Bambang Pamungkas
PT Telkom Indonesia (Persero) Tbk. (TLKM), the state-owned telecommunications giant, is strategically reorienting its growth trajectory, placing a significant emphasis on its business-to-business (B2B) infrastructure unit. This pivotal shift aims to unlock new revenue streams by aggressively pursuing external clients beyond the Telkom Group, marking a crucial evolution in the company’s long-term strategic framework, dubbed TLKM30. The move comes as Telkom navigates a maturing domestic telecommunications market, characterized by high mobile penetration and intense competition in the fixed broadband segment, which has decelerated growth in its traditional consumer-facing businesses.
Strategic Imperative: Diversifying Growth Amid Market Saturation
Telkom’s repositioning is a direct response to prevailing market dynamics. Dian Siswarini, President Director of Telkom, highlighted that while Telkomsel, the company’s mobile arm, remains a formidable revenue generator, its growth pace has naturally slowed due to the near-saturation of mobile services in Indonesia. Similarly, the fixed broadband sector, primarily driven by IndiHome, faces fierce competition, leading to downward pressure on average revenue per user (ARPU) despite continued subscriber growth. These factors necessitate a robust alternative growth engine, which Telkom identifies in its B2B infrastructure capabilities.
"The spin-off of Infranexia, for instance, is specifically aimed at generating new revenue. This is what we are pushing," Siswarini stated on Wednesday, May 20, 2026, underscoring the strategic intent behind the corporate restructuring. This initiative is not merely about optimizing existing assets but about transforming them into independent, market-facing entities capable of competing and thriving in the broader digital infrastructure landscape.
Unpacking Telkom’s Business Segments and the Rise of B2B Infra
Telkom currently categorizes its diverse business operations into five primary segments:
- Business-to-Consumer (B2C): Dominated by Telkomsel, focusing on mobile connectivity and consumer digital services.
- B2B Infrastructure (B2B Infra): Comprising Infranexia (fiber optics), Mitratel (telecommunication towers), NeutraDC (data centers), and Telkomsat (satellite services).
- B2B ICT: Encompassing Telkomsigma (IT solutions, cloud services) and EBIS (Enterprise Business Services).
- International: Managed by Telin, extending Telkom’s reach globally.
- Other Businesses: Including Telkommetra (media and advertising) and Finnet (fintech services).
For the full year 2025, B2B Infra emerged as the second-largest contributor to Telkom Group’s revenue, posting Rp 56.6 trillion. This figure, while substantial, trailed Telkomsel’s Rp 109.2 trillion. A critical aspect of the B2B Infra segment’s performance, however, was the predominant reliance on internal group revenues, which accounted for Rp 47.7 trillion. External revenues from clients outside the Telkom Group amounted to a comparatively smaller Rp 8.9 trillion. It is this external revenue component that Telkom is now aggressively targeting for expansion, as only external contributions are consolidated as direct revenue for TLKM.
The Infranexia Spin-Off: A Blueprint for External Growth
Central to Telkom’s B2B infrastructure strategy is the spin-off of its extensive fiber optic assets into a new subsidiary, Infranexia. This significant corporate action reached its completion in December 2025, with the full transfer of assets and business operations to Infranexia targeted for finalization by the third quarter of 2026. The objective behind creating Infranexia as a distinct entity is to enhance its agility and focus on serving a broader market, offering wholesale fiber optic services to other telecommunications operators, internet service providers, and large enterprises.
Budi Satria Dharma Purba, Director of Wholesale & International Service at Telkom, noted the immediate positive impact of the spin-off on Infranexia’s external revenue generation. Prior to the spin-off, external contributions to Telkom’s fiber optic business represented only about 15 percent of its total revenue. Following the spin-off, early 2026 data indicates that Infranexia’s external business growth has already surpassed this 15 percent threshold. "We aim to push [external contribution] to 25 percent, right after we completed the first stage of the spin-off. Effective in January, we immediately pushed for more engagement with the external market," Purba explained, signaling an aggressive commercial strategy for the newly formed entity.
The spin-off model for Infranexia draws parallels with the successful initial public offering (IPO) of Mitratel (Dayamitra Telekomunikasi Tbk), Telkom’s tower infrastructure subsidiary. Mitratel’s IPO in 2021 was a landmark event, allowing Telkom to monetize its passive infrastructure assets and provide a clearer valuation for its tower business. This demonstrated the market’s appetite for pure-play infrastructure companies and provided a template for separating and maximizing the value of other key assets within the Telkom Group. Infranexia is expected to follow a similar trajectory, attracting external investment and partners as it solidifies its market position.
