Jakarta – PT Telkom Indonesia (Persero) Tbk (Telkom) closed its 2025 fiscal year with performance results that underscore its commitment to sustainable value creation for shareholders, driven by the rapid execution of the company’s strategic transformation agenda.
Telkom recorded a net income of Rp17.8 trillion with a net income margin of 12.1%. On a normalized basis, the company achieved a net income of Rp22.7 trillion, reflecting a 15.4% normalized net income margin. This achievement was supported by consolidated revenue reaching Rp146.7 trillion.
The company’s consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for 2025 stood at Rp72.2 trillion with an EBITDA margin of 49.2%. Meanwhile, normalized EBITDA reached Rp73.2 trillion with a normalized margin of 49.9%.
In line with its transformation roadmap and fundamental strengthening, Telkom delivered a Total Shareholder Return (TSR) of 35.7% throughout 2025. This return was composed of a 28.4% capital gain and a 7.3% dividend yield.
These figures reflect the market’s positive reception to Telkom’s transformation strategy. This sentiment is further bolstered by a consistent shareholder return policy, evidenced by an 89% payout ratio for the 2024 fiscal year and an ongoing share buyback program valued at up to Rp3 trillion, which will continue through May 2026.
Accelerating the TLKM 30 Transformation Strategy
Despite macroeconomic pressures and challenges within the telecommunications sector over the past few years, Telkom has remained adaptive, evolving its corporate strategy, business models, and service offerings. Telkom President Director Dian Siswarini emphasized that the execution of this transformation has been the company’s primary focus since 2025.
“Through the TLKM 30 strategy, Telkom has established a structured transformation path to accelerate our vision of becoming a globally competitive driver of the national digital ecosystem while creating long-term value for all stakeholders,” Siswarini stated.
The mid-term TLKM 30 strategy focuses on four major pillars. The first pillar, Operational & Service Excellence, aims to strengthen good corporate governance. This initiative drives sustainable organizational discipline, including a culture of excellence, efficient processes, and improved service quality to enhance the overall customer experience.
The second pillar involves Streamlining the company’s portfolio. By managing non-core businesses, Telkom aims to optimize contributions, increase operational efficiency, and sharpen its competitive edge in core telecommunications and digital sectors.
A key example of this strategy is the divestment of AdMedika and its subsidiary, Telko Medika. This process has reached the Conditional Sale and Purchase Agreement (CSPA) stage, with full divestment expected by the end of the first half of 2026. This move is anticipated to improve dividend streams. Additionally, several other entities that overlap or do not align with the TelkomGroup core ecosystem are currently being consolidated.
The third pillar focuses on Unlocking Value, particularly by strengthening the foundation of digital infrastructure through fiber connectivity. This initiative is designed to increase asset utilization and maximize Return on Assets (ROA) while expanding Telkom’s role in supporting national connectivity.
The partial spin-off of the Wholesale Fiber Connectivity business to InfraNexia was marked by the signing of a Conditional Spin-off Agreement (CSA) in December 2025, representing the first phase of the carve-out. This step aligns with the shift toward a strategic holding model that prioritizes value creation, optimal portfolio management, and sustainable strategic execution.
Under the fourth pillar, the Modus-operandi shift, Telkom is transitioning from an operating holding to a strategic holding company. This involves delayering to sharpen the business focus across four Operating Company (OpCo) segments: B2C, B2B Infrastructure, B2B ICT, and International.
As a strategic holding entity, Telkom will focus on synergy and governance across segments, while OpCos handle focused business operations. This transformation is expected to harmonize business lines, eliminate overlap, and drive sustainable value creation.
Changes in Accounting Policies and Financial Reporting
Following the total governance reset mandated by Danantara Indonesia, Telkom has aligned its accounting policies to improve financial reporting accuracy. This includes refining the determination of asset useful lives and classifications. Consequently, net profit experienced a 9.5% YoY contraction due to increased accelerated depreciation expenses. Following these changes, the company has restated its 2023 and 2024 financial statements.
This initiative reinforces transparent governance, prudence, and disciplined asset management, aligning with the first pillar of TLKM 30: Operational and Service Excellence.
