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Laporan Keuangan Telkom TW II 2026 (ENG).pdf
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Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. and its subsidiaries Consolidated financial statements as of June 30, 2026 and for the six months period then ended (unaudited)
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PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2026 AND FOR THE SIX MONTHS PERIOD THEN ENDED
(UNAUDITED)
TABLE OF CONTENTS
Page
Statement of the Board of Directors
Consolidated Statements of Financial Position 1
Consolidated Statements of Profit or Loss and Other Comprehensive Income 2
Consolidated Statements of Changes in Equity 3-4
Consolidated Statements of Cash Flows 5
Notes to the Consolidated Financial Statements 6-110
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Statement of the Directors
Regarding the Directors’ Responsibility for
Consolidated Financial Statements
As of June 30, 2026 and for the six-month period then ended
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk and its Subsidiaries
On behalf of the Directors, we the undersigned:
1. Name : Dian Siswarini
Business address : Jl. Japati No. 1 Bandung 40133
Address : Jl. Tebet Utara II C/18 RT 004 RW 001
Kelurahan Tebet Timur, Kecamatan Tebet, Jakarta Selatan
Phone : (022) 452 7101
Position : President Director
2. Name : Arthur Angelo Syailendra
Business address : Jl. Japati No. 1 Bandung 40133
Address : Jl. Jenderal Sudirman Kav. 59 RT 004 RW 003
Kelurahan Senayan Kecamatan Kebayoran Baru, Jakarta Selatan
Phone : (022) 452 7201/ (021) 520 9824
Position : Director of Finance and Risk Management
hereby state as follows:
1. We are responsible for the preparation and presentation of the consolidated financial statements
of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (the “Company”) and its
subsidiaries as of June 30, 2026 and for the six-month period then ended.
2. The Company and its subsidiaries’ consolidated financial statements as of June 30, 2026 and for
the six-month period then ended have been prepared and presented in accordance with
Indonesian Financial Accounting Standards.
3. All information has been fully and correctly disclosed in the Company and its subsidiaries’
consolidated financial statements.
4. The Company and its subsidiaries’ consolidated financial statements do not contain false material
information or facts, nor do they omit any material information or facts.
5. We are responsible for the Company and its subsidiaries’ internal control system.
This statement is considered to be true and correct.
Jakarta, July 31, 2026
for and on behalf of
PT Telkom Indonesia (Persero) Tbk.
Dian Siswarini Arthur Angelo Syailendra
President Director Director of Finance and Risk Management
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of June 30, 2026 (unaudited) and December 31, 2025 (audited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
Notes June 30, 2026 December 31, 2025
ASSETS
CURRENT ASSETS
Cash and cash equivalents 3,32,37 54,579 34,228
Other current financial assets 4,32,37 2,008 1,420
Trade receivables - net allowance for expected credit losses
Related parties 5,32,37 1,945 2,040
Third parties 5,37 9,829 9,183
Contract assets 6,32 2,496 2,290
Inventories 7 788 901
Contract costs 9 832 932
Claim for tax refund and prepaid taxes 27 2,445 1,979
Asset held for sale 1e - 751
Other current assets 8,32 6,010 8,042
Total Current Assets 80,932 61,766
NON-CURRENT ASSETS
Contract assets 6,32 127 109
Long-term investments 10,37 6,737 7,387
Contract costs 9 1,452 1,370
Property and equipment 11,32,35a 161,643 165,453
Right-of-use assets 12a 28,858 27,961
Intangible assets 14 9,002 9,237
Deferred tax assets 27f 7,986 6,603
Other non-current assets 13,27,32 6,350 7,873
Total Non-current Assets 222,155 225,993
TOTAL ASSETS 303,087 287,759
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables
Related parties 15,32,37 463 571
Third parties 15,37 12,881 15,613
Contract liabilities 17a,32 8,255 7,970
Other payables 37 24,886 648
Taxes payable 27c 4,317 2,025
Accrued expenses 16,32,37 15,024 14,867
Customer deposits 32 1,584 1,523
Short-term bank loans 18,32,37 8,816 6,929
Current maturities of long-term loans 19,32,37 20,477 17,746
Current maturities of lease liabilities 12a,37 5,655 5,590
Liabilities directly associated with the assets held for sale 1e - 466
Total Current Liabilities 102,358 73,948
NON-CURRENT LIABILITIES
Deferred tax liabilities 27f 2,494 1,233
Contract liabilities 17b,32 2,854 2,851
Long service award provisions 31 1,356 1,308
Pension benefits and other post-employment
benefits obligations 30 12,855 12,996
Long-term loans 19,32,37 27,622 26,099
Lease liabilities 12a,37 18,315 18,547
Other non-current liabilities 385 240
Total Non-current Liabilities 65,881 63,274
TOTAL LIABILITIES 168,239 137,222
EQUITY
Capital stock 21 4,953 4,953
Additional paid-in capital 2,321 2,310
Treasury stock 1c (1,510) (30)
Other equity 22 10,754 10,259
Retained earnings
Appropriated 29 15,337 15,337
Unappropriated 86,478 97,856
Net equity attributable to:
Owners of the parent company 118,333 130,685
Non-controlling interests 20 16,515 19,852
TOTAL EQUITY 134,848 150,537
TOTAL LIABILITIES AND EQUITY 303,087 287,759
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Six Months Period Ended June 30, 2026 and 2025 (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
Notes 2026 2025
REVENUES 23,33 75,878 73,004
COST AND EXPENSES
Operation, maintenance, and telecommunication
service expenses 25,32 (21,474) (19,760)
Depreciation and amortization expenses 11,12a,14,2z.iii (17,203) (16,818)
Personnel expenses 24 (7,721) (8,075)
Interconnection expenses 32 (3,788) (4,195)
General and administrative expenses 26,32 (3,666) (3,342)
Marketing expenses 32 (1,765) (1,531)
Unrealized loss on changes in fair value of investments 10 (335) (276)
Other income (expense) - net (75) 243
Gain on foreign exchange - net 282 31
OPERATING PROFIT 20,133 19,281
Finance income - net 32 745 887
Finance cost 32 (2,079) (2,647)
Share of loss of long-term investment in associates (1) (4)
PROFIT BEFORE INCOME TAX 18,798 17,517
INCOME TAX (EXPENSE) BENEFIT 27d
Current (4,732) (4,122)
Deferred 2z.iii 140 229
(4,592) (3,893)
PROFIT FOR THE PERIOD 14,206 13,624
OTHER COMPREHENSIVE INCOME
Other comprehensive income to be reclassified to
profit or loss in subsequent periods:
Foreign currency translation 22 495 128
Other comprehensive income not to be reclassified to
profit or loss in subsequent periods:
Defined benefit actuarial loss - net 30 (2) (4)
Other comprehensive income - net 493 124
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 14,699 13,748
Profit for the period attributable to:
Owners of the parent company 10,623 10,473
Non-controlling interests 20 3,583 3,151
14,206 13,624
Total comprehensive income for the period attributable to:
Owners of the parent company 11,116 10,597
Non-controlling interests 3,583 3,151
14,699 13,748
BASIC EARNINGS PER SHARE
(in full amount) 28
Profit per share 107.50 105.72
Profit per ADS (100 Series B shares per ADS) 10,750.30 10,572.14
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Six Months Period Ended June 30, 2026 and 2025 (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
Attributable to owners of the parent company
Retained earnings
Additional Non-
Capital paid-in Treasury Other controlling Total
Description Notes stock capital stock equity Appropriated Unappropriated Net interests equity
Balance, January 1, 2026 4,953 2,310 (30) 10,259 15,337 97,856 130,685 19,852 150,537
Changes in non-controlling interest - 11 - - - - 11 (6) 5
Cash dividend - - - - - (21,999) (21,999) (6,566) (28,565)
Treasury stock 1c - - (1,480) - - - (1,480) (348) (1,828)
Profit for the period 20 - - - - - 10,623 10,623 3,583 14,206
Other comprehensive income (loss) - net - - - 495 - (2) 493 - 493
Balance, June 30, 2026 4,953 2,321 (1,510) 10,754 15,337 86,478 118,333 16,515 134,848
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Six Months Period Ended June 30, 2026 and 2025 (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
Attributable to owners of the parent company
Retained earnings
Additional Non-
Capital paid-in Treasury Other controlling Total
Description Notes stock capital stock equity Appropriated Unappropriated Net interests equity
Balance, January 1, 2025 4,953 2,310 - 9,898 15,337 101,310 133,808 20,396 154,204
Changes in non-controlling interest - - - - - - - 15 15
Cash dividend 29 - - - - - (21,047) (21,047) (7,341) (28,388)
Treasury stock 1c - - (5) - - - (5) - (5)
Profit for the period 20 - - - - - 10,473 10,473 3,151 13,624
Other comprehensive income (loss) - net - - - 128 - (4) 124 - 124
Balance, June 30, 2025 4,953 2,310 (5) 10,026 15,337 90,732 123,353 16,221 139,574
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Period Ended June 30, 2026 and 2025 (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
Notes 2026 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers and other operators 74,223 71,204
Cash receipts from interests 731 908
Cash receipts from tax refund 268 935
Cash payments for expenses (23,951) (22,936)
Cash payments to employees (9,821) (8,286)
Cash payments for corporate and final income taxes (3,383) (4,466)
Cash payments for finance costs (2,092) (2,647)
Cash payments for short-term and low-value lease assets 12a (1,748) (1,750)
Cash (receipts from) payments for value added taxes - net 903 (899)
Cash (payments) receipts from others - net (268) 510
Net cash provided by operating activities 34,862 32,573
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from divestment of subsidiaries 1e 855 -
Proceeds from the disposal of long-term investments in
financial instrument 10 314 890
Proceeds from disposal of asset 11 62 1
Proceeds from insurance claims 11 3 114
Purchase of property and equipment 11,39 (9,879) (9,915)
Purchase of intangible assets 14,39 (1,489) (1,632)
Placement in other current financial assets - net (588) (181)
Payment for advance and other assets (111) (528)
Addition of long-term investment in financial instrument - (209)
Net cash used in investing activities (10,833) (11,460)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans and other borrowings 18,19 34,080 39,689
Repayments of loans and other borrowings 18,19 (27,964) (31,686)
Repayments of principal portion of lease liabilities 39 (4,338) (3,648)
Cash dividend paid to the Company's non-controlling interests of
subsidiaries (4,307) (5,223)
Shares buyback 1c (1,480) (5)
Shares buyback of subsidiary 1e (348) -
Cash dividend paid to the Company's stakeholder 21 - (21,047)
Net cash used in financing activities (4,357) (21,920)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 19,672 (807)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS 680 88
ALLOWANCE FOR EXPECTED CREDIT LOSSES (1) (1)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 3 34,228 33,905
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 3 54,579 33,185
The accompanying notes form an integral part of these consolidated financial statements.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL
a. Establishment and general information
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. (the “Company”) was
originally part of “Post en Telegraafdienst”, which was established and operated commercially in
1884 under the framework of Decree No. 7 dated March 27, 1884 of the Governor General of the
Dutch Indies which was published in State Gazette No. 52 dated April 3, 1884.
