Employees Go On Mass Leave as Smartfren XL Axiata Will End, Here Are the Signs – detikInet”>XL Axiata and Smartfren Merger Heats Up
Indonesia Braces for Greater Cellular Consolidation as Merger of Two Telecom Giants Approaches
The landscape of Indonesia’s telecommunications industry could soon be dramatically altered, as two major players, XL Axiata and Smartfren, are nearing the completion of a merger agreement. The process, expected to be finalized at the end of 2024, has stirred controversy and sparked unease among XL Axiata’s employees who took mass leave in protest.
The merger of XL Axiata and Smartfren, if successfully realized, will consolidate the Indonesian cellular market, reducing the number of prominent operators to just three. The plan has been in motion for some time, with the shareholders of both companies – PT Wahana Inti Nusantara, PT Global Nusa Data, PT Bali Media Telekomunikasi (Sinar Mas) and Axiata Group Berhad (Axiata) – signing a non-binding Memorandum of Understanding (MoU) on May 15, 2024, setting the stage for a combined entity.
Further fueling speculation about the merger’s imminent conclusion, XL Axiata’s President Director & CEO, Dian Siswarini, announced on October 24, 2024, that the due diligence process was nearing its end. She remained optimistic about its completion by year’s end, contingent on timely responses from Komdigi and the OJK, Indonesia’s telecommunications regulator and Financial Services Authority. The ball, she stated, was now firmly in the hands of the government.
Internal Tensions Mount as CEO Steps Down Amid Merger Uncertainty
Adding to the already tense atmosphere within XL Axiata, the resignation of Dian Siswarini, who had helmed the company since 2015, took many by surprise. Announced on December 3, 2024, her departure, cited as being due to “personal reasons”, remained clouded with uncertainties.
Sources close to the situation suggest that Dian was not included in the potential leadership structure for the merged entity, dubbed “Mergeco,” and may not have been significantly involved in negotiating the merger. Her departure fuels speculation and throws the future leadership of the combined company into question.
Employees Demand Transparency as Mass Leave Escalates Concerns
The lack of clarity surrounding the merger sparked discontent among XL Axiata’s workforce, particularly as concerns about their future roles and benefits escalated. Citing a lack of transparency and information, the XL Axiata Workers Union (SPXL) staged a mass leave on December 6, 2024. The coordinated action serves as a strong signal of their discontent and demands for greater transparency from Axiata, the parent company overseeing the merger.
“This mass leave demands transparency in the merger, which is the main cause of the problem, the lack of clarity and openness of information from the holding company, namely Axiata Malaysia, ” stated a union representative.
He emphasized that if their demands for greater transparency and clarity are not met, the union is prepared to take more significant actions in the future.
XL Axiata’s management, while acknowledging the union’s concerns, maintains its position that issues related to the merger and its impact on employees should be directly addressed to Axiata, highlighting that the ball is firmly in the parent company’s court. While speculation and uncertainty continue to surround the imminent merger, the labor unrest serves as a poignant reminder of the human cost associated with major corporate restructuring.
– How might the merger of XL Axiata and Smartfren influence the competitive landscape within Indonesia’s telecommunications industry?
## Merger Mayhem: An Interview with Telecommunications Expert
**Host:** Welcome back to the show. Today we’re discussing the brewing storm in Indonesia’s telecommunications industry. XL Axiata and Smartfren are on the verge of merging, and it’s causing quite a stir, particularly among XL Axiata employees. To shed light on this complex situation, we have with us Dr. Rinawati, a renowned expert in Indonesian telecommunications. Dr. Rinawati, thanks for joining us.
**Dr. Rinawati:** Thank you for having me.
**Host:** Let’s jump right in. As of right now, what is the latest on the XL Axiata and Smartfren merger?
**Dr. Rinawati:** Based on the available information, the merger is in its final stages. [[1](https://katadata.co.id/finansial/korporasi/6644833420a54/xl-axiata-dan-smartren-teken-kesepakatan-merger-berganti-jadi-mergeco)]Both companies have signed a Memorandum of Understanding and XL Axiata’s CEO, Dian Siswarini, stated that the due diligence process is nearly complete. She expressed confidence that the merger could be finalized by the end of 2024 pending approvals from the relevant Indonesian authorities.
**Host:**
This merger would significantly consolidate the Indonesian cellular market. What are the potential implications for consumers?
**Dr. Rinawati:** There are both potential benefits and concerns. On the positive side, a larger, combined entity could invest more heavily in infrastructure, leading to better service quality and coverage. However, reduced competition could also lead to higher prices and less innovation. It’s crucial for regulators to closely monitor the situation and ensure that consumers’ interests are protected.
**Host:** Interestingly, we’re seeing some internal dissent within XL Axiata. There are reports of employees taking mass leave in protest of the merger.
**Dr. Rinawati:** Yes, this is a sign of the uncertainty and anxiety surrounding the merger. Job losses and changes in working conditions are common concerns during such corporate restructuring. It highlights the need for transparent communication from XL Axiata’s leadership and a clear plan to address employee concerns.
**Host:** And what about the recent resignation of Dian Siswarini, XL Axiata’s CEO? Does this signify bigger problems within the company?
**Dr. Rinawati:** Her resignation is certainly noteworthy and adds another layer of complexity to the situation. While the official reason for her departure isn’t clear, it’s possible that disagreements over the merger process played a role.
**Host:** Dr. Rinawati,
This merger seems to be a pivotal moment for Indonesia’s telecommunications landscape. Where do you see things heading from here?
**Dr. Rinawati:** This merger is bound to have ripple effects throughout the industry. Other telecom companies will be watching closely. It’s possible we’ll see further consolidation in the coming years. The key will be how regulators manage this process to ensure a healthy balance between competition and market efficiency.
**Host:**
Thank you for sharing your insights, Dr. Rinawati. This is certainly a story to keep an eye on in the coming months. We appreciate your time.
**Dr. Rinawati:** My pleasure.
