (SMNUF) Q2 2026 Earnings Report, Transcript and Summary

Good afternoon, everyone. My name is Selvi. Welcome and thank you for joining us in the earnings call of PT Sarana Menara Nusantara. Here we have several directors from Sarana Manara. First of all is Pak Hartono Tanuwidjaja, the Director and Group Investor Relations. Also we have Ibu Monalisa Irawan, the Head of Corporate Secretary; and we also have Pak Ardan, the Head of Sustainability. Welcome. So without further ado, I will hand over the floor to Pak Hartono to start your presentation. Please, Pak, the floor is yours.

Thank you, Selvi. Can you help me to present the slide? Today, we tried to come up with a slightly different presentation slide from the previous one. So hopefully, it will give us more insight about our company and of course welcome if there is any comment and suggestion for us so we can improve further so we can have a deeper understanding about the company. So I start with this page. This actually explaining who we are. So as you can see that we are now known as a digital infrastructure company with 37,000 towers and close to 183,000 fiber optic cable. We also have a defensive business model, which is the cash flow is highly predictable supported with the long-term and noncancelable contract with the bonafide customers. In number three also, we try to explain that our infra asset actually can be highly utilized through a multi-use ecosystem that create a different revenue stream from the same asset. So again this will be another slide. In the following slide, we can go through one by one on this. And also we are strong. We have investment-grade rating, of course it will create a very highly competitive with a low cost of fund. And our net debt to EBITDA is less than 4x. So our company, actually the covenant with the bank is using the net debt to EBITDA and the covenant with the bank is now maximum to 5x and we are now with around 4x, slightly before 4x. So it's quite a comfortable one. Again also with this asset and then the business model and the investment-grade rating so we can create a sustainable and strong cash generation, which actually at the end can deliver the shareholders' return through dividend and asset utilization through to the growth of the business. Now the second slide is talking about what we are. So as you can see, we have quite scalable assets with 36,000 towers and 182,000 kilometer fiber. So it gives us the benefit for further cost expansion and also an efficiency in the CapEx and OpEx because we have enough scalable of the asset. So it really gives us room to create that kind of benefit. The second one also, like I said, we have IDR 100 trillion remaining contracted revenue. So this really give us the highly predictable cash flow and low volatility because it's a recurring business model too. The next one that we will talk in the following pages about this, which is quite new with the presentation compared to the previous presentation. So we can show actually that the multiuse of our core asset, tower and fiber, to generate different multiple revenue stream on it. The next one, we are investment-grade rating so our borrowing cost is competitive low and we have financing flexibility. As you can see that our net debt to EBITDA is below 4x and our covenant with the bank is up to 5x. Now also talking about our ecosystem. In the following pages, you can see that what is our total ecosystem within the Protelindo Group or TOWR so we can have a deeper understanding what is our competitive compared to the industry. Now we're talking about the TOWR first in here, which I think most of you are already familiar. So this is our total ecosystem. If you can see in the right-hand side. We have tower; we have fiber; and we have also a VSAT, it's on a C-Band; we have a 5 transponder, which is a good complement to our fiber business, later we can touch base on that; and now we have a managed service. As you know that starting this year, we consolidate our subsidiary called BMG or Bach. So they are actually doing -- to support the managed service for those assets. So if you can see from the diagram here . With same asset, like I said; tower, fiber and VSAT; this is the revenue stream that is coming up from those assets. So we have a tower, fiber to the tower, fiber to the home, connectivity solution and adjacent businesses. So the reason we put this kind of picture in here, even if you say a connectivity solution, you know that to do this connectivity solution, we need a POP. So we use most of our POPs located in our tower. So this kind of synergy that we try want to share moving forward there. This is the tower business model. I think most of you are already familiar with this. It's a build-to-suit model with nonspeculative CapEx because we build on the order from the customer. So we have a guaranteed return on the contracted within the contracted period and then followed by the colocation expansion. So if we have the second tenant so the business model allow us to generate more EBITDA margin because 1 tower can be occupied by 2 or 3 tenants and our tenant is of course the telecom operators which is highly creditworthy. This tower business model is 10 years leases with a noncancelable one. And also I want to start to share that some of the questions that come to my notice is about is there any price escalation? Yes, we have. The lease are comprised of 2 things, there's a CapEx portion and an OpEx portion. So we have the price escalation on the OpEx one. This one is the new slide that we try to share. So if you can see here, the message of this TOWR fiber business is 1 fiber optic cable can generate multiple revenue stream. So when we deploy a cable, it can contain between 12 to 48 cores inside 1 fiber optic. So this can be used for fiber to the home, fiber to the tower