Telkom Indonesia plans Mitratel spin-off as part of wider restructuring

16 Sep 2021

Telkom Indonesia plans to hold an initial public offering (IPO) for infrastructure and tower unit Dayamitra Telekomunikasi (Mitratel) in 4Q21, as part of a wider restructuring plan being considered for the business. In an interview, Telkom CEO Ririek Adriansyah said the offer could raise up to USD1 billion while noting that the state-controlled telecoms giant is also considering other possible spin-offs involving units outside its ‘core business’ and to that end is holding talks with interested parties, including unnamed private equity firms. Reuters cites the official as stating that ‘Being a telco is getting more limited in terms of growth’ adding that the group is building out its digital businesses, with an expansion into data centres and cloud services. Telkom is also targeting more B2B clients, including in e-commerce, and increasing its focus on strategic technology investments.

Indonesia, Telkom Indonesia