TLKM to Buy Back Shares up to Rp1 Trillion, Implementation Awaits RUPS Approval
PT Telkom Indonesia (Persero) Tbk (TLKM) has announced plans for a share buyback worth a maximum of Rp1 trillion. This corporate action is seen as reflecting management’s confidence in the company’s long-term prospects.
Based on a disclosure dated 1 May 2026, the buyback will cover TLKM shares listed on the Indonesia Stock Exchange as well as American Depositary Receipts (ADR) on the New York Stock Exchange. The implementation can be carried out in stages or all at once, with a maximum period of 12 months after obtaining RUPS approval. The RUPS for this agenda is scheduled for 8 June 2026.
Management states that the funding source will come from the optimisation of internal cash, not from loans or public offerings. This has drawn market attention as it demonstrates the company’s liquidity remains intact amid the corporate action. TLKM is a state-owned enterprise in the telecommunications and digital services sector.
Buyback Seen to Have Minimal Impact on Fundamentals
The company estimates that the buyback will not reduce revenue and will only impact a maximum decrease in assets and equity of Rp1 trillion. Based on pro forma financials as of 30 September 2025, total assets would decrease from Rp291,897 trillion to Rp290,897 trillion, while equity would decrease from Rp155,012 trillion to Rp154,012 trillion.
On the other hand, earnings per share (EPS) is projected to increase from Rp159.33 to Rp159.82. This increase reflects the reduction in the number of shares outstanding due to the buyback, thereby potentially enhancing the profit ratio per share.
Management emphasises that this action aims to strengthen confidence in TLKM’s long-term value. The buyback is also viewed as an effort to maintain shareholder trust and support sustainable growth.
Impact on Investors
The buyback can reduce the number of shares outstanding in the market.
EPS has the potential to increase even if profits remain the same.
It serves as a signal of management’s confidence in long-term valuation.
According to the company, it will not have a material impact on operations and cash flow.
Treasury shares from the buyback will not have dividend rights or voting rights.
Conclusion
TLKM’s plan for a buyback up to Rp1 trillion is one of the important corporate actions that investors should monitor. This step reflects the company’s strategy in maintaining shareholder value without disrupting financial health. Supported by internal cash and with minimal impact on fundamentals, this buyback has the potential to be an indicator of management’s optimism regarding the company’s long-term prospects.