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🇮🇩 Indonesia /Economy & Trade

Telkom to Liquidate 12-14 Subsidiaries; No Employee Layoffs Planned

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • PT Telkom Indonesia plans to liquidate 12 to 14 of its subsidiaries as part of a streamlining effort.
  • The company assures that no employees will be laid off, as they will be consolidated into other Telkom subsidiaries through mergers or restructuring.
  • This move is part of a broader plan to reduce Telkom Group's subsidiaries from 67 to 19 by the end of 2026, aiming to strengthen its role as a national digital holding company.

PT Telkom Indonesia (Persero) Tbk is set to liquidate between 12 and 14 of its subsidiaries as part of a significant streamlining initiative. Dony Oskaria, Head of the Investment Management Body Danantara and COO of Danantara, confirmed the plan, stating that the exact number is subject to final checks. This consolidation is a key step in strengthening Telkom's position as Indonesia's strategic digital holding company.

What will be liquidated are 12 or 14. I forget, we will check later.

— Dony OskariaDony Oskaria, COO of Danantara, confirmed the number of subsidiaries slated for liquidation.

Crucially, Telkom has guaranteed that this liquidation process will not result in employee layoffs. Oskaria explained that affected employees will be absorbed into other Telkom subsidiaries. This consolidation will often involve mergers, creating larger entities and retaining the workforce. This approach aims to ensure business continuity and leverage the expertise of existing employees within the restructured organization.

The move aligns with a larger objective agreed upon by the Ministry of State-Owned Enterprises (BUMN) and Danantara to accelerate the streamlining of the Telkom Group. The goal is to reduce the total number of subsidiaries from the current 67 to just 19 by the end of 2026. This reduction is intended to enhance efficiency and focus Telkom's operations on core digital services.

For example, like fiber optic, it will be consolidated later. Several companies become one. The size becomes bigger and the employees follow. Many are done through mergers.

— Dony OskariaOskaria explained the process of employee consolidation into other Telkom subsidiaries.

In addition to subsidiary consolidation, Telkom'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. A share buyback program of up to Rp 4 trillion was also approved. These financial decisions underscore Telkom's commitment to improving performance, creating shareholder value, and navigating the dynamic digital industry landscape.

The decision taken in the RUPST reflects the company's commitment to continuously improve performance and create added value.

— Dian SiswariniTelkom President Director Dian Siswarini commented on the decisions made during the Annual General Meeting of Shareholders.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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