ISAT's 2026 Performance Projected to Grow Driven by Data Business, Check Stock Recommendations

JAKARTA. The prospects for PT Indosat Tbk (ISAT)’s performance in 2026 are projected to continue growing, supported by the strengthening of its data business and sustainable cost efficiencies. Previously, ISAT allocated a capital expenditure (capex) budget of Rp13.28 trillion throughout 2025. This amount represents a 33.73% increase from Indosat’s 2024 capital expenditure, which was recorded at Rp9.93 trillion. Management stated that the 2025 capex will primarily be used for mobile business, accounting for around 78.6% of the total capital expenditure. Head of Research at Korea Investment & Sekuritas Indonesia (KISI), Muhammad Wafi, believes that the capex previously deployed by ISAT is beginning to impact operational performance, particularly in enhancing service quality and network coverage. He explained that ISAT’s future performance growth is projected to be supported by an increase in average revenue per user (ARPU) and operational efficiencies stemming from prior capex investments. Wafi also sees several positive catalysts that could drive ISAT’s performance this year. Among them is the rationalisation of data package tariffs in the industry, which has the potential to improve pricing structure and margins. Additionally, the expansion of fixed broadband (FTTH) services through Indosat HiFi is considered a new source of growth. Not only that, the monetisation of business-to-business (B2B) digital services, including the utilisation of artificial intelligence (AI) technology, also presents additional opportunities for the company. Furthermore, Analyst at KB Valbury Sekuritas, Steven Gunawan, assesses that entering fiscal year 2026, ISAT’s growth will continue to be supported by the data segment alongside network expansion and improved service quality. He added that this reflects a relatively stable yield of Rp2.44 per MB, as well as a moderate increase in ARPU to Rp44,900. Moreover, additional performance potential could come from the fixed broadband (FBB) segment. Steven estimates that the number of FBB subscribers will grow 6.6% annually, in line with the still low penetration rate in the domestic market. Nevertheless, Wafi also warns of several risks that need to be monitored. One of them is the pressure on public purchasing power, particularly in the middle to lower segments, due to persistently high inflation. Additionally, the weakening of the rupiah exchange rate could potentially increase cost burdens, especially related to ongoing capital expenditure and tower leases, most of which are denominated in US dollars. “Rupiah depreciation could burden ongoing capex costs and tower leases,” Wafi added. According to financial reports, ISAT recorded revenue of Rp56.52 trillion in 2025, growing 1.1% year-on-year. Meanwhile, the net profit attributable to the parent entity’s owners surged 12.2% year-on-year to Rp5.51 trillion. For the bottom line, the company’s net profit is also projected to rise to Rp6.02 trillion in 2026, or an increase of 9.2% YoY compared to last year’s realisation. With the various catalysts and factors above, Steven provides a buy recommendation for ISAT shares with a target price of Rp2,500 per share. Similarly, Wafi also gives a buy recommendation for ISAT with a target price of Rp3,000 per share.