The company’s statement, cited by Reuters, describes the transaction as a material and affiliated party deal under domestic regulations, clarifying that it will not significantly impact the company’s overall financial condition. The primary motivation behind this corporate action is to enhance business focus and optimise the utilisation of its extensive fibre optic network assets.
According to disclosures made to the Indonesia Stock Exchange (IDX), the spin-off is intended to generate added value, improve operational efficiency, and better leverage the company’s fibre infrastructure. Telkom Indonesia’s Senior Vice President of Corporate Secretary, Jati Widagdo, emphasised that the transaction aligns with national objectives by supporting efforts to accelerate digital inclusion, increase fixed broadband penetration, and provide reliable, high-quality connectivity across Indonesia.
Following the spin-off, Telkom Indonesia will retain a dominant ownership stake of 99.99% in Telkom Infrastruktur Indonesia. The process is planned to unfold in two phases, with the first phase involving the transfer of more than half of the fibre assets and business to the new entity, expected to be completed by the end of 2025. The second phase, which entails a full transfer, is scheduled to conclude in the latter half of 2026. Although asset transfers are still underway, management control of the new subsidiary was transferred in December 2023, marking the beginning of the administrative spin-off process.
In addition to the restructuring, Telkom Indonesia is exploring strategic partnerships to support the expansion of its fibre optic infrastructure, indicating a broader strategy to strengthen its position in the digital connectivity landscape of Indonesia.