and also for the connectivity. Let's move to the right-hand side the first one there, fiber to the tower. So again this is fiber to the tower. The business model is similar to the tower. It's a build-to-suit one. It's a long-term contract, 10 to 14 years noncancelable. So again it's a nonspeculative one with a predictable IRR. It's a day 1 return from the beginning. Now if you see from this fiber to the tower, what we use actually only 2 up to 4 cores only to generate our return. And you can see in the left-hand side when we deploy, we can deploy 12, 24, 48, even more cores in one single cable. So meaning that the CapEx for this already recovered by this contract for the build-to-suit contract for the fiber to the tower. But we have extra cost or affordable cost or unused costs that we can generate revenue and utilize it for the fiber to the home and for the connectivity too. So it gives us a competitive advantage. So first, the CapEx. When we receive a fiber to the home order after we have this cable so we can use the extra cost to the fiber to the home also if applicable. So it gives us the efficiency in CapEx, it's less CapEx and faster deployment. The same thing also for the connectivity solution. So we can use also the cable that we already lay for the fiber to the tower and fiber to the home. So suffice it and say not only connectivity can use fiber to the home, but also fiber to the tower also can use the connectivity cable. So it's a multiuse fiber cable. That's actually the message that we want to share about our fiber business model. So in the following page, we can start talking about each of them; what is the fiber to the tower, fiber to the home and connectivity. So previous slide talking about our ecosystem and now we're talking about the asset. So this is our tower asset across Indonesia; Java, Sumatera, Kalimantan, Sulawesi, Maluku and Papua. So as of June, we have close to 37,000 towers, which year-on-year is growth 3%. And our tenancy is now around 1.65x tenancy ratio, which has grown 5% year-on-year. In the bottom side, you can see also the trend from back to the 2007 until this year. So if you can see even in the early years of the tower business, we can have 5 or 10 operator and now become 5, 4 and now 3. But you can see despite of that consolidation, we are still growing the tower business healthily. So with the 37,000 towers, tenancy with 1.65x, which shows that we can handle all the issue whenever there is a merger in the operator. So now the operator become 3 now. So I think we believe the headwind of this tower business already come to the end. TOWR business so this is a split of our fiber network; Java, Sumatera, also quite dense there, Sulawesi, even Kalimantan now approaching to the 10,000 kilometer now. So this is our fiber network across the main island of Indonesia. And we have 800 POP to support our connectivity business and we have also submarine cable, which is connecting to the major island Indonesia. Now the first one is fiber to the tower in the right-hand side. In terms of the billable kilometer or kilometer generating revenue, we now booked 234,000 kilometers, which is increasing 6.7% year-on-year compared to last year and the utilization ratio is 191% is increasing also from 180% last year. I want to highlight on this utilization ratio like I tried to share in the previous page. This 191% actually is not counting the cable that actually lay first for the FTTT, but later on used by connectivity and fiber to the home. The reason we cannot calculate that because this is a different measurement like in the connectivity, we don't count the kilometer billable, but we start at the megabyte basis. So it's not the same operational metrics. That's why I just want to highlight this 191% is actually inside the FTTT only excluding the cable that used for the FTTH and connectivity. Fiber to the tower now reached 345 cities, which is quite dense now almost across all the big cities and even the second tier and the third tier cities. Fiber to the home, the second one. We booked more than 1.8 million home pass with the home paid penetration is 20%. Now also I want to share also about this. You know that our fiber to the home, in the following page we can see the business model, it actually contains the wholesale and then the B2C one. We can walk through in the following page. Fiber to the home exists in 120 cities and the connectivity even to the 347 cities. So actually it's in line with the story that I tried to share before that connectivity actually can follow the path of the footprint of our fiber that already installed for FTTT or FTTH. If you can see, connectivity solution is really expanded very well. Now this is also a new page we try to share. This is actually our ecosystem. It's an adjacent business here. So start in the top is project and managed services. This is mostly the Bach company, our subsidiary, Bach or BMG. In the tower, we have the build-to-suit and colocation, fiber contain of fiber to the tower, fiber to the home. The connectivity solution, which the medium can be used fiber, wireless, satellite, which is the transformer piece and M2M machine to machine. Software as a Service also is heavily used by our subsidiary like Towerindo in Bali or NusaNet in Medan. They find this is very useful for them to have this Vlepo, Keponet, Megalos as a big bundling with our connectivity services. So we find that with this bundling, we can increase the stickiness of the customer there. And next one is digital infrastructure in the left-hand below one. We have white label ATM, which is ATMI. The company name is ATMI. We have a joint venture with Seven Bank running the ATM business in Indonesia. We have now around 9,000 ATM machine across Java, Sumatera -- mostly in Java and Sumatera. Now I want to highlight also this white