Accelerate Equity Of Indonesia's Digital Connectivity, Telkom Officially Integrated IndiHome To Telkomsel

JAKARTA - PT Telkom Indonesia (Persero) Tbk (Telkom) and PT Telekomunikasi Selular (Telkomsel) have signed a deed of separation (deed of spin-off) to integrate IndiHome to Telkomsel.

This was marked by the signing between Telkom President Director Ririek Adriansyah and Telkomsel President Director Hendri Mulya Syam, Tuesday 27 June. After increasing Telkomsel's capital in connection with this transaction, it was notified to the Minister of Law and Human Asasi of the Republic of Indonesia which is planned to be carried out on July 1, 2023, legally IndiHome will officially be in Telkomsel 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 main strategy Five Bold Moves, in order to create sustainable impacts in the community such as providing broadband services that are wider, equitable, and reliable, support the acceleration of digital inclusion and the digital economy, increase the level of playing field in the Indonesian telecommunications industry, and strengthen 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 percent, while Singtel in Telkomsel was 30.1 percent. The transfer of IndiHome to Telkomsel also marks the refocusing of the business in TelkomGroup, namely the Business to Consumer (B2C) segment, is fully managed by Telkomsel, while Telkom will focus on becoming market leader in the Business to Business (B2B) segment which is a potential new source of income for higher Telkom growth in the future. "Today is an important milestone for the TelkomGroup transformation which will focus on advancing B2B Indonesia. We thank you for the support of all stakeholders in Telkom's transformation step which is still running to create optimal value for both the company, customer, community, shareholder and government," said Telkom President Director Ririek Adriansyah.

Ririek added that an in-depth study related to FMC has been carried out and even 23 of the world's 25 largest telco operators have implemented the FMC. This shows that the FMC initiative is the most appropriate step and the results have been proven. Telkom's strategic steps are also supported by the Ministry of SOEs.

"After this, IndiHome will synergize with Telkomsel to present innovations that provide maximum results for companies and all stakeholders. In the future TelkomGroup will continue with other Five Bold Moves transformation plans such as InfraCo, Data Center Co, B2B Digital IT Service Co, and DigiCos," explained Ririek.

Telkomsel President Director Hendri Mulya Syam also explained that IndiHome's integration to Telkomsel became an important milestone for Telkomsel as part of TelkomGroup, which always opens up opportunities for progress and exceeds customer expectations, by presenting an even distribution of the latest broadband access with a more complete digital connectivity experience.

"As well as reliable and affirmed wifi unbreakable service support, especially for customers from the household or family segment, through the advantages of the FMC initiative," explained Hendri.

Integration of IndiHome to Telkomsel also includes business management and customers for several services such as fixed broadband, fixed line, Internet Protocol Television (IPTV), various other bundling digital consumer services.

Regarding this integration, Telkomsel is committed to ensuring that there will be no decline in quality for IndiHome broadband services during the transition period. Meanwhile, for service costs to customers or subscription packages that consumers enjoy today, there will be no changes according to the provisions of the contracts that have been agreed upon between customers and IndiHome.

Hendri further emphasized that Telkomsel together with TelkomGroup have made thorough preparations so that the integration process runs smoothly (seamless). Telkomsel believes that this FMC initiative step will strengthen Telkomsel's position as the leading digital telecommunications company in Indonesia, which will consistently provide innovations for product and service convergence, by accelerating the equality of public experience in the use of digital lifestyle services that are more inclusive and sustainable.

Starting July 1, 2023, for information and service needs, IndiHome customers can also contact Telkomsel's customer touch point, such as call center 188, website www.telkomsel.com, email service cs@telkomsel.com, and GraPARI (walk-in). Meanwhile, for customer touch point IndiHome services such as the myIndiHome application, indihome website.co.id, Plasa Telkom (walk-in), call center 147, as well as social media account @IndiHomeCare, still serving IndiHome customers as usual.

To support a smooth transition and smooth operation, Telkom and Telkomsel have had an agreement in terms of human resources regarding talent transfers and talent mobility. Collaboration and synergy of employees at TelkomGroup is one of the keys to strengthening the retail broadband business in Telkomsel and the transformation of B2B in Telkom.

Telkom will also accelerate the transformation of the B2B segment to the Telkom Regional level so that it can serve this segment as a whole, to support the corporate sector, MSMEs, and government agencies in digitizing.