Business Context and Reporting Period
Company: Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (Telkom Indonesia)
Reporting Period: Year ended December 31, 2025
Filing Date: May 11, 2026 (Form 6-K)
Auditor: KAP Purwanto Susanti dan Surja (Member of Ernst & Young Global Limited)
Business Overview: Telkom Indonesia is a state-owned telecommunications provider in Indonesia. As of March 22, 2025, the Company became a subsidiary of PT Danantara Asset Management (DAM), with the Government of Indonesia remaining the ultimate parent entity. The Group operates through five reportable segments: B2C, B2B Infra, B2B ICT, International, and Others.
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 (Rp Billion) | 2024 Restated (Rp Billion) |
|---|---|---|
| Total Revenues | 146,742 | 149,967 |
| Operating Profit | 34,648 | 41,453 |
| Profit Before Tax | 31,102 | 37,615 |
| Net Profit (Consolidated) | 24,458 | 29,497 |
| Net Profit (Parent Company) | 17,814 | 22,403 |
| Operating Cash Flow | 63,842 | 61,600 |
| Capital Expenditures | (24,577) | (24,449) |
| Total Assets | 287,759 | 291,389 |
| Total Liabilities | 137,222 | 137,185 |
| Total Equity | 150,537 | 154,204 |
| Net Debt-to-Equity Ratio | 31.13% | 32.11% |
Material Changes vs. Prior Period
- Revenue Decline: Total revenue decreased by 2.2% to Rp146.7 trillion, driven by lower cellular data and internet revenues and reduced telephone revenues.
- Profitability Pressure: Operating profit declined by 16.4% to Rp34.6 trillion. Net profit attributable to the parent company dropped 20.5% to Rp17.8 trillion.
- Depreciation Increase: Depreciation and amortization expenses rose to Rp37.6 trillion (from Rp34.2 trillion) due to a change in accounting policy regarding the classification and useful life of "drop cable" assets and accelerated depreciation on underutilized assets.
- Dividends: The Company paid a cash dividend of Rp21.0 trillion for the 2024 fiscal year in June 2025.
- Restatement: Comparative figures for 2024 were restated to reflect the reclassification of drop cable assets as a separate component of telecommunication infrastructure.
Guidance, Outlook, Risks, and Unusual Items
Management Commentary and Outlook
Management continues to focus on optimizing capital structure and minimizing the cost of capital. The Group maintains a net debt-to-equity ratio of 31.13%, complying with external covenants. Significant capital commitments remain for network modernization and infrastructure rollout.
Risks and Contingencies
- Regulatory Investigations (SEC/DOJ): The Group is cooperating with ongoing investigations by the U.S. Securities and Exchange Commission (SEC) and Department of Justice (DOJ) regarding revenue recognition, financial reporting practices, and potential FCPA violations. An internal investigation identified approximately 140 transactions (primarily 2016–2019) lacking economic substance. While the Group does not believe these constitute a material misstatement to prior periods, the final outcome and potential sanctions remain uncertain.
- Tax Disputes: Significant tax assessments are ongoing, particularly for subsidiary Telkomsel regarding VAT and Corporate Income Tax for fiscal years 2021–2023. Telkomsel has filed objections and believes no provision is necessary for certain underpayments, but the final resolution is pending.
- Asset Useful Lives: A key audit matter involves the estimation of useful lives for telecommunication infrastructure (50% of total assets), which requires significant judgment regarding technological obsolescence and market behavior.
Unusual Items
- Accounting Policy Change: Retrospective application of a new policy classifying "drop cable" as a separate asset component with a 5-year useful life, increasing depreciation expenses.
- Divestment Plan: A Conditional Sale and Purchase Agreement was signed in March 2026 for the divestment of Ad Medika (health insurance subsidiary), which was classified as "held for sale" as of December 31, 2025.
Key Facts for Investor Verification
- Regulatory Exposure: Verify the status and potential financial impact of the ongoing SEC and DOJ investigations regarding revenue recognition and FCPA compliance.
- Tax Liability: Monitor the resolution of Telkomsel's tax disputes, specifically the VAT and Corporate Income Tax assessments for 2021–2023, which could impact future cash flows.
- Depreciation Impact: Assess the long-term impact of the increased depreciation charges resulting from the reclassification of drop cable assets and accelerated depreciation on underutilized assets.
- Divestment Execution: Track the completion of the Ad Medika divestment and the "Infraco Spin-Off" (transfer of wholesale fiber business to TIF) effective January 1, 2026.
- Debt Covenants: Confirm continued compliance with debt covenants, particularly the debt-to-equity ratio and debt service coverage ratio, given the high level of interest-bearing debt (Rp74.9 trillion).