Telkom to Cut Subsidiaries to 18, Promises No Mass Layoffs

Telkom Indonesia has confirmed there will be no layoffs as it closes down subsidiaries. The company will have at least 18 entities remaining after being reduced from the previous 67 entities.

“No layoffs allowed. We are not allowed to lay off,” said Telkom Indonesia Director of Strategic Business Development & Portfolio, Seno Soemadji, during the BATIC Telkom 2026 event in Nusa Dua, Bali, on Wednesday (26/8/2026).

As of June, Telkom’s business units stood at 48 entities. The target is to reach 19 subsidiaries by the end of this year.

Seno said the streamlining process will involve merging and reducing subsidiaries. He described the process as having extraordinary complexity and dynamics.

“The process of engaging with various parties is also progressing very intensively. Everything is still moving, but our final target is to have 19 subsidiaries,” he said.

One of the risks in this process relates to corporate culture. Seno said communication is continuously carried out by subsidiaries and stakeholders to ensure the process meets targets and protects existing interests.

On the occasion, he also touched on the spin-off process of fibre connectivity assets to PT Telkom Infrastruktur Indonesia, or InfraNexia. The plan is for the company’s operations to commence on 1 October 2026.

“The target is for the end of September to 1 October to be fully operational,” said Seno.