Wedoany.com Report-Oct. 21, Telkom Indonesia (TLKM.JK) announced on Tuesday that it has agreed to partially spin off its wholesale fiber connectivity business to its subsidiary, Telkom Infrastruktur Indonesia, in a transaction valued at 35.787 trillion rupiah ($2.16 billion). The move is part of the company’s ongoing efforts to enhance operational efficiency and strengthen its infrastructure management capabilities.

In a statement, Telkom Indonesia said the deal qualifies as a material and affiliated party transaction under domestic regulations. However, it emphasized that the transaction will not have a significant impact on the company’s overall financial condition or stability. The spin-off is intended to streamline operations and sharpen the business focus of both Telkom Indonesia and its subsidiary.

According to the company, transferring part of its wholesale fiber connectivity assets to Telkom Infrastruktur Indonesia will enable more effective utilization of its extensive fiber optic network. The restructuring is designed to improve the coordination between infrastructure management and service operations, supporting future growth in Indonesia’s expanding digital and telecommunications markets.

Telkom Indonesia stated that the reorganization aligns with its broader corporate strategy to build a more agile and competitive business structure in response to the rapid growth of data and connectivity demand across the country. The company aims to create a clearer distinction between its retail, enterprise, and infrastructure segments, ensuring that each can operate with greater specialization and efficiency.

Telkom Infrastruktur Indonesia, a wholly owned subsidiary of Telkom Indonesia, focuses on developing and maintaining telecommunications infrastructure, including fiber optic networks, transmission systems, and related facilities. By consolidating the wholesale fiber business under this subsidiary, Telkom seeks to enhance the optimization and scalability of its network assets while enabling faster deployment of new connectivity solutions.

The spin-off is also expected to support Indonesia’s national digital transformation agenda by improving broadband access and network resilience. Telkom Indonesia noted that the integration of its fiber infrastructure under a specialized entity will enhance service quality, increase operational flexibility, and strengthen its competitiveness in both domestic and international markets.

With this transaction, Telkom Indonesia continues to implement structural reforms aimed at positioning itself as a leading digital telecommunications company in Southeast Asia. The company has been investing in expanding its fiber network coverage and digital services, supporting the country’s growing demand for high-speed internet and digital connectivity.

Telkom Indonesia reaffirmed that the spin-off will be conducted in compliance with applicable regulatory standards and corporate governance practices. The company said the decision reflects its long-term vision of optimizing asset utilization, improving business performance, and supporting sustainable growth in Indonesia’s telecommunications sector.