label ATM is not only the infrastructure, the machine; but also the money inside the ATM machine is belong to us also. So it operates like a bank. It's a white label ATM meaning that even you have a card from BCA or from Mandiri or from BMI, you can do the transaction in this machine. It's like a payment [ somewhat. ] Also we have payment gateway, which is iFortepay. The reason we come to this business also, first, this is a complement to our connectivity business so it gives our customers additional method of payment for their bill from us in iFortepay. And we have energy solution, which is green energy now is a rooftop panel, Power as a Service and genset solution. Genset solution is managed by Bach, our subsidiary. We also start enter into the AI type of thing like we have edge data center, cloud computing solution. We manage the H200 GPU in one of our data center to provide the cloud computing solution. IoT also, one of our subsidiary Integrasia is heavily involved in the IoT things. They can use different technology here like mainly LoRa at the moment. So this is actually the business lines within the Protelindo Group or TOWR, hopefully, it can give more understanding about our company. This is the performance. The revenue is year-on-year grow by 12.7% now reached to IDR 7.2 trillion for the first half of the year. The EBITDA grew 4.8%. Now why the revenue is growing 12% and then the EBITDA growing by 4.8%. Because starting this year, we start consolidating the financial for our Bach or BMG, which is BMG has a different business model which generate the lower EBITDA margin. So in terms of EBITDA margin is quite bringing down the EBITDA margin. But in term of the rupiah is quite healthy. Net income is grow by 12.4% year-on-year. Again this is also already taking into account the BMG for 6 months. This page show us actually the growth by each sector or each business line. So as we understand tower, the revenue reduced by 3.3% from last year mainly because of the repricing when we do the deal with XLSmart merger. However, I want to highlight also here that with the agreement that we reached with XLS that, yes, there is a slightly repricing on the list price, but the contracted revenue actually reset to 10 years from the beginning. So that's also the reason that our remaining contracted revenue is exceed IDR 100 trillion. And also there's no churn from the merger of XL and Smart. That's also the key that I want to highlight here. FTTT grow steadily 3% year-on-year, FTTH 2%. Now the connectivity is grow 33% from last year. So this connectivity business is steadily in the last 5 years the CAGR growth is around 20%. So this is one of the driver also within the total revenue, it contributes meaningfully also. Adjacent business now IDR 766 billion mainly coming from Bach Multi Global that only start to be consolidated early this year. That's why compared to last year, it's significantly down. Now this is trying to share how is our contracted revenue. As I mentioned, it exceeded IDR 100 trillion, which gives us -- it's a long-term guaranteed recurring revenue. It's around 9 years of revenue. And if you see the comment in the last paragraph, it's around 2.2x of the loan as of June this year. Also want to share our low balance sheet. We have a very low financing cost during the first half is our blended borrowing rate. And then our net debt to EBITDA is, like I said, slightly below 4x. And then our loan, if we exclude the revolver one, so the fixed rate now comprise of almost half-half is the floating rate. The fixed rate is 47.5% compared to the floating rate of 52.5%. In the loan, most of it is IDR loan. We have around 15% non-IDR loan, but actually it's fully hedged so there is no exposure on the FX movement. This explains our rating. So we are BBB- from S&P and BBB with Fitch and the national rating is AAA. ESG: later in the following pages, Mona will walk us through about our ESG activities and scoring. We also want to highlight that we are part of the LQ45, IDX80, Kompass and et cetera. This is our profit and loss in detail. I won't go through each line by line. But I want to highlight also the revenue is increased by 12.7% and our gross income 5.8% mainly because of different cost structure with BMG, which start consolidating this year. The operating income still increased by 4.3%. If you see in the bottom line, the EBITDA is around IDR 5.5 trillion, which is grow year-on-year is 12.7% (sic) [ 4.8% ]. The EBITDA margin, I said, decreasing from 83% to 77% mainly because of the consolidating of Bach, which has a different cost structure. At the last, the net income margin is steadily healthy at above 25%. This is the balance sheet. I touched this already mainly about the loan. Now this is my favorite page actually. So in here, we can see that in the first 6 months, we generated free cash flow of close to IDR 5 trillion and this can be used for 3 different buckets. One is to maintaining the new CapEx to maintain the growth, the is to service the debt and the third one is the shareholder return meaning the dividend payout. So we can see that from IDR 5 trillion free cash flow, we spent IDR 2.7 trillion for the CapEx, ground lease expansion and acquisition. The second bucket for the interest and debt, you can see that we still be able to decrease the loan by repayment of loan quota of IDR 255 billion. And then dividend payout is IDR 400 billion. So for me personally, this is the most interesting part. So we can see what is the free cash flow generating and then how it's being used. So like I said, this is what I mean about the sustainable shareholder return. From time to time, we try to find a good mix about what is the CapEx for growth, for the deleveraging and also for the dividend payout. Now ESG, Mona can help me to walk through this. Mona, please?

