Business Context and Reporting Period
This Form 6-K filing by Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (Telkom Indonesia) is dated June 24, 2026. The document serves as a formal response to an explanation request from the Indonesia Stock Exchange (IDX) regarding the company's audited financial statements for the period ended December 31, 2025. The filing addresses specific accounting treatments, internal control assessments, and the classification of certain asset and revenue items.
Key Financial Metrics and Accounting Adjustments
The filing does not provide standard financial performance metrics such as revenue, profit, cash flow, or debt levels for the reporting period. Instead, it focuses on the quantitative and qualitative impact of specific accounting adjustments:
- Drop Cable Assets: Management reclassified the componentization of drop cable assets from an accounting error to a voluntary change in accounting policy under PSAK 208, applied retrospectively.
- Transactions Without Economic Substance: Approximately 140 transactions were identified as lacking economic substance. The company concluded these were not quantitatively material to consolidated financial statements for any individual period from 2014-2024 but were qualitatively material due to indications of employee misconduct.
- Receivables Write-off: Trade receivables totaling IDR 1,762 billion, associated with transactions lacking economic substance, were written off effective December 31, 2025. These receivables had a corresponding full allowance for impairment losses, resulting in a net carrying amount of zero.
Material Changes Versus Prior Periods
Significant changes in disclosure and accounting treatment occurred between the March 10, 2026, filing and this June 24, 2026, response:
- Reclassification of Drop Cable Treatment: Previously characterized as accounting errors in the March 2026 filing, the treatment of drop cable assets is now defined as a voluntary change in accounting policy.
- Internal Control Conclusion: The company withdrew a previous conclusion of a "material weakness" in internal control (disclosed in March 2026 and withdrawn via Form 6-K/A in April 2026). The current position is that no material weakness exists as of December 31, 2025.
- Receivables Presentation: While the 2025 audited statements reclassified these receivables to other non-current assets with a net balance of zero, the interim statements for March 31, 2026, explicitly disclosed the write-off of the IDR 1,762 billion balance.
Guidance, Outlook, and Risks
Management Commentary and Auditor Position: The Independent Auditor concluded that the company maintained effective internal control over financial reporting in all material respects as of December 31, 2025, and did not identify any material weaknesses. Management asserts that the identified errors regarding transactions without economic substance did not convert income to a loss, mask revenue trends, or affect debt covenant compliance. Risks and Contingencies: The primary risk discussed relates to the qualitative materiality of employee misconduct regarding approximately 140 transactions. However, management states that as of the filing date, there are no other material events that could adversely affect the company's going concern status or materially impact its share price. Unusual Items: The filing details the complex accounting treatment of "last mile to the customers" assets and the derecognition of assets without economic benefit, which were subject to regulatory inquiry.
Key Facts for Investor Verification
- Verify the retrospective application of the voluntary accounting policy change for drop cable assets under PSAK 208 and its impact on comparative financial periods.
- Confirm the status of the IDR 1,762 billion receivable write-off and ensure the corresponding allowance for impairment losses was fully recognized prior to the write-off.
- Review the Independent Auditor's report to validate the conclusion that no material weaknesses in internal control exist as of December 31, 2025.
- Assess the qualitative implications of the identified employee misconduct regarding transactions without economic substance, despite the company's assertion of quantitative immateriality.
- Monitor future filings for any updates on the remediation actions related to the internal control environment, as management noted remediation was ongoing at the time of the initial inquiry.