Indonesia’s state-controlled telecom operator Telkom plans to streamline another 19 subsidiaries in the fourth quarter, as it accelerates efforts to simplify its portfolio and move towards a strategic holding structure.
The group initially identified 58 companies for the streamlining exercise, aiming to reduce the number to 19, according to Seno Soemadji, Telkom’s director of strategic business development and portfolio.
“We have a total of 58 companies to streamline, which we aim to reduce to 19,” Soemadji said after Telkom’s extraordinary general meeting on Wednesday.
Telkom has so far closed 24 companies, he added. During the fourth quarter, Telkom is targeting to streamline 19 subsidiaries, while the remaining seven are expected to be completed in 2027.
The remaining seven companies involve divestment processes, Soemadji said, adding that Telkom would seek to optimise their value before completing the exercise. He did not specify which companies would be carried over to 2027.
According to a Telkom presentation, as of the first half of 2026, the streamlining programme covered 58 subsidiaries and nine minority stakes. Among its controlling stakes, 17 entities were targeted for divestment, 12 for closure and five for merger or business transfer.
The entities include AdMedika, Graha Yasa Selaras, MDI Ventures, Nuon, Infomedia and Telkomsigma under the divestment workstream, while Pointer, Media Nusantara, AIT, APW and NPI are among those in the closure workstream.
The merger and business-transfer programme includes Digiserve, PINS, Nutech, Persada Sokka, Telkom Akses and Telkom Infra. Separately, five minority-stake entities are earmarked for divestment and two for closure.
The presentation describes the streamlining plan as a working guideline or estimate that may change depending on future business performance and circumstances.
Soemadji said the management change at Telkom would not disrupt the streamlining programme because the framework for the restructuring is already in place.
“We already have the framework in place. Institutionally and organisationally, the framework has already been implemented. So the process should continue as it has been, as if there had been no management change,” he said.
InfraNexia carve-out
Separately, Telkom has moved to execute the second phase of its fibre infrastructure carve-out after shareholders approved the transaction at the company’s extraordinary general meeting on Wednesday.
Telkom and its subsidiary PT Telkom Infrastruktur Indonesia, or InfraNexia, signed the deed of separation for the wholesale fibre connectivity business on the same day following the shareholder approval. Telkom said the signing marked a key milestone in completing the second phase of the carve-out.
The transaction is valued at 49.86 trillion rupiah ($2.8 billion) and involves the transfer of Telkom’s Phase 2 Wholesale Fiber Connectivity business segment to InfraNexia.
The resulting increase in InfraNexia’s capital is expected to take effect on Oct. 1, subject to completion of the approval and notification process for amendments to the company’s articles of association with Indonesia’s Ministry of Law.
The transaction is the second phase of Telkom’s plan to consolidate its wholesale fibre connectivity business under InfraNexia. Following the transaction, more than 90% of Telkom’s network infrastructure assets will be consolidated under InfraNexia, covering around 112,000 km of fibre-optic networks, including 26,000 km of domestic submarine cable systems.
Speaking after the EGM, newly appointed Telkom president director Nanang Hendarno said external business currently accounts for more than 15% of InfraNexia’s business.
“Currently, our external contribution is already above 15%,” Hendarno said.
He said the proportion could decline slightly as InfraNexia’s asset base grows, while the company continues to serve captive customers within Telkom Group.
The comments came after Telkom’s EGM appointed Nanang Hendarno as president director, replacing Dian Siswarini, who had served for 16 months at the company. Siswarini was CEO at XL Axiata from 2015 to 2024.
Hendarno previously served as Telkom’s network director and was CEO of PT Infrastruktur Telekomunikasi Indonesia from 2022 to 2025. Telkom’s EGM also appointed Budi Satria Dharma Purba as network director, while Seno Soemadji retained his position as director of strategic business development and portfolio.
The management change comes as Telkom continues to execute its portfolio transformation, with subsidiary streamlining and infrastructure consolidation forming part of its push towards a strategic holding structure.