Pursuant to Government Regulation No. 25 of 1991, the Company’s status was changed to a state-
owned limited liability company (“Persero”). The ultimate parent entity of the Company is the
Government of the Republic of Indonesia (the “Government”).
On March 22, 2025, based on Government Regulations No. 15 and No. 16 of 2025, the Company
became a subsidiary of PT Danantara Asset Management (“DAM”), with the Government remaining
as the Company’s ultimate parent entity (Note 21).
The Company was established based on Notarial Deed of Imas Fatimah, S.H., No. 128 dated
September 24, 1991. The deed of establishment was approved by the Ministry of Justice of
the Republic of Indonesia in its Decision Letter No. C2-6870.HT.01.01.Th.1991 dated
November 19, 1991 and was published in State Gazette No. 5 dated January 17, 1992, Supplement
No. 210. The Company's Articles of Association had been amended several times, with the latest
amendments made is in relation with adjustments of the Company’s Articles of Association clauses
to the provisions of Law No.16/2025 on the Fourth Amendment to Law No. 19/2023 on state-owned
enterprises.
‘
Amendments to the Company’s Articles of Association as stated in the Notary Deed of Ashoya
Ratam, S.H., M.Kn., No. 07 dated January 6, 2026 has been received and approved by the Minister
of Law and Human Rights of the Republic of Indonesia (“MoLHR”) based on letter
No. AHU-01.03-0033590 Year of 2026 dated February 5, 2026 concerning the Acceptance of
Notification Approval of Amendment to the Articles of Association of Perusahaan Perseroan
(Persero) PT Telekomunikasi Indonesia Tbk.
In accordance with Article 3 of the Company’s Articles of Association, the scope of the Company’s
activities is to provide telecommunication network and telecommunication and information services,
and to optimize the Company’s resources to provide high quality and competitive goods and/or
services to gain/pursue profit in order to increase the value of the Company by applying the Limited
Liability Company principle. To achieve these objectives, the Company is involved in the following
activities:
i. Main business:
(a) Planning, building, providing, developing, operating, marketing or selling or leasing, and
maintaining telecommunications and information networks in a broad sense in
accordance with the prevailing laws and regulations;
(b) Planning, developing, providing, marketing or selling, and improving telecommunications
and information services in a broad sense in accordance with the prevailing laws and
regulations;
(c) Investing, including in the form of equity contribution in other companies, in line with and
to achieve the purposes and objectives of the Company.
ii. Supporting business:
(a) Providing payment transactions and money transfer services through
telecommunications and information networks;
(b) Performing other activities and undertakings in connection with the optimization of the
Company's resources, which includes the utilization of the Company's property and
equipment and movable assets, information systems, education and training, and repair
and maintenance facilities;
(c) Collaborating with other parties in order to optimize the information and communication
or technology resources owned by other service provider in information, communication
and technology industry to achieve the purposes and objectives of the Company.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
a. Establishment and general information (continued)
The Company is domiciled and headquartered in Bandung, West Java, located at Jalan Japati
No.1, Bandung.
The Company was granted several networks and/or services provision licenses by the Government
which are valid for an unlimited period of time, given that the Company complies with the prevailing
laws and regulations and fulfills the obligation stated in those licenses. For every license issued by
the Minister of Communication and Digital Affairs (“MoCD”), previously Minister of Communication
and Information (“MoCI”), an evaluation is performed annually and an overall evaluation is
performed every five years. The Company is obliged to submit reports of networks and/or services
annually to the Indonesian Directorate General of Post and Informatics (“DGPI”), replacing the
previously known as Indonesian Directorate General of Post and Telecommunications (“DGPT”).
The reports comprise of several information, such as network development progress, service
quality standard achievement, number of customers, license payment, and universal service
contribution. Meanwhile, for internet telephone services for public purpose, internet interconnection
service, and internet access service, additional information is required, such as operational
performance, customer segmentation, traffic, and gross revenue.
Details of these licenses are as follows:
Grant date/latest
License License No. Type of service renewal date
License to operate internet 127/KEP/DJPPI/ Internet telephone March 30, 2016
telephone services for KOMINFO/3/2016 services for public
public purpose purpose
License to operate internet 2176/KEP/M.KOMINFO/ Internet service December 30, 2016
service provider 12/2016 provider
License to operate content 1040/KEP/M.KOMINFO/ Content service May 16, 2017
service provider 16/2017 provider
License for the 1004/KEP/M.KOMINFO/ Internet interconnection December 26, 2018
implementation of internet 2018 services
interconnection services
License to operate data 046/KEP/M.KOMINFO/ Data communication August 3, 2020
communication system 02/2020 system services
services
License of electronic Bank Indonesia License Electronic money and July 1, 2021
money issuer and money 23/587/DKSP/Srt/B money transfer service
transfer
License to operate fixed 073/KEP/M.KOMINFO/ Fixed network long August 23, 2021
network long distance 02/2021 distance direct line
direct line
License to operate fixed 082/KEP/M.KOMINFO/ Fixed international October 8, 2021
international network 02/2021 network
License to operate fixed 094/KEP/M.KOMINFO/ Fixed closed network December 9, 2021
closed network 02/2021
License to operate circuit 095/KEP/M.KOMINFO/ Circuit switched-based December 9, 2021
switched-based local 02/2021 and packet
fixed line network switched-based
local fixed line
network
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
b. The Company’s Board of Commissioners, Board of Directors, Audit Committee, Corporate
Secretary, Internal Audit, and Employees
i. Boards of Commissioners and Directors
Based on the resolutions made at Annual General Meeting (“AGM”) of Stockholders of
the Company as covered by Notarial Deed of Titik Krisna Murti Wikaningsih, S.H., M.Kn.,
No. 03 dated July 3, 2026, and Extraordinary General Meeting (“EGM”) of Stockholders of the
Company as covered by Notarial Deed of Ashoya Ratam, S.H., M.Kn., No. 97 dated
December 23, 2025, the composition of the Company’s Boards of Commissioners and
Directors as of June 30, 2026 and December 31, 2025, respectively, were as follows:
June 30, 2026 December 31, 2025
President Commissioner Angga Raka Prabowo Angga Raka Prabowo
Independent Commissioner Rofikoh Rokhim Rofikoh Rokhim
Independent Commissioner Ira Noviarti Ira Noviarti
Independent Commissioner Deswandhy Agusman Deswandhy Agusman
Independent Commissioner Anthony Leong -
Commissioner Ossy Dermawan Ossy Dermawan
Commissioner Rizal Mallarangeng Rizal Mallarangeng
Commissioner Edwin Hidayat Abdullah Rionald Silaban
Commissioner - Silmy Karim
President Director Dian Siswarini Dian Siswarini
Director of Enterprise &
Business Service Veranita Yosephine Veranita Yosephine
Director of Human
Capital Management Willy Saelan Willy Saelan
Director of IT Digital Faizal Rochmad Djoemadi Faizal Rochmad Djoemadi
Director of Finance and
Risk Management Arthur Angelo Syailendra Arthur Angelo Syailendra
Director of Legal & Compliance Andy Kelana Andy Kelana
Director of Network Nanang Hendarno Nanang Hendarno
Director of Strategic Business
Development & Portfolio Seno Soemadji Seno Soemadji
Director of Wholesale &
International Service Budi Satria Dharma Purba Budi Satria Dharma Purba
ii. Audit Committee, Corporate Secretary, and Internal Audit
The composition of the Company’s Audit Committee, Corporate Secretary, and Internal Audit
as of June 30, 2026 and December 31, 2025, respectively, were as follows:
June 30, 2026 December 31, 2025
Chairman Deswandhy Agusman Deswandhy Agusman
Member Ira Noviarti Ira Noviarti
Member Rofikoh Rokhim Rofikoh Rokhim
Member Anthony Leong -
Member Achmad Taufik Achmad Taufik
Member Irhoan Tanudiredja Irhoan Tanudiredja
Corporate Secretary* Edie Kurniawan Jati Widagdo
Internal Audit Afdol Muftiasa Mohamad Ramzy
*Based on Notification Letter of the Director of Legal & Compliance No. Tel.07/LP 000/COP-B0000000/2026 addressed to the Indonesian Financial Services
Authority regarding the change in the Company’s Corporate Secretary, effective June 23, 2026, Mr. Jati Widagdo ceased to serve as the Company’s
Corporate Secretary, and Mr. Edie Kurniawan was appointed as the Interim Corporate Secretary. Subsequently, based on Notification Letter of the Director
of Legal & Compliance No. Tel.08/LP 000/COP-B0000000/2026, Mr. Edie Kurniawan was appointed as Corporate Secretary, effective July 1, 2026
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
b. The Company’s Board of Commissioners, Directors, Audit Committee, Corporate Secretary,
Internal Audit, and Employees (continued)
iii. Employees
As of June 30, 2026 and December 31, 2025, the Company and its subsidiaries (collectively
referred to as “the Group”) had 17,438 employees and 19,082 employees (unaudited),
respectively.
