Telkom Cuts Subsidiaries from 68 to 18 — Here's the Impact on Performance

PT Telkom Indonesia (Persero) Tbk (TLKM) has spoken out regarding the company’s performance following the reduction or streamlining of its subsidiaries, a programme carried out on the direction of BP BUMN and BPI Danantara.

Telkom Indonesia President Director Dian Siswarini said that with a simpler Telkom Group structure, the company can reduce potential business and operational overlap, simplify processes, and allocate resources and capital more focusedly towards its core business.

“We are focusing these efforts on businesses with strategic value and greater growth prospects in the future,” she said at a virtual press conference on Monday (7/9/2026).

Dian revealed that, in addition to trimming subsidiaries, TLKM has also strengthened capital allocation, with more than 94% of capital expenditure in the first half of 2026 allocated to core B2C and B2B infrastructure businesses.

“So beyond portfolio management, we are also ensuring capital continues to be directed towards areas that are the company’s main sources of growth,” she said.

Dian stressed that the streamlining programme is still ongoing, so its impact on performance will materialise gradually. Management is optimistic the initiative will support healthier margins, stronger profitability, and the creation of long-term shareholder value going forward.

As background, Telkom is targeting a reduction in the number of its subsidiaries from 68 to 18 entities.

Head of BP BUMN and COO of Danantara Indonesia, Dony Oskaria, held a meeting with the President Director of Telkom Indonesia to discuss progress on Telkom’s streamlining and transformation process.

“The transformation is directed from an operating holding to a strategic holding, with Telkom focusing on portfolio management, capital allocation, governance, group synergies, and value creation,” according to a post on the BUMN.Id Instagram account on Thursday (20/8/2026).

Going forward, operational activities will be run by business entities, or Operating Companies (OpCos), that are more focused on their respective fields.

This move is expected to make Telkom’s structure leaner, improve the effectiveness of portfolio management, strengthen synergies between entities, and optimise Telkom’s contribution to the Danantara ecosystem and the national economy.