The planned merger between XL Axiata and Smartfren, two major telecommunications providers in Indonesia, has sparked significant controversy. With completion targeted for the end of 2024, the merger is expected to leave only three major players in the country's telecom sector. However, internal unrest and transparency concerns are threatening to derail the process.

On December 3, 2024, Dian Siswarini, CEO of XL Axiata since 2015, submitted her resignation, citing personal reasons. While the company stated this decision was unrelated to the merger, insiders suggest otherwise. Reports claim Dian was excluded from key merger decisions, raising questions about leadership in the merged entity. Under Dian's leadership, XL Axiata achieved milestones like introducing fixed mobile convergence (FMC) and promoting women’s empowerment through initiatives like Sisternet.

The resignation coincides with widespread employee dissatisfaction. Around 1,000 XL Axiata employees staged a mass leave on December 6, 2024, demanding greater transparency in the merger process. Mustakim, leader of XL's employee union, expressed concerns over the lack of communication, even among the board of directors. "We are uncertain about the merger’s impact on our future," he stated, noting fears of unfavorable terms for employees amid Smartfren's weaker financial performance. In Q3 2024, XL Axiata reported a profit of IDR 1.32 trillion, while Smartfren posted losses exceeding IDR 1 trillion.

The merger aims to address industry challenges, particularly spectrum allocation disparities. XL Axiata and Smartfren have fewer resources compared to competitors like Telkomsel and Indosat Ooredoo Hutchison. Consolidation could improve efficiency but might also lead to job redundancies and operational changes.

Management has emphasized respecting employees’ rights, but unresolved tensions persist. As approvals from the Ministry of Communications and Digital (Komdigi) and the Financial Services Authority (OJK) are pending, stakeholders are urging the government to safeguard employee interests alongside business priorities.

The success of this merger hinges on transparency and trust. For now, it remains a delicate balancing act between corporate ambition and workforce concerns.

DETIK