Jakarta –
Telkom has signed an agreement to release IndiHome the Telkomsel. Along with this transition, it also increases state ownership in Telkomsel.
Member Commission I DPR RI Muhammad Farhan appreciated the big step BUMN Minister Erick Thohir in restructuring SOEs, particularly in relation to increasing state ownership in Telkomsel.
For information, Telkomsel, which is a subsidiary of Telkom, is controlled by Telkom and Singtel shareholders. Most recently, Telkom enlarged its ownership portion in the cellular operator from 65% to 69.9% following the release of IndiHome to Telkomsel.
Separation of business IndiHome from Telkom, Telkomsel will issue a number of new shares for Telkom. IndiHome’s value reached IDR 58.3 trillion equivalent to SGD 5.1 billion which would be 50% higher than Telkom’s equity if combined with other commercial agreements between Telkom and Telkomsel.
Along with this integration, Singtel agreed to exercise its right to take up a new 0.5% stake in Telkomsel worth IDR 2.7 trillion or the equivalent of up to SGD 236 million in cash. This makes Singtel’s effective ownership in Telkomsel to 30.1%, while Telkom’s ownership in Telkomsel increases to 69.9%.
“With Telkomsel becoming red and white, more and more people are proud to use Telkomsel as a telephone number and cellular service,” said Farhan in his statement, Friday (7/5/2023).
“In the future with economic growth in the regions, as well as an increase in people’s demographics, Telkomsel needs to continue to be committed to improving service quality, as well as expanding service coverage. We appreciate Telkomsel’s efforts, but we are sure to continue to oversee Telkomsel’s presence in the midst of society to the regions,” said farhan.
In ensuring service continuity and Telkomsel service integration, IndiHome, which was previously under the Telkom umbrella, will be transferred to Telkomsel.
Farhan sees the integration of IndiHome into Telkomsel will provide benefits with easier communication channels for various telecommunication services, especially Telkomsel and IndiHome in one door.
Farhan also responded that the Telkomsel-IndiHome wedding on July 1, 2023 will be supported by the Ministry of Communication and Informatics (Kominfo), especially regarding approvals and permits. He conveyed that Kominfo’s support is proof of the presence and support of the state for the implementation of innovative telecommunications.
Previously reported, Telkom and Telkomsel have signed a Conditional Separation Agreement (Conditional Spin-off Agreement/CSA) to integrate IndiHome to Telkomsel.
The signing of this agreement is an important part of implementing the Telkom Group’s strategy to provide the best variety of broadband services, strengthen business, and achieve digital inclusion in Indonesia.
This transaction has the support of Telkom and Singtel as Telkomsel’s shareholders. This integration is also in line with Singtel’s strategy to continue to grow its business and strengthen its commitment in Indonesia.
Watch Video “Telkomsel Will Merge with IndiHome“
(agt/afr)
