Telkom Completes Streamlining of 10 Entities to Accelerate Transformation

PT Telkom Indonesia (Persero) Tbk (Telkom) has completed its streamlining target for 10 subsidiary entities in the first semester of 2026, as a commitment to supporting the state-owned enterprise (SOE) streamlining aspirations mandated by Danantara Asset Management (DAM) and the SOE Regulatory Body (BP BUMN). In line with this, streamlining is one of the four pillars of the TLKM 30 transformation strategy, focused on business portfolio structuring 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 strengthen 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. In this structure, Telkom as the HoldCo will focus on portfolio management, strengthening governance, creating synergy, and optimising value across business segments. Meanwhile, operational activities are run by OpCos with a more specific focus, namely on the B2C, B2B Infrastructure, B2B ICT, and International Business segments. Director of Strategic Business Development & Portfolio at Telkom, 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 business that is our main strength. With a leaner structure, Telkom has a stronger foundation to move more agilely, allocate investment more optimally, and create higher quality growth,’ Seno said in an official statement. As of 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 encourage 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 long-term strategy and group 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 the strategic role of each entity in supporting the future business direction of TelkomGroup. With a more focused portfolio and a more efficient organisational structure, we can strengthen synergy between OpCos, drive more sustainable growth, and solidify Telkom’s position as an enabler of a globally competitive national digital ecosystem,’ Seno explained. In its implementation, Telkom ensures that every streamlining process is carried out prudently, accountably, and transparently by prioritising the principles of Good Corporate Governance (GCG) and the Business Judgment Rule (BJR). Every strategic decision is taken based on a comprehensive study and in close coordination with stakeholders, including the Attorney General’s Office, BPKP, DAM, and BP BUMN, to ensure compliance and support sustainable corporate transformation. In line with the organisational transformation, Telkom also ensures that every human resource adjustment is carried out responsibly with full respect for the rights of affected employees. The entire process is carried out voluntarily and by mutual agreement of both parties, one of which is through the 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 target up to 2030 to build an increasingly solid company foundation. Going forward, Telkom is optimistic it can strengthen the company’s competitiveness and improve quality in business areas with the best growth prospects in the future.