Telkom’s Strong Fundamentals and Digital Ambitions Drive Investor Optimism, Analyst Says
Main Takeaways
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JAKARTA, Investortrust.id — PT Telkom Indonesia (Persero) Tbk, or TLKM, has gained investor confidence thanks to solid fundamentals and bold digital initiatives, according to capital market and industry analyst Amar Bilhaq. He noted that the state-owned telecom giant has outperformed despite global market volatility.
Amar pointed to Telkom’s net profit of Rp 23.6 trillion ($1.45 billion) in 2024 and its declared dividend of Rp 21 trillion ($1.29 billion), or Rp 212.46 per share, which represents a payout ratio of 89%, as signs of shareholder-friendly performance.
“This combination of strong earnings and an attractive dividend payout reinforces Telkom’s status as a top pick among investors,” Amar told Investortrust on Saturday, Jul 12, 2025.
Digital Backbone of Indonesia
Amar emphasized that Telkom’s strength lies not only in financial performance but also in its forward-looking strategy. The company, he said, is becoming the backbone of Indonesia’s digital transformation through continuous innovation and business diversification.
“Telkom’s investments in technology and its pivot into new revenue streams have solidified its leadership in Indonesia’s digital ecosystem,” said Amar, an MBA graduate from SBM ITB.
While Telkom continues to face near-term challenges such as stiff competition in the mobile segment and heavy infrastructure investments, Amar believes its prospects in the domestic market remain highly promising. Key growth drivers include the expansion of fiber-optic networks, 5G deployment, and digitalization of public services and micro, small and medium enterprises (MSMEs).
Cloud and Data Center Momentum
Amar also highlighted Telkom’s rapidly growing presence in data centers and cloud services through its subsidiaries Telkomsigma and NeutraDC. Citing research by Frost & Sullivan, he noted that the market for these services is expected to grow at a compound annual rate (CAGR) of 17.3% through 2027.
“Data sovereignty needs are positioning Telkom as a trusted, neutral provider of data storage solutions for both government and corporate clients,” he said.
Focus on Efficiency and Convergence
To maintain competitiveness, Telkom continues to streamline its operations while deepening its digital portfolio. Amar pointed to the company's ongoing push into cloud computing, Internet of Things (IoT), and AI-driven analytics. He also praised its strategic Fixed Mobile Convergence (FMC) approach—integrating Telkomsel and IndiHome—as a key element in reinforcing its position in the digital space.
He added that the company’s newly appointed board of directors, endorsed during its recent general meeting of shareholders, has further strengthened investor confidence.
“With a clear focus on the enterprise segment and the broader digital ecosystem, Telkom is firmly positioned to lead Indonesia’s digital transformation,” Amar concluded.