Telkom Completes Streamlining of 10 Entities, Accelerating Transformation to Strategic Holding

PT Telkom Indonesia (Persero) Tbk, the state-owned telecommunications giant, announced the successful completion of its target to streamline 10 subsidiary entities within the first half of 2026. This initiative aligns with directives from Danantara Asset Management and the State-Owned Enterprises (BUMN) Regulatory Body, marking a significant step in the company's transformation journey.

The streamlining effort is a core component of Telkom's TLKM 30 transformation strategy, which emphasizes portfolio optimization through various means, including divestment, mergers, and liquidation of business units. The goal is to create a more agile and focused organizational structure, harmonize overlapping business functions, and divest non-core operations. This process is designed to enhance operational efficiency and reallocate capital expenditure towards strengthening core telecommunications and digital businesses.

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Transformation is not only realized through the development of business capabilities but also the courage to reorganize the organization to be more focused on core businesses that are our main strength.

Telkom anticipates that this restructuring will result in a leaner group structure, clarify the role of each entity, and accelerate its transformation from an Operating Holding to a Strategic Holding company. This shift to a Holding Company-Operating Company (HoldCo-OpCo) model aims to foster sustainable value growth. In this new structure, Telkom as the HoldCo will concentrate on portfolio management, governance, synergy creation, and value optimization across business segments, while the Operating Companies (OpCos) will focus on specific operational activities within B2C, B2B Infrastructure, B2B ICT, and International Business segments.

Seno Soemadji, Director of Strategic Business Development & Portfolio at Telkom, highlighted that the portfolio simplification is a strategic move to build a more agile organization capable of navigating the dynamic digital industry. "Transformation is not only realized through the development of business capabilities but also the courage to reorganize the organization to be more focused on core businesses that are our main strength," Seno stated. He added that a leaner structure provides a stronger foundation for agility, optimal investment allocation, and higher quality growth. By the end of June 2026, Telkom had completed streamlining through strategic corporate actions, including divesting two entities, merging two others to strengthen business capabilities, and initiating liquidation processes for six entities.

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With a leaner structure, Telkom has a stronger foundation to move more agile, allocate investments more optimally, and create higher quality growth.