Jakarta, INTI - PT Telkom Indonesia Tbk (TLKM) is considering divesting a majority stake in its data center business through a strategic partnership targeted for completion by the end of 2026.
Telkom Indonesia’s Director of Wholesale and International Service, Budi Satria Dharma Purba, said the process of selecting a strategic partner has entered the binding offer evaluation stage. The partnership could involve the sale of a majority stake in the company’s data center business.
“The process has entered the binding offer evaluation stage, and there is a possibility that it could involve the divestment of a majority stake,” Budi said during Telkom Indonesia’s 2026 Public Expose Live on Monday, September 7, 2026.
Strategic Partnership Opens Door to Majority Divestment
According to Budi, the substantial investment requirements of the data center business are among the key considerations behind Telkom’s search for a strategic partner. The partner is expected to contribute operational capabilities, market access, and relationships with hyperscale customers, allowing the business to expand more rapidly without Telkom having to shoulder the entire capital expenditure burden.
Budi said Telkom would continue to maintain capital allocation discipline and ensure that its investments generate attractive returns.
“This strategic partnership would allow the data center business to grow without Telkom having to finance all of its capital expenditure requirements on its own,” he said.
Divestment Proceeds Could Strengthen Telkom’s Capital Flexibility
He added that if the monetization or divestment transaction is completed, the proceeds could provide Telkom with greater flexibility in allocating capital. The funds could be directed toward core business investments, strengthening the company’s balance sheet, or potentially providing additional returns to shareholders.
“We will evaluate the use of the transaction proceeds holistically, whether for investment, strengthening the balance sheet, or potentially providing additional shareholder returns,” Budi said.
However, Budi emphasized that the company’s dividend policy would continue to take into account financial performance, funding requirements, and approval from the General Meeting of Shareholders.
The data center business is among the assets Telkom is seeking to optimize through its TLKM 30 transformation strategy. In its first-half 2026 report, Telkom said the consolidation of its data center assets under NeutraDC is intended to optimize asset monetization while creating growth opportunities through collaboration with strategic partners.
The potential divestment of NeutraDC has previously attracted market attention. A July 2026 research report by BRI Danareksa Sekuritas estimated that Telkom could potentially sell around 70% of its stake in NeutraDC at a valuation of US$1 billion to US$1.5 billion.
Conclusion
Telkom Indonesia’s potential divestment of a majority stake in its data center business reflects the company’s strategy to accelerate growth while maintaining capital discipline. Through a strategic partnership, Telkom could gain access to operational expertise, market opportunities, and hyperscaler customers while reducing its capital expenditure burden. If completed, the transaction could also provide greater flexibility to strengthen the company’s core businesses, balance sheet, and potential shareholder returns.
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