Telkom Completes Streamlining of 10 Entities, Accelerates Transformation Towards Strategic Holding

PT Telkom Indonesia (Persero) Tbk (Telkom) has completed its target of streamlining 10 subsidiary entities in the first semester of 2026, as mandated by Danantara Asset Management (DAM) and the Ministry of State-Owned Enterprises (BP BUMN). In line with this, streamlining is one of the four pillars of the TLKM 30 transformation strategy, focused on structuring the business portfolio through entity optimisation, harmonisation of overlapping businesses, and divestment of non-core businesses. Through the streamlining initiative, Telkom is also creating operational efficiency while strengthening the focus on realising capital expenditure for core business development in the telecommunications and digital sectors. The portfolio structuring was carried out through various schemes, namely divestment, merger, and liquidation. This step is expected to result in a leaner group structure, sharpen the role of each entity, and accelerate Telkom’s transformation from an Operating Holding to a Strategic Holding with a Holding Company-Operating Company (HoldCo-OpCo) model capable of creating sustainable value growth. Under this structure, Telkom as the HoldCo will focus on portfolio management, strengthening governance, creating synergies, and optimising value across business segments. Meanwhile, operational activities will be carried out by OpCos with a more specific focus, namely on the B2C, B2B Infrastructure, B2B ICT, and International Business segments. Telkom’s Director of Strategic Business Development & Portfolio, Seno Soemadji, stated that portfolio simplification is a strategic step to build an increasingly agile organisation in facing the dynamics of the digital industry. “Transformation is not only realised through business capability development, but also the courage to reorganise the organisation to be more focused on the core businesses that are our main strengths. With a leaner structure, Telkom has a stronger foundation to move more agilely, allocate investments more optimally, and create higher quality growth,” said Seno. By the end of June 2026, Telkom had completed the streamlining of 10 entities through various strategic corporate actions. Under the divestment scheme, Telkom finalised the release of 2 entities, marked by the signing of a Sale and Purchase Agreement (SPA) with strategic partners on 3 June 2026. Through a vertical merger scheme, Telkom also completed the merger of 2 entities to strengthen the business and drive capability development. Meanwhile, regarding streamlining through the liquidation scheme, 6 TelkomGroup entities have reached the designated dissolution stage as part of business portfolio optimisation. These steps were taken based on a thorough evaluation of business relevance, operational activities, and each entity’s contribution to the group’s long-term strategy and value creation. Seno added that streamlining is not merely about reducing the number of subsidiaries, but a step to build a healthier and more valuable business portfolio. “Every streamlining decision is based on an evaluation of each entity’s strategic role in supporting the future direction of TelkomGroup’s business. With a more focused portfolio and a more efficient organisational structure, we can strengthen synergies between OpCos, drive more sustainable growth, and reinforce Telkom’s position as a globally competitive national digital ecosystem enabler,” said Seno. In its implementation, Telkom ensured that every streamlining process was carried out prudently, accountably, and transparently by upholding the principles of Good Corporate Governance (GCG) and the Business Judgment Rule (BJR). Every strategic decision was taken based on comprehensive studies and close coordination with stakeholders, including the Attorney General’s Office, the Development and Finance Comptroller (BPKP), DAM, and BP BUMN, to ensure compliance and support the company’s sustainable transformation. In line with the organisational transformation, Telkom ensured that every human resources adjustment was carried out responsibly with full respect for the rights of affected employees. The entire process was conducted voluntarily and by mutual agreement of both parties, one of which was through an Early Retirement Program (ERP) which in 2026 will be aimed at the OpCo level. Through this approach, Telkom hopes to build a more adaptive organisation, strengthen digital talent capabilities, and drive sustainable company efficiency and productivity. The streamlining programme is part of the medium-term targets up to 2030 to build an increasingly solid company fundamental. Going forward, Telkom is optimistic about strengthening the company’s competitiveness and improving quality in business areas with the best growth prospects in the future.