c. Public offering of securities of the Company
The Company’s number of shares prior to its Initial Public Offering (“IPO”) totalled 8,400,000,000,
consisting of 8,399,999,999 Series B shares and 1 Series A Dwiwarna share, and were wholly-
owned by the Government. On November 14, 1995, 933,333,000 new Series B shares and
233,334,000 Series B shares owned by the Government were offered to the public through an IPO
and listed on the Indonesia Stock Exchange (“IDX”) and 700,000,000 Series B shares owned by
the Government were offered to the public and listed on the New York Stock Exchange (“NYSE”)
and the London Stock Exchange (“LSE”) in the form of American Depositary Shares (“ADS”). There
were 35,000,000 ADS and each ADS represented 20 Series B shares at that time.
In December 1996, the Government had a block sale of its 388,000,000 Series B shares, and
in 1997, Government distributed 2,670,300 Series B shares as incentive to the Company’s
stockholders who did not sell their shares within one year from the date of the IPO. In May 1999,
the Government further sold 898,000,000 Series B shares.
To comply with Law No. 1/1995 on Limited Liability Companies, at the AGM of Stockholders of
the Company on April 16, 1999, the Company’s stockholders resolved to increase the Company’s
issued share capital by the distribution of 746,666,640 bonus shares through the capitalization of
certain additional paid-in capital, which was made to the Company’s stockholders in August 1999.
On August 16, 2007, Law No. 1/1995 on Limited Liability Companies was amended by the
issuance of Law No. 40/2007 on Limited Liability Companies which became effective on the same
date. Law No. 40/2007 has no effect on the public offering of shares of the Company.
The Company has complied with Law No. 40/2007.
In December 2001, the Government had another block sale of 1,200,000,000 shares or
11.9% of the total outstanding Series B shares. In July 2002, the Government further sold a block
of 312,000,000 shares or 3.1% of the total outstanding Series B shares.
Based on the results of the Company's AGM Stockholders as stated in the Notarial Deed of
A. Partomuan Pohan, S.H., LLM., No. 26 dated July 30, 2004, the Company’s stockholders
approved the Company’s 2-for-1 stock split for Series A Dwiwarna and Series B share. The Series
A Dwiwarna share with par value of Rp500 per share was split into 1 Series A Dwiwarna share with
par value of Rp250 per share and 1 Series B share with par value of Rp250 per share. The stock
split resulted in an increase of the Company’s authorized capital stock from 1 Series A Dwiwarna
share and 39,999,999,999 Series B shares to 1 Series A Dwiwarna share and
79,999,999,999 Series B shares, and the issued capital stock from 1 Series A Dwiwarna share and
10,079,999,639 Series B shares to 1 Series A Dwiwarna share and 20,159,999,279 Series B
shares. After the stock split, each ADS represented 40 Series B shares.
During the EGM held on December 21, 2005 and the AGMs held on June 29, 2007, June 20, 2008,
and May 19, 2011, the Company’s stockholders approved phase I, II, III, and IV plan, respectively,
of the Company’s program to repurchase its issued Series B shares.
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Page 13
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
c. Public offering of securities of the Company (continued)
During the period of December 21, 2005 to June 20, 2007, the Company had bought back
211,290,500 shares from the public (stock repurchase program phase I). On July 30, 2013,
the Company had sold all such shares.
At the AGM held on April 19, 2013 as covered by Notarial Deed of Ashoya Ratam, S.H., M.Kn.,
No. 38 dated April 19, 2013, the stockholders approved the changes to the Company’s plan on the
treasury stock acquired under phase III. At the AGM held on April 19, 2013, the minutes of which
were covered by Notarial Deed No. 38 of Ashoya Ratam, S.H., M.Kn., the stockholders approved
the Company’s 5-for-1 stock split for Series A Dwiwarna and Series B shares. Series A Dwiwarna
share with par value of Rp250 per share was split into 1 Series A Dwiwarna share with par value
of Rp50 per share and 4 Series B shares with par value of Rp50 per share. The stock split resulted
in an increase of the Company’s authorized capital stock from 1 Series A Dwiwarna and
79,999,999,999 Series B shares to 1 Series A Dwiwarna and 399,999,999,999 Series B shares.
The issued capital stock increased from 1 Series A Dwiwarna and 20,159,999,279 Series B shares
to 1 Series A Dwiwarna and 100,799,996,399 Series B shares. After the stock split, each ADS
represented 200 Series B shares. Effective from October 26, 2016, the Company has changed the
ratio of Depositary Receipt from 1 ADS representing 200 series B shares to become 1 ADS
representing 100 series B shares. Profit per ADS information have been retrospectively adjusted
to reflect the changes in the ratio of ADS.
On May 16 and June 5, 2014, the Company deregistered from Tokyo Stock Exchange (“TSE”)
and delisted from the LSE, respectively.
On December 21, 2015, the Company sold the remaining shares of treasury shares phase III.
On June 29, 2016, the Company sold the treasury shares phase IV.
At the AGM held on April 27, 2018, as covered by Notarial Deed of Ashoya Ratam, S.H., M.Kn.,
No. 35 dated May 15, 2018, the stockholders approved the changes of the Company’s plan on the
transfer of shares from the repurchase through the withdrawal of 1,737,779,800 shares of treasury
stock, by reducing the issued and paid-up capital from the initial amount of Rp5,040 billion into
amount of Rp4,953 billion. Thus, in order to comply with the provisions of Article 33
UU No. 40 of 2007 concerning Limited Liability Companies, the AGM approved the reduction of the
Company's authorized capital from the original Rp20,000 billion to Rp19,500 billion, so the
Company's total authorized share capital became 1 Series A Dwiwarna and 389,999,999 Series B
shares.
Based on Notarial Deed of Ashoya Ratam, S.H., M.Kn., No. 52, dated May 27, 2025, AGM of
Stockholders agreed Company’s share buyback with a maximum amount of Rp3,000 billion.
Furthermore, based on Notarial Deed of Titik Krisna Murti Wikaningsih Hastuti, S.H., M.Kn., No. 10
dated 8 June 2026, AGM of Stockholders approved an additional share buyback program with
a maximum funding allocation of Rp4,000 billion. Until June 30, 2026, the Company has conducted
share buyback amounting 481,275,800 shares or equivalent to Rp1,510 billions (Note 21).
As of June 30, 2026, all of the Company’s Series B shares are listed on the IDX and 62,240,187.80
ADS or equivalent to 6,224,018,780 Series B shares are listed on the NYSE (Note 21).
On June 16, 2015, the Company issued Continuous Bonds I Telkom Phase I 2015, with nominal
of Rp2,200 billion for Series A with a seven-year period, Rp2,100 billion for Series B with a ten-
year period, Rp1,200 billion for Series C with a fifteen-year period, and Rp1,500 billion for Series
D with a thirty-year period, all of which are listed on the IDX (Note 19a).
