JAKARTA - PT Telkom Indonesia (Persero) Tbk (TLKM) restructures its business lines through a spin-off of IndiHome, its internet (WiFi) and digital services business segment. The conditional spin-off agreement was officially signed earlier today (6/4).

Edwin Sebayang, VP Investor Relation of Telkom Indonesia, claimed that the total value of IndiHome that will be separated clocks up to IDR 58.24 trillion. "It is to maintain the competitive power and advantages in the competition within the telecommunication sector," he said quoted in the information disclosure today (6/4).

In line with this plan, TLKM plans to combine fixed-broadband and mobile-broadband services in one business entity. With this spin-off, the company aims to accelerate the broadband service expansion to every layer of community.

Regarding this spin-off plan, Singapore Telecom Mobile Pte Ltd (Singtel), another shareholder of Telkomsel, will reportedly put in IDR 2.71 trillion worth of investment.

As of now, TLKM controlled 65% of Telkomsel, while Singtel claims another 35% of total 182,570 shares of Telkomsel. After this corporate action, TLKM's portion will rise to 69.90% of 217,421 units, while Singtel's down to 30.10%. (LK/ZH)