XL and Smartfren Merger Update, Minister of Communication and Information Still Pushing? Tech – 4 hours ago

Jakarta, CNBC Indonesia – Some time ago, the Minister of Communication and Information, Budi Arie Setiadi, encouraged Smartfren to merge, one of which was with XL. So how does this idea go?

Budi said that the two companies had not had any discussions with him regarding the merger. However, he also allowed Smartfren and XL to do it B2B.

“They just talked about B2B,” said Budi, when met after the event CNBC Indonesia Awards 2023Wednesday evening (13/12/2023).

The government as a regulator, he said, agreed to the merger. This is done to make the ecosystem healthy in the country’s telecommunications industry.

“But the important thing is that we make the ecosystem healthy,” he said.

Previously, Budi said that Indonesia should only have three operators to make the telecommunications industry more efficient and healthy. He gave the example that many countries also only have three operators.

Currently, Indonesia has four operators. Namely, there are Telkomsel, XL Axiata, Smartfren, and Indosat Ooredoo Hutchison which are the result of the merger of Indosat and Tri.

Budi encourages Smartfren to merge. Not only with XL, this corporate action can also be carried out with other operators.

“Apart from the merger option with XL, Smartfren could also merge with other operators, either Indosat or Telkomsel. The most important thing is that the consolidation into 3 operators can be realized,” explained Budi Arie.

When met last month, Smartfren’s President Director, Merza Fachys, welcomed the government’s encouragement positively. “We welcome this hope and hopefully what the government is pushing for, we want something like that to be realized,” he said.

On a different occasion, President Director & CEO of XL Axiata, Dian Siswarini, only said that the merger would involve a lot of shareholders. He said management was not involved much.

So until now, management has not been involved much and because share holders are involved, the holders have done this. If you want further information, go to Axiata. “It’s only support from XL if consolidation occurs,” explained Dian, when met last October.

[Gambas:Video CNBC]

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