10
Page 14
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries
As of June 30, 2026 and December 31, 2025, the Company has consolidated the financial
statements of all subsidiaries, both directly and indirectly owned, as follows (Notes 2b and 2d):
i. Direct subsidiaries:
Total assets before
Start year of Percentage of ownership* elimination
operation June 30, December 31, June 30, December 31,
Subsidiary Nature of business commencement 2026 2025 2026 2025
PT Telekomunikasi Mobile 1995 70 70 110,705 114,627
Selular telecommunication,
(“Telkomsel”) fixed broadband,
network service, and
internet protocol
television ("IPTV")
PT Dayamitra Leasing of towers 1995 72 72 60,106 58,350
Telekomunikasi Tbk. and digital support
(“Mitratel”) services for mobile
infrastructure
PT Telkom Network 2024 100 100 48,809 3,944
Infrastruktur telecommunication
Indonesia and information
(“TIF”) services
PT Telekomunikasi International 1995 100 100 20,476 19,540
Indonesia telecommunication
International and information
(“Telin”) services
PT Multimedia Network 1998 100 100 17,576 17,287
Nusantara telecommunication
(“Metra”) services and
multimedia
PT Telkom Data Data center 1996 100 100 10,025 9,924
Ekosistem
(“TDE”)
PT Telkom Satelit Telecommunication - 1996 100 100 7,902 8,245
Indonesia provides satellite
(“Telkomsat”) communication
system and its
related services
PT Graha Sarana Duta Developer, trade, service 1982 100 100 5,183 5,197
("GSD") and transportation
PT Sigma Cipta Hardware and software 1988 100 100 4,992 5,416
Caraka computer consultation
(“Sigma”) service
PT Telkom Akses Construction, service 2013 100 100 3,601 4,244
(“Telkom Akses”) and trade in the field
of telecommunication
PT Metra-Net Multimedia portal service 2009 100 100 2,353 1,883
(“Metra-Net”)
PT Infrastruktur Developer service and 2014 100 100 1,115 1,226
Telekomunikasi trading in the field
Indonesia of telecommunication
(“Telkom Infra”)
PT PINS Indonesia Trade in telecommunication 1995 100 100 481 550
(“PINS”) devices
PT Napsindo Telecommunication - 1999; ceased 60 60 5 5
Primatel provides Network operations on
Internasional Access Point ("NAP"), January 13,
(“Napsindo”) Voice Over Data 2006
("VOD") and other
related services
* Percentage of ownership amounting to 99.99% is presented into rounding of 100%.
All direct subsidiaries are domiciled in Indonesia.
11
Page 15
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
ii. Indirect subsidiaries:
Total assets before
Start year of Percentage of ownership* elimination
operation June 30, December 31, June 30, December 31,
Subsidiary Nature of business commencement 2026 2025 2026 2025
PT Metra Digital Trading, information 2013 100 100 9,057 9,054
Investama Ventura and multimedia
(“MDI”) technology,
entertainment
and investment
services
Telekomunikasi Telecommunication 2008 100 100 7,844 7,102
Indonesia and related
International Pte. Ltd. services
("Telin Singapore"),
domiciled in
Singapore
Telekomunikasi Investment 2010 100 100 4,154 3,530
Indonesia holding and
International Ltd. telecommunication
("Telin Hong Kong"), services
domiciled in
Hong Kong
NeutraDC Data center 2024 100 100 2,605 2,379
Singapore Pte. Ltd.
(“NeutraDC Singapore”)
domiciled in
Singapore
PT Teknologi Data Telecommunication 2013 60 60 2,384 2,261
Infrastruktur service and
(“TDI”) data center
PT Telkom Landmark Property development 2012 55 55 2,239 2,148
Tower and management
(“TLT”) services
directory
PT Nuon Digital Digital content 2010 100 100 2,124 1,412
Indonesia exchange hub
(“Nuon”) services
PT Infomedia Information provider 1984 100 100 2,085 1,979
Nusantara services, contact
(“Infomedia”) center and content
PT Persada Sokka Leasing of towers 2008 100 100 1,644 1,753
Tama and other
("PST") telecommunication
services
PT Finnet Indonesia Information 2006 60 60 1,493 1,450
(“Finnet”) technology
services
Telekomunikasi Telecommunication 2012 100 100 1,316 1,297
Indonesia networks, mobile,
International (TL) S.A. internet, and
("Telkomcel"), data services
domiciled in
Timor Leste
PT Telkomsel Mitra Business 2019 100 100 1,002 1,014
Inovasi management
(“TMI”) consulting and
investment
services
* Percentage of ownership amounting to 99.99% is presented into rounding of 100%.
Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.
12
Page 16
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
ii. Indirect subsidiaries (continued):
Total assets before
Start year of Percentage of ownership* elimination
operation June 30, December 31, June 30, December 31,
Subsidiary Nature of business commencement 2026 2025 2026 2025
PT Metra Digital Telecommunication 2013 100 100 994 859
Media information and
(“MD Media”) other information
services
Telekomunikasi Telecommunication 2014 100 100 524 392
Indonesia and information
International (USA) Inc. services
(“Telin USA”),
domiciled in USA
PT Digital Aplikasi Communication 2014 100 100 476 507
Solusi system services
("Digiserve")
PT Swadharma Cash replenishment 2001 51 51 405 388
Sarana Informatika services and
(“SSI”) Automated Teller
Machines ("ATM")
maintenance
PT Ultra Mandiri Telecommunication 2019 100 100 377 430
Telekomunikasi network infrastructure
("UMT") services
PT Collega Inti Trading and services 2001 70 70 291 195
Pratama
("CIP")
PT Nusantara Sukses Service and trading 2014 100 100 289 286
Investasi
(“NSI”)
PT Graha Yasa Tourism and 2012 51 51 277 261
Selaras hospitality services
(”GYS”)
PT Telkomsel Business management 2021 100 100 262 304
Ekosistem Digital consulting services
("TED") and investment
and/or investment
in other companies
PT Metra TV Subscription 2013 100 100 252 255
(“Metra TV”) broadcasting
services
TS Global Satellite services 1996 70 70 227 210
Network Sdn. Bhd.
(“TSGN”),
domiciled in Malaysia
PT Nutech Integrasi System integrator 2001 60 60 178 244
(“Nutech”) service
PT Graha Telkomsigma Management and 1999 100 100 164 163
("GTS") consultation
services
Telekomunikasi Telecommunication 2013 70 70 160 152
Indonesia International and information
(Malaysia) Sdn. Bhd. services
(”Telin Malaysia”),
domiciled in Malaysia
* Percentage of ownership amounting to 99.99% is presented into rounding of 100%.
Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.
13
Page 17
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. Subsidiaries (continued)
ii. Indirect subsidiaries (continued):
Total assets before
Start year of Percentage of ownership* elimination
operation June 30, December 31, June 30, December 31,
Subsidiary Nature of business commencement 2026 2025 2026 2025
PT Media Nusantara Consultation services 2012 55 55 129 128
Data Global of hardware, software,
("MNDG")** data center, and
internet exchange
Telekomunikasi Telecommunication 2013 100 100 69 58
Indonesia and information
International services
(Australia) Pty. Ltd.
(“Telin Australia”),
domiciled in
Australia
PT Pojok Celebes Travel agent services 2008 100 100 34 52
Mandiri
("PCM")***
PT Metraplasa Network and 2012; ceased 60 60 28 28
(“Metraplasa”) e-commerce operations on
services October, 2020
* Percentage of ownership amounting to 99.99% is presented into rounding of 100%.
**As of May 25, 2026, MNDG was declared bankrupt pursuant to Decision No. 370/Pdt.Sus-PKPU/2025/PN.Niaga.Jkt.Pst.
***Based on Notarial Deed of Utiek R.Abdurachman, S.H., MLI., MKn., No. 56 dated June 22, 2026, the Shareholders of PCM decided to approve
the dissolution and liquidation process.
Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.
e. Other important information
i. Mitratel
Share buyback
On July 18, 2025, Mitratel announced the plan to share buyback owned by the public, with a
maximum number of 4.12% of Mitratel’s issued and fully paid shares. The share buyback
period is 12 (twelve) months starting from August 26, 2025, to August 25, 2026. As of
June 30, 2026 and December 31, 2025, Mitratel has conducted share buyback amounting to
600,508,200 shares and 131.491.800 shares, or equivalent to Rp348 billion and Rp79 billion,
respectively.
Merger
Based on the EGM of Stockholders as covered by Notarial Deed of Mala Mukti, S.H., LL.M.,
No. 150 dated June 30, 2026, Mitratel obtained stockholder’s approval for the proposed
merger of PST and UMT into the Mitratel.
As the merger became effective after the reporting date, it did not affect the amounts presented
in the consolidated financial statements as of June 30, 2026.
ii. TDI
Based on Notarial Deed of Jimmy Tanal, S.H., M.Kn., No 238 dated December 22, 2025, the
shareholders of TDI approved the issuance of 7,315,000 new shares. Of these, TDE acquired
4,620,000 shares or amounting to Rp462 billion and Nxera ID Pte.Ltd. acquired 2,695,000
shares or amounting to Rp270 billion.
14
Page 18
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
e. Other important information (continued)
iii. Ad Medika and its subsidiary
Based on Notarial Deed of Utiek Rochmuljati Abdurachman, S.H., MLI., MKn., No. 02 and
No. 03 dated June 2, 2026, Metra has completed the divestment of its entire ownership in
Ad Medika to Global Assistance & Healthcare Singapore Pte. Ltd. Upon the effective
completion of this transaction, Ad Medika is no longer consolidated in the Group's consolidated
financial statements as of the effective date of the transfer of control.
Summary of the Ad Medika disposal transaction is as follows:
Nilai trana Rp (billion)
Consideration received from the disposal of Ad Medika 857
Carrying amount of net assets disposed of (307)
Gain on disposal of a subsidiary 550
f. Completion and authorization for the issuance of the consolidated financial statements
The Company’s management is responsible for the preparation and fair presentation of these
consolidated financial statements in accordance with Indonesian Financial Accounting Standards,
which have been completed and authorized for issuance by the Directors of the Company
on July 31, 2026.
