Shareholders of PT XL Axiata Tbk, PT Smartfren Telecom Tbk, and PT Smart Telecom have officially approved the merger, forming a new entity named XLSmart. The decision was finalized in the General Meeting of Shareholders (RUPS) on March 25, 2025, at JW Marriott Hotel, Jakarta.

As part of the merger, XL Axiata remains the surviving entity, while Smartfren and SmartTel integrate into XLSmart. Both XL Axiata and Sinarmas, Smartfren’s parent company, will own 34.8% shares in the newly formed entity.

XLSmart’s Leadership Structure Announced

The new board of commissioners and directors has been confirmed. Arsjad Rasjid was appointed as President Commissioner, while former Foreign Minister Retno Marsudi will serve as an Independent Commissioner.

"This is a crucial moment with shareholders approving the merger of XL Axiata and Smartfren," stated Arsjad Rasjid, highlighting the company’s commitment to profitable growth and careful decision-making.

Merger Valued at IDR 104 Trillion

The merger was first announced in December 2024, with the combined pre-synergy valuation of the three companies reaching IDR 104 trillion (USD 6.5 billion). XLSmart is projected to generate IDR 45.4 trillion (USD 2.8 billion) in revenue, with an EBITDA of IDR 22.4 trillion (USD 1.4 billion).

The company expects to achieve significant cost synergies, estimated at USD 300 million (IDR 4.7 trillion) to USD 400 million (IDR 6.3 trillion) annually, through network integration and resource optimization.

XLSmart aims to leverage its financial strength and technological expertise to drive investment in digital infrastructure, expand service coverage, and foster innovation. This merger is expected to create a more competitive and efficient telecommunications market.

Industry Players Respond to XLSmart Merger

The merger reduces the number of major mobile operators in Indonesia to three: Telkomsel, Indosat Ooredoo Hutchison, and XLSmart.

Saki Hamsat Bramono, VP of Corporate Communication & Social Responsibility at Telkomsel, acknowledged the shift, stating, "We congratulate XL Axiata and Smartfren on their merger. Hopefully, this will improve the industry and bring positive benefits to Indonesia."

With fewer operators, competition is expected to focus on enhanced service quality and customer experience.

Regulatory Compliance and Government’s Expectations

Following the merger, XLSmart is required to return 2x7.5 MHz of spectrum in the 900 MHz frequency band to the government. This frequency will later be redistributed among other operators.

Minister of Communication and Digital Affairs Meutya Hafid emphasized the importance of network quality and investment commitments. "We expect better service quality, improved customer support, and stronger investment in infrastructure, particularly in areas with limited connectivity," she stated.

Meutya also highlighted the importance of employee welfare, ensuring that post-merger labor conditions comply with existing regulations. "Employee rights must be maintained according to labor laws," she affirmed.

PHOTO: KOMPAS.COM/YUDHA PRATOMO

This article was created with AI assistance.