Trikomsel Oke, the largest mobile-phone retailer in the country, formed a joint venture with a US wireless service provider to provide services to mobile-phone retailers and telecommunication operators.
In a statement to the Indonesia Stock Exchange (IDX) on Monday, the company said that it is collaborating with Miami-based Brightstar Corporation to set up Brightstar Trikomsel that will be based in Singapore.
Brightstar, through its unit Brightstar Logistics, will control 51 percent of the joint venture and Trikomsel 49 percent.
The statement did not elaborate on how much capital would be invested in the new company.
Brightstar Trikomsel will focus on supply chain services for operators, retailers and mobile-device original equipment manufacturers, the statement said. The joint venture is scheduled to begin operations in the second quarter of this year.
Sugiono Wiyono Sugialam, president director of Trikomsel, said in the statement that supply chain optimization, multi-channel and value-added distribution, handset protection, and buy-back and trade-in solutions are becoming increasingly important in the Indonesian telecommunications market.
“These initiatives will create new lines of businesses which we expect will boost our overall performance and drive further growth for Trikomsel,” Sugiono said.
Currently, Trikomsel’s main business is handset and accessory sales, retailing and distribution of mobile-phone starter packages and top-up vouchers. Trikomsel has about 1,100 outlets, mainly under its OkeShop outlets.
Last year, the company acquired a 72 percent stake in mobile-phone retailer Global Teleshop to increase its outreach in the mobile-phone retail business amid booming demand for mobile handsets and smartphones in Indonesia.
“We see tremendous opportunities to leverage Brightstar’s leading wireless services, technologies and platforms with Trikomsel’s deep market knowledge, in-country execution capabilities and strong customer base,” said Marcelo Claure, chief executive of Brightstar Corporation.
Brightstar Corporation says it is the largest specialized wireless distributor and service company that caters to mobile-device manufacturers, wireless operators and retailers. In the January-September period last year, it had $6 billion in gross revenue.
Shares of Trikomsel were traded flat at Rp 1,500 on Monday, compared with a 0.4 percent decline of the benchmark stock index. Trikomsel’s shares have gained 55 percent this year.