Indonesia Stock Exchange Investigates Alleged Manipulation of Telkom Indonesia's Financial Reports

JAKARTA. PT Indonesia Stock Exchange (BEI) is conducting in-depth monitoring of the alleged fraud in the financial reports of PT Telkom Indonesia Tbk (TLKM) for the fiscal year period 2014–2021. Approximately 140 transactions with a value of Rp 5 trillion are suspected of lacking economic substance during that period. The transactions suspected to be problematic occurred during the leadership era of Alex J. Sinaga and Ririek Adriansyah. This is because the allegations have come under the radar of the US Securities and Exchange Commission (SEC) and the US Department of Justice (DOJ). Director of Corporate Valuation at the Indonesia Stock Exchange, I Gede Nyoman Yetna, explained that his side has carried out a series of monitoring and supervision actions through the implementation of a hearing with TLKM on 8 April 2026. Telkom provided information disclosure and responses to the exchange’s request for explanation on 5 May 2026. First, TLKM explained the establishment of the Directorate of Legal & Compliance as well as the Chief Integrity Officer (CIO). Second, TLKM stated that the SEC investigation began in October 2023 regarding the Kominfo BAKTI project. It then expanded to include accounting and disclosure issues. Since May 2024, the DOJ has also requested information related to the Foreign Corrupt Practices Act (FCPA). Third, TLKM affirmed that because its shares are listed in New York, the company is subject to US capital market regulations, including the FCPA. Fourth, TLKM has stated that the clawback policy has been effectively in place since 30 May 2023. Sixth, Telkom affirmed that the evaluation of drop cable and last mile assets has been completed, with conclusions in the form of an accounting policy change that will be applied retrospectively to the 2025 fiscal year report. Seventh, Telkom also stated that it has submitted a Notification of Late Filing to the SEC on 30 April 2026 and requires additional time for submitting the 2025 Form 20-F. Nyoman said that currently BEI has also submitted a request for further explanation based on the latest response and is still awaiting a response from Telkom’s management.