Telkom Indonesia sets US$2.2b spin-off to strengthen fibre infrastructure unit

Telkom Indonesia has taken another major step in its corporate transformation, signing a conditional spin-off agreement with its subsidiary Telkom Infrastruktur Indonesia (TIF), also known as Infranexia, on 20 October 2025.

According to the company’s disclosure to the Indonesia Stock Exchange, the move marks a key milestone in Telkom’s plan to restructure its business and optimise its fibre network assets under a dedicated infrastructure entity.

“This agreement is signed in connection with the company’s plan to carry out a corporate restructuring and business transformation, which will be done through a non-pure spin-off of part of the wholesale fibre connectivity business and assets,” said Jati Widagdo, SVP corporate secretary of Telkom.

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The spin-off, valued at IDR 35.79 trillion (US$2.2 billion), will involve transferring part of Telkom’s wholesale fibre connectivity business and assets to Infranexia. Following the transaction, Telkom will retain an almost full ownership of 99.9% in Infranexia.

“This spin-off plan also supports the national agenda to accelerate digital equalisation, increase fixed broadband penetration, and ensure the availability of reliable and high-quality connectivity across all regions of Indonesia,” Widagdo added.

Telkom’s management said that the spin-off is part of its strategy to boost fibre utilisation through a network-sharing model. At present, only around 40% of its fibre capacity is being used, primarily by Telkomsel.

In a separate statement, Telkom President Director Dian Siswarini said the company’s move aligns with global best practices, citing major operators such as Telstra, Telecom Italia (TIM), Telefonica, O2, and CETIN that have improved efficiency, valuation, and strategic partnerships through similar infrastructure spin-offs. She added that this approach will enable TIF to build a more focused, transparent, and competitive business structure, strengthening its global competitiveness and creating greater value for stakeholders.

Infranexia will take full control of Telkom’s extensive fibre infrastructure, which spans 179,000 kilometres - equivalent to four times the Earth’s circumference - covering 501 cities across Indonesia and internationally. The company expects the first phase of asset transfer to begin by end-2025, with completion slated for next year, pushing Infranexia’s total asset value to an estimated IDR 150 trillion (US$9 billion).

The transition will involve around 50% of Telkom’s assets, including access, aggregation, backbone networks, and other supporting infrastructure.

Widagdo said the spin-off would enable Telkom to sharpen its business focus and unlock value from its assets. “This transaction is intended to enable Telkom to focus more on developing its business, creating added value, improving efficiency, and optimising the utilisation of fibre optic network assets,” he explained.

“Considering that the spin-off plan is carried out between the company and TIF, there will be no significant impact from the spin-off plan on the company’s financial condition,” he added.

With Infranexia positioned as a pure-play fibre infrastructure company, Telkom aims to strengthen its standing as Indonesia’s leading connectivity provider - a move seen as essential in meeting the growing demands of a digitally driven economy.

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