TLKM - Mulls B2B marketplace spin-off in 2Q23

A subsidiary of Telekomunikasi Indonesia (TLKM), Telkom Digital Business is mulling a plan for setting up an umbrella company for digital business spin off in 2Q23. The company's digital business is currently operating under the brand Leap-Telkom Digital that is focused on accelerating digital service brands, namely PaDi, Logee dan Agree. However, management said that it would need to meet several requirements for the digital company to become fully ready for a spin-off, such as 1) a clear roadmap to profitability in 3-5 years; 2) exponential growth and 3) competitive edge in industry. TLKM claimed that PaDi's GMV reached IDR3.7 tn in 2022. (Source : Daily Social) Comment: The company's plan for b2b spin off is in line with long term strategies 5 bold moves, aiming to improve business value of TLKM. By spinning off, it allows the company to open up for other investors' stake, and potential strategic partnerships that therefore enhance its competitive advantage.