PT Telkom Indonesia (Persero) Tbk (Telkom) and PT Telekomunikasi Selular (Telkomsel) have signed a deed of spin-off to integrate IndiHome into Telkomsel. This was marked by the signing between Telkom President Director Ririek Adriansyah and Telkomsel President Director Hendri Mulya Syam, Tuesday (27/6). After Telkomsel's capital increase in connection with this transaction is notified to the Minister of Law and Human Rights of the Republic of Indonesia which is planned to be carried out on July 1, 2023, legally IndiHome will officially be under Telkomsel's management starting July 1, 2023.
This agreement is an important milestone for the implementation of TelkomGroup's Fixed Mobile Convergence (FMC) initiative as part of the company's Five Bold Moves main strategy, in order to create a sustainable impact on society such as providing wider, more equitable and reliable broadband services, supporting the acceleration of digital inclusion and the digital economy, increasing the level playing field of the Indonesian telecommunications industry, and strengthening the company's business in the future.
With the completion of the IndiHome integration process, Telkom's effective ownership in Telkomsel rose to 69.9%, while Singtel's in Telkomsel became 30.1%. The transfer of IndiHome to Telkomsel also marks a business refocus within TelkomGroup, where the Business to Consumer (B2C) segment is fully managed by Telkomsel, while Telkom will focus on becoming the market leader in the Business to Business (B2B) segment which is a potential new source of revenue for Telkom's higher growth in the future.
"Today is an important milestone for TelkomGroup's transformation that will focus on advancing B2B Indonesia. We thank all stakeholders for their support for Telkom's ongoing transformation steps to create optimal value for the company, customers, society, shareholders, and the government," said Telkom President Director Ririek Adriansyah.
Ririek added, in-depth studies related to FMC have been carried out and even 23 of the world's 25 largest telco operators have implemented FMC. This shows that the FMC initiative is the most appropriate step and has proven results. Telkom's strategic move is also supported by the Ministry of SOEs.
"After this, IndiHome will synergize with Telkomsel to bring innovations that provide maximum results for the company and all stakeholders. In the future TelkomGroup will continue the transformation plan for other Five Bold Moves such as InfraCo, Data Center Co, B2B Digital IT Service Co, and DigiCos," explained Ririek.
Telkomsel President Director Hendri Mulya Syam also explained, "The integration of IndiHome into Telkomsel is an important milestone for Telkomsel as part of TelkomGroup, which always continues to open up opportunities for progress and exceed customer expectations, by presenting the latest broadband access equality with a more complete digital connectivity experience, as well as reliable and integrated unbreakable wifi service support, especially for customers from the household or family segment, through the advantages of the FMC initiative."
IndiHome's integration into Telkomsel also includes business and customer management for several services such as internet (fixed broadband), landline (fixed line), Internet Protocol Television (IPTV), a variety of other digital consumer service bundles. Regarding the integration, Telkomsel is committed to ensuring that there is no decrease in the quality of IndiHome broadband services during the transition period. Meanwhile, for service fees to customers and subscription packages enjoyed by current consumers, there will be no changes according to the provisions in the contract agreed between the customer and IndiHome.
Hendri further emphasized that Telkomsel together with TelkomGroup have made thorough preparations so that the integration process runs seamlessly. Telkomsel believes that this FMC initiative will strengthen Telkomsel's position as the leading digital telecommunications company in Indonesia, which will consistently present product and service convergence innovations, by accelerating the equality of people's experience in utilizing digital lifestyle services that are more inclusive and sustainable.
Starting July 1, 2023, for information and service needs, IndiHome customers can also contact Telkomsel customer touch points, such as call center 188, website www.telkomsel.com, email service [email protected], and GraPARI (walk-in). Meanwhile, IndiHome customer touch points such as myIndiHome application, indihome.co.id website, Plasa Telkom (walk-in), call center 147, and social media account @IndiHomeCare, will continue to serve IndiHome customers as usual.
In order to support a smooth transition and operations, Telkom and Telkomsel have a human resources agreement on talent transfer and mobility. Employee collaboration and synergy in the TelkomGroup is one of the keys to strengthening Telkomsel's retail broadband business and Telkom's B2B transformation. Telkom will also accelerate the transformation of the B2B segment to the Telkom regional level to serve this segment as a whole and support the corporate sector, MSMEs and government agencies in their digitization.
