Telkom Indonesia Persero Tbk PT Reduce earnings expectations on shortening of useful life of assets; maintain Neutral

Research evidence excerpt

Telkom Indonesia Persero Tbk PT Reduce earnings expectations on shortening of useful life of assets; maintain Neutral

J P M O R G A N Asia Pacific Equity Research

22 May 2026

Telkom Indonesia Persero Tbk PT Neutral

TLKM.JK, TLKM IJ

Reduce earnings expectations on shortening of useful Price (21 May 26):Rp3,000

life of assets; maintain Neutral Price Target (Jun-27):Rp3,000

We reduce our FY26/27E NI forecasts for TLKM by up to 11% following the ASEAN TMT

ACshortening of useful life of assets. We raise our FY26/27E DPS forecast to IDR212/ Ranjan Sharma, CFA

sh as TLKM could be looking to maintain its absolute DPS payments. DPS could (65) 6882-1303

be supported by a reduction in capex. While dividends provide near-term valuation ranjan.x.sharma@jpmorgan.com

support, it could become a long-term negative for TLKM if dividends are funded J.P. Morgan Securities Singapore Private Limited

in lieu of required network investments. We maintain Neutral. We roll forward our Steven Suntoso

PT to Jun-27 and keep it unchanged at IDR3,000. (622-1) 5291 8090

steven.suntoso@jpmorgan.com

• Reduce NI forecast by up to 11%. TLKM introduced an accounting policy PT J.P. Morgan Sekuritas Indonesia

change that shortened the useful life of drop cable assets from 25 years to 5-10 Sigrid Qiu

years. As a result, restated FY23/FY24 net fixed assets were reduced by IDR (65) 6882-1454

sigrid.qiu@jpmorgan.com

8.7tn/IDR 10.2tn, and earnings for those years are impacted by ~5-6%. Mainly J.P. Morgan Securities Singapore Private Limited

due to the new accounting policy, we have reduced our FY26-27E NI forecast Ankur Rudra, CFA

by up to 11%. (65) 6801-3237

• Reduce revenue forecasts by up to 1% but EBITDA is broadly unchanged. ankur.rudra@jpmorgan.comJ.P. Morgan Securities Singapore Private Limited