Business Context and Reporting Period
Company: Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (Telkom Indonesia)
Reporting Period: Six months ended June 30, 2026 (Unaudited)
Filing Date: July 31, 2026
Business Overview: Telkom Indonesia is a state-owned telecommunications provider in Indonesia, offering mobile, fixed broadband, data, and IT services. The Group operates through five reportable segments: B2C, B2B Infra, B2B ICT, International, and Others. As of March 2025, the Company became a subsidiary of PT Danantara Asset Management (DAM), with the Government of Indonesia remaining the ultimate parent entity.
Key Financial Metrics (Six Months Ended June 30, 2026)
| Metric | 2026 (Rp Billion) | 2025 (Rp Billion) |
|---|---|---|
| Revenues | 75,878 | 73,004 |
| Operating Profit | 20,133 | 19,281 |
| Profit Before Tax | 18,798 | 17,517 |
| Profit for the Period | 14,206 | 13,624 |
| Profit Attributable to Parent | 10,623 | 10,473 |
| Net Cash from Operating Activities | 34,862 | 32,573 |
| Net Cash Used in Investing Activities | (10,833) | (11,460) |
| Net Cash Used in Financing Activities | (4,357) | (21,920) |
| Cash and Cash Equivalents (End of Period) | 54,579 | 33,185 |
| Total Assets | 303,087 | 287,759 |
| Total Liabilities | 168,239 | 137,222 |
| Net Debt-to-Equity Ratio | 22.23% | 31.13% |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by 3.9% to Rp75.88 trillion, driven primarily by growth in the B2C segment (Cellular data and internet revenue rose to Rp38.13 trillion).
- Profitability: Operating profit increased by 4.4% to Rp20.13 trillion. Profit for the period rose 4.3% to Rp14.21 trillion.
- Cost Management: Personnel expenses decreased by 4.4% to Rp7.72 trillion, while depreciation and amortization expenses increased slightly to Rp17.20 trillion due to asset additions and accounting policy changes regarding drop cables.
- Liquidity Improvement: Cash and cash equivalents increased significantly by 59.5% to Rp54.58 trillion, resulting from strong operating cash flows and reduced financing outflows compared to the prior year.
- Divestment Gain: The Group recognized a gain of Rp550 billion from the divestment of its entire ownership in Ad Medika to Global Assistance & Healthcare Singapore Pte. Ltd.
- Share Buyback: The Company executed share buybacks totaling Rp1.51 trillion (481 million shares) during the period.
Guidance, Outlook, Risks, and Contingencies
- Regulatory & Legal Investigations: The Group is cooperating with ongoing investigations by the U.S. SEC and DOJ regarding revenue recognition, financial reporting practices, and potential FCPA violations. An internal investigation identified approximately 140 transactions lacking economic substance, primarily from 2016-2019. The Group has written off Rp1.76 trillion of related receivables. Management does not currently believe the outcome will have a material adverse effect on the financial statements, though potential losses cannot be reliably estimated.
- Tax Disputes: Telkomsel is appealing significant tax assessments for the 2023 fiscal year, including Article 23 Income Tax (Rp12.84 trillion) and Corporate Income Tax (Rp1.62 trillion), related to the transfer of the IndiHome business segment. The Group believes it has strong technical arguments to support its position.
- Subsequent Events:
- Merger: PST and UMT merged into Mitratel, effective July 1, 2026.
- Debt Repayment: Telkomsel repaid Rp5.0 trillion in bank loans in July 2026.
- Spectrum Allocation: Telkomsel secured 100 MHz of spectrum (700 MHz and 2.6 GHz bands) in July 2026.
- Accounting Policy Change: The Group retrospectively adjusted prior periods to classify "drop cable" as a separate asset component with a 5-year useful life, increasing depreciation expenses.
Key Facts for Investor Verification
- Investigation Status: Verify the current status and potential financial impact of the ongoing SEC and DOJ investigations regarding historical revenue recognition and FCPA compliance.
- Tax Appeal Outcome: Monitor the resolution of Telkomsel's appeal against the Rp14.4 trillion tax assessment for the 2023 fiscal year.
- Divestment Integration: Confirm the finalization of the Ad Medika divestment and the recognition of the full gain.
- Capital Allocation: Review the execution of the approved share buyback program (up to Rp4.0 trillion additional allocation) and dividend policies.
- Debt Covenants: Ensure continued compliance with debt covenants, particularly the debt-to-equity ratio (currently 22.23%) and debt service coverage ratios, following recent debt repayments and new borrowings.