Business Context and Reporting Period
Company: Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (Telkom Indonesia)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Three months ended March 31, 2026 (Unaudited)
Filing Date: May 29, 2026
Business Overview: Indonesia's leading state-owned telecommunications provider offering mobile, fixed broadband, data, and IT services. The company operates through five segments: B2C, B2B Infra, B2B ICT, International, and Others. As of March 2026, the company is a subsidiary of PT Danantara Asset Management (DAM), with the Government of Indonesia remaining the ultimate beneficial owner.
Key Financial Metrics (Q1 2026)
| Metric (Billions IDR) | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenues | 37,189 | 36,639 |
| Operating Profit | 8,929 | 10,166 |
| Profit Before Tax | 8,248 | 9,268 |
| Net Profit (Consolidated) | 6,054 | 7,336 |
| Net Profit (Parent Company) | 4,344 | 5,549 |
| Operating Cash Flow | 17,290 | 16,776 |
| Free Cash Flow (Approx.) | 12,170 | 11,675 |
| Total Assets | 289,955 | 287,759 |
| Total Liabilities | 134,145 | 137,222 |
| Net Debt-to-Equity Ratio | 23.19% | 31.13% |
Note: Free Cash Flow calculated as Operating Cash Flow less Capital Expenditures (4,391 billion IDR).
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by 1.5% to Rp37.19 trillion, driven by growth in B2C (Cellular data and internet) and B2B Infra segments.
- Profit Decline: Operating profit decreased by 12.2% to Rp8.93 trillion. Net profit attributable to the parent company fell by 21.7% to Rp4.34 trillion.
- Primary Driver: A significant unrealized loss of Rp309 billion on changes in the fair value of investments (specifically Telkomsel's stake in GoTo), compared to a gain of Rp308 billion in the prior year.
- Expense Pressure: Depreciation and amortization expenses increased to Rp8.70 trillion due to changes in estimated useful lives of assets and accelerated depreciation recognized in 2025.
- Balance Sheet Strength: Cash and cash equivalents increased to Rp37.55 trillion. Total debt decreased, improving the net debt-to-equity ratio from 31.13% to 23.19%.
- Share Buyback: The company executed a share buyback program, acquiring 195 million shares for Rp644 billion, increasing treasury stock.
Guidance, Outlook, Risks, and Contingencies
- Regulatory & Tax Risks:
- Telkomsel Tax Assessment: Telkomsel received a tax assessment (SKPKB) for the 2023 fiscal year totaling Rp14.47 trillion (including penalties) related to the IndiHome business transfer. Telkomsel has filed an objection and believes no provision is necessary, citing strong technical arguments and prior Ministry of Finance approval.
- Subsequent Event: In April 2026, Telkomsel received another tax assessment for the 2024 fiscal year totaling Rp838 billion.
- Legal & Compliance Investigations:
- SEC/DOJ Investigation: Ongoing investigations by the U.S. SEC and DOJ regarding revenue recognition, financial reporting practices, and potential FCPA violations. The Group identified approximately 140 historical transactions lacking economic substance. While Rp1.76 trillion in related receivables were written off in 2025, the Group states the overstatement was not quantitatively material to prior periods. The Group cannot currently estimate potential losses from the investigations.
- Divestment: A Conditional Sale and Purchase Agreement was signed in March 2026 for the divestment of Ad Medika (health insurance subsidiary). The transaction was not completed by March 31, 2026, and assets are classified as "held for sale."
- Subsequent Events:
- Bankruptcy: Subsidiary PT Media Nusantara Data Global (MNDG) was declared bankrupt in May 2026.
- New Buyback: Announced a new share buyback plan of up to Rp1,000 billion to commence in June 2026.
Key Facts for Investor Verification
- Investment Volatility: Verify the sensitivity of earnings to the valuation of the GoTo investment, which caused a swing of over Rp600 billion in pre-tax profit year-over-year.
- Tax Liability Exposure: Monitor the outcome of the Rp14.47 trillion tax assessment objection filed by Telkomsel regarding the IndiHome transfer.
- Regulatory Sanctions: Track the status of the SEC and DOJ investigations to assess potential fines, penalties, or restatements of historical financials.
- Capital Allocation: Confirm the execution and impact of the new Rp1,000 billion share buyback program announced in May 2026.
- Asset Quality: Review the write-off of Rp1.76 trillion in receivables related to historical transactions lacking economic substance and ensure no further provisions are required.