Telkom Indonesia to close 12-14 subsidiaries in restructuring plan

PT Telkom Indonesia (Persero) Tbk is set to liquidate between 12 and 14 of its subsidiaries, according to Danantara Dony Oskaria, Head of the State-Owned Enterprises (BUMN) Business Entity Arrangement Agency and Chief Operating Officer.

Oskaria stated that the employees of these subsidiaries will not face layoffs. Instead, they will be consolidated into other Telkom entities. "For example, like fiber optic, it will be consolidated into several companies that become one. The size becomes large, the employees follow. It's a lot of mergers," Oskaria explained. This consolidation aims to streamline operations and leverage combined resources.

The decision to liquidate subsidiaries is part of a larger strategic initiative to reduce the number of Telkom Group's entities from 67 to 19 by the end of 2026. This streamlining is intended to strengthen Telkom's position as the national digital strategic holding company, enhancing its adaptability and global competitiveness.

In line with this transformation, Telkom Indonesia's Annual General Meeting of Shareholders (RUPST) also approved changes to its board of commissioners and the distribution of cash dividends totaling Rp 21.9 trillion for the 2025 fiscal year. Additionally, a share buyback program valued at up to Rp 4 trillion was approved. The company is accelerating priority programs including the consolidation of BUMN FiberCo, development of Data Centers, TowerCo, and InfraCo, and the restructuring of Telkom Group's licenses.