Jakarta, INTI - Telkom Indonesia is reportedly set to consolidate fiber optic assets owned by several state-owned enterprises (SOEs), including PLN Icon Plus, as part of efforts to strengthen InfraNexia as a dedicated fiber infrastructure business hub. The move aligns with directives from Danantara and supports a broader “unlock value” strategy through Telkom’s subsidiary InfraNexia, which was established via a spin-off with an initial asset valuation of around IDR 35 trillion and has the potential to grow to IDR 90 trillion.
Beyond PLN, other SOEs such as PGN and Jasa Marga also operate fiber infrastructure businesses that may be included in the proposed consolidation scheme.
Market Structure, Opportunities, and Competition Risks
At the same time, data indicates that the Telkom Group currently controls around 60% of Indonesia’s terrestrial fiber network, while its service market share remains at approximately 30%. This gap suggests that consolidation could improve efficiency and accelerate digital infrastructure expansion, although it may also raise concerns over reduced market competition if not properly regulated.
Telkom has already laid the groundwork for this strategy through InfraNexia, a fiber-focused entity formed after a spin-off completed in December 2025. The company began with assets worth around IDR 35 trillion, with projections reaching up to IDR 90 trillion. Currently, Telkom derives around 15% of its fiber optic revenue from external services, with a target increase to 25%–40% following the spin-off.
Industry data from the Association of Telecommunication Network Providers estimates that Indonesia’s terrestrial fiber network spans approximately 1 million kilometers, with nearly 60% believed to be owned by Telkom. However, its actual share in retail and enterprise markets remains around 30%, indicating that additional asset consolidation from other SOEs may not immediately reshape the competitive landscape at a significant scale.
The consolidation plan presents both opportunities and risks. On the positive side, it could improve national network efficiency, reduce infrastructure duplication, and accelerate digital equity across regions. However, it also raises concerns about reduced industry competition, increased pressure on private players, and potential antitrust issues if market dominance is not carefully managed.
Conclusion
The proposed fiber asset consolidation under Telkom’s InfraNexia reflects a strategic push to strengthen Indonesia’s national digital infrastructure through efficiency and scale. While the initiative has strong potential to reduce duplication and accelerate connectivity development, it also raises important considerations around market competition, regulatory oversight, and the long-term balance between efficiency and a healthy telecom ecosystem.
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