Telkom Allocates Up to IDR 28 Trillion for Network and Data Centre Expansion

PT Telkom Indonesia (Persero) Tbk (Telkom) has prepared a Capital Expenditure (Capex) budget of between Rp27 trillion and Rp28 trillion to develop various projects, including the 5G internet network.

The President Director of PT Telkom Indonesia (Persero) Tbk, Dian Siswarini, stated that this fund will represent approximately 17% to 19% of the company’s revenue. Speaking at the CNBC Indonesia Economic Update 2026, she noted that Telkomsel remains the largest contributor, accounting for 70% of Telkom’s revenue.

Furthermore, the funds will be utilised to expand the Fibre to the Home (FTTH) network for IndiHome. The capital expenditure is also intended to strengthen Telkom’s fibre optic backbone to ensure connectivity reaches all islands and cities across the country.

Lastly, the capital expenditure will be directed towards data centre requirements. This infrastructure is experiencing significant growth alongside internet advancements. “The current condition of data centres is booming because of AI; the development of AI has created an extraordinary demand for data centres. Consequently, the growth of data centres requires substantial investment,” Dian explained.

For context, Telkom recorded consolidated revenue of Rp37.2 trillion, a 1.5% year-on-year growth, in the first three months of 2026. EBITDA was recorded at Rp18.0 trillion with an EBITDA margin of 48.3%.

Telkom also reported a net profit of Rp4.3 trillion with a net profit margin of 11.7%, while normalised net profit stood at Rp5.1 trillion with a normalised net profit margin of 13.8%.

The contraction in net profit was primarily influenced by the ongoing impact of accelerated depreciation and the business normalisation process during its transformation phase. However, this pressure is considered transitional and non-cash, while fundamental operational performance remains stable.

The company’s operating cash flow also grew by 3.1% year-on-year to Rp17.3 trillion, driven by the implementation of TOTEX efficiency programmes and improved collection discipline.