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View all search resultsTelkom to consolidate weak subsidiaries in major shake-up
Telkom's new CEO is starting her tenure with a bang, kicking off an initiative to strengthen the state-owned telco's bottom line by streamlining underperforming subsidiaries through internal consolidation and possibly external mergers.
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Logo of PT Telekomunikasi Indonesia, the country’s largest state-owned telecommunications conglomerate, in an undated photo. (Shutterstock/Faishalabdula)
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tate-owned telecommunications operator PT Telekomunikasi Indonesia is set to close underperforming subsidiaries as it seeks to slim down and boost profits by overhauling its business structure, its new chief executive has said.
“We are streamlining the group’s portfolio. Subsidiaries and subunits that are not adding value to the business will start to be dissolved,” Dian Siswarini, who was appointed as Telkom CEO in May, told lawmakers on Wednesday during a meeting with the House of Representatives Commission VI, which oversees state-owned enterprises (SOEs).
Dian also said the company was also open to combining its subsidiaries or merging with units at other state-owned firms as part of Telkom’s broader streamlining effort.
She noted that the move aligned with the direction of new state asset fund Danantara, which now manages Telkom’s operating assets, pointing to its plan to consolidate overlapping subsidiaries across all SOEs.
One such example was Telkom’s property subsidiary, which she said could be consolidated with similar units from other SOEs.
“We hope this streamlining process will make Telkom Group leaner, more agile and more profitable,” Dian said.
Seno Soemadji, Telkom’s director of strategic business development and portfolio, will lead the effort to evaluate the performance of its subsidiaries to begin phasing out those entities that have added little value over the past five years.
