JAKARTA — Shares of PT Telkom Indonesia (Persero) Tbk. (TLKM) experienced a significant surge after the telecommunications giant announced its strategic spin-off plan involving its subsidiary, PT Telkom Infrastruktur Indonesia (TIF). This substantial transaction, valued at Rp35.78 trillion, specifically targets a portion of Telkom’s wholesale fiber connectivity business and assets, aiming to unlock greater value and operational efficiency.
According to data from the Indonesia Stock Exchange (IDX), TLKM shares saw an impressive leap of 290 points, or 9.86%, to reach Rp3,230 by 2:00 PM WIB on Tuesday (October 21, 2025). Throughout the trading session, the stock fluctuated within a range of Rp2,970 to Rp3,270 per share. This strong performance follows a 2.08% gain on Monday (October 20, 2025), where shares closed at Rp2,940. Year-to-date in 2025, TLKM has already posted a robust 19.18% increase from its closing price of Rp2,710 at the end of 2024, signaling strong investor confidence in its strategic moves.
Elaborating on the rationale behind this bold move, Jati Widagdo, SVP Corporate Secretary of Telkom Indonesia, stated that the transaction is designed to create significant added value, enhance operational efficiency, and optimize the utilization of the company’s extensive fiber optic network assets. Furthermore, this strategic initiative is expected to solidify the state-owned telecommunications issuer’s position as a dominant provider of connectivity infrastructure across Indonesia. In an official disclosure on Monday (October 20, 2025), Widagdo emphasized, “This transaction plan also supports the national agenda to accelerate digital equality, boost fixed broadband penetration, and ensure the availability of reliable and high-quality connectivity throughout Indonesia.”
Telkom (TLKM) Spins Off Fiber Optic Business to TIF Valued at Rp35.78 Trillion
The total value of this landmark agreement stands at Rp35,787,258,000,000, or approximately Rp35.78 trillion. Post-transaction, Telkom Indonesia will maintain its majority stake in TIF, retaining 99.99% ownership. Jati Widagdo further clarified that this corporate action constitutes a material transaction, as regulated by POJK No.17/2020 concerning Material Transactions and Changes in Business Activities, and is also categorized as an affiliated transaction under POJK No.42/2020. Despite these classifications, Telkom assured stakeholders that there are no conflicts of interest involved. Crucially, as TIF remains a consolidated subsidiary, the company anticipates no adverse impact on Telkom’s overall financial standing.
Telkom Indonesia (Persero) Tbk. – TradingView
As per the company’s first-half 2025 presentation, Telkom’s management detailed that the divestment of its fiber optic cable business to its subsidiary, PT Telkom Infrastruktur Indonesia (TIF), also known as Infranexia, will be executed in two distinct stages. The initial phase, projected for Q4/2025, involves transferring over 50% of TLKM’s fiber optic assets and related business operations to TIF. The second stage, encompassing the complete divestment, is estimated to conclude in H2/2026. Beyond the spin-off, Telkom is actively exploring strategic partnerships to expand the “Fiber Co” business and is currently undertaking preparations for the transfer of both assets and employees. This comprehensive strategy is guided by four key objectives: optimizing fiber assets, forging strategic partnerships to unlock expansion opportunities, enhancing business competitiveness, and pursuing both organic and inorganic growth.
Reflecting on the timeline, Angelo Syailendra, Telkom’s Director of Finance and Risk Management, explained during a media briefing in Jakarta in August 2025, “Officially, we executed the spin-off in December 2023, but the assets have not yet been transferred; the management has already been put in place. This ensures that when the assets are eventually moved, the team will be well-prepared and ready to hit the ground running.”
Analyst Recommendations for TLKM Shares
From an analyst’s perspective, the JP Morgan Sekuritas Analyst Team has assigned a neutral rating for TLKM shares, setting a target price of Rp3,000 per share. In their recent research, JP Morgan stated, “We believe TLKM possesses a structural competitive advantage through its integrated operations, a significant lead in mobile broadband services, and a comprehensive fixed-line network. The increasing penetration of fixed broadband further supports the growth potential of its fixed-line services.” However, the analysts also cautioned that the competitive landscape and Telkom’s ongoing corporate actions are anticipated to exert pressure on both revenue and profit in the near term. Key catalysts that could positively impact TLKM’s prospects include an increase in market share, potential consolidation within the telecommunications industry leading to enhanced pricing power for operators, accelerated adoption of fixed broadband, the restructuring of IndiHome, and a decrease in benchmark interest rates. Conversely, several risks loom over TLKM, such as increased capital expenditure in the medium term, a steeper-than-expected decline in legacy businesses, unfavorable regulatory changes, and a potential rise in Indonesia’s risk premium.
A broader consensus among analysts tracked by Bloomberg shows a largely positive outlook for TLKM. Out of 43 analysts, 31 recommend a “Buy,” while 12 suggest a “Hold.” The average 12-month target price for TLKM shares, based on this consensus, stands at Rp3,524 per share. Recent individual recommendations further illustrate this sentiment: CGS International analyst Bob Setiadi advises an “Add” with a target price of Rp3,400. Meanwhile, Arthur Pineda from Citi and Etta Rusdiana Putra from Maybank Investment both issue “Buy” recommendations, with target prices of Rp3,620 and Rp3,700 per share, respectively. Notably, the highest target price for TLKM shares comes from Henry Tedja of Mandiri Sekuritas, who projects Rp4,000. On the more conservative side, Daniel Widjaja from Mirae Asset Sekuritas Indonesia suggests a “Hold” rating, with a target price of Rp3,200 per share.
Disclaimer: This news article is not intended as an invitation to buy or sell shares. Investment decisions are solely at the discretion of the reader. Bisnis.com is not responsible for any losses or gains arising from readers’ investment decisions.
Summary
PT Telkom Indonesia (TLKM) announced a strategic spin-off of its wholesale fiber connectivity business and assets to its subsidiary, PT Telkom Infrastruktur Indonesia (TIF), valued at Rp35.78 trillion. This move led to a significant 9.86% surge in TLKM shares, reaching Rp3,230, reflecting strong investor confidence. The transaction aims to unlock greater value, enhance operational efficiency, and optimize Telkom’s extensive fiber optic network, supporting national digital equality efforts. Telkom will retain a 99.99% majority stake in TIF, anticipating no adverse financial impact on its overall standing.
The divestment will occur in two stages, with over 50% of assets transferring in Q4/2025 and the complete divestment by H2/2026. Telkom is also exploring strategic partnerships to expand this “Fiber Co” business. Analyst sentiment is largely positive, with Bloomberg tracking 31 “Buy” and 12 “Hold” recommendations, and an average 12-month target price of Rp3,524 per share. While JP Morgan issued a neutral rating citing competitive pressures, the broader consensus indicates a favorable outlook for TLKM’s strategic initiatives.