Telkom Strengthens Fundamentals, Total Shareholder Return Reaches 35.7 Percent
PT Telkom Indonesia (Persero) Tbk (Telkom) closed the company’s performance for the 2025 fiscal year with results that reflect the sustainability of value creation for shareholders, in line with the acceleration of the execution of the company’s transformation agenda.
Telkom recorded a net income of Rp17.8 trillion with a net income margin of 12.1 percent, while the normalized net income was recorded at Rp22.7 trillion with a normalized net income margin of 15.4 percent. This achievement was obtained from the company’s consolidated revenue, which was recorded at Rp146.7 trillion. The company’s consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) for 2025 was recorded at Rp72.2 trillion with an EBITDA margin of 49.2 percent. Meanwhile, the normalized EBITDA was recorded at Rp73.2 trillion with a normalized EBITDA margin of 49.9 percent.
In line with the direction of transformation and strengthening of fundamentals, the company recorded a Total Shareholder Return (TSR) of 35.7 percent throughout 2025, consisting of a capital gain of 28.4 percent and a dividend yield of 7.3 percent. This reflects the positive market response to the execution of Telkom’s transformation strategy, which is also supported by consistent policies on returning value to shareholders through a payout ratio of 89 percent for the 2024 fiscal year payments as well as the implementation of a share buyback programme with a maximum value of Rp3 trillion that is ongoing until May 2026.
Acceleration of TLKM 30 Transformation Strategy Execution
Amid macroeconomic pressures and challenges faced by the telecommunications sector in recent years, Telkom continues to adapt and transform both in terms of company strategy, business model, and products and services. Telkom’s President Director, Dian Siswarini, emphasised that the execution of the transformation strategy has been the company’s main focus since 2025.
“Through the TLKM 30 strategy, Telkom is solidifying a more structured transformation direction to accelerate the realisation of its vision as a driver of the national digital ecosystem that is globally competitive, while creating long-term value for all stakeholders.”
Through the medium-term transformation strategy TLKM 30, Telkom focuses on executing four major pillars. The first pillar is Operational & Service Excellence, as an effort to strengthen good corporate governance principles. This also drives sustainable organisational discipline, including a superior work culture, efficient processes, and improved service quality to support a better customer experience.
On the second transformation pillar, the company is carrying out Streamlining as a strategy to reorganise the non-core business portfolio so that the company can once again drive more optimal contributions and operational efficiency, as well as enhance competitiveness in the core business in the telecommunications and digital sectors.
The implementation of this strategy is reflected through the divestment process of AdMedika and its subsidiary TelkoMedika, which has reached the Conditional Sale and Purchase Agreement (CSPA) stage towards full divestment by the end of the first half of 2026. The full divestment of AdMedika and TelkoMedika will also contribute to an increase in the dividend stream. Several entities with similar businesses or those not aligned with the core business in the TelkomGroup ecosystem are also being streamlined.
Next, on the third transformation pillar, the company focuses on efforts to increase added value (Unlock Value), one of which is through strengthening the digital infrastructure business foundation, namely fibre connectivity. This initiative aims to increase asset utilisation and maximise Return on Assets (ROA), while expanding Telkom’s contribution in supporting national connectivity.
The separation of part of the Wholesale Fibre Connectivity business and assets to InfraNexia was marked by the signing of a Conditional Spin-off Agreement (CSA) in December 2025, which is the first phase of the carve-out. This step is also part of the transformation direction towards a strategic holding that is more focused on strengthening value creation, more optimal business portfolio management, and accelerating sustainable strategy execution.
As the fourth transformation pillar, Telkom is implementing a modus operandi shift, changing from an operating holding to a strategic holding, by carrying out delayering to strengthen focus on business in four Operating Company (OpCo) segments, namely B2C, B2B Infrastructure, B2B ICT, and International. As a strategic holding entity in the future, Telkom will focus on synergies for value creation and strengthening governance across segments, while business operations are run in OpCo entities with focused business lines. This transformation is expected to further strengthen the company’s fundamentals, harmonise business lines to avoid overlaps, and increase sustainable value creation.
Changes in Accounting Policies and Financial Statement Presentation
As a follow-up to the total governance reset agenda mandated by Danantara Indonesia, Telkom is aligning accounting policies to improve the accuracy of financial statement presentation, including ensuring that the principles used in determining the useful life of assets and asset classification are more appropriate. This has caused the net profit performance to contract by 9.5 percent year on year (yoy), as an impact of the increased depreciation expense acceleration.
In line with the implementation of these policies, the company is also restating the 2023 and 2024 financial statements. This initiative simultaneously strengthens transparent governance practices, prudence principles, and discipline in asset management, in line with the implementation of the first pillar of TLKM 30, namely Operational and Service Excellence.
Market Recovery in the B2C Segment
The B2C segment (Mobile and Fixed Broadband) remains one of the company’s main revenue contributors. Telkom