What's Happening?
Telkom Indonesia has received approval from its independent shareholders to proceed with the spinoff of its wholesale fibre connectivity business to its subsidiary, Telkom Infrastruktur Indonesia, also
known as InfraNexia. This decision, initially announced in September and confirmed in October, will be executed in two phases. The first phase involves InfraNexia acquiring over 50% of Telkom's fibre network infrastructure, including access, aggregation, and backbone segments. The second phase, expected to conclude in the latter half of 2026, will see InfraNexia taking over the remaining fibre assets, valued at IDR90 trillion (approximately US$5.4 billion). Telkom will retain a 99.9% ownership stake in InfraNexia. The spinoff aims to enhance operational efficiencies and transform InfraNexia into a growth driver by focusing on the wholesale fibre business and fostering network sharing and strategic partnerships.
Why It's Important?
The spinoff is a strategic move for Telkom Indonesia as it seeks to streamline operations and focus on its core competencies. By transferring its wholesale fibre business to InfraNexia, Telkom aims to reduce operational and investment costs while creating new growth opportunities. This restructuring is part of Telkom's broader TLKM 30 strategy to become a more agile and globally competitive digital telecommunications company. The move is significant for Indonesia's digital infrastructure, as it could accelerate national digitalization efforts and enhance connectivity. The spinoff also positions InfraNexia to better utilize its fibre capacity, which is currently underutilized, primarily by Telkom's mobile arm, Telkomsel.
What's Next?
The completion of the spinoff's second phase in 2026 will mark a significant milestone for Telkom Indonesia. As InfraNexia takes full control of the fibre assets, it is expected to explore strategic partnerships and network sharing opportunities to maximize the utilization of its infrastructure. This could lead to increased competition in Indonesia's telecommunications sector, potentially benefiting consumers with improved services and lower prices. Telkom's focus on becoming a digital telco may also lead to further innovations and expansions in its service offerings.
