Indonesia’s telecom sector has entered a new chapter with the completion of the merger between PT XL Axiata Tbk, PT Smartfren Telecom Tbk, and PT Smart Telecom, forming an entity called PT XLSMART Telecom Sejahtera Tbk (XLSMART).
The company was effectively established on Thursday (Apr. 17), following final approval from Indonesia’s ministry of communication and digital affairs, as well as the Financial Services Authority (OJK).
XLSMART now trades under the ticker EXCL, inheriting it from XL Axiata.
“This isn’t just a merger. It’s a leap forward for Indonesia’s digital ecosystem,” said Rajeev Sethi, President Director and CEO of XLSMART during a press briefing in Jakarta. “With our new structure and identity, we are set to empower communities, businesses, and institutions across the country.”
The combined pre-synergy enterprise value of the newly merged entity is estimated at 104 trillion rupiah (approximately $6.5 billion). The merger is expected to generate $300–400 million in pre-tax annual synergies, driven by network integration, shared infrastructure, and operational efficiencies.
Post-merger, XLSMART is targeting pro forma revenue of 45.8 trillion rupiah (around $2.9 billion) and EBITDA of 22.5 trillion rupiah. The merged company serves 94.5 million customers, giving it a 25% market share in Indonesia’s mobile telecommunications sector.
In the immediate future, XLSMART’s priority is continuity and stability.
According to Sethi, the most critical task is to maintain—if not improve—the customer experience during the integration process. “Whatever we do—short-, mid-, or long-term—will be with customers at the heart of it,” he stressed. “Network synergies will give us more spectrum, more sites, and ultimately better services. This phase is what we call a network transformation.”
According to CFO Anthony Susilo, XLSMART is carrying out both network integration and infrastructure expansion simultaneously to ensure uninterrupted service. The consolidation process is expected to be completed within the next two years. “Integration is not the same as expansion. We are doing both,” said Susilo.
The company will continue to operate three consumer brands—XL Axiata, Axis, and Smartfren—each serving a specific customer segment. This mirrors the dual-brand strategy the company previously implemented with XL and Axis.
“We’ve done this before, when we managed XL and Axis under one roof,” said Chief Commercial Officer XLSMART David Arcelus Oses. “We’ll now do the same, segmenting clearly and serving each group with tailored propositions.”
In parallel, XLSMART is preparing a major push into enterprise and home broadband segments, viewing digital infrastructure as a backbone for national development. Susilo noted that while discussions around platform and IT integrations are ongoing, the group is committed to significant investment in back-end unification and future-readiness for services across mobile, enterprise, and residential.
“We are building a company that listens better, moves faster, and serves smarter,” said Sethi. “Indonesia’s IT is still basic in some ways, but we’re ensuring that our network will be ready to deliver a world-class digital experience when the time comes.”
With core competencies in 4G, VoLTE, eSIM, and converged services, XLSMART aims to evolve beyond traditional telecom into a broader digital services platform.
“We are building a company that listens better, moves faster, and serves smarter,” said Sethi. “This merger gives us the scale and agility to support Indonesia’s digital future.”
