Historic IDR104 trillion merger in Indonesia’s telecom industry

The merger, valued at IDR104tn (~USD6.5 billion), establishes PT XLSMART Telecom Sejahtera Tbk (“XLSMART”) as the third largest telco company in Indonesia and a new telecommunications powerhouse in the country and Southeast Asia. Following the merger, XLSMART will have a combined customer base of 94.51 million mobile subscribers and a 27% market share and is expected to generate pro forma revenues of over IDR45.4tn and EBITDA of more than IDR22.4tn.

We advised XL Axiata on all aspects of the deal, including structuring the transaction to ensure optimal outcomes. Our team conducted comprehensive due diligence to identify and mitigate potential risks, ensuring a smooth integration process. We strategically advised the boards of directors and board of commissioners of XL Axiata and helped guide them through complex decision-making processes. Additionally, we liaised with the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) to ensure regulatory compliance and facilitate the approval process. Our holistic approach ensured that XL Axiata navigated the merger seamlessly.

The Ginting & Reksodiputro team was led by partner Harun Reksodiputro, with support from senior associate Richele Suwita, associates Nadya Renatta, Michael Timothy, Agnes Guntara, Michelle Christyanto, and Michael Benedict. Other supporting members include associates Elsa Sari and Graciel Megalen.

As we mark our 15th year in Indonesia, we remain committed to providing exceptional legal services for transformative M&A and corporate transactions. Over the past decade and a half, we have guided our clients in navigating the ever-evolving telecommunications and digital infrastructure landscape—including more recently acting on the landmark merger of Indosat and Hutchison 3 Indonesia, on the acquisition of Linknet, and on the development of Indonesia’s first AI cloud data center.