The TLKM30 Vision: Rebalancing the Revenue Mix
The strategic pivot to B2B infrastructure is an integral component of Telkom’s overarching TLKM30 strategy, a long-term vision designed to transform the company into a leading digital telecommunications provider by 2030. Seno Soemadji, Director of Strategic Business Development & Portfolio at Telkom, articulated a key financial target of this strategy: a significant rebalancing of the company’s revenue mix.
"Currently, the proportion of revenue is 70 percent B2C. This is what we want to change. By 2030, our target is 55-45 or at least 60-40," Soemadji elaborated. This ambitious shift implies a substantial increase in B2B’s contribution to Telkom’s overall top line, signifying a fundamental change in the company’s business model and revenue dependency. Achieving a 40-45 percent contribution from B2B segments would require not only aggressive growth from Infranexia, Mitratel, and NeutraDC but also robust performance from Telkomsigma and other enterprise-focused units.
Broader Context and Market Implications
Indonesia’s digital economy is experiencing rapid expansion, fueled by a young, digitally native population and increasing enterprise adoption of cloud services, IoT, and big data. This environment provides fertile ground for Telkom’s B2B infrastructure play.
- Data Center Growth (NeutraDC): The demand for robust and scalable data center infrastructure is skyrocketing, driven by hyperscale cloud providers, local enterprises, and the government’s digital transformation initiatives. NeutraDC, Telkom’s data center arm, is strategically positioned to capitalize on this trend, offering co-location, cloud, and managed services. Its focus on carrier-neutral facilities and adherence to international standards are crucial differentiators in a competitive market.
- Satellite Connectivity (Telkomsat): Despite the widespread availability of fiber, satellite communication remains vital for connecting remote and underserved areas across Indonesia’s vast archipelago, as well as providing critical backup and specialized services for maritime, aviation, and defense sectors. Telkomsat ensures Telkom’s comprehensive reach and resilience.
- Wholesale Fiber (Infranexia): Infranexia’s emergence as a dedicated wholesale fiber provider addresses a growing need for open access infrastructure. By offering dark fiber, managed fiber, and other network services to other operators, Infranexia can facilitate broader network coverage and enhance competition in the last-mile segment, ultimately benefiting consumers and businesses alike. This also positions Telkom to be a key enabler for 5G rollout by providing the necessary backhaul infrastructure.
The strategic shift also aligns with the Indonesian government’s broader agenda to accelerate digital transformation and improve national connectivity. By strengthening its infrastructure backbone, Telkom contributes directly to the country’s digital economy aspirations, potentially attracting further foreign direct investment into the sector.
Financial Performance and Future Outlook
For the period ending 2025, Telkom reported a total revenue of Rp 146.74 trillion, with a net profit of Rp 17.8 trillion. While these figures demonstrate the company’s strong foundational performance, the strategic pivot is designed to ensure sustainable growth in an evolving market landscape. The rebalancing towards B2B is anticipated to improve overall margin profiles, as enterprise and wholesale services often command higher, more stable revenues compared to the price-sensitive consumer market.
However, the execution of this ambitious strategy is not without its challenges. Telkom will need to navigate intense competition from both domestic and international players in the B2B infrastructure space. Significant capital expenditure will be required to expand and upgrade its fiber optic network, data centers, and satellite capabilities. Furthermore, fostering a truly external market-oriented culture within these previously internally focused units will be critical for success.
Analyst and Investor Perspectives
Market analysts are generally optimistic about Telkom’s strategic direction. Diversification away from a heavily B2C-reliant model is seen as a prudent move for long-term resilience and value creation. The spin-off of assets like Infranexia is expected to provide greater transparency and potentially unlock higher valuations for these specialized infrastructure businesses, similar to Mitratel’s success. Investors will be closely monitoring the pace of external revenue growth from the B2B Infra segment and the progress towards the targeted 2030 revenue mix. Successful execution could lead to a re-rating of Telkom’s stock, reflecting its transformation into a more diversified and digitally focused enterprise. However, analysts will also scrutinize the capital allocation strategy and the ability of the new B2B entities to achieve profitability and scale efficiently in a competitive environment.
In conclusion, Telkom Indonesia is embarking on a transformative journey, strategically leveraging its robust infrastructure assets to drive future growth. The aggressive push into B2B infrastructure, spearheaded by Infranexia, Mitratel, NeutraDC, and Telkomsat, is poised to reshape Telkom’s revenue landscape, reduce its reliance on mature consumer segments, and solidify its position as a foundational enabler of Indonesia’s burgeoning digital economy. The success of this pivot will not only redefine Telkom’s identity but also significantly impact the broader telecommunications and digital infrastructure ecosystem in Southeast Asia.