Thank you, Pak Hartono. Let me briefly highlight ESG and sustainability progress and how it supports our long-term business resilience and value creation. So for us, sustainability is not about CSR or environmental initiative that stand alone. It is increasingly linked to our operational efficiency, risk management and long-term business performance. From the perspective of reporting, it is also important to highlight that now SMN is in Tier 1 for the implementation of SPT 1, SPT 2. It is a new reporting framework that will be effective starting from 1 January 2027. I think I will elaborate more on this in the next slide. So on this slide on the environmental slide, I would say energy efficiency and transition to cleaner energy are the key priorities for us. So until December 2025, our subsidiary Iforte Energi has generated more than 6,000 megawatt hour of green energy. And we're also using solar panel as an alternative system to support our infrastructure while progressively deploying lithium batteries as an alternative to conventional diesel-based backup power. We also implement the digitalization and IoT-enabled monitoring, in this case, smart lock technologies, which allow us to monitor and manage our infrastructure remotely. I see this initiative, as I mentioned earlier, not only support the transition energy; but also give us more efficient energy management and operational resilience. On the resource efficiency, we also improved the resource efficiency in our infrastructure development through compact tower design. We try to optimize structure and footprint of our tower and use material more efficient. We also promote the reuse and recycle of material from our dismantled tower and fiber optic assets. This to support more circular and, as I mentioned, source efficient approach to the entire business operations. On the next slide, on the social side, I think we continue to leverage our core digital capabilities to create more social impact. I would say ProtelindoSky is one of the example where we think this is the area where our core capability can create direct impact to the digital inclusions. So people surrounding our tower site can have access to the education, information and broader economic opportunities. During 2025, our program reached approximately 14,000 beneficiaries with a total fund realizations of IDR 4.3 billion. And this CSR program are structured around 4 key areas, which is, as you can see, education, natural conservations, health and disaster relief and donations. Yes, I think that's all from this slide. We can move to other area of the social impact that we introduced around the culture, development and community engagement. We call it Pagelaran Sabang Merauke. It's one of the key program. We see this as a program goes beyond the performance themselves because I think through this program, the group shows full support on the cultural preservations and also promote diversity and inclusion. The program allow participations of young generations, school, universities, cultural communities and I think multi-stakeholder collaboration throughout the overall performing arts. During 2025, this program has reached more than 20,000 domestic audience and more than 300 internationals. And the broader program itself involved more than 14 communities and school, more than 100 volunteers and local MSA and also we also involved the employees' children to the show. Last slide. This one is touch on the governance. I think it is important because we believe the governance is an important foundation for the overall sustainability commitment. So during this year, we continue strengthening our sustainability governance and disclosure practices. We enhanced stakeholder engagement through materiality assessment and continue to align this with the sustainability reporting with GRI Standard and global ESG rating framework. We also obtained third-party assure and also continued expansion of our reporting scope. And as mentioned, SMN is in Tier 1 for the SPT 1 and SPT 2. Therefore, while we continue with our existing sustainability program, we also are strengthening the underlying governance, data, risk management, including metrics and target that can support our readiness for the new sustainability disclosure requirements. I think I will not elaborate on the recognition from the third parties as you can see on screen. But ultimately, this recognition is only -- we see this as a part of the journey rather than the end goal. Remain continuously strengthening the more transparency and accountability and compliance around the sustainability management. I think that's all, Pak Hartono. I hand it over to you.

