The merger between XL Axiata and Smartfren refers to the consolidation of the two companies to drive innovation, improve service quality, and expand digital connectivity across Indonesia. This initiative aims to provide customers and the public with better, more innovative, and more equitable digital services.
The merger will unite two of Indonesia’s most trusted telecommunications companies to form a new entity that is better positioned to serve all stakeholders and accelerate the country's digital economy:
1. It offers significant strategic, operational, and financial benefits that will enable the merged entity to deliver value to all stakeholders in ways that would be difficult to achieve independently.
2. It creates a stronger integrated telecommunications operator with enhanced scale, financial strength, and expertise—enabling accelerated network investments, improved service quality, and greater product and service innovation for people across Indonesia.
3. Consumers will benefit from improved network quality, broader coverage, competitive product offerings, and a faster 5G rollout.
This merger is a strategic move to provide greater value to all stakeholders through superior services, digital connectivity, and innovation. It also supports the Indonesian Government’s efforts to promote digital transformation.
1. XL Axiata and Smartfren have agreed to combine forces to form a stronger, unified entity with enhanced capital resources, operational efficiency, and scale to serve the population more effectively nationwide.
2. The newly formed XLSMART will possess the strategic agility, expertise, and scale required to meet the evolving demands of both individual and corporate customers, as well as Indonesia's public sector.
3. The merger will create a strong third player in the local telecommunications market, capturing approximately 27% market share of Indonesia’s fixed and mobile telecommunications subscriber base, with an estimated combined revenue of over IDR 45.4 trillion (approximately USD 2.8 billion).
4. XLSMART is expected to realize annual pre-tax synergies of USD 300–400 million post-integration. With a combined proforma revenue exceeding IDR 45.4 trillion, EBITDA of IDR 22.4 trillion, and around 94.5 million mobile subscribers nationwide, XLSMART will be a formidable competitor in Indonesia’s telecommunications sector.
5. With greater scale and a more efficient cost structure, XLSMART is anticipated to drive further investment in digital infrastructure and product innovation for its diverse customer base, while fostering a healthier and more competitive market in Indonesia.
The merger process is already underway and has completed several phases, including legal milestones. Effective April 16, 2025, both companies have officially merged and now operate as a new entity, XLSMART.
The name of the new company resulting from the merger is PT XLSMART Telecom Sejahtera Tbk (“XLSMART”).
XLSMART will have approximately 94.5 million customers, representing around 27% of the market share.
The merger is expected to significantly expand the network by leveraging the infrastructure strengths of both companies. XLSMART will have access to a larger spectrum, totaling 152 MHz. This broader spectrum will support higher network capacity and faster data speeds, thereby enhancing customer experience in accessing digital services.
The pre-synergy combined value of the merged companies exceeds IDR 104 trillion.
Axiata Group Berhad (“Axiata”) and Sinar Mas will be joint controlling shareholders, each holding 34.8% of XLSMART shares with equal influence over the company’s strategic direction and decisions.
The proposed Board of Directors of the merged entity is as follows:
President Director & Chief Executive Officer: Rajeev Sethi
Director & Chief Financial Officer: Antony Susilo
Director & Chief Technology Officer: Shurish Subbramaniam
Director & Chief Commercial Officer: David Arcelus Oses
Director & Chief Regulatory Officer: Merza Fachys
Director & Chief Information Officer: Yessie D. Yosetya
Director & Chief Enterprise and Strategic Relationships: Andrijanto Muljono
Director & Chief Strategy and Home: Feiruz Ikhwan
Director & Chief Human Resources Officer: Jeremiah Ratadhi
The merger will enhance the overall customer experience, offering improved Fixed Mobile Convergence (FMC) service quality, more innovative products, and broader service coverage:
1. Improved service quality and customer experience through enhanced connectivity and broader network reach.
2. Faster internet speeds enabled by accelerated 5G deployment.
3. Greater freedom of choice through a wider range of products and services from both brands.
4. Potential new offerings tailored for SMEs and local businesses.
The merger is expected to deliver greater value to investors by expanding business scale and unlocking synergy opportunities for further growth:
1. Creation of a strong telecommunications company with enhanced competitive capabilities.
2. Robust growth driven by a larger customer base across mobile, fixed, and enterprise segments.
3. Greater economies of scale.