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION
The Group consolidated financial statements have been prepared in accordance with Indonesian
Financial Accounting Standards which includes Statements of Financial Accounting Standards
("Pernyataan Standar Akuntansi Keuangan" or “PSAK”) and Interpretations of Financial Accounting
Standards ("Interpretasi Standar Akuntansi Keuangan" or “ISAK”) published by the Financial
Accounting Standards Board of the Institute of Indonesian Chartered Accountants (Dewan Standar
Akuntansi Keuangan Ikatan Akuntan Indonesia or “DSAK IAI”) and Regulation No. VIII.G.7 of the
Capital Market and Financial Institution Supervisory Agency (“Bapepam-LK”) regarding the
Presentation and Disclosure of Financial Statements of Issuers or Public Companies, enclosed in the
decision letter KEP-347/BL/2012.
a. Basis of preparation of the consolidated financial statements
The consolidated financial statements, except for the consolidated statements of cash flows, are
prepared on the accrual basis. The measurement basis used is historical cost, except for certain
accounts which are measured using the basis mentioned in the relevant notes herein.
The consolidated statements of cash flows are prepared using the direct method and present the
changes in cash and cash equivalents from operating, investing, and financing activities.
The reporting currency in the consolidated financial statements is the Indonesian Rupiah (“Rp”)
which is also the functional currency of the Group, except for subsidiaries whose functional
currencies are the U.S. Dollar, Australian Dollar, Singapore Dollar, and Malaysian Ringgit.
Figures in the consolidated financial statements containing values under Rp1 billion and
US$1 million are presented with zero.
15
Page 19
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
a. Basis of preparation of the consolidated financial statements (continued)
New accounting standards
On January 1, 2026, the Group adopted the new and revised statement of financial accounting
standards and interpretations of financial accounting standards effective from that date.
Adjustments to the Group's accounting policies have been made as required, in accordance with
the transitional provisions of the respective standards and interpretations. The adoption of the new
and revised standards and interpretations did not result in major changes to the Group's accounting
policies and had no material effect on the amounts reported for the current or prior financial year:
i. Amendment PSAK 109: Financial Instruments and PSAK 107: Financial Instruments:
Disclosures;
ii. PSAK 338 (Revised 2025): Business Combination of Entities Under Common Control.
Accounting standards issued but not yet effective
Effective January 1, 2027:
PSAK 118: Presentation and Disclosures in Financial Statement
DSAK IAI has issued PSAK 118: Presentation and Disclosures in Financial Statements, which
supersedes PSAK 201: Presentation of Financial Statements. PSAK 118 introduces requirements
for the presentation of key subtotals, including operating profit or loss, profit or loss before financing
and income taxes, and net profit or loss. In addition, PSAK 118 requires that income and expenses
be classified into the following categories: operating, investing, and financing, along with income
taxes and discontinued operations.
PSAK 118 also addresses the disclosure of Management-defined Performance Measures (“MPM”),
which are intended to communicate management’s perspective on the entity’s overall financial
performance. The standard elaborates on the role of the primary financial statements and the notes
to the financial statements, and sets out principles and requirements related to the aggregation and
disaggregation of information. These principles apply both to the presentation within the financial
statements and to the disclosures. The Group is currently assessing the potential impact of PSAK
118 on its consolidated financial statements.
PSAK 119: Subsidiaries Without Public Accountability: Disclosures
The Indonesian Financial Accounting Standards Board (DSAK IAI) has issued PSAK 119:
Subsidiaries Without Public Accountability: Disclosures. PSAK 119 sets out disclosure
requirements that may be applied by an entity as an alternative to the disclosure requirements in
other PSAKs. An entity may elect to apply this Standard in its consolidated, separate, or individual
financial statements if, and only if, at the end of the reporting period, the entity is a subsidiary
without public accountability whose parent prepares consolidated financial statements that are
available to the public and comply with Indonesian Financial Accounting Standards (SAK). This
amendment is not expected to have a material impact on the consolidated financial statements.
In November 2025, DSAK IAI issued amendments to PSAK 119. The amendments to PSAK 119
include:
i. removal of application in separate financial statements by intermediate parent entities;
ii. removal of disclosure objectives related to financing, suppliers, shortages, or overages, Pillar
Two model, classification and measurement of financial instruments, as well as long term
loabilities with covenants;
iii. reduction of disclosure requirments related to supplier finance arrangements;
iv. removal of material that is guidance based and not disclosure requirements; and
v. replacement of management defined performance measure disclosures with a cross reference
to PSAK 118.
These amendments are not expected to have material impact on the consolidated financial
statements.
16
Page 20
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
a. Basis of preparation of the consolidated financial statements (continued)
Accounting standards issued but not yet effective (continued)
Effective January 1, 2027 (continued):
These amendments clarify the translation method when the presentation currency is the currency
of a hyperinflationary economy, while the functional currency is the currency of a non-
hyperinflationary economy. The amendments also prescribe the accounting treatment when an
entity's presentation currency ceases to be the currency of a hyperinflationary economy. In addition,
the amendments specify the accounting requirements when both the functional currency and the
presentation currency are currencies of hyperinflationary economies (including different
hyperinflationary economies), and the entity translates the results and financial position of its
foreign operations whose functional currency is that of a non-hyperinflationary economy. The
amendments also introduce additional disclosure requirements arising from the changes in the
translation method.
The amendments are not expected to have a material impact on the consolidated financial
statements.
b. Principles of consolidation
The consolidated financial statements consist of the financial statements of the Company and
the subsidiaries over which it has control. Control is achieved when the Group is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to affect those
returns through its power over the investee. Specifically, the Group controls an investee if and only
if the Group has power over the investee, exposure, or rights, to variable returns from its
involvement with the investee, and the ability to use its power over the investee to affect its returns.
Generally, there is a presumption that a majority of voting rights results in control. To support this
presumption and when the Group has less than a majority of the voting or similar rights of an
investee, the Group considers all relevant facts and circumstances in assessing whether it has
power over an investee, including:
i. the contractual arrangement with the other vote holders of the investee;
ii. rights arising from other contractual arrangements; and
iii. the Group's voting rights and potential voting rights.
The Group re-assesses whether it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control. Consolidation of a subsidiary
begins when the Group obtains control over the subsidiary and ceases when the Group loses
control over the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or
disposed of during the year are included in the consolidated statements of financial position and
the consolidated statements of profit or loss and other comprehensive income from the date the
Group gains financial control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the
equity holders of the Company and to the non-controlling interests, even if this results in the non-
controlling interests having a deficit balance.
17
Page 21
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
b. Principles of consolidation (continued)
All intra-Group assets and liabilities, equity, revenue and expenses, and cash flow relating to
transactions within Group are fully eliminated on consolidation.
In case of loss of control over a subsidiary, the Group:
i. derecognizes the assets (including goodwill) and liabilities of the subsidiary at the carrying
amounts on the date when it loses control;
ii. derecognizes the carrying amounts of any non-controlling interests of its former subsidiary on
the date when it loses control;
iii. recognizes the fair value of the consideration received (if any) from the transaction, events, or
condition that caused the loss of control;
iv. recognizes the fair value of any investment retained in the subsidiary at fair value on the date
of loss of control; and
v. recognizes any surplus or deficit in profit or loss that is attributable to the Group.
c. Transactions with related parties
The Group has transactions with related parties. The definition of related parties used is in
accordance with the Bapepam-LK’s Regulation No. VIII.G.7 regarding the Presentations and
Disclosures of Financial Statements of Issuers or Public Companies, enclosed in the decision letter
No. KEP-347/BL/2012. The party which is considered a related party is a person or entity that is
related to the entity that is preparing its financial statements.
Under the Regulation of Bapepam-LK No. VIII.G.7, a government-related entity is an entity that is
controlled, jointly controlled or significantly influenced by the government. Government in this
context is the Minister of Finance or the Local Government, as the shareholder of the entity.
Key management personnel are identified as the persons having authority and responsibility for
planning, directing, and controlling the activities of the entity, directly or indirectly, including any
director (whether executive or otherwise) of the Group. The related party status extends to the key
management of the subsidiaries to the extent they direct the operations of subsidiaries with minimal
involvement from the Company’s management.
d. Business combinations and goodwill
Business combination is accounted for using the acquisition method. The consideration transferred
is measured at fair value, which is the aggregate of the fair value of the assets transferred, liabilities
incurred or assumed, and the equity instruments issued in exchange for control of the acquiree.
For each business combination, non-controlling interest is measured at fair value or at the
proportionate share of the acquiree’s identifiable net assets. The measurement basis is selected
on a transaction-by-transaction basis. Acquisition-related costs are expensed as incurred. The
acquiree’s identifiable assets and liabilities are recognized at their fair values at the acquisition
date.
Goodwill is initially measured at cost, which represents the excess of the aggregate consideration
transferred and the amount recognized for non-controlling interests, and any previous interest held,
over the net identifiable assets acquired and liabilities assumed. If the fair value of the acquired net
assets exceeds the aggregate consideration transferred, the Group re-assesses whether it has
correctly identified all of the assets acquired and all of the liabilities assumed, and reviews the
procedures used to measure the amounts to be recognized at the acquisition date. If the re-
assessment still results in an excess of the fair value of net assets acquired over the aggregate
consideration transferred, then the gain is recognized in profit or loss.
18
Page 22
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
d. Business combinations and goodwill (continued)
Any contingent consideration, to be transferred by the acquired will be recognized at fair value at
the acquisition date. Contingent consideration classified as equity is not remeasured and its
subsequent settlement is accounted for within equity. Contingent consideration classified as an
asset or liability that is a financial instrument and within the scope of PSAK 109, is measured at fair
value with the changes in fair value recognized in the statement of profit or loss in accordance with
PSAK 109. Other contingent consideration that is not within the scope of PSAK 109 is measured
at fair value at each reporting date with changes in fair value recognized in profit or loss.
