Telkom Indonesia Reports Strong Growth in H1 2026 Amid Digital Transformation

PT Telkom Indonesia (Persero) Tbk (TLKM) has announced robust financial results for the first half of 2026, with consolidated revenues reaching Rp75.9 trillion ($5.1 billion), a 3.9% increase compared to the same period last year. The company's net profit also grew by 1.4% year-on-year to Rp10.6 trillion ($710 million), reflecting a net profit margin of 14.0%, according to CNBC Indonesia.

This growth is attributed to a recovery in the mobile business segment, which saw significant contributions from digital services. The company's EBITDA rose by 3.8% year-on-year to Rp37.5 trillion ($2.5 billion), resulting in an EBITDA margin of 49.4%. Dian Siswarini, the CEO of Telkom, stated that the company's commitment to accelerating digital transformation through its TLKM 30 strategy is reflected in the growth achieved in the first half of the year, which strengthens their optimism to continue this transformation and reinforce Telkom's role as a leader in Indonesia's digital ecosystem.

In the consumer segment (B2C), Telkomsel, a subsidiary of Telkom, reported revenues of Rp55.6 trillion ($3.7 billion), marking a 3.3% increase year-on-year. This growth was bolstered by an 11.0% rise in digital business data revenue, reflecting the increasing demand for mobile data services during peak periods, such as school holidays and the recent FIFA World Cup. The Average Revenue Per User (ARPU) for mobile services increased by 9.0% to Rp45,600 ($3.05).

Despite a slight decline in the number of fixed broadband customers from 10.1 million to 9.5 million, Telkomsel's strategy to enhance service quality and customer experience has led to a 3.4% increase in ARPU for its IndiHome service, reaching Rp211,000 ($14.10). The company is focusing on building a more quality customer base to improve service monetization and sustainable growth.

On the business-to-business (B2B) front, Telkom reported a 19.0% year-on-year growth in infrastructure revenue, amounting to Rp33.1 trillion ($2.2 billion). This growth was driven by increased demand for data, internet, and IT services. The company’s telecommunications tower business, Mitratel, also contributed positively, with revenues rising to Rp4.7 trillion ($315 million), supported by a growing number of tenants.

In terms of operational efficiency, Telkom reported a 9.5% increase in operational cash flow, reaching Rp34.9 trillion ($2.3 billion). The company has implemented various cost management strategies, including an Early Retirement Program (ERP) to streamline operations and enhance employee cost management.

Looking ahead, Telkom is focused on continuing its digital transformation journey, which includes significant investments in technology such as artificial intelligence and 5G. The company aims to enhance its service offerings and maintain its competitive edge in the rapidly evolving telecommunications landscape.