Jakarta. Telkom Indonesia (TLKM) has signed a conditional spin-off agreement with its subsidiary Telkom Infrastruktur Indonesia (TIF) as part of a corporate restructuring and business transformation plan aimed at sharpening its focus on wholesale fiber connectivity.

The agreement, signed on October 20, carries a transaction value of Rp 35.78 trillion ($2.16 billion). The spin-off will involve the transfer of a portion of Telkom’s wholesale fiber connectivity assets and operations to TIF.

Telkom said the transaction is designed to streamline its business, boost efficiency, and optimize the use of its extensive fiber-optic network. The move is also expected to reinforce the company’s position as Indonesia’s leading connectivity infrastructure provider.

“This transaction supports the national agenda to accelerate digital equity, expand fixed broadband penetration, and ensure reliable and high-quality connectivity across the country,” the company said in a disclosure to the Indonesia Stock Exchange on Tuesday.

Following the transaction, Telkom’s ownership in TIF will stand at 99.9999997 percent. The company emphasized that, given TIF’s status as a consolidated subsidiary, the spin-off will not have a material impact on Telkom’s financial position.