Thank you, Mona. I forget something. Can you go back to the Slide #6? Maybe I was too fast on that. Yes, this one. I just want to repeat against this one, this fiber business model, which is quite new in the presentation slide. So fiber to the tower, I just want to talk through what is the fiber to the tower. So fiber to the tower actually you know that traditionally between the tower, between the site, the operator use the microwave to connect each other. And then because of the usage is already quite high so they need -- it's becoming congest and then they need to either they put a set of the additional microwave or they completely replace it with the fiber optic. So this fiber to the tower is actually a business that we lease the fiber connecting the tower, replacing the microwave as a backhaul. So that's actually the fiber to the tower meaning. So of course the user is the operator just connecting the tower. The lease is based on the rupiah per kilometer per month for 2 cores or 4 cores. It's a 10 to 14 years noncancelable lease. And again this is I want to highlight is a build-to-suit one, which is nonspeculating CapEx for this. Now the second one, the fiber to the home. Sorry, I forget to mention about this. There's 2 type of business model here. From close to 1.9 million home passes, actually close to 1.8 million fall into this wholesale business model. So this is a build-to-suit one, which is ordered by the telco operator to us. So they ask to build the home passes for them exclusively for them, 10 years noncancelable. This is build-to-suit again because they order to us to build a specific home passes so we will build for them from the OLT until the O&P inside the customer premises. So the telco operator is actually the one who sell the product using the infra provided by Iforte. Again this is a build-to-suit and the home pass build is exclusively for them. That's why there is a minimum payment from them. So you know that the fiber to the home, the business model is -- the payment is based on the home connect or the activation, number of activation. But since this is a build-to-suit model, still they pay some rupiah or a certain money as per home connect, but with the guaranteed home connect to us. So it's a minimum payment and then let's say, 12%, 15%, 20% or 25%; that's the wholesale business model that currently Iforte are doing. So from 1.9 million home pass, 1.8 million actually fall into this wholesale business model. Now the second one is a build-to-suit model. Now this is not run by the Iforte, but it's run by our subsidiary like Nusanet, Fabian, Remala, [indiscernible] like that. But the targeting is a C and D market and also an exclusive area. Connectivity solution is the charging is based on the MBPS, the megabyte per second with the contract and this is actually a dedicated Internet with the corporate client. So it's considered as a B2B. The period is 1 to 5 years, but with the auto renewal meaning that usually like while you at home that you lease the [indiscernible] or whatever the contract is 1 year. But after 1 year, you keep paying the subscription fee. So this is a new slide that apologize I've been too fast on this before and now I come back and then try to walk through about this business model; fiber to the tower, fiber to the home and the connectivity solution. Again the method for this is we can utilize the same fiber optic can be for the 3 different revenue stream; fiber to the tower, fiber to the home and connectivity. So that's why what we mean if you see in the left-hand side is a high operational leverage with a minimal incremental cost to use the available cores that we have. Okay. I think that's it from me.