If the initial accounting for a business combination is incomplete by the end of the reporting period
in which the combination occurs, the Group shall report in its consolidated financial statements
provisional amounts for the items for which the accounting is incomplete. During the measurement
period, the Group shall retrospectively adjust the provisional amounts recognized at the acquisition
date to reflect new information obtained about facts and circumstances that existed as of the
acquisition date and, if known, would have affected the measurement of the amounts recognized
as of that date. The measurement period ends immediately after the Company receives the
information about the facts and circumstances that existed at the acquisition date or learns that
additional information cannot be obtained. However, the measurement period must not exceed one
year from the date of acquisition.
In a business combination achieved in stages, the acquirer remeasures its previously held equity
interest in the acquiree at its acquisition-date fair value and recognizes the resulting gain or loss, if
any, in profit or loss.
Based on PSAK 338: Business Combination of Entities Under Common Control, the transfer of
assets, liabilities, shares or other ownership instruments among the companies under common
control would not result in a gain or loss for the Company or individual entity in the same group.
Since the restructuring transaction between entities under common control does not result in a
change of the economic substance of the ownership of assets, liabilities, shares, or other
instruments of ownership, which are exchanged, assets or liabilities transferred are recorded at
book value using the pooling-of-interests method.
In applying the pooling-of-interests method, the components of the financial statements for the
period during the restructuring occurred must be presented in such a manner as if the restructuring
has occurred since the beginning of the earliest period presented. The excess of consideration paid
or received over the carrying value of interest acquired, net of income tax, is directly recognized to
equity and presented as “Additional Paid-in Capital” under the equity section of the consolidated
statements of financial position.
At the initial application of PSAK 338, all balances of the Difference In Value of Restructuring
Transactions of Entities under Common Control was reclassified to “Additional Paid-in Capital” in
the consolidated statements of financial position.
e. Cash and cash equivalents
Cash and cash equivalents in the consolidated statements of financial position comprise cash in
banks and on hand and short-term highly liquid deposits with a maturity of three months or less,
that are readily convertible to a known amount of cash and subject to an insignificant risk of
changes in value.
Time deposits with maturities of more than three months but not more than one year are
presented as part of “Other current financial assets” in the consolidated statements of financial
position.
19
Page 23
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
f. Inventories
Inventories consist of Subscriber Identification Module ("SIM") cards, and prepaid vouchers which
are expensed upon sale.
Inventories are valued at the lower of cost and net realizable value. Net realizable value is
determined by either estimating the selling price in the ordinary course of business, less estimated
cost to sell or determining the prevailing replacement costs.
The costs of inventories consist of the purchase price, import duties, other taxes, transport,
handling, and other costs directly attributable to their acquisition.
Cost is determined using the weighted average method.
The amounts of any write-down of inventories below cost to net realizable value and all losses
of inventories are recognized as an expense in the period in which the write-down or loss occurs.
The amount of any reversal of any write-down of inventories, arising from an increase in net
realizable value, is recognized as a reduction in the amount of general and administrative expenses
in the year in which the reversal occurs.
Provision for obsolescence is primarily based on the estimated forecast of future usage of these
inventory items.
g. Prepaid expenses
Prepaid expenses are amortized over their future beneficial periods using the straight-line method.
Prepaid expenses are presented in the consolidated statements of financial position as part of other
current assets and other non-current assets.
h. Non-current assets held for sale
Assets (or disposal groups) are classified as assets held for sale when their carrying amount will
be recovered principally through a sale transaction rather than through continuing use, and the
sale is highly probable. These assets are measured at the lower of their carrying amount and fair
value less costs to sell.
An asset (or disposal group) is considered available for immediate sale in its present condition
subject only to terms that are usual and customary for sales of such assets (or disposal groups),
and its sale must be highly probable.
The assests (or disposal groups) classified as held for sale are presentes separately from the other
assets in the conslidated statements of financial position. The liabilities of disposal group classified
as held for sale are presented separately from the other liabilities in the consolidated statements
of financial position.
20
Page 24
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
i. Intangible assets
Intangible assets are recognized if it is highly probable that the expected future economic benefits
that are attributable to each asset will flow to the Group, and the cost of the asset can be reliably
measured.
Intangible assets are stated at cost less accumulated amortization and impairment losses (if any).
Intangible assets are amortized over their estimated useful lives. The amortization period and the
amortization method for an intangible asset with a finite useful life are reviewed at least at the end
of the reporting period. The Group estimates the recoverable value of its intangible assets. When
the carrying amount of an intangible asset exceeds its estimated recoverable amount, the asset is
written down to its estimated recoverable amount.
Intangible assets except goodwill, are amortized using the straight-line method, based on the
estimated useful lives of the intangible assets as follows:
Years
Software 3-6
License 3-20
Other intangible assets 3-30
Intangible assets are derecognized on disposal, or when no further economic benefits are
expected, either from further use or from disposal. The difference between the carrying amount
and the net proceeds received from disposal is recognized in the consolidated statements of profit
or loss and other comprehensive income.
j. Property and equipment
Property and equipment are stated at cost less accumulated depreciation, and impairment losses,
(if any).
The cost of an item of property and equipment includes: (a) purchase price; (b) any costs directly
attributable to bringing the asset to its location and condition; and (c) the initial estimate of the costs
of dismantling and removing the item and restoring the site on which it is located. Each part of an
item of property and equipment with a cost that is significant in relation to the total cost of the item
is depreciated separately.
Property and equipment, except land rights, are depreciated using the straight-line method based
on the estimated useful lives of the assets as follows:
Years
Buildings 10-50
Leasehold improvements 3-10
Switching equipment 3-15
Telegraph, telex, and data communication equipment 15
Transmission installation and equipment 3-40
Satellite, earth station, and equipment 4-20
Cable network 3-25
Drop Cable 5
Power supply 4-25
Data processing equipment 4-20
Other telecommunication peripherals 3-5
Office equipment 2-5
Vehicles 4-8
Other equipment 2-5
Significant expenditures related to leasehold improvements are capitalized and depreciated over
the lease term.
21
Page 25
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
j. Property and equipment (continued)
The depreciation method, useful life, and residual value of an asset are reviewed at least at each
financial year-end and adjusted, if appropriate. The residual value of an asset is the estimated
amount that the Group would currently obtain from disposal of the asset, after deducting the
estimated costs of disposal, if the asset is already of the age and in the condition expected at the
end of its useful life.
Property and equipment acquired in exchange for a non-monetary asset or for a combination of
monetary and non-monetary assets are measured at fair value unless, (i) the exchange transaction
lacks commercial substance; or (ii) the fair value of neither the asset received, nor the asset given
up is measured reliably.
Major spare parts and standby equipment that are expected to be used for more than 12 months
are recorded as part of property and equipment.
When assets are retired or otherwise disposed of, their cost and the related accumulated
depreciation are derecognized from the consolidated statements of financial position and the
resulting gains or losses on the disposal or sale of the property and equipment are recognized in
the consolidated statements of profit or loss and other comprehensive income.
Certain computer hardware cannot be used without the availability of certain computer software.
In such circumstance, the computer software is recorded as part of the computer hardware. If the
computer software is independent from its computer hardware, it is recorded as part of intangible
assets.
The cost of maintenance and repairs are charged to the consolidated statements of profit or loss
and other comprehensive income as incurred. Significant renewals and improvements are
capitalized to related property and equipment account.
The Group recognizes the cost of replacing part of a property and equipment in the carrying amount
of the property and equipment, and derecognizes the carrying amount of the replaced part of the
asset.
Property under construction is stated at cost less impairment (if any), until the construction is
completed, at which time it is reclassified to the property and equipment account to which it relates.
During the construction period and until the property is ready for its intended use or sale, borrowing
costs, which include interest expense and foreign currency exchange differences incurred on loans
obtained to finance the construction of the asset, as long as it meets the definition of a qualifying
asset are, capitalized in proportion to the average amount of accumulated expenditures during the
period. Capitalization of borrowing cost ceases when the construction is completed, and the asset
is ready for its intended use or sale.
22
Page 26
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
k. Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration. The lease term corresponds to the non-cancellable period of each contract,
except in cases where the Group is reasonably certain of exercising renewal options contractually
foreseen.
The Group has made use of the package of practical expedients available within PSAK 116, which
among other things:
• the use of a single discount rate to a portfolio of leases with reasonably similar characteristics;
• the accounting for operating leases with a remaining lease term of less than 12 months as
short-term leases;
• the exemption of initial direct costs for the measurement of the right-of-use asset (“ROU”) as
short-term leases;
• the use of hindsight in determining the lease term where the contract contains options to
extend or terminate the lease;
• not separating non-lease components from lease components, and instead, account for both
as a single lease component; and
• not recognizing a lease liability and a ROU asset for leases where the underlying assets are
low-value assets (i.e. underlying assets with a maximum value of US$5,000 or Rp50 million
when it is new).
The Group applies the definition of a lease and related guidance set out in PSAK 116 to all lease
contracts.
i. The Group as lessee
The Group applies a single recognition and measurement approach for all leases, except for
short-term leases and leases of low-value assets. The Group recognizes lease liabilities to
make lease payments and ROU assets representing the right to use the underlying assets.
The Group recognizes ROU assets at the commencement date of the lease. ROU assets are
measured at cost, less any accumulated amortization and impairment losses, and adjusted for
any remeasurement of lease liabilities. The cost of ROU assets includes the amount of lease
liabilities recognized, initial direct costs incurred, restoration costs and lease payments made
at or before the commencement date less any lease incentives received.
