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  • Telkom Finalizes $4.8 Billion Spinoff of InfraNexia Network Assets, Paving Way for Enhanced Connectivity Services

    Telkom Finalizes $4.8 Billion Spinoff of InfraNexia Network Assets, Paving Way for Enhanced Connectivity Services

    Telkom Indonesia has disclosed the completion of its two-step division of network infrastructure assets into its operational subsidiary, InfraNexia. The entire transaction, amounting to IDR 85.7 trillion (equivalent to USD 4.8 billion), was first proposed in September 2025 and received shareholder approval in December of the same year.

    Phase Breakdown

    The initial stage of the spinoff was settled in January 2026. This entailed transferring over half of Telkom’s fiber network infrastructure, including elements contributing to access, aggregation, backbone, and other supporting segments, to lay the groundwork for InfraNexia’s operational activity. In the second stage, InfraNexia has taken over 90% of Telkom’s network infrastructure assets and business portfolio, thus expanding its operational capacity.

    Despite the division, Telkom will maintain a 99.9% share in InfraNexia, enabling it to operate as a wholly-owned subsidiary that offers neutral wholesale connectivity services. InfraNexia will now manage approximately 112,000 km of fiber-optic networks throughout Indonesia, of which 26,000 km are domestic subsea cables spread across the archipelago.

    Future Developments

    Lukman Hakim Abd. Rauf, President Director of InfraNexia, articulated that with the growing integration of assets, the company aims to enhance its primary services, including 5G backhaul, wholesale network, and FTTx, as well as passive infrastructure sharing. Lukman also anticipates that these advancements will set up InfraNexia to back the expansion of AI, cloud services, and data centers in Indonesia.

    Dian Siswarini, President Director of Telkom, emphasized that the InfraNexia spinoff is a significant move towards expediting Telkom Group’s business transformation as part of its TLKM 30 strategy. This strategy targets the monetization of high-value infrastructure assets like data centers, towers, and fiber networks to stimulate new growth possibilities for the future. She expressed confidence that the establishment of InfraNexia would enable the company to deliver faster, more reliable, and superior quality services to enhance customer experience.

    Questions & Answers

    What is the total transaction value of the spinoff?
    The total transaction value of the spinoff is IDR 85.7 trillion, which is approximately USD 4.8 billion.

    What will InfraNexia focus on enhancing post the spinoff?
    InfraNexia plans to strengthen its primary services, such as 5G backhaul, wholesale network, and FTTx, alongside passive infrastructure sharing.

    How will InfraNexia support the growth of AI, cloud services, and data centers in Indonesia?
    With an increasingly integrated asset base and a robust network infrastructure, InfraNexia is poised to provide the necessary connectivity and infrastructure support for the growth of AI, cloud services, and data centers in Indonesia.

  • Telkom Greenlights InfraNexia’s $5.4B Fiber Spinoff: A Step Forward in Digital Infrastructure Expansion

    Telkom Greenlights InfraNexia’s $5.4B Fiber Spinoff: A Step Forward in Digital Infrastructure Expansion

    Indonesia’s state-owned telecommunications corporation, Telkom Indonesia, recently announced that its independent shareholders have given the green light to partition the company’s wholesale fiber connectivity business and assets. The assets will be transferred to the company’s Fiber-To-The-Home (FTTH) subsidiary, Telkom Infrastruktur Indonesia (TIF), also colloquially known as InfraNexia. Telkom initially shared its plan in September and finalized it in October, with the split slated for execution in two stages.

    Details of the Split

    The initial phase will witness InfraNexia assuming control of more than half of Telkom’s fiber network infrastructure. This includes elements such as access, aggregation, backbone, and other supporting infrastructural components. The second phase involves InfraNexia obtaining the rest of the fiber assets from Telkom, a process expected to reach completion in the second half of 2026. The total asset value is projected to be IDR 90 trillion (USD 5.4 billion).

    Despite the spinoff, Telkom will maintain a hefty 99.9% ownership stake in InfraNexia. Telkom has expressed that this division will enhance operational and investment cost efficiencies. Moreover, it aims to transform InfraNexia into a new growth catalyst for the group, with a particular focus on the development of the wholesale fiber business, forging opportunities for network sharing, and forming strategic partnerships. This strategic shift is vital, given that Telkom’s wholesale fiber capacity is only approximately 40% utilized, primarily by its mobile division, Telkomsel.

    Shareholder Approval

    The partition needed approval from independent shareholders, who lent their support to the plan during an Extraordinary General Meeting of Shareholders (EGMS).

    Telkom’s President Director, Dian Siswarini, expressed that this separation is also a crucial facet of the company’s TLKM 30 strategy. This strategy is designed to metamorphose Telkom into a strategic holding firm that boasts a more niche, nimble, and internationally competitive digital telecommunications profile.

    The approval of the asset and business separation strengthens Telkom’s transformation agenda, aimed at building a more agile and focused business structure. This will enable Telkom to augment its contribution to the acceleration of national digitalization and generate added value for companies, stakeholders, communities, and the nation.

    Questions & Answers

    What is the purpose of the split in Telkom’s business?
    The split is aimed at enhancing operational and investment cost efficiencies, transforming InfraNexia into a new growth catalyst for the group, and focusing on the development of the wholesale fiber business.

    How much of the ownership stake in InfraNexia will Telkom retain after the split?
    Post-separation, Telkom will retain a 99.9% ownership stake in InfraNexia.

    What does Telkom’s TLKM 30 strategy entail?
    The TLKM 30 strategy aims to transform Telkom into a strategic holding company with a more focused, agile, and globally competitive digital telecommunications profile.