Telkom Indonesia agreed on Tuesday to partially spin off its wholesale fibre connectivity business to its subsidiary Telkom Infrastruktur Indonesia in a deal valued at 35.787 trillion rupiah ($2.16 billion).
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, Telkom Indonesia said in a statement.
The spin-off will help improve business focus and optimize the utilisation of fibre optic network assets.
Telkom Infrastruktur Indonesia, also known as Infranexia, will fully manage Telkom’s fiber optic business.
The first phase of asset transfer from Telkom to Infranexia is scheduled to begin by the end of 2025, with full completion targeted for next year. The total value of assets under Infranexia’s management is expected to reach 150 trillion rupiah (around $9 billion).
Telkom’s management said the establishment of Infranexia aims to enhance fiber-optic utilisation through a network-sharing scheme. Currently, the asset utilisation rate stands at around 40%, as most of the network is used internally by Telkomsel.
To support the spin-off, Telkom is strengthening Infranexia’s organisational structure, financial capacity, and corporate governance, ensuring the unit can independently manage the sizable asset base.
In the first stage, around 50% of the total fiber-optic assets will be transferred, including access, aggregation, and backbone networks, along with other supporting infrastructure.
Telkom’s fiber-optic backbone currently stretches 179,000 kilometers, equivalent to four times the circumference of the Earth. The network spans 501 cities, comprising 114,450 km of domestic lines and 64,700 km of international connections.
