Telkom Indonesia Weighs Sale of AdMedika Amid Financial Moves
In a significant development within the telecommunications sector, Telkom Indonesia Persero Tbk PT, a major player in diversified telecommunication services, is reportedly considering the sale of its healthcare subsidiary, AdMedika. This move comes as the company seeks to raise at least US$100 million from the potential transaction, according to sources familiar with the situation.
Background on AdMedika
AdMedika, officially known as PT Administrasi Medika, was acquired by a unit of Telkom Indonesia in 2010 for approximately 128 billion rupiah (US$7.9 million). Since its founding in 2002, AdMedika has grown to provide a range of healthcare services, including health-claims management, and collaborates with over 7,800 healthcare facilities across Indonesia and other countries such as Malaysia, Singapore, India, and China.
Financial Context
Telkom Indonesia, listed on the Frankfurt Stock Exchange, has been navigating a challenging financial landscape. As of May 1, 2025, the company’s share price stood at 0.153 EUR, with a market capitalization of 11,788,404,303 EUR. The company’s stock has experienced volatility, reaching a 52-week high of 0.196 EUR on October 16, 2024, and a low of 0.11 EUR on April 9, 2025. The price-to-earnings ratio is currently 10.6817, reflecting investor sentiment and market conditions.
Strategic Considerations
The decision to potentially sell AdMedika is part of Telkom Indonesia’s broader strategic considerations. The company is reportedly working with an adviser to gauge interest from potential buyers, although deliberations are ongoing and may not necessarily lead to a sale. This move could be seen as an effort to streamline operations and focus on core telecommunications services, amidst a competitive and rapidly evolving industry landscape.
Market Dynamics
The telecommunications sector in Indonesia is witnessing significant activity, with other state-owned enterprises (BUMN) like PT Bukit Asam Tbk (PTBA) and PT Aneka Tambang Tbk (ANTM) also making headlines. These companies are preparing for annual general meetings to decide on dividend distributions, with PTBA known for its generous dividend payouts.
Additionally, foreign investment in the Indonesian stock market has shown a positive trend in May 2025, with notable interest in companies like PT Bank Rakyat Indonesia Tbk (BBRI) and PT Aneka Tambang Tbk (ANTM). This influx of foreign capital highlights the growing confidence in Indonesia’s market potential.
Conclusion
As Telkom Indonesia evaluates the sale of AdMedika, the company is navigating a complex financial and strategic environment. The potential transaction could provide a significant capital boost, allowing Telkom Indonesia to strengthen its position in the telecommunications sector. However, the outcome remains uncertain, and the company has yet to respond to requests for comment on the matter. Investors and industry observers will be closely watching how this situation unfolds, as it could have broader implications for the telecommunications landscape in Indonesia and beyond.