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Telkom Indonesia Completes $4.8 Billion Infrastructure Spin-Off to InfraNexia

By: IDCNOVARegion: Southeast Asia
Indonesian mobile carrier PT Telkom Indonesia has finalized the second and final phase of its $4.8 billion infrastructure spin-off, transferring its remaining network assets to subsidiary InfraNexia. The move marks a significant step in the company's broader strategy to monetize and restructure its infrastructure portfolio, which includes fiber, towers, and data center assets.

The completion of the final phase, announced late last week, involved the transfer of the remaining 50 percent of Telkom's fiber assets to InfraNexia, valued at IDR 49.9 trillion ($2.8 billion). The first phase, completed in January, saw the transfer of the initial half of fiber assets. Combined, the total value of the network infrastructure transfer reaches $4.8 billion, with Telkom retaining a 99.9 percent ownership stake in InfraNexia.

InfraNexia will now manage approximately 112,000 kilometers of fiber optic cable, including 26,000 kilometers of domestic subsea cable systems spanning across Indonesia. With this expanded asset base, the subsidiary is positioned to strengthen its role as a wholesale connectivity service provider, focusing on the development of national digital infrastructure.

"With increasingly mature asset integration, we will strengthen our core services—from 5G backhaul, wholesale network and FTTx, to passive infrastructure sharing," said Lukman Hakim Abd. Rauf, president and director of InfraNexia. "Furthermore, we have accelerated our network modernization program and pushed for the implementation of autonomous networks to deliver a smarter, more efficient, and more adaptive connectivity infrastructure. This strategic effort will strengthen our readiness in developing connectivity to support the growth of AI, cloud, and data centers in Indonesia."

The spin-off aligns with Telkom's broader initiative to unlock value from its infrastructure holdings. The company has been exploring options to divest or monetize assets, including its data center business NeutraDC, which reports have valued at up to $1.5 billion. Earlier this year, speculation emerged about a potential sale, following initial exploration talks in 2022 and further reports in 2024.

"The InfraCo Phase 2 Spin-Off is a concrete implementation of TelkomGroup's portfolio structuring strategy to build a digital infrastructure business that has a stronger value proposition," said Seno Soemadji, director of strategic business development & portfolio at Telkom. "Through the formation of InfraNexia, Telkom not only optimizes asset utilization and increases flexibility in developing partnership opportunities, but also creates a foundation for sustainable growth for the entire TelkomGroup business portfolio."

Industry analysts view the spin-off as a calculated move to enhance operational efficiency and attract potential partners or investors in Indonesia's rapidly growing digital economy. By consolidating its network infrastructure under InfraNexia, Telkom aims to streamline management and capitalize on increasing demand for connectivity services driven by cloud adoption, AI applications, and data center expansion in the region.