Telkom Reiterates Commitment to Governance Improvements After SEC Investigation
PT Telkom Indonesia (Persero) Tbk. has reaffirmed its commitment to improving governance following an investigation by the United States Securities and Exchange Commission (SEC). “From a governance perspective, we will improve further so that we are more disciplined in conducting business operations. Internally, our accounting will be more transparent and also cleaner,” said Telkom’s Chief Executive Officer Dian Siswarini at a press conference in Jakarta on Wednesday, 20 May 2026, as quoted by Antara.
The governance improvements are one of four pillars in Telkom’s TLKM 30 transformation. Telkom is aligning accounting policies to enhance the accuracy of financial statements, including ensuring that the principles used to determine useful lives and asset classifications are correct.
With the policy implementation, the firm is performing restatements of the 2023 and 2024 financial statements. This initiative also strengthens governance practices: transparency, prudence, and discipline in asset management.
The company has also established a Directorate of Legal & Compliance and a Chief Integrity Officer (CIO) to reinforce the legal, compliance, governance, process integrity and internal oversight functions.
Dian said the SEC investigation, which has been ongoing since October 2023 relating to the BAKTI Kominfo project and subsequently expanding to accounting issues, is a spillover from long-standing problems. He did not rule out the possibility that the company could face penalties from the SEC, but stressed that the company would provide further explanations.
Previously, the Indonesia Stock Exchange (BEI) said it was surveilling PT Telkom Indonesia Tbk. (TLKM) in relation to the SEC investigation. “The exchange has undertaken a series of monitoring actions through a hearing with the Company on 8 April 2026, and has submitted several requests for explanations on the matter, and coordinated with OJK,” BEI Corporate Valuation Director I Gede Nyoman Yetna said in Jakarta on Monday 11 May 2026.
Telkom, in its Form 6-K with the United States Securities and Exchange Commission (SEC), admitted possible fraud in the financial statements for 2016-2019. The impact on trade receivables and historic revenue raises questions about whether goods and services in the transactions were delivered or recognised in accordance with IFRS and whether the transactions complied with policy, procedures and Telkom’s Internal Control over Financial Reporting (ICFR).
“The internal investigation focused on revenue of around US$324 million, spread over around 140 transactions from 2014 to 2021, and mainly during 2016-2019,” the Form 6-K stated, dated 10 March 2026. The report notes the internal audit team has completed investigations for certain transactions and related conclusions. Some transactions were conducted by former management or subsidiaries up to 2021, particularly 2016-2019, and related to the company’s business segments, aimed at avoiding IFRS and company policy and ICFR to manage reported profits.
Telkom stated it would restate or reissue the 2023–2024 financial statements and strengthen internal controls through remediation, including organisational restructuring and recruitment of experts. This is due to weaknesses in internal controls stemming from issues inherited from previous periods that still affect the latest statements.
“The Department of Justice is also investigating this matter. The company is using external advisers and a forensic accounting firm to aid the internal investigation,” Telkom wrote in Form 6-K.
Senior Vice President Corporate Secretary Telkom Jati Widagdo explained the issue surfaced when SEC sought documents related to Telkom Infra’s involvement with BAkTI Kominfo regarding the supply of 4G Base Transceiving Station (BTS) infrastructure. The SEC subsequently broadened the investigation to include accounting and disclosure issues related to revenue recognition practices and financial reporting, as well as internal controls over financial reporting.
Additionally, the inquiry covers public reports on legal proceedings in Indonesia involving the company, various subsidiaries and affiliates, and a number of clients and suppliers. The U.S. Department of Justice has also requested additional information.
Jati said Telkom is not in a position to comment on what triggered the SEC and DOJ investigations, as it does not have access to regulators’ motivations or reasons behind their actions. “We cannot determine how changes in the enforcement of the FCPA will affect investigations by U.S. authorities into our business,” he said in BEI disclosure on 5 May 2026.
To date, there has been no class-action lawsuit in the United States or Indonesia regarding these disclosures—particularly from investors. Telkom cannot speculate about potential legal actions that might be taken by any party.
Telkom has also established the Directorate of Legal & Compliance and the Chief Integrity Officer; the directorate is responsible for policy enforcement across the Telkom Group. “To ensure the application of good corporate governance (GCG) and compliance with laws and internal policies to support the Telkom Group’s strategic objectives,” said Jati.
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