Telekomunikasi Indonesia Persero (TLKM IJ) (Buy) - Positive outcome from EGM

Research evidence excerpt

Telekomunikasi Indonesia Persero (TLKM IJ) (Buy) - Positive outcome from EGM

Nomura Securities Malaysia Sdn Bhd

Telekomunikasi Indonesia Persero TLKM.JK TLKM IJ 9 June 2026

EQUITY: TELECOMS

RatingPositive outcome from EGM Remains Buy

Target priceTactical buy on weakness; marginal earnings Remains IDR 3,650

adjustments

Closing price IDR 2,350 8 June 2026TLKM's Extraordinary General Meeting (EGM), held on 8 June 2026, delivered a set of

unambiguously positive outcomes for the shareholders, in our view. Notably, shareholders

approved an FY25 dividend of IDR21.99tn (IDR222.08/share), implying a payout ratio of Implied upside +55.3%

123.5% (vs ~89% in the prior year), and representing a ~4.5% y-y increase in its absolute

dividend distribution. The elevated payout ratio reflects management's confidence in cash Market Cap (USD mn) 12,812.1

flow generation and balance sheet resilience. Separately, shareholders ratified a share ADT (USD mn) 23.2

buyback program of up to IDR4tn, effective 9 June 2026 through 8 June 2027, which should

provide incremental technical support and signal management's view that the current share Relative performance chart

price is below intrinsic value, in our view. Going forward, we expect TLKM to sustain an

elevated dividend payout policy.

On corporate governance, the EGM confirmed no changes at the Board of Directors level —

dispelling earlier market speculation of potential management reshuffling and preserving

operational continuity. At the Board of Commissioners level, two appointments were made:

Edwin Hidayat Abdullah joined as Commissioner, while Anthony Leong joined as an

Independent Commissioner. Overall, the EGM’s outcome, in our view, reinforces TLKM's

ability to deliver superior shareholder returns while sustaining its strategic momentum.