JAKARTA - SOE Minister Erick Thohir gave a positive appreciation for the management decision of PT Telkom Indonesia (Persero) Tbk which integrated Indihome services to Telkomsel.

The integration of fixed broadband services with mobile or known fixed mobile convergence (FMC) is considered by the Minister of SOEs as a strategic effort to strengthen Telkom Group's business and support digital economic growth.

With integrated internet solution, apart from strengthening business, (Indihome's integration to Telkomsel) can also support digital economic growth.

"This sector can later become a source of new economic growth where many MSMEs can be involved," said SOE Minister Erick Thohir during a coordination meeting with Telkom President Director Ririek Adriansyah and Telkomsel President Director Hendri Mulya Syam, in a written statement, quoted from Antara, Thursday, April 27.

In particular, the Minister of SOEs expressed his appreciation for the hard work that the management of Telkom and Telkomsel had done in preparing the integration process for Indihome and Telkomsel.

According to him, the integration of IndiHome, which has just entered an important stage in signing the Conditional Business Separation Agreement or Conditional Spin-off Agreement between the two entities, is a strategic effort to refocus Telkom Group's business model to improve performance.

In terms of healthy business competition, as part of the fulfillment of regulations, Telkom has conducted consultations and held a focus group discussion with the Business Competition Supervisory Commission (KPPU) to ensure that the process of Indihome's integration with Telkomsel has followed the regulations of the Healthy Business Competition Law.

In the FGD which was held on March 28, 2023, KPPU assessed the step of Indihome's integration with Telkomsel as an innovation aimed at the company to provide better services for consumers.

"There is no need to worry about Telkom's position as a market leader, because this corporate action was carried out with an affiliated company, so there is no problem," said KPPU Chairman M Afif Hasbullah during the FGD with Telkom leadership.

Afif added, there is actually no Telkom obligation to report the corporate action to the KPPU considering that this corporate action was carried out with affiliated companies, but both Telkom and KPPU mitigate various matters related to business competition regulations.

"KPPU fully supports Indonesian companies, especially SOEs in the future, not only being at the forefront of the country. SOEs that have competitiveness, can also excel in other countries. That's our perspective to see the FMC carried out by Telkom," he explained.

Afif also stated that business actors are entitled to carry out various corporate actions as long as they do not have a negative impact on entry barriers, misuse of vertical integration or other practices that make consumers have no favorable choice.


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