Jakarta, INTI - Indonesia's telecommunications industry is entering a promising new era. Two major players, XL Axiata and Smartfren, have united to form a new entity called XLSmart. The official announcement of this merger was made by Axiata Group Berhad (Axiata) and Sinar Mas, a strategic move expected to reshape the landscape of telecommunications in the country.

Behind the name XLSmart lies a bold ambition to deliver better, broader, and more efficient telecommunications services. The announcement, made on Friday (January 10), also included the proposed list of directors who will lead this new company. However, these names are still subject to approval by the government and shareholders.

The Journey to XLSmart: The Vision Behind the Merger

This merger is more than just a unification of two large companies; it’s a strategic step filled with meticulous planning. With years of experience in the telecommunications sector, XL Axiata and Smartfren have established strong footholds in the Indonesian market. However, the competition in this industry continues to intensify, driven by emerging technologies such as 5G, the Internet of Things (IoT), and the ever-growing demand for connectivity.

The decision to merge and form XLSmart is a response to these challenges. By combining resources, infrastructure, and managerial expertise, XLSmart aspires to become a world-class telecommunications company that can not only compete in Indonesia but also make its mark in Southeast Asia.

During the press conference, Vivek Sood, Group Chief Executive Officer of Axiata Group, described the announcement as a “milestone in the journey toward creating a merger that will lead to a world-class telecommunications company.” These words reflect not just optimism but also a grand vision to redefine telecommunications for the future.

Who’s Behind XLSmart?

The names behind XLSmart have sparked significant interest. One of them is Merza Fachys, a prominent figure from Smartfren who has been proposed to serve as Director & Chief Regulatory Officer.

Meanwhile, the leadership of XLSmart will be entrusted to Rajeev Sethi, CEO of Robi Axiata, who brings extensive international experience. His appointment as the Chief Executive Officer of XLSmart signals the company’s intention to bring a global perspective to its business strategy.

Another notable name is I Gede Darmayusa, proposed as the Chief Integration and Network Integration Officer. He will lead the “Integration Team,” tasked with unifying the infrastructure, services, and resources of XL Axiata and Smartfren. With his background as Director & Chief Technology Officer at XL Axiata, I Gede brings unparalleled technical expertise to the table.

The First Steps Towards Synergy

Integrating two major companies is no small feat. The Integration Team, led by I Gede Darmayusa, faces the monumental task of merging two previously separate infrastructures. However, this is where the strength of the merger begins to shine. By combining the infrastructures of XL Axiata and Smartfren, XLSmart has the opportunity to expand its service coverage to even the most remote parts of Indonesia.

This synergy also allows the company to enhance operational efficiency. For example, the elimination of duplicate infrastructures can significantly reduce operational costs. The savings from this can be reinvested in developing new technologies like 5G and IoT, which are becoming increasingly relevant in the digital age.

What Does the Merger Mean for Consumers?

For the Indonesian public, this merger brings high hopes. With the combined strengths of XL Axiata and Smartfren, XLSmart is expected to deliver more stable, faster, and affordable services. Improved connectivity is not only beneficial for daily needs such as streaming or communication but also for supporting Indonesia’s burgeoning digital economy.

The enhanced services are also expected to reach remote areas that have struggled to access quality internet. With broader service coverage, XLSmart could play a pivotal role in the government’s efforts to bridge the digital divide in Indonesia.

A Global Perspective: Indonesia on the Digital Map

The merger of XL Axiata and Smartfren has attracted attention not only domestically but also on the international stage. According to a report by Statista, Indonesia’s telecommunications market is projected to grow significantly, reaching $12.6 billion by 2025. With such potential, XLSmart is strategically positioned to become a key player in the Southeast Asian market.

Analysts from Deloitte view this merger as aligning with global trends. Around the world, telecommunications companies are merging to strengthen their competitive edge, especially in tackling the challenges posed by new technologies.

Challenges Ahead: The Long Road to Success

However, the journey to success will not be without its hurdles. XLSmart will face various challenges, including complex regulatory requirements, the need for significant investments in 5G infrastructure development, and evolving consumer expectations.

Moreover, integrating two distinct corporate cultures could present its own set of challenges. Yet, with competent leadership and a clear vision, XLSmart has a strong chance of overcoming these obstacles.

XLSmart and the Future of Telecommunications

The merger between XL Axiata and Smartfren, resulting in the creation of XLSmart, is a significant step with profound implications. This is not just about the unification of two companies; it’s about building a brighter future for Indonesia’s telecommunications industry.

With the full support of Axiata Group and Sinar Mas, and a team of capable directors, XLSmart has the potential to become a formidable force in Southeast Asia. For the people of Indonesia, the presence of XLSmart brings the promise of better, more inclusive, and more innovative telecommunications services.

This merger is a reflection of Indonesia’s ambition to not just be a technology adopter but also a leader in the global digital ecosystem.

• Transformation
• Technology
• Infrastructure
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