Telkom Buyback and InfraNexia Spin-Off Lift TLKM Appeal

JAKARTA, Investortrust.id — PT Telkom Indonesia Tbk or TLKM executes a share buyback as part of a broader transformation strategy that also includes the spin-off of its fiber infrastructure business, a move investors view as strengthening long term shareholder returns.

The state owned telecom operator bought back 8.95 million shares as of Dec 30, 2025 under a Rp 3 trillion program running from May 28, 2025 to May 27, 2026, although the company did not disclose the remaining budget.

Telkom said the buyback complemented its consistent dividend policy and value unlocking initiatives, aimed at sustaining total shareholder return amid ongoing business transformation.

Investor Relations Telkom Izzuddin Al Azzam said the strategy helped support share price performance, with TLKM rising 42.26 percent over the past six months and 8.33 percent year to date.

He said Telkom’s stock had historically tracked the Jakarta Composite Index, and in several periods outperformed it, reflecting the company’s defensive profile and appeal to income focused investors.

As of the end of December 2025, Telkom had about 99 billion shares outstanding with a market capitalization exceeding Rp 344 trillion, equal to about $20 billion, making it one of the largest listed companies on the Indonesia Stock Exchange.

Ownership data showed the government, through Danantara, held around 52 percent of TLKM, while the remaining 48 percent free float was dominated by institutional investors, including foreign institutions accounting for more than 80 percent of public ownership.

Azzam said strong foreign institutional ownership underscored investor confidence in Telkom’s fundamentals and corporate governance.

The company’s transformation gained further momentum following the spin-off of its wholesale fiber business into InfraNexia, formally known as PT Telkom Infrastruktur Indonesia.

On Dec 18, 2025, Telkom completed the first stage of the spin-off by transferring assets worth Rp 35 trillion, part of a broader plan to move Rp 90 trillion to Rp 150 trillion in fiber assets over time.

Under new leadership led by President Director Dian Siswarini, InfraNexia was positioned as a new growth engine to optimize fiber asset monetization and open options for strategic partners or a future initial public offering.

Siswarini said the restructuring clarified Telkom’s focus on three core clusters: infrastructure, services, and digital, a structure expected to enhance efficiency and strategic flexibility.

Financially, Telkom booked consolidated revenue of about Rp 109.6 trillion for the first nine months of 2025, with EBITDA of around Rp 54.2 trillion to Rp 54.4 trillion and net profit of roughly Rp 15.8 trillion.

Net profit declined 10.7 percent year on year due to higher depreciation and amortization costs linked to accelerated asset restructuring, a pressure the market largely viewed as transitional.

Operational improvements were reflected in quarterly trends, with third quarter revenue growing up to 0.7 percent quarter on quarter and EBITDA rising about 3.3 percent with margins near 50 percent.

Telkom’s data, internet, and IT services remained the largest revenue contributors at around Rp 67 trillion, while higher average revenue per user at Telkomsel signaled early success of pricing adjustments.

Market reaction to the transformation was strong, with TLKM shares climbing more than 30 percent in six months and attracting foreign inflows despite broader market volatility.

On Friday, Jan 23, 2026, TLKM closed at Rp 3,770, valuing the company at Rp 373.4 trillion, and analysts maintained buy recommendations with a target price of Rp 4,000.

Danantara Chief Executive Officer Rosan Perkasa Roeslani said restructuring across state owned enterprises, including Telkom, had positively influenced valuations by improving governance and operational focus.

He said stronger adherence to good corporate governance was key to sustaining investor confidence and higher market valuations for BUMN issuers.