TLKM Reduces Subsidiaries to 19 Entities to Strengthen Digital Business

PT Telkom Indonesia Tbk (TLKM) is accelerating a major restructuring by reducing its subsidiaries and business units from 67 to 19 entities by the end of 2026. The move is part of a government-driven consolidation of state-owned enterprises (SOEs) aimed at strengthening business focus and enhancing competitiveness in the digital industry. Seno Soemadji, Director of Strategic Business Development and Portfolio at PT Telkom Indonesia, said the streamlining process involves various schemes including mergers, divestments, liquidations, consolidations, and the formation of new holding companies. The effort is being implemented gradually to simplify the company structure and improve operational efficiency. This restructuring forms part of the government’s broader transformation of SOEs. Dony Oskaria, Head of BP BUMN and Chief Operating Officer of Danantara Indonesia, said simplifying business entities is crucial for Telkom to focus on core operations and become more competitive in the rapidly evolving digital sector. “This streamlining is vital to strengthen Telkom’s business focus and enhance the company’s competitiveness in the digital industry,” Oskaria said. The government, through Danantara Indonesia, is pushing for significant consolidation within SOEs. President Prabowo Subianto previously tasked Danantara with reducing the number of state-owned enterprises and their subsidiaries from over 1,000 to around 200-300 companies. Telkom’s restructuring is considered a strategic move due to the state-owned telecom company’s significant role in developing the national digital ecosystem.