Telkom (TLKM) Sets 2026 Growth Target, TLKM 30 Transformation, and Dividend Outlook
Telkom (TLKM) posted 2025 revenue down 2.2% and net profit plunging 20.5%. Telkom sets a 2026 growth target in the low-to-mid single digits, betting on TLKM 30 and the Rp35.8 trillion InfraNexia spin-off.
Bareksa - PT Telkom Indonesia (Persero) Tbk (TLKM) has set a positive revenue growth target in the low-to-mid single digits for 2026, after delivering results that missed targets in 2025. Based on the 2025 Annual Report issued on 12 May 2026, consolidated revenue fell 2.2% to Rp146.7 trillion, while net income attributable to the parent declined 20.5% to Rp17.8 trillion. Telkom is a digital telecommunications issuer with the largest asset portfolio in Indonesia.
The 2025 performance drop was driven by intensified pressure from cellular market competition, a decrease in Telkomsel customers due to SIM card rationalisation, and consolidation of competitors tightening price competition. EBITDA margin narrowed from 50% to 49.2%, while EPS stood at Rp179.83, down from Rp226.15 in 2024. The company acknowledged that 2025 revenue and profitability did not meet the targets set at the start of the year.
To respond to these pressures, Telkom is pursuing the TLKM 30 transformation, directing the company to become a fully fledged strategic holding by late 2027. The strategy is implemented through four pillars: Operational & Service Excellence, Streamlining (non-core divestments), Unlock Value ( monetising infrastructure assets), and Modus-Operandi Shift. The 2026–2028 portfolio framework focuses on five business pillars: B2C, Digital Infrastructure, B2B ICT, International Business, and other segments.
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InfraNexia spin-off and 2026 Target
The most significant corporate action in the TLKM 30 agenda is the spin-off of wholesale fiber connectivity into a new entity named InfraNexia (PT Telkom Infrastruktur Indonesia/TIF), with the separation deed signed in December 2025. InfraNexia manages more than 50% of Telkom’s fiber network infrastructure—access, aggregation, and backbone segments—with business value and assets around Rp35.8 trillion. The separation is aimed at monetising infrastructure assets through strategic partnerships and opening up external investor participation.
The Board of Commissioners notes that the success of the transformation hinges on portfolio execution discipline and strengthening the contribution of B2B ICT and digital infrastructure, to reduce reliance on the increasingly competitive consumer mobile segment. The 2026 target also includes reducing the debt-to-EBITDA ratio to 0.9x from Rp1.04x in 2025, with planned capital expenditure of 15–20% of revenue.
Summary of Consolidated Financial Performance (Rp billion)
Source: TLKM, processed
Table of Consolidated Financial Ratios
Source: TLKM, processed
TelkomGroup 2026 Target
Source: TLKM, processed
TLKM Dividend History — 2020–2024 Performance
Source: TLKM, processed
Dividends for 2025 financial year have not been set and will be decided at the 2026 AGM. Based on a historical payout ratio pattern of 60%–89% and the Company’s commitment to meeting the dividend target for the majority shareholder, the Government of the Republic of Indonesia (52.09%), the base-case analysis projects a payout of around 80% or Rp143–144 per share (total ~Rp14.25 trillion) with an estimated yield of 4.6%, calculated from a share price of Rp3,100 as of 20 May 2026.
This figure is lower than Rp212.47 per share in 2024 solely because net profit declined by 20.5%, not due to a trimmed payout policy. The entire range across scenarios is Rp108–160 per share (yield 3.5%–5.2%).
Conclusion
Telkom Indonesia’s 2025 annual report shows pressure on performance, with both revenue and net profit down, and early-year targets not met. Investors should monitor whether the 2026 growth target of low-to-mid single digits is realistically achievable given the ongoing softening in the cellular market and the still-in-progress strategic holding transformation.
Progress in InfraNexia execution, margin recovery, and a reduction in debt/EBITDA to 0.9x are the three key indicators to watch as measures of TLKM 30’s success.
FAQ
- Why did Telkom’s 2025 performance fall?
Revenue declined 2.2% and net profit dropped 20.5% due to intensified cellular industry competition, Telkomsel customer reductions, and competitor consolidation. The company says 2025 results did not meet the targets set at the start of the year.
- What is Telkom’s 2026 growth target?
Positive revenue growth in the low-to-mid single digits, with EBITDA margins maintained, capex of 15–20% of revenue, and the debt/EBITDA ratio targeted to around 0.9x.
- What are TLKM 30 and InfraNexia?
TLKM 30 is a five-year transformation framework (2025–2030) towards a strategic holding aimed to finish by the end of 2027. InfraNexia is Telkom’s wholesale fiber spin-off valued at Rp35.8 trillion, expected to unlock value from infrastructure assets through partnerships and investor participation.
- What is TLKM’s dividend history?
In the past five years (2020–2024), the payout ratio ranged from 60%–89%. The latest dividend for 2024 earnings was Rp212.47 per share (payout 89%, paid 19 June 2025). Dividend for 2025 year-end earnings has not been set.
- What is PT Telkom Indonesia’s main business?
Telkom operates in digital telecommunications: B2C (Telkomsel mobile, IndiHome broadband), digital infrastructure (NeutraDC data centre, Mitratel towers, InfraNexia fiber), B2B ICT (Sigma, TelkomMetra), and international business (Telin, operating in 14 countries).