Telkom Indonesia announced that independent shareholders have approved its plan to spin off Telkom’s wholesale fibre connectivity business and assets to its FTTH subsidiary Telkom Infrastruktur Indonesia (TIF), a.k.a. InfraNexia.
Under the plan, which was first announced in September and signed off in October, the spinoff will happen in two phases, starting with InfraNexia taking control of more than 50% of Telkom’s fibre network infrastructure, including access, aggregation, backbone and other supporting infrastructure segments.
InfraNexia will take over the remainder of Telkom’s fibre assets in the second phase, which is expected to be completed in the second half of 2026 with a total asset value of IDR90 trillion (US$5.4 billion). Telkom will continue to own 99.9% of Infranexia.
Telkom said the spinoff will not only boost efficiencies in operational and investment costs, but also transform InfraNexia into a new growth driver for the group as it focuses on developing the wholesale fibre business and creating opportunities for network sharing and strategic partnerships. This is key as Telkom’s wholesale fibre capacity is only around 40% utilised, mostly by its mobile arm Telkomsel, according to an earlier report from Indonesia Business Post.
The spinoff required the approval of independent shareholders, who voted in favour of the plan during Extraordinary General Meeting of Shareholders (EGMS) held online on Friday.
Telkom president director Dian Siswarini said the spinoff is also part of the telco’s TLKM 30 strategy to transform into a strategic holding company and become a digital telco that’s more focused, agile and globally competitive.
“Obtaining approval for the separation of business and assets strengthens the company's transformation agenda to build a more focused and agile business structure, so that Telkom can make a greater contribution to the acceleration of national digitalization and create added value for companies, stakeholders, communities, and the country," she said in a statement.
