Indonesian Telecom Tower Companies May Be Hit by Higher Interest Rates -- Market Talk
Dow Jones2026/10/13 05:560556 GMT - Indonesian telecom tower companies may be hit by higher interest rates, Bahana Sekuritas' Nicolas Lumy says in a research report. Dayamitra Telekomunikasi's 100% floating-rate debt profile poses a major risk in a higher rate environment, the analyst notes. Also, tower companies are locked into long-term contracts with fixed, non-negotiable lease rates, so returns will decline as their interest burden increases amid fixed revenue. The brokerage downgrades the sector's rating to neutral from overweight. However, it still likes Sarana Menara Nusantara due to its strong presence in Indonesia's Java. Bahana Sekuritas has a buy rating and a target price of 712 rupiah on Sarana Menara Nusantara's shares, which are down 0.9% at 454 rupiah. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
October 13, 2026 01:56 ET (05:56 GMT)
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