Telkom Indonesia has approved and signed the second phase of its wholesale fiber spin-off, consolidating more than 90% of its network infrastructure under subsidiary InfraNexia. The reorganization puts about 112,000 kilometers of fiber, including 26,000 kilometers of domestic submarine cable, under one wholesale infrastructure unit.
Telkom and InfraNexia signed the spin-off deed Sept. 30 after independent shareholders approved the transaction. The two-phase transfer is valued at about Rp85.7 trillion and is intended to give InfraNexia more room to sell network capacity and infrastructure beyond TelkomGroup.
An Oct. 4 update said Telkom is pushing InfraNexia to expand its external customer business. The move comes as Indonesia’s AI infrastructure buildout increases demand for high-capacity fiber, cloud connectivity and data-center interconnection.
InfraNexia takes over a 112,000-kilometer network
The Sept. 30 transaction followed an initial transfer that took effect Jan. 1, 2026. Telkom’s Sept. 30 announcement says InfraNexia’s infrastructure spans four operational areas, 12 regions and 61 districts across terrestrial and submarine routes.
Telkom describes InfraNexia as a neutral wholesale provider serving TelkomGroup companies and outside customers. Its services include wholesale connectivity and FTTx, while the network is intended to support mobile backhaul, cloud services and data centers. Those needs are growing as Indonesia adds large computing projects, including a planned 640 MW AI campus in West Java that recently encountered permitting and environmental-review requirements.
InfraNexia recorded Rp7.7 trillion in revenue during the first half of 2026, while revenue from external customers rose 31% year over year to Rp939 billion, according to its first-half performance update. Telkom will still control virtually all of InfraNexia, making it a more focused wholesale subsidiary rather than an independent infrastructure company.
Contracts shift as wholesale access expands
Telkom’s Phase 2 filing says affected customer and partner contracts transfer to InfraNexia by operation of law when the spin-off takes effect. Telkom said customers can retain their existing configurations and systems without an immediate service interruption or additional charge related to the spin-off.
The wholesale model is already supporting other operators’ expansion. In September, InfraNexia and XLSMART expanded their infrastructure partnership across Kalimantan, Nusa Tenggara, Sulawesi and Sumatra while exploring shared infrastructure such as poles and ducts.
Indonesia’s island geography makes terrestrial and submarine links especially important for extending capacity beyond major urban hubs. Data-center investment is also spreading across Southeast Asia, increasing demand for the fiber and interconnection capacity linking cloud and computing infrastructure across the region.
Telkom has not disclosed whether the new structure will change wholesale pricing, provisioning times or longer-term service-level terms for outside customers. The commercial impact will depend on whether InfraNexia can turn its larger network into broader capacity and faster expansion while maintaining service continuity.
Read more: OpenAI’s planned Malaysian AI data centers show how Southeast Asia’s expanding compute footprint is increasing demand for fiber, power and interconnection infrastructure.