Malaysia, Indonesia Committed To Ensure Continued Cooperation Between Petronas And Pertamina -- PM Anwar

KUALA LUMPUR, Jan 27 (Bernama) -- Malaysia and Indonesia remain committed to ensuring continued cooperation between the countries’ oil giants Petroliam Nasional Bhd (Petronas) and PT Pertamina (Persero).

“Our commitment is to ensure the cooperation of Petronas and Pertamina, two leading regional giants, so that they have more agreements to explore, welcome new directions and also new business areas," said Prime Minister Datuk Seri Anwar Ibrahim.

He said this at a press conference together with Indonesian President Prabowo Subianto in conjunction with the president's first state visit to Malaysia.

Earlier, Anwar and Prabowo witnessed the signing of two letters of intent (LOIs) between Axiata Group Bhd and Indonesia-based Sinar Mas to explore and advance a series of strategic collaborations

Axiata and Sinar Mas said in a joint statement today that the first LOI lays a robust foundation for progressing detailed discussions outlining specific projects and initiatives that drive further collaboration around potential synergies in Malaysia, Indonesia and Southeast Asia.

“Leveraging our respective telecommunications ecosystems, we aim to explore opportunities to unlock value for stakeholders in several high-growth areas, including advanced 5G solutions, enterprise services, digital infrastructure and fintech innovations.

“Ultimately, these potential advancements stand to support digital transformation initiatives across the region,” they said. 

Axiata Group chief executive officer Vivek Sood said the LOIs represent a pivotal step in advancing regional collaboration to shape Southeast Asia’s next wave of digital transformation and advance services in high-growth areas.

“By deepening and reaffirming our ongoing partnership with Sinar Mas, we aim to harness the transformative potential of 5G, enterprise solutions, and digital infrastructure to drive sustainable economic growth and bridge the digital divide across Malaysia, Indonesia and beyond,” he said.

The second LOI signed reaffirms Axiata’s and Sinar Mas’ various commitments set out in the Definitive Agreements jointly announced on Dec 11, 2024 to progress the proposed merger of PT XL Axiata Tbk, PT Smartfren Telecom Tbk, and PT Smart Telcom to form PT XLSmart Telecom Sejahtera Tbk in Indonesia.  

“The LOI confirms our shared intent in this landmark transaction, which stands to give XLSmart a combined pre-synergy enterprise value of over 104 trillion rupiah (RM28 billion), symbolising a strong collective vision to foster innovation, improve customer service quality, and enhance digital connectivity in Indonesia while contributing to a healthier and more competitive market.

“The LOI reiterates the parties' desire to, among others, work together in good faith to meet the agreed conditions outlined in the Definitive Agreements, ensuring the smooth progression of the transaction,” the statement said.

-- BERNAMA