[Operator Instructions] Before I go to the Q&A for the participant, please allow me to take the first question. About the telco operator that just increased the guidance on the CapEx spending after they acquire a new spectrum. So could you give us any color or any potential for the new orders for the build-to-suit and also the colocation part for towers and FTTT?

Okay. So as we know, there's a new spectrum already distributed to the 3 player is 702.6. We see that this is a very good catalyst for the tower business and fiber business. As you know, the purpose of this new spectrum is actually to increase the coverage and also to increase the quality of the services from the operators. To be able to achieve that, they need more towers and fiber optics for sure. So we see this is a very good catalyst to our company. And I also can elaborate more like this. If you see that, we have financing flexibility. Second, we have a long good relationship with them and we have proven that we can do the rollout. You know that in the previous, we can build and buy. So in this case, it's a build one. So we have proven that we can build if there is any order from them. So we are ready to take the order from them. Again this is tower business, fiber to the tower and then wholesale of the fiber to the home. This is a customer-driven business meaning that they actually give us the -- we are quite passively waiting for the orders. But if you can see in the last previous quarters, you see after the consolidation from 5 to 4 to 3, you see the ARPU, if you see the report, is steadily improving meaning that they should become healthier. So it gives us the operator the engine to grow a better situation because the price war I think is quite manageable now. So if we're talking about the outlook is we are -- it's a customer-driven business. But if the time comes, we really believe that we are capable to do that.

So we already received several questions in the chat box. The first is from [ Dilip S Pandari ]. He has 2 questions. The first one is can we get updates on XLSmart post-merger sites? How has the site relocation and renewed site process progressed so far and how many sites have been impacted?

Okay. The deal with XLSmart is a combined deal, actually tower and fiber. We managed to close the deal with them and then we are happy because we believe this is a win-win for both parties. So the deal with XLSmart is we agree on a no-churn basis for the tower. Yes, there is -- they're slightly repricing on the lease price, but with the result of the lease becoming 10 years from the execution date. That is from the tower side. Together with the fiber side also, they give us another deal that again the same is slightly decrease on the price on the FTTH one. But on the same time, they give us new order on the FTTT for the fiber to the tower. So it's a package deal. We believe this is a very good deal for both parties. No churn you can see and the relocation, yes, there is slightly different with what we do previously with IOH. Here is we are -- there is a deal that they can relocate to our existing sites, which is we have 37,000. And yes, there is obligation to build-to-suit, but it's very -- it's not many, it's like 200 or 300 only. So the rest is the total. So what I'm trying to say the deal is in terms of CapEx, we don't spend too much CapEx to maintain the revenue.

Okay. And the second question is about FWA. How many orders have you received so far and how does the FWA pricing compare to the typical colocation?

Yes. FWA, we start engaging with one of them. So far we received around 2,000 -- we see already around 2,000 to 2,200 order from them so far and again that we don't build for them. This is only for the colocation only meaning that we don't build the tower specifically for their requirement, but instead we offer them the colocation on our existing tower. And the price is pretty close to the one tenant in the traditional tower lease. You know that FWA, they're 360 depending on whether they want to put across 360 or they only want to put to cover 120 degree. But if this is a full spec, which is cover the surrounding area, the lease price is the same with the traditional tenant in tower. The same also 10 years noncancelable contract.