ROU assets are amortized on a straight-line basis over the shorter of the lease term and the
estimated useful lives of the assets, as follows:
Years
Land rights 1-33
Buildings 1-30
Transmission installation and equipment 1-25
Vehicles 1-6
Others 1-6
23
Page 27
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
k. Leases (continued)
i. The Group as lessee (continued)
If ownership of the ROU asset transfers to the Group at the end of the lease term or the cost
reflects the exercise of a purchase option, depreciation is calculated using the estimated
useful life of the asset. The ROU assets are subject to impairment in accordance with
PSAK 236: Impairment of Assets.
Lease liabilities
At the commencement date of the lease, the Group recognizes lease liabilities measured at
the present value of lease payments to be made over the lease term. The lease payments
include fixed payments (including in substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on an index or a rate, and amounts expected
to be paid under residual value guarantees. The lease payments also include the exercise
price of a purchase option reasonably certain to be exercised by the Group and payments of
penalties for terminating the lease, if the lease term reflects the Group exercising the option to
terminate. Variable lease payments that do not depend on an index or a rate are recognized
as expenses in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing
rate at the lease commencement date because the interest rate implicit in the lease is not
readily determinable. After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the lease payments made. In
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a
change in the lease term, a change in the lease payments, or a change in the assessment of
an option to purchase the underlying asset.
Short-term leases with a duration of less than 12 months and low-value assets leases, as well
as those lease elements, partially or totally not complying with the principles of recognition
defined by PSAK 116 will be treated similarly to operating leases. The Group will recognize
those lease payments on a straight-line basis over the lease term in the consolidated
statements of profit or loss and other comprehensive income.
ii. The Group as lessor
Under PSAK 116, a lessor continues to classify leases as either finance leases or operating
leases and account for those two types of leases differently. Leases in which the Group
transfers substantially all the risks and rewards incidental to ownership of an asset are
classified as finance leases, otherwise it will be classified as operating leases. Lease
classification is made at the inception date and is reassessed only if there is a lease
modification.
At the commencement date, the Group recognizes assets held under a finance lease at an
amount equal to the net investment in the lease and present it as finance lease receivable.
The net investment in the lease includes fixed payments (including in substance fixed
payments) less any lease incentives receivable, variable lease payments that depend on an
index or a rate, and residual value guarantees provided to the lessor by the lessee. The lease
payments also include the exercise price of a purchase option reasonably certain to be
exercised by the lessee and payments of penalties for terminating the lease, if the lease term
reflects the Group exercising the option to terminate.
24
Page 28
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
k. Leases (continued)
ii. The Group as lessor (continued)
As required by PSAK 109, an allowance for expected credit loss has been recognized on the
finance lease receivables and presented under “Other receivables” (Note 8).
Rental income arising from operating leases is accounted for on a straight-line basis over the
lease terms and is included in revenue in the consolidated statements of profit or loss and
other comprehensive income due to its operating nature. Initial direct costs incurred in
negotiating and arranging an operating lease are added to the carrying amount of the
underlying asset and recognized over the lease term on the same basis as rental income.
Contingent rents are recognized as revenue in the period in which they are earned.
If an arrangement contains lease and non-lease components, the Group applies PSAK 115
Revenue from Contracts with Customers to allocate the consideration in the contract. Revenue
arising from operating lease is recorded as revenue from lessor transactions (Note 2o).
l. Deferred charges - land rights
Costs incurred to process the initial legal land rights are recognized as part of the property and
equipment and are not amortized. Costs incurred to process the extension or renewal of legal land
rights are deferred and amortized using the straight-line method over the shorter of the legal term
of the land rights or the economic life of the land.
m. Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are
subsequently carried at amortized cost; any difference between the proceeds (net of transaction
costs) and the redemption value is recognized in the consolidated statements of profit or loss and
other comprehensive income over the period of the borrowings using the effective interest method.
Fees paid on obtaining loan facilities are recognized as transaction costs of the loan to the extent
that it is probable that some or all of the facilities will be drawn down. In this case, the fee is deferred
until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of
the facilities will be drawn down, the fee is capitalized as a prepayment for liquidity services and
amortized over the period of the facilities to which it relates.
25
Page 29
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
n. Foreign currency translations
Transactions in foreign currencies are translated into Indonesian Rupiah at the Reuters’ mid rates
of exchange prevailing at transaction date. At the consolidated statements of financial position
dates, monetary assets and liabilities denominated in foreign currencies are translated into
Indonesian Rupiah based on the buy and sell rates quoted by Reuters prevailing at the consolidated
statements of financial position dates, as follows (in full amount):
June 30, 2026 December 31, 2025
Buy Sell Buy Sell
British Pound (“GBP”) 1 23,654 23,674 22,386 22,401
United States Dollar (“US$”) 1 17,876 17,886 16,672 16,681
Australian Dollar (“AU$”) 1 12,305 12,316 11,136 11,149
Singapore Dollar (“SGD”) 1 13,804 13,819 12,960 12,969
New Taiwan Dollar (“TWD”) 1 561.10 561.94 530.38 531.21
Euro (“EUR”) 1 20,367 20,380 19,541 19,556
Japanese Yen ("JPY") 1 110.13 110.22 106.45 106.52
Malaysian Ringgit ("MYR") 1 4,378 4,387 4,101 4,111
Hong Kong Dollar (“HKD”) 1 2,279 2,281 2,142 2,143
Myanmar Kyat (“MMK”) 1 8.49 8.54 7.91 7.97
The result of foreign exchange gains or losses, realized and unrealized, are credited or charged to
the consolidated statements of profit or loss and other comprehensive income of the current year,
except for foreign exchange differences incurred on borrowings during the construction of qualifying
assets which are capitalized to the extent that the borrowings can be attributed to the construction
of those qualifying assets (Note 2i).
o. Revenue and expense recognition
Revenue from contract with customers
PSAK 115 establishes a comprehensive framework to determine how, when, and how much
revenue is to be recognized. The standard provides a single principles-based five-step model for
the determination and recognition of revenue to be applied to all contracts with customers. The
standard also provides specific guidance requiring certain types of costs to obtain and/or fulfill a
contract to be capitalized and amortized on a systematic basis that is consistent with the transfer
to the customer of the goods or services to which the capitalized cost relates.
Below is the summary of the Group’s revenue recognition accounting policy for each revenue
stream:
i. Data, Internet and IT Service
Revenues from data communication and internet are recognized based on service activity and
performance which are measured by the duration of internet usage or based on the fixed
amount of charges depending on the arrangements with customers. Revenues from sales,
installation and implementation of computer software and hardware, computer data network
installation service and installation are recognized when the goods and/or services are
delivered to customers or the installation takes place. Revenue from computer software
development service is recognized using the percentage-of completion method.
For services sold in bundled plan/solution, total consideration is allocated to performance
obligations based on stand-alone selling price for each of the product and/or service. The
Group estimates the stand-alone selling price using the price enacted if the services are sold
on a stand-alone basis. Most bundled plans/solution sold by the Group only include services
which are generally satisfied over the same period of time. Therefore, the revenue recognition
pattern is generally not impacted by the allocation.
26
Page 30
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
o. Revenue and expense recognition (continued)
Revenue from contract with customers (continued)
ii. IndiHome
Revenues from IndiHome service are derived from customer who subscribes to internet
services or to bundled package with combination of consumer service (i.e. telephone, internet
and data, and paid TV). Those services are offered on a postpaid basis and billed in the
following month. The Group applies terms and conditions that requires the customer to pay
substantive early termination penalty if the customer’s contract is ended at the customer’s
request and/or fault within the first 12 months after the service is activated. After the initial
12-month period, the customer can decide to stop subscribing in accordance with the
applicable terms and conditions without incurring any penalties. In accordance with PSAK 115,
the contract period is 12 months, which is then followed by a monthly contract.
All IndiHome services are recognized using the output method based on the customer's actual
usage or time elapsed basis as the customer simultaneously receives and consumes the
benefits provided by the Group.
Customers are required to pay an upfront fee at the commencement of the contract. The
upfront fee is considered to be a material right because the customer is not required to pay an
upfront fee when the customer renews the service beyond the original contract period. The
Group values the renewal option in the amount of the consideration received from the upfront
fee for the installation service. The Group defers the amount of renewal option as contract
liabilities and recognizes it as revenue on a straight-line basis over the expected customer life.
The Group estimates the expected customer life based on the historical information and
customer trends and updates the evaluation on an annual basis.
iii. Interconnection
Revenue from interconnection is mainly comprises of interconnections service or other
telecommunications carriers’ subscriber calls to the Group’s subscribers (incoming call), calls
between other telecommunications carriers’ subscribers through the Group’s network (transit),
and network service with other telecommunications carriers. All of these services are
recognized based on the output method using the basis of the actual recorded traffic for the
month.
iv. SMS, Fixed and Cellular Voice
Services are offered on postpaid or prepaid basis. For prepaid services, initial package sales
(also known as SIM cards and initial charging vouchers) and top-up vouchers are initially
recognized as contract liabilities. The Group recognizes contract assets for the services from
postpaid customers that have not been billed.
Those services revenues are recognized based on output method, either per actual usage or
allowance unit used (if the services are sold in plan basis), because the customer
simultaneously receives and consumes the benefits provided by the Group.
