State-controlled Telkom Indonesia, the country’s largest telecommunication firm, will slim down the number of its subsidiaries to 19 by the end of this year from 67 now, according to state companies regulator BP BUMN.
Telkom’s Director of strategic business development and portfolio, Seno Soemadji, said the company is in the process of streamlining units, which include mergers, divestment, liquidation, consolidation and establishing a new holding company, according to a statement late Monday from the regulator.
BP BUMN head and chief operating officer of sovereign fund Danantara Indonesia, Dony Oskaria, said the streamlining process was important to strengthen Telkom’s business focus and increase the company’s competitiveness in the digital industry.
Danantara, the shareholder of all state investments in companies, has been tasked by President Prabowo Subianto with reducing the number of state firms and their subsidiaries, from more than 1,000 to around 200 to 300, and strengthening their business operations.
Reuters
