Telkom Subsidiary (MTEL) Plans Merger with Two Entities

Jakarta, CNBC Indonesia — Telecommunications infrastructure issuer PT Dayamitra Telekomunikasi Tbk. (MTEL) will merge two of its subsidiaries, namely PT Persada Sokka Tama (PST) and PT Ultra Mandiri Telekomunikasi (UMT), into the company. This internal merger is scheduled to take effect on 1 July 2026.

In the summary of the business merger plan issued on 8 May 2026, MTEL stated that this corporate action has received approval from the boards of commissioners of each company on 6 May 2026. The general meeting of shareholders (GMS) to seek approval from shareholders is scheduled for 30 June 2026.

The merger will be conducted with MTEL as the surviving entity, while PST and UMT will cease to exist by operation of law without a liquidation process once the action becomes effective. All assets, liabilities, rights, and obligations of PST and UMT will automatically transfer to MTEL.

Management stated that this merger is part of the strategy to strengthen MTEL’s position as an integrated digital infrastructure platform or Next-Gen TowerCo. The company will also add several new business activities through the addition of KBLI codes, ranging from internet access services, Internet of Things (IoT), managed services, to the provision of technical workforce.

“The addition of KBLI 61104, 61909, 62204, and 78200 is a strategic step to strengthen MTEL’s position as an integrated digital infrastructure platform (Next-Gen TowerCo) and to support the optimisation of market opportunities post-merger of PST and UMT,” management wrote in the document, quoted Friday (8/5/2026).

MTEL emphasised that the merger will not change the company’s shareholding structure because PST and UMT are subsidiaries wholly owned by MTEL. Thus, this action will not result in dilution of ownership or changes in control.

Currently, MTEL’s majority shareholder is PT Telkom Indonesia (Persero) Tbk. (TLKM) with 71.83% ownership. The Government of Singapore holds 5.33%, and PT Maleo Investasi holds 5.98%.

In terms of performance, MTEL recorded revenue of Rp9.53 trillion for the full year 2025, up from Rp9.30 trillion in 2024. Net profit for the year was Rp2.11 trillion, with total assets reaching Rp58.35 trillion.

Management assessed that the merger of PST and UMT will not have a material impact on MTEL’s consolidated financial condition, as both entities have already been consolidated in the company’s financial statements.