Equity Snap: PT Telkom (TLKM IJ) Spectrum auction concludes

Research evidence excerpt

Equity Snap: PT Telkom (TLKM IJ) Spectrum auction concludes

14 July 2026

Equity Snap: PT Telkom (TLKM Equities Diversified

IJ) Telecommunications

Spectrum auction concludes Indonesia

◆ Spectrum auction concludes; spectrum prices are reasonable Piyush Choudhary*, CFA

Head of Asia Telecoms

◆ Telkomsel (subsidiary of TLKM IJ) won spectrum across The Hongkong and Shanghai Banking Corporation

Limited, Singapore Branch

700MHz and 2600MHz for annual fees of IDR1.19trn piyush.choudhary@hsbc.com.sg

+65 6658 0607

Rishabh Dhancholia*

PT Telkom (TLKM IJ, IDR2510.00, Buy, TP IDR4150.00) Analyst, TMT

(Priced as of 13 Jul 2026) HSBC Securities and Capital Markets (India) Private

Limited

rishabh.dhancholia@hsbc.co.in

Spectrum auction concludes: Indonesia’s telecom regulator, Komdigi, has +91 80 30012841

announced results of 2026 spectrum auction for the 700MHz and 2.6GHz bands (see

Exhibit 1). All three mobile operators have been allotted spectrum in both bands. In * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

the 700MHz band, XLSmart was the highest bidder, securing 2x15MHz for not registered/ qualified pursuant to FINRA regulations

IDR1.06trn, while Telkomsel and Indosat each received 2x10MHz for IDR642.5bn

and IDR507.5bn, respectively. In the 2.6GHz band, Telkomsel secured the largest

allocation of 80MHz with a total bid of cIDR546bn; Indosat was allocated 60MHz for

IDR372bn, and XLSmart obtained 50MHz for a total of cIDR232bn (see Exhibit 1).

Overall, annual spectrum fees for Telkomsel stood at IDR1.19trn, for Indosat stood at

IDR879bn and for XLSmart stood at IDR1.29trn.

Network rollout obligations: Spectrum auction winners are required to roll out 5G in

committed cities with a target to reach at least 51% of the population within 5 years.