Telkom Indonesia Advances Second Phase of Fiber Infrastructure Spin-Off
The Indonesian telecoms giant is transferring an additional Rp49.9 trillion wholesale fiber business segment to subsidiary TIF as part of broader strategic restructuring.
Strategic Restructuring Continues
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk disclosed plans to complete the second phase of its wholesale fiber connectivity business spin-off, transferring assets valued at Rp49,858,000,000,000 (approximately $3.1 billion) to its subsidiary Telkom Infra (TIF), according to a 6-K filing submitted August 7, 2026.
The transaction represents 33% of the company's equity based on audited financial statements as of December 31, 2025 (6-K filing, 2026-08-07). Following completion, Telkom's ownership in TIF will increase from 99.999% to 99.9999999%, with the state-owned telecommunications operator maintaining near-total control of the infrastructure entity.
Valuation and Structure
The Phase-2 Wholesale Fiber Connectivity Business Segment was valued by independent appraiser KJPP Nirboyo Adiputro, Dewi Apriyanti & Rekan using a combination of the Discounted Cash Flow method and Adjusted Net Asset Method. The firm determined the valuation "to be the most relevant, having regard to the capital-intensive characteristics of fiber optic infrastructure assets" (6-K filing, 2026-08-07).
Under the conditional spin-off agreement, TIF will issue 498,580,000 new shares to Telkom at a conversion value of Rp100,000 per share. The transaction is structured on a non-cash basis, with shares issued fully paid through the transfer of business assets (6-K filing, 2026-08-07).
Regulatory Framework
The filing describes the transaction as a material affiliated transaction under Indonesian regulations (POJK 17/2020), though Telkom is exempt from certain requirements because TIF qualifies as a controlled company with more than 99% ownership. Nevertheless, the company will convene a general meeting of shareholders to obtain approval "as required under Article 125 paragraph (4) of the Company Law" (6-K filing, 2026-08-07).
The spin-off is structured to qualify for book-value treatment for tax purposes under Indonesian finance ministry regulation PMK 1/2026.
Strategic Rationale
Telkom characterized the move as part of its "transformation roadmap towards a strategic holding structure" aimed at establishing TIF as "a revenue growth engine from the monetization of external wholesale" while serving as the wholesale fiber network provider for the broader Telkom Group (6-K filing, 2026-08-07).
The filing also positioned the transaction as supporting Indonesia's national digitalization agenda, "accelerating the equitable distribution of digitalization, increasing fixed broadband penetration, and ensuring the availability of reliable, high-quality connectivity throughout Indonesia" (6-K filing, 2026-08-07).
Business Context
Telkom operates through four principal business pillars: B2C, B2B Infrastructure, International Business, and B2B ICT. The company maintains a national operational network spanning five regions with telecommunications area offices distributed at the regency and municipality level across the archipelago.
According to MarginX data, Telkom is scheduled to report first-half 2026 results on August 13, 2026, with second-quarter results expected August 28. The completion timeline for the spin-off transaction will depend on ministerial approval of TIF's capital increase, designated as the effective date in the conditional agreement.
This article was generated by MarginX from the 6-K filing on 2026-08-07. It is not investment advice.