Indonesia’s state-controlled telecom operator PT Telkom Indonesia has proposed transferring the second phase of its wholesale fibre connectivity business to infrastructure subsidiary PT Telkom Infrastruktur Indonesia (TIF), or Infranexia, in a transaction valued at 49.86 trillion rupiah ($2.8 billion).
The proposed spin-off, disclosed on Aug. 7 to the Indonesian Stock Exchange (IDX), covers the Phase 2 Wholesale Fiber Connectivity Business Segment, including related business, assets, liabilities, customers, and partners. Telkom plans to seek shareholder approval for the transaction at a general meeting on Sept. 30, with the results scheduled to be reported on Oct. 2.
The transaction will be carried out on a non-cash basis. TIF will issue 498.58 million new shares to Telkom at 100,000 rupiah per share, with the shares subscribed for through the transfer of the business. Telkom’s stake in TIF will increase to 99.9999999% from 99.999%.
The 49.86 trillion rupiah valuation represents about 33% of Telkom’s equity based on its audited 2025 financial statements. Independent appraiser KJPP Nirboyo Adiputro, Dewi Apriyanti & Rekan, used discounted cash flow and adjusted net asset methods to determine the value.
The business being transferred generated 22.72 trillion rupiah ($1.3 billion) in revenue in 2025, down from 25.19 trillion rupiah ($1.41 billion) a year earlier. Its profit for the year fell to 11.79 trillion rupiah from 13.9 trillion rupiah in 2024. At end-2025, the segment had total assets of 29.15 trillion rupiah and total liabilities of 316 billion rupiah.
Telkom said the spin-off is intended to establish TIF as a vehicle for monetising external wholesale demand while continuing to provide wholesale fibre connectivity to the Telkom Group. The transaction is also part of Telkom’s broader move towards a strategic holding structure.
The proposed transaction follows Telkom’s first-phase fibre carve-out completed in December 2025, when the company transferred more than 50% of its selected fibre assets and business to TIF in a transaction valued at about 35.8 trillion rupiah.
The first phase covered selected access, aggregation, backbone and supporting fibre infrastructure. Telkom had said at the time that the carve-out would be carried out in two phases, with the second phase planned for 2026.
The first transfer subsequently took effect on Jan. 1, 2026. Telkom’s latest disclosure puts the value of the business transferred under the earlier conditional spin-off agreement at 35.79 trillion rupiah.
Under the latest proposal, the relevant operations, assets and liabilities will move to TIF by operation of law once the Phase 2 spin-off becomes effective. Contracts with customers and partners will also transfer to the infrastructure subsidiary.
