Telkom starts 2026 with solid performance as revenue grows to Rp37.2 trillion
PT Telkom Indonesia (Persero) Tbk (Telkom) has started 2026 with solid performance amid macroeconomic uncertainty. In the first quarter of 2026, the company reported consolidated revenue of Rp37.2 trillion, a 1.5% year-on-year (YoY) increase, reflecting its consistent application of operational discipline and acceleration of the TLKM 30 transformation strategy.
Telkom recorded EBITDA of Rp18.0 trillion with an EBITDA margin of 48.3%. Net profit stood at Rp4.3 trillion with a net profit margin of 11.7%, while normalized net profit reached Rp5.1 trillion with a margin of 13.8%.
The company explained that the contraction in net profit was primarily due to the continued impact of accelerated depreciation and business normalisation during the transformation phase. However, these pressures were transitional and non-cash, with operational fundamentals remaining intact. Operating cash flow rose 3.1% YoY to Rp17.3 trillion, driven by total expenditure (TOTEX) efficiency programmes and improved billing discipline.
Telkom President Director Dian Siswarini stated the company would accelerate the TLKM 30 strategy more aggressively to create optimal value and strengthen business sustainability.
“This year, Telkom will intensify execution of the TLKM 30 strategy to optimise value and ensure a stronger, more sustainable future. The first-quarter 2026 performance serves as a positive start and motivation for the TelkomGroup to continue incremental improvements,” Dian said.
B2C Segment Continues to Grow
In the B2C segment covering mobile and fixed broadband services, Telkomsel reported consolidated revenue of Rp27.6 trillion, a 1.3% YoY increase. Growth was driven by expanding digital business.
Data payload increased 2.3% YoY due to disciplined network quality enhancement and expansion. Additionally, disciplined pricing strategies, product simplification, and improved customer experience boosted average revenue per user (ARPU) to Rp45,100, a 6.4% YoY rise.
Dian noted the telecommunications industry remains strong as connectivity and internet services have become essential to society.
“Over recent years, we have seen internet service demand continue to grow without signs of decline. We are optimistic about strengthening the mobile and fixed broadband ecosystem sustainably while prioritising good customer experience,” she said.
B2B Infrastructure Segment Grows 6.8%
The B2B Infrastructure segment delivered positive performance with revenue of Rp2.4 trillion, up 6.8% year-on-year. Growth was supported by continuous expansion of the Fiber-to-the-Tower (FTTT) business.
In the telecommunications tower and FTTT business managed by Mitratel, the company recorded Rp2.3 trillion in revenue, a 1.4% YoY increase. Tower leasing and related services remained the primary revenue contributor.
Mitratel also continues to strengthen its optical fiber asset portfolio. During Q1 2026, the company expanded its network by 1,080 kilometres, bringing total fibre optic ownership to 58,279 kilometres. This move supports FTTT business growth and reinforces Mitratel’s position as an integrated Next-Gen Tower Company.
In the data centre business, Telkom observed rising demand alongside growing digital industry activity. The company is consolidating operations under NeutraDC to focus on asset monetisation, service expansion, and business growth through strategic partnerships.
Meanwhile, the Wholesale & International Service unit reported Rp2.8 trillion in revenue, with a 18.9% quarter-on-quarter (QoQ) increase in interconnection services driven by higher international wholesale voice business activity.
In the B2B ICT segment, Telkom recorded Rp3.1 trillion in revenue. The company is currently undergoing restructuring with a more disciplined and selective approach to new partnerships to improve healthier margins and strengthen long-term competitive positioning.
TLKM 30 Transformation Progresses
Positive achievements in the B2C and B2B Infrastructure segments were supported by accelerated execution of the TLKM 30 transformation strategy. As of Q1 2026, capital expenditure reached Rp4.9 trillion, equivalent to 13.2% of revenue, with 99% allocated to infrastructure development in core segments B2C, B2B Infrastructure, and International.
Telkom also continues various streamlining and business portfolio restructuring initiatives under the HoldCo-OpCo structure, including divestments, mergers, and liquidation of non-core entities.
One ongoing process is the divestment of AdMedika Group to strategic investors, targeted for completion by end-2026 H1. Additionally, Telkom is preparing the second phase of wholesale fiber connectivity business and asset separation to InfraNexia, targeted for completion in Q3 2026.
The company believes these steps will strengthen fibre asset management, improve operational efficiency, and open new business opportunities. Currently, fibre business contributes around 15%, with a target to increase to approximately 25% through infrastructure utilisation optimisation and asset transfer completion.
“2026 is a period of both opportunities and challenges for TelkomGroup. Therefore, we will continue accelerating TLKM 30 transformation execution while prioritising operational discipline to strengthen…”