Telkom (TLKM) Plans Major Expansion, with a Lofty Share-Price Target

JAKARTA, investor.id – PT Telkom Indonesia Tbk (TLKM) may shift its capital expenditure strategy in 2027 from controlling investment to business expansion. A notably high share-price target for TLKM has also emerged.

BRI Danareksa Sekuritas analysts Kafi Ananta and Erindra Krisnawan said the potential strategic shift could increase the company’s investment needs, particularly for developing data centres and subsea cable networks.

TLKM’s consolidated capital expenditure in 2027 is forecast to rise from an initial projection of Rp29 trillion to around Rp35 trillion.

“In 2026, TLKM will remain focused on controlling capex intensity, or investment as a proportion of revenue. In 2027, however, that priority could shift towards increasing investment for expansion,” Kafi wrote in a research note on Thursday (22 October 2026).

One driver is the development of the subsea cable business through Telin, which plans to invest Rp32 trillion through to 2031, or an average of around Rp6.4 trillion a year.

Meanwhile, NeutraDC Batam has increased its planned data-centre capacity from 54 megawatts (MW) to 118 MW to meet demand from artificial intelligence (AI) businesses.

The 18 MW BTM-1 facility has secured customer contracts for its full capacity, with the first 6 MW expected to be ready for operation in the fourth quarter of 2026. The 100 MW BTM-2 facility is targeted to begin operating in 2028.

However, requirements to provide power-generation and desalination facilities are expected to add US$1.1 million per MW to BTM-2’s investment costs, about 14% above the previous guidance.

In the subsea cable business, Kafi said more than 85% of Telin’s network capacity had been sold. Capacity on the Bifrost cable is even expected to be fully sold by the first quarter of 2027. Telin is targeting an enterprise value (EV) of Rp40–45 trillion by 2030 as it transforms towards a connectivity business.