Axiata Group Berhad (Axiata) and Sinar Mas jointly announced that shareholders of PT XL Axiata Tbk (XL Axiata), PT Smartfren Telecom Tbk (Smartfren), and PT Smart Telcom (SmartTel) have officially approved the merger of the three companies.
With the endorsement from shareholders, the newly formed entity, XLSmart, will continue the essential roles played by XL Axiata and Smartfren in Indonesia's telecommunications industry. By combining XL Axiata’s infrastructure and reach with Smartfren’s digital innovation, XLSmart is better equipped to serve consumers and businesses in the digital era. XLSmart, with a subscriber base exceeding 94.3 million, annual projected revenue of IDR 45.8 trillion, and an earnings before interest, taxes, depreciation, and amortization (EBITDA) of IDR 22.5 trillion, is well-positioned to lead the next phase of growth in Indonesia’s telecommunications sector. The merger is expected to generate significant cost synergies, with estimated annual pre-tax synergies of USD 300 to USD 400 million post-integration completion.
Following the merger, Axiata Group and Sinar Mas will become joint controlling shareholders, each holding a 34.8% stake in XLSmart, with equal influence over its strategic direction and decisions. Rajeev Sethi has been appointed as President Director and CEO of the newly formed company, supported by a strong executive team.
Latest: Globe Teleservices, CelcomDigi Partner to Enhance SMS Security
Expanding Coverage
XLSmart will prioritize expanding network coverage, improving service quality, and driving digital innovation to meet the evolving needs of Indonesia’s telecommunications market. The merged entity will leverage Axiata’s regional expertise and Sinar Mas's local knowledge to create a larger, financially robust organization.
Franky Oesman Widjaja, Chairman of Sinar Mas Telecommunications and Technology, stated, “We believe this consolidation is a crucial step toward creating a more robust telecommunications industry in Indonesia. By combining XL Axiata’s solid infrastructure with Smartfren’s customer-focused digital services, XLSmart will offer enhanced connectivity solutions that empower consumers and businesses while supporting the nation’s long-term digital aspirations. We are excited for the opportunity to drive meaningful progress for Indonesia’s digital economy, ensuring that our customers, partners, and stakeholders benefit from increased efficiency, broader coverage, and superior service quality.”
Vivek Sood, Group Chief Executive Officer of Axiata Group, added, “This merger marks a defining moment in Indonesia’s digital landscape. The confidence of our shareholders in approving this transaction underscores our vision to build a stronger, more resilient telecommunications entity that delivers value through scale, efficiency, and innovation. With XLSmart, we are poised to enhance customer experience, expand digital services, and contribute to the growth of Indonesia’s digital economy.”
Latest Reads:
Converge Targets 11 Million Fiber Ports by 2027
SoftBank, E2A Consortium Launch 12,500-km Submarine Cable System
