---
title: Telkom Indonesia to spin off part of its wholesale fibre connectivity business - Developing Telecoms
description: State-owned company Telkom Indonesia, a multinational telecommunications conglomerate, has agreed to partially spin off its wholesale fibre connectivity business to its infrastructure-focused subsidiary Telkom Infrastruktur Indonesia in a deal valued at 35.787 trillion rupiah ($2.16 billion).
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date: 2025-10-21T16:00:57Z
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State-owned company Telkom Indonesia, a multinational telecommunications conglomerate, has agreed to partially spin off its wholesale fibre connectivity business to its infrastructure-focused subsidiary Telkom Infrastruktur Indonesia in a deal valued at 35.787 trillion rupiah ($2.16 billion).

Reuters quotes a Telkom Indonesia statement to the effect that the transaction is a material and affiliated party transaction under domestic rules and will have no significant impact on the financial conditions of the company.

So why is the deal seen as necessary? The argument is that this spin-off will help improve business focus and optimise the utilisation of fibre optic network assets. Specifically, a disclosure to the Indonesia Stock Exchange (IDX), suggests that this corporate action aims to create added value, enhance operational efficiency, and optimise the utilisation of the company’s fibre optic network.

There’s claimed to be a wider value to the country too. Telkom’s Senior Vice President Corporate Secretary, Jati Widagdo, is quoted by the IDN Financials news service as saying: “This planned transaction also supports the national agenda to accelerate digital inclusion, increase fixed broadband penetration, and ensure reliable, high-quality connectivity across Indonesia.”

Following the transaction, Telkom Indonesia will remain the majority shareholder of Telkom Infrastruktur Indonesia with a 99.99% ownership stake.

IDN suggests that the spin-off process will take place in two phases. The first phase involves transferring more than 50% of fibre optic assets and business to Telkom Infrastruktur Indonesia, which is targeted for completion in the fourth quarter of 2025. The second phase — full transfer — is scheduled to conclude in the second half of 2026.

The administrative spin-off process began in December 2023, when management control was handed over, even though asset transfers are still ongoing.

As part of its fibre infrastructure development strategy, Telkom Indonesia is apparently also exploring strategic partnerships to support the expansion of its fibre business.

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