We move to the second participant and the questions come from Steven Santoso. The first question is with the XLSmart negotiation mostly finalized, Pak, do you expect improvement in the lease rate from this point on? And what's the lease rate that you are getting for the new tower contracts?

Yes, I mentioned that in the tower lease rate, the majority of our deal is -- the lease is comprised of 2, which is the CapEx portion and the OpEx portion. The CapEx portion is flat over the contract period. But for the OpEx one, there is a yearly escalation cost which are tied to the -- mostly to the inflation index. And moving forward, the lease rate, I don't think we can -- I think should be steady at the current level because the consolidation in the tower provider also have an impact of this.

And for the second question, could you please give some color on the ROIC or return on the invested capital for the FTTT business?

Yes. It's a double digit. But when you see the ROIC, you should see it's not only for the beginning of the contract. So it's a steady one, it's double digit. We expect a double-digit one.

And the third question, Pak, can you please share your guidance for the number of the tower and also the tenancy ratio and the CapEx guidance?

The CapEx guidance for this year is combined, which is around IDR 4 trillion to IDR 5 trillion this year. But I want to put a note there is -- part of it actually is for the connectivity business, which is the onetime CapEx there. I can say that quite a big amount actually to secure the submarine cable, which can be used for 15 years. So it's a one-off. IDR 4 trillion to IDR 5 trillion this year, including the one-off CapEx for the connectivity. Our CapEx I mentioned mostly is a build-to-suit plan. So whenever we spend the CapEx, it's not speculative one as also always coming with a day 1 return.

We move to the question from [indiscernible]. Can you share the TOWR's big picture vision and plan to capture the AI and data center trend. How does data or Remala or Bach and other future investment play the role?

Data center always the pet for our industry. You know that the path is solar, fiber and of course data center. Data center has always been an area that we are interested to coming in, but we're still looking at the correct way to enter to this business. But we agree that data center is important for our ecosystem. So yes, we are reviewing it and then at the right time and the right project, we are very interested to come to the data center business. By the way about data center, as you know, data center has 2 different business model, the colocation and then the hyperscale. As you know that we have actually several edge data centers. Currently, we have it, but for the purpose actually to serve our connectivity business. You know that we serve close to 10,000 enterprise customers for the connectivity business so they need also a small data center, edge data center. So we have data center -- several edge data center, which is actually to support our connectivity business as a colocation type of business.

Okay. For his second question, how is the company positioning in the fiber industry after the corporate action happening in the industry? Do you expect any notable change in the business?

Come again, Selvi.

How is the company's positioning in the fiber industry?

Our position in the fiber industry. I said that we see that especially after this new spectrum and then 5G things coming in, they need more towers and more fibers, right? And then I also touched base before that in terms of financing, we have flexibility. Our net debt-to-EBITDA only less than 4x from the 5x covenant with the bank. So we are able in terms of financing. The second, we have the ability also to get the big order is proven that we can roll out and we have a fairly good and long relationship with the operators. So we believe that whenever that comes, we will play quite a big role on that.

There is also a follow-up question from Dennis. What is your estimate on potential FW orders in the next few years?

Okay. FW, I read some of the article that to get this spectrum for them is quite expensive and also, they have what they call a yearly fee for the spectrum is also quite expensive. So logically, they have to roll out. They have to roll out to quite a sizable amount before they can -- to cover that fixed cost. The spectrum fee is a fixed cost for them. So we believe they will become fairly aggressive to achieve that. But also at the same time, we know this is a new technology, yes. This is the first year. So we hope and we believe they can be success on this new technology, FWA, and then we can grow together with them. But so far, our strategy is we don't build the new build-to-suit new tower for them. We just try to maximize the existing tower. Because if you know that the FWA, they need the space for them is not as high as the normal tenant. They need only around 25 meters only. And then our tower height average is 60 to 70 meters. So that tells us that actually we have the available space there. So actually that will be complement to us if they start aggressively roll out the project.

