Telkom Indonesia has secured shareholder approval for the spin-off of its wholesale fibre connectivity assets into subsidiary PT Telkom Infrastruktur Indonesia (TIF), marking one of the group’s most significant restructuring moves to date.
At the general meeting held on December 12, shareholders signed off on the transfer of assets—covering Metro-Ethernet, SL-WDM, access network, global link, and IP transit services—valued at Rp35.79 trillion (around $2.1 billion), equivalent to 22.02% of Telkom’s equity based on its 2024 audited financials. Before the spin-off, the wholesale fibre asset was valued at Rp1.92 trillion.
The transfer will take place via a non-cash partial spin-off, with TIF issuing 357.87 million new shares to Telkom at a conversion price of 100,000 apiece.
Following the issuance, Telkom’s ownership in TIF will lift from 99.999% to 99.9999997%, with PT Multimedia Nusantara’s stake diluted from 0.001% to 0.0000003%.
Telkom and TIF will now move to sign the spin-off deed and capital increase documents. The transaction will become effective once the Ministry of Law acknowledges the capital changes at TIF, an administrative step the company expects to complete this month.
The exercise forms Phase 1 of a wider fibre separation that will continue through 2026, eventually migrating all wholesale fibre assets into TIF.
Telkom frames the carve-out as a way to sharpen operational focus and unlock value in its capital-intensive fibre network. The group argues that standalone infrastructure vehicles tend to be valued more highly than integrated telcos, citing global examples such as Telstra, TIM and CETIN. Beyond valuation, Telkom expects clearer disclosures, a more efficient cost structure and better prospects for future partnerships through TIF.
The restructuring also aligns with the government’s broader digitalisation agenda, including efforts to expand fixed broadband penetration and improve national connectivity.
Meanwhile, TIF is still awaiting the issuance of its Network Access Point (NAP) licence after completing the Uji Laik Operasi (ULO) on December 1. If the licence is not issued by the spin-off’s effective date, revenue for NAP-related services will temporarily remain booked at the Telkom parent.
TIF may continue to serve customers through a reseller scheme until the licence is granted. Telkom said the pending permit does not affect the transaction’s execution.
Telkom is set to launch Indonesia’s first dedicated national fibre infrastructure platform, which could later open the door to strategic investors once the multi-phase carve-out is completed.
Telkom also reshuffled its board of commissioners and board of directors following an Extraordinary General Meeting of Shareholders (RUPSLB).
Shareholders approved changes to the company’s leadership lineup, including the appointment of Rofikoh Rokhim as an independent commissioner, replacing Yohanes Surya, and the appointment of Budi Satria Dharma Purba as the new Director of Wholesale & International Service, succeeding Honesti Basyir. Other key executives, such as Dian Siswarini as President Director, continue to lead their respective divisions under the updated structure.
