Indonesia’s Telkom has confirmed that it will undertake a phased transfer of its fiber assets. The transaction, viewed as a significant and affiliated party transaction under Indonesian regulations, is expected to have a minimal impact on Telkom’s financial condition, the company announced.
The asset transfer process will take place incrementally. The initial phase is expected to handle more than half of the fiber assets. Telkom’s disclosure to the Indonesia Stock Exchange (IDX) outlined that this move qualifies as a material and affiliated party transaction as per the country’s Financial Services Authority (OJK) regulations.
The restructuring process will include backbone fiber, aggregation access, and infrastructure assets. Before the deal can be finalized, it requires approval from shareholders and regulators. The completion of the deal is anticipated to take place between the end of 2025 and the beginning of 2026.
Telkom has stated that the partial spin-off has several aims. These include refining operational focus, attracting new investment, quickening network expansion, and unlocking new revenue streams. The new setup will enable TIF to specialize in fiber deployment and maintenance. This specialization will simplify the process for infrastructure funds and strategic partners to assess and invest in the business.
By forming a dedicated entity, Telkom plans to streamline network upgrades and manage its growing fiber footprint more efficiently. This move will also empower the company to monetize its wholesale leasing and dark-fiber products more assertively.
As part of its future plans, Telkom is committed to addressing the escalating demand for rapid connectivity across Indonesian households, startups, and enterprises. The company aims to position itself at the forefront of the nation’s digital transformation as the digital economy continues to grow.
Ketut Budi Utama, President Director of PT Telkom Infrastruktur Indonesia, indicated that the split would provide TIF with the momentum to operate more efficiently and maintain network infrastructure more effectively.
What is the expected impact of this transaction on Telkom’s financial condition?
The transaction is expected to have a minimal effect on Telkom’s financial condition.
What are some of the aims of the partial spin-off?
Telkom aims to refine operational focus, attract new investment, accelerate network expansion, and unlock new revenue streams through the partial spin-off.
What is Telkom’s commitment amid the growing digital economy in Indonesia?
Telkom is committed to supporting the escalating demand for high-speed connectivity across households, startups, and enterprises in Indonesia. The company aims to place itself at the forefront of the nation’s digital transformation.