Okay. The second question is more specific on 1 tenant, which is Indosat. Could you provide the update how the orders from Indosat have been trending recently? Are you seeing any acceleration or improvement in order flow from Indosat?

Yes. This year we see some orders coming from Indosat after the consolidation after the mergers. But it's not -- this year is still like a relocation, still some of that. But we believe that this year will be the last year for the relocation if we can finish. So starting next year, we hope to see that more orders -- the new orders coming in from Indosat as well as from XLS because we see that XLS, the integration process is also faster. So we hope that next year, we can see more orders coming from XLS.

[Operator Instructions] We still have another question in the chat box follow-up question from [ Karpin ]. From the disclosed segmental report, the nontower business seems to generate much higher ROA and ROE compared to the tower business. With the recent corporate action in the industry, do you expect this trend to continue?

Sorry. Come again, Selvi.

So the nontower business in the report -- in the segment, this generate much higher ROA and ROE if we compare to the tower. So how about this trend will continue?

Yes. I think tower and fiber should be generally good ROA and ROE. However, maybe because tower is slightly because of the merger of the -- because of the merger of the operators. In the normal days, I believe that the tower and the fiber is as good as in terms of the ROA and ROE. But because of the consolidation in the operator, which slightly impacted tower, it makes ROA decreasing. But in the long run, I think both generate a very good ROA and ROE.

Okay. If we have no more question left in the chat box. Maybe I can also add one question, Pak, about the adjacent business. Currently, it's already 10% contribution. How do you see this segment in the future? How company expect the contribution or the growth for the next 2 or 3 years with it going bigger in the contribution?

Yes. The adjacent business, the big one if you see the result of the first 6 months is from Bach Multi Global, right? It is IDR 700 billion. A big portion of it is coming from BMG. We see BMG is -- there is quite room to increase. If you see that -- let me tell you the story about why we acquired Bach. In the maybe 5 to 6 years ago when totally to manage the tower site, they used several vendors to manage the tower site. And then as you know that from time to time, we try to be more efficient on the OpEx. So we try to negotiate and find a way to reduce the site maintenance expense. And after several times, we don't see any room again to be more efficient and then we come up with the idea that why don't we just pick one of them and give all the orders to 1 vendor. So the scale really can take place and then they can give a better price for us for the tower. So in the beauty contest and the best is BMG. So we give all the tower site maintenance to BMG. At the same time, we believe that we need to have an influence on this company. That's why we now become a controlling shareholder of BMG because all the site is managed by this company, which is the important role of the tower business. Now what you see, suppose we try also to give more fiber maintenance to BMG in the longer run. So we hope that this -- we believe that's still a bigger room for BMG to grow. And also if you see the other business of BMG is the genset content of the -- some big portion of it is manage the genset, which is a recurring revenue also of BMG. That's also a promising area that BMG can explore. The other one also, I think Selvi, we ever discussed about this, about the solar energy, the green energy. That also is a promising business in the future. So let's see whether this really we can materialize the opportunity there. So in short, yes, there's a promising room for expansion in the adjacent business.

We have no question left here. So before we end the call, maybe any closing remarks from Pak Hartono or Ardan.

Yes. I want to summarize also that starting this quarter, if you see the presentation slightly changes from the previous one, we try because we believe that if you see that our nontower business now represent more than 1/3 of the total revenue. So we believe that we need to disclose more on the nontower business. This is the first time that we changed the format. We understand there is still some information that we can share for our knowledge. But feel free that if you have any suggestion that how we can improve the way or the information that we can share to all of you. So please drop me an e-mail or [ Pappy ] or Mona so we can look at that.

Thank you so much, Pak Hono, Ibu Monalisa, and Pak Ardan. Thank you, everyone, for joining us in this afternoon call. Have a great long weekend. Thank you.

Thank you, everyone. Bye.

Thank you, everyone. Keep healthy.