Telkom Indonesia to Cut Subsidiaries from 60 to 14 Entities

PT Telkom Indonesia (Persero) Tbk has unveiled plans to trim its subsidiary structure and reduce the number of subsidiary entities from approximately 60 to 14 subsidiary companies.

Telkom’s Chief Financial Officer and Risk Management Director Arthur Angelo Syailendra stated that this measure would be implemented through various corporate actions as part of the company’s transformation programme.

“From approximately 60 subsidiaries currently in existence, the intention is to reduce that figure to around 14. So roughly 50-odd entities will undergo corporate action,” said Lolo, as he is commonly known, during a video conference at a media update event in Jakarta, confirmed on Thursday, 12 March 2026.

He explained that from the approximately 50 entities to be restructured, Telkom has identified several corporate action options. First, several entities will be divested or sold off. Second, there are companies that will be closed because they are no longer active or lack operational activities.

“This is because (the entities) are long-established or outdated, so we will close them,” he said.

Meanwhile, several subsidiaries will also be transferred or merged to strengthen the company’s business focus. Telkom is also evaluating certain minority stakes in several companies deemed to provide no significant added value to the company.

“Minority investments in some of these companies which may not be particularly meaningful in value to us either,” he said.

Furthermore, this streamlining measure is part of the company’s transformation agenda to strengthen core business focus and improve asset management. Telkom is also undertaking portfolio restructuring to create substantially greater added value whilst enhancing corporate governance quality.

Holistically, Telkom is implementing four transformation pillars towards Telkom’s medium-term transformation by 2030 (TLKM 30). One of the main pillars is streamlining, which involves slimming down the Telkom Group structure.

This streamlining is applied by consolidating overlapping business units, divesting businesses not directly related to Telkom’s core operations, and refocusing on Telkom’s core business. In this manner, the group structure can become more efficient, with fewer subsidiary companies, and a focus on core operations.