The parent companies of Indonesian operators XL Axiata and Smartfren Telecom have reopened discussions regarding merging their telecom operations in Indonesia, according to Bloomberg.
Axiata and Indonesian conglomerate Sinar Mas Group are working with advisors to consider the possibility of a merger. They are also open to a network-sharing agreement or partnership. These discussions are still in the early stages, and no concrete deal has been reached yet. Rumors of a merger or partnership between the two companies first began in 2021.
Smartfren President Merza Fachys expressed the operator's willingness to consolidate and collaborate in order to improve operational efficiency. XL Axiata President Dian Siswarini made similar remarks.
Axiata Group recently announced a strategy to reduce its significant debt, which was accumulated through overseas expansion and acquisitions in Indonesia and the Philippines.