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) of IDR 27 trillion to IDR 28 trillion to build various projects, including a 5G internet network. President Director Dian Siswarini stated that the funds would be sourced from 17% to 19% of the company’s revenue. “Currently, the first priority is Telkomsel, as it remains the largest contributor, accounting for 70% of Telkom’s revenue,” she said during the CNBC Indonesia Economic Update 2026 on Monday (22/6/2026). She added that the funds will also be used to build Indihome’s Fiber to the Home (FTTH) network and to strengthen Telkom’s fibre optic backbone. “So that all islands and all cities can be reached by the fibre optic network,” Dian explained. Lastly, the capital expenditure is allocated for data centre needs, an infrastructure segment experiencing growth amid internet advancements. “The data centre condition is currently booming due to AI. The development of AI has created an extraordinarily large demand for data centres, requiring significant investment,” Dian clarified. For the record, Telkom posted consolidated revenue of IDR 37.2 trillion, growing 1.5% year-on-year in the first three months of 2026. EBITDA was recorded at IDR 18.0 trillion with an EBITDA margin of 48.3%. Telkom also recorded a net profit of IDR 4.3 trillion with a net profit margin of 11.7%, while normalised net profit stood at IDR 5.1 trillion with a normalised net profit margin of 13.8%. The contraction in net profit was mainly influenced by the continued impact of accelerated depreciation and business normalisation processes during the transformation phase. However, this pressure is transitional and non-cash, while operational performance remains fundamentally sound. The company’s operating cash flow also grew 3.1% year-on-year to IDR 17.3 trillion, driven by the implementation of TOTEX efficiency programmes and improved billing discipline.