Indonesia’s Telkom to fold IndiHome consumer business into Singtel JV Telkomsel

Indonesia’s PT Telkom and PT Telekomunikasi Selular (Telkomsel) have signed an agreement to integrate Telkom’s IndiHome consumer business into Telkom and Singtel-owned service provider Telkomsel.

After an increase in the capital of Telkomsel associated with the deal is notified to Indonsesia’s Minister of Law and Human Rights on July 1, IndiHome will legally be under Telkomsel’s management.

Following the completion of the IndiHome integration process, Telkom’s stake in Telkomsel will stand at 69.9%, leaving Singapore’s Singtel with 30.1%.

The transfer of IndiHome to Telkomsel marks a shift of Telkom’s business focus, with its B2C business to be fully managed by Telkomsel, while Telkom will focus on becoming the market leader in the B2B segment.

The integration of IndiHome into Telkomsel encompasses services including fixed broadband and telephony and IPTV as well as a variety of bundling of other digital consumer services. The move is designed to create a strong fixed-mobile convergence play for the Indonesian market.

“Today is an important milestone for the transformation of TelkomGroup that focuses on advancing Indonesian B2B. We would like to express our gratitude for the support of all stakeholders for Telkom’s ongoing transformation to create optimal value for the company, customers, society, shareholders and government,” said Telkom CEO Ririek Adriansyah.

“After this, IndiHome will synergize with Telkomsel to bring innovations that provide maximum results for the company and all stakeholders. Moving forward, TelkomGroup will continue Five Bold Moves initiatives such as InfraCo, Data Center Co, B2B Digital IT Service Co, and DigiCos.”

Telkomsel CEO Hendri Mulya Syam said, “The integration of IndiHome into Telkomsel is an important milestone for Telkomsel as part of TelkomGroup, which continuously embraces opportunities for progress and exceed customer expectations, by providing equitable distribution of the latest broadband access with a more comprehensive digital connectivity experience, as well as reliable and integrated unbreakable Wi-Fi service support, especially for customers from the household or family segment, through the excellence of the FMC initiative.”

The move follows an admission in April that talks were taking place between Singtel, Telkomsel and PT Telkom about merger of IndiHome into Telkomsel.