Market Recovery in the B2C Segment
The B2C segment (Mobile and Fixed Broadband) remains a primary contributor to the company’s revenue. Telkomsel, the OpCo focused on B2C, recorded a consolidated revenue of Rp109.2 trillion for the 2025 fiscal year. The growing demand for high-quality digital services led to a significant 15% YoY increase in data traffic.
Average Revenue Per User (ARPU) is also showing signs of a positive recovery, indicating more stable market conditions since the second half of 2025. This trend is expected to continue gradually as industry competition becomes healthier.
In 2026, Telkomsel will remain focused on maintaining ARPU through targeted pricing adjustments and ensuring network superiority to minimize customer churn. This is paired with an enhanced digital ecosystem to keep services relevant. Meanwhile, home internet expansion is being more precisely targeted, factoring in consumer spending power and capital efficiency for long-term healthy growth.
Resilient Performance Across B2B Infrastructure, International, and B2B ICT Segments
In the B2B Infrastructure segment, TelkomGroup is accelerating national digital infrastructure development by leveraging its extensive assets. These include a fiber optic backbone spanning over 210,000 km, telecommunications towers across the archipelago, data center and cloud services, and satellite connectivity for remote and challenging geographical areas. This supports Indonesia’s inclusive digital resilience.
Driven by data center business and fiber expansion, revenue from the B2B Infrastructure segment reached Rp8.9 trillion, a 9.2% YoY growth. The data center business, managed by NeutraDC, operates two hyperscale facilities in Cikarang and Singapore, three enterprise data centers in Serpong, Surabaya, and Sentul, and two co-location facilities in Singapore. Additionally, the group operates 28 NeuCentrIX edge data centers to bring cloud services closer to users.
In the tower and Fiber-to-the-tower (FTTT) business, Mitratel reported revenue of Rp9.5 trillion with a net income margin of 22.2% and an EBITDA margin of 82.2%. Mitratel remains the largest tower company in Southeast Asia, managing 40,230 towers with a tenancy ratio of 1.57x.
Furthermore, the Wholesale & International Service business, through Telin, recorded revenue of Rp10.7 trillion and is currently integrated into 27 international subsea cable systems.
The B2B ICT segment recorded Rp15.3 trillion in revenue across Connectivity, Managed Solutions, and Digital businesses. Despite government efficiency policies impacting corporate demand, Telkom remains optimistic about future growth. The company is driving innovation in Connectivity+, Cybersecurity, and Artificial Intelligence (AI) through strategic partnerships with global technology leaders.
Infrastructure growth was supported by disciplined investment, with 2025 capital expenditure reaching Rp27.5 trillion (18.8% of total revenue). Approximately 93% of capex was allocated to the B2C, B2B Infrastructure, and International segments, with the remainder supporting digital platform development and synergy value optimization.
“Throughout 2025, Telkom successfully maintained stable performance thanks to the TLKM 30 transformation strategy. In 2026, we enter a vital phase of accelerating this transformation. With operational discipline, we are confident in our ability to strengthen competitiveness and create sustainable value. Moving forward, Telkom will advance with a more structured direction to deliver solid performance and optimal benefits for all stakeholders,” concluded Dian Siswarini.
Summary
Telkom Indonesia concluded the 2025 fiscal year with resilient financial results, reporting consolidated revenue of Rp146.7 trillion and a net income of Rp17.8 trillion. Driven by the TLKM 30 strategic transformation, the company delivered a Total Shareholder Return (TSR) of 35.7% through a combination of capital gains and dividend payouts. This strong market performance is supported by disciplined asset management and a commitment to transparent corporate governance.
The company’s growth strategy centers on four key pillars: operational excellence, portfolio streamlining, value unlocking, and a transition toward a strategic holding model. By optimizing segments such as B2C connectivity and B2B infrastructure, Telkom continues to strengthen its role in Indonesia’s digital ecosystem. Moving into 2026, Telkom remains focused on accelerating these transformation initiatives to ensure sustainable, long-term value for all stakeholders.
