What's Happening?
Telkom Indonesia, a state-owned telecommunications conglomerate, has announced a partial spin-off of its wholesale fibre connectivity business to its subsidiary, Telkom Infrastruktur Indonesia. The transaction,
valued at 35.787 trillion rupiah ($2.16 billion), aims to enhance business focus and optimize the utilization of fibre optic network assets. The spin-off process will occur in two phases, with the first phase involving the transfer of more than 50% of fibre optic assets targeted for completion in the fourth quarter of 2025. The full transfer is scheduled to conclude in the second half of 2026. Telkom Indonesia will retain a 99.99% ownership stake in Telkom Infrastruktur Indonesia following the transaction.
Why It's Important?
This strategic move by Telkom Indonesia is significant as it supports the national agenda to accelerate digital inclusion and increase fixed broadband penetration across Indonesia. By optimizing fibre optic network assets, the company aims to enhance operational efficiency and create added value. The spin-off is expected to bolster Indonesia's digital infrastructure, providing reliable and high-quality connectivity. This development is crucial for the country's economic growth and technological advancement, potentially attracting more investments in the telecommunications sector.
What's Next?
The spin-off process is set to unfold in two phases, with the initial phase expected to be completed by the end of 2025. As Telkom Indonesia explores strategic partnerships to expand its fibre business, stakeholders in the telecommunications industry may anticipate further collaborations and investments. The successful completion of the spin-off could lead to increased competition and innovation in Indonesia's digital landscape, benefiting consumers and businesses alike.
