PT Telkom Indonesia (Persero) Tbk is conducting a comprehensive evaluation of its subsidiaries and sub-subsidiaries.

The process targets entities that have shown a lack of contribution or continuous performance decline over the past five years.

These subsidiaries may be closed or merged, in line with efforts to streamline the company’s structure.

“We are currently evaluating which subsidiaries or sub-subsidiaries have not contributed in the last five years, are in decline, or do not provide value to us. Those will begin to be swapped,” said Telkom Indonesia President Director Dian Siswarini during a hearing with Commission VI of the Indonesian House of Representatives, Wednesday (2/7).

Danantara Pushes for Leaner State-Owned Enterprises

The evaluation follows a directive from Badan Pengelola Investasi Daya Anagata Nusantara (Danantara), which has instructed Telkom Indonesia to streamline its operations.

The goal is to make the company leaner, more agile, and more profitable.

“For this streamlining, Mr. Seno (Seno Soemadji, Director of Strategic Portfolio at Telkom Indonesia) is the one conducting the review. The goal is for Telkom to become leaner, more agile, and more profitable,” Siswarini added.

Mergers with Other SOE Subsidiaries Also Under Consideration

Beyond closures, Telkom Indonesia is also considering mergers between its subsidiaries and those of other state-owned enterprises (BUMNs).

This strategy aligns with Danantara’s broader efforts to evaluate and improve efficiency among state-owned companies.

“For example, a subsidiary operating in the property sector could be merged with a property subsidiary from another BUMN,” said Siswarini.

Danantara to Consolidate Small-Scale SOE Insurance Firms

Danantara has also begun evaluating 16 small-sized state-owned insurance companies with the aim of consolidation.

The goal is to improve competitiveness by increasing the scale of these entities.

“Jasa Raharja (which is part of the IFG holding) has insurance, Pertamina has Tugu Insurance, BRI has insurance, and BNI has insurance. But they don’t have enough size, they are not competitive,” said Dony Oskaria, Chief Operating Officer of Danantara.

PHOTO: SHUTTERSTOCK

This article was created with AI assistance.