Indonesian mobile carrier PT Telkom Indonesia (Telkom) has completed its $4.8 billion infrastructure spin-off.

The company announced the completion of the second and final phase of its spin-off of InfraCo late last week, transferring its remaining network infrastructure assets to its subsidiary, InfraNexia.

The first phase of the spin-off was completed back in January, when the carried transferred 50 percent of its fiber assets to InfraNexia.

According to Telkom, the transfer of the remaining 50 percent of assets was valued at IDR 49.9 trillion ($2.8 billion). In total, the value of the transfer of Telkom's network infrastructure assets is worth $4.8bn. Telkom holds a majority ownership of 99.9 percent in InfraNexia.

InfraNexia will manage 112,000km of fiber optic cable, including 26,000km of domestic subsea cable systems which spans across Indonesia.

Telkom noted that InfraNexia "will strengthen its role as a wholesale connectivity service provider" with these assets, as it focuses on developing national digital connectivity infrastructure.

"With increasingly mature asset integration, we will strengthen our core services—from 5G backhaul, wholesale network and FTTx, to passive infrastructure sharing," said Lukman Hakim Abd. Rauf, president and director, InfraNexia.

"Furthermore, we have accelerated our network modernization program and pushed for the implementation of autonomous networks to deliver a smarter, more efficient, and more adaptive connectivity infrastructure. This strategic effort will strengthen our readiness in developing connectivity to support the growth of AI, cloud, and data centers in Indonesia."

It comes as Telkom looks to monetize its infrastructure assets, including the likes of its data center portfolio, towers, and fiber assets.

Reports emerged earlier this year that the company was considering a sale of its data center business NeutraDC, estimated to be worth as much as $1.5bn.

The telecoms company originally explored selling the business in 2022, holding initial talks with investors and seeking a valuation of more than $1bn, while further reports emerged in 2024.

"The InfraCo Phase 2 Spin-Off is a concrete implementation of TelkomGroup's portfolio structuring strategy to build a digital infrastructure business that has a stronger value proposition," said Seno Soemadji, director of strategic business development & portfolio, Telkom.

"Through the formation of InfraNexia, Telkom not only optimizes asset utilization and increases flexibility in developing partnership opportunities, but also creates a foundation for sustainable growth for the entire TelkomGroup business portfolio."