For services sold in bundled plan, total consideration is allocated to performance obligations
based on stand-alone selling price for each of the product and/or service. The Group estimates
the stand-alone selling price using the price enacted if the services are sold on a stand-alone
basis. Most bundled plans sold by the Group only include services which are generally
satisfied over the same period of time. Therefore, the revenue recognition pattern is generally
not impacted by the allocation.
27
Page 31
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
o. Revenue and expense recognition (continued)
Revenue from contract with customers (continued)
iv. SMS, Fixed and Cellular Voice (continued)
The consideration that is received is allocated between the telecommunication services sold
and the points issued, with the consideration allocated to points that are equal to its fair value.
The fair value of the points that are issued is deferred and recognized as revenue when the
points are redeemed, expired, or when the program is terminated.
v. Network and Other Telecommunication Services
Revenues from network consist of revenues from leased lines and satellite transponder leases
which are recognized over the period in which the services are rendered. Revenues from other
telecommunications equipments or services are recognized when other telecommunications
equipments or services are rendered to customers.
Contract assets
A contract asset is initially recognized for revenue earned from delivery of goods or services
because the receipt of consideration is conditional on certain milestones or upon completion of the
project. Upon completion of the milestones or the project, the amount recognized as contract assets
is reclassified to trade receivables.
Refer to accounting policies on impairment of financial assets in section 2.r.i. Financial instruments
- initial recognition and subsequent measurement.
Contract liabilities
A contract liability is recognized if a payment is received or a payment is due (whichever is earlier)
from a customer before the Group transfers the related goods or services. Contract liabilities are
recognized as revenue when the Group performs under the contract (i.e., transfers control of the
related goods or services to the customer).
Incremental cost of obtaining and cost of fulfilling contract
The incremental costs of obtaining/fulfilling contracts with customers, which principally are
comprised of sales commissions and contract fulfilment costs, are initially recognized on the
consolidated statements of financial position as contract costs. These costs are subsequently
amortized on a systematic basis that is consistent with the period and pattern of transfer to the
customer of the related products or services. Costs that do not qualify as costs of obtaining/fulfilling
contract with customers are expensed as incurred or in accordance with other relevant standards.
At the end of each reporting year, the Group evaluates whether there is an indication that
capitalized contract costs may be impaired. An impairment exists when the carrying amount of the
contract costs exceeds the amount expected to be received in exchange for goods and services.
When impairment exists, an impairment loss is recognized in consolidated statements of profit or
loss and other comprehensive income.
28
Page 32
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
o. Revenue and expense recognition (continued)
Revenue from lessor transactions
Revenue from lessor transactions comprises of revenue from telecommunication tower operating
leases and other rental. Rental income is recognized on a straight-line basis over the lease term
and is included in revenue in the statements of profit or loss due to its operating nature.
Expenses
Expenses are recognized as they are incurred.
p. Employee benefits
i. Short-term employee benefits
All short-term employee benefits which consist of salaries and related benefits, vacation pay,
incentives and other short-term benefits are recognized as expense on undiscounted basis
when employees have rendered service to the Group.
ii. Post-employment benefit plans and other long-term employee benefits
Post-employment benefit plans consist of funded and unfunded defined benefit pension plans,
defined contribution pension plan, other post-employment benefits, post-employment health
care benefit plan, defined contribution health care benefit plan and obligations under the Labor
Law.
Other long-term employee benefits consist of Long Service Awards (“LSA”), Long Service
Leave (“LSL”), and pre-retirement benefits.
The cost of providing benefits under post-employment benefit plans and other long-term
employee benefits calculation is performed by an independent actuary using the projected unit
credit method.
The net obligations in respect of the defined pension benefit plans and post-retirement health
care benefit plan are calculated at the present value of estimated future benefits that the
employees have earned in return for their service in the current and prior periods less the fair
value of plan assets. The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows using interest rates of Government bonds that
are denominated in the currencies in which the benefits will be paid and that have terms to
maturity approximating the terms of the related retirement benefit obligation. Government
bonds are used as there are no deep markets for high quality corporate bonds.
Plan assets are assets owned by defined benefit pension plan and post-retirement health care
benefits plan as well as qualifying insurance policy. The assets are measured at fair value as
of reporting dates. The fair value of qualifying insurance policy is deemed to be the present
value of the related obligations (subject to any reduction required if the amounts receivable
under the insurance policies are not recoverable in full).
Remeasurement, comprising of actuarial gains and losses, the effect of the asset ceiling
(excluding amounts included in net interest on the net defined benefit liability (asset) and the
return on plan assets (excluding amounts included in net interest on the net defined benefit
liability (asset)) are recognized immediately in the consolidated statements of financial position
with a corresponding debit or credit to retained earnings through OCI in the period in which
they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
29
Page 33
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
p. Employee benefits (continued)
ii. Post-employment benefit plans and other long-term employee benefits (continued)
Past service costs are recognized immediately in profit or loss on the earlier of:
(a) the date of plan amendment or curtailment; and
(b) the date that the Group recognized restructuring-related costs.
Net interest is calculated by applying the discount rate to the net defined benefit liabilities or
assets.
Gains or losses on curtailment are recognized when there is a commitment to make a material
reduction in the number of employees covered by a plan or when there is an amendment of
defined benefit plan terms such as that a material element of future services to be provided by
current employees will no longer qualify for benefits, or will qualify only for reduced benefits.
Gains or losses on settlement are recognized when there is a transaction that eliminates all
further legal or constructive obligation for part, or all of the benefits provided under a defined
benefit plan (other than the payment of benefit in accordance with the program and included
in the actuarial assumptions).
For defined contribution plans, the regular contributions constitute net periodic costs for the
period in which they are due and, as such, are included in “personnel expenses” as they
become payable.
The Group attributed benefits under the defined benefit plan’s benefit formula to periods of
service from the date when employee service first leads to benefits under the plan until the
date when further employee service will lead to no material amount of further benefits under
the plan.
iii. Early retirement benefit
Early retirement benefits are accrued at the time the Group makes a commitment to provide
early retirement benefits as a result of an offer made in order to encourage voluntary
resignation. A commitment to a termination arises when, and only when a detailed formal plan
for the early retirement cannot be withdrawn.
q. Taxes
Income tax
Current and deferred income taxes are recognized as income or expense and included in the
consolidated statements of profit or loss and other comprehensive income, except to the extent
that the income tax arises from a transaction or event which is recognized directly in equity, in
which case, the income tax is recognized directly in equity.
Current income tax assets and liabilities are measured at the amounts expected to be recovered
or paid by using the tax rates and tax laws that have been enacted or substantively enacted at
each reporting date. Management periodically evaluates positions taken in Annual Tax Returns
("Surat Pemberitahuan Tahunan"/"SPT Tahunan") with respect to situations in which applicable tax
regulation is subject to interpretation. Where appropriate, management establishes provisions
based on the amounts expected to be paid to the Tax Authorities.
30
Page 34
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
q. Taxes (continued)
Tax assessments
Amendment to taxation obligation is recorded when an assessment letter (“Surat Ketetapan Pajak”
or “SKP”) is received or, if appealed against, when the results of the appeal have been determined.
The additional taxes and penalty imposed through SKP are recognized as revenue or expense in
the current year profit or loss, unless objection/appeal is taken. The additional taxes and penalty
imposed through SKP are deferred as long as they meet the asset recognition criteria.
Deferred tax
The Group recognizes deferred tax assets and liabilities for temporary differences between the
financial and tax bases of assets and liabilities at each reporting date. The Group also recognizes
deferred tax assets resulting from the recognition of future tax benefits, such as the benefit of tax
losses carried forward to the extent their future realization is probable. Deferred tax assets and
liabilities are measured using enacted or substantively enacted tax rates and tax laws at each
reporting date which are expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced if it is
no longer probable that sufficient taxable profit will be available to compensate part, or all of the
benefits of deferred tax assets. Unrecognized deferred tax assets are re-assessed at each
reporting date and recognized if it is probable that future taxable profits will be available for
recovery. Tax deductions arising from the reversal of deferred tax assets are excluded from
estimates of future taxable income.
Deferred tax transactions which are recognized outside profit or loss. Therefore, deferred taxes on
these transactions are recognized either in other comprehensive income or recognized directly in
equity.
Deferred tax assets and liabilities are offset in the consolidated statements of financial position, if
and only if it has a legally enforceable right to set off current tax assets and liabilities and the
deferred tax assets and liabilities relate to income taxes levied by the same Tax Authority on either
the same taxable entity or different taxable entities which intend either to settle current tax liabilities
and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each
future period in which significant amounts of deferred tax assets or liabilities are expected to be
recovered or settled.
Value added tax (“VAT”)
Revenues, expenses and assets are recognized net of the VAT amount except:
i. VAT arising from the purchase of assets or services that cannot be credited by the Tax Office,
which VAT is recognized as part of the acquisition cost of the asset or as part of the applied
expenses; and
ii. Receivables and payables are presented including the amount of VAT.
Uncertainty over income tax treatments
ISAK 123: Uncertainty Over Income Tax Treatments stated that the recognition and measurement
of tax assets and liabilities that contain uncertainty over income tax are determined by considering
whether to be treated separately or together, the assumptions used in the examination of tax
treatments by the Tax Authorities, consideration the probability that the Tax Authorities will accept
uncertain tax treatment and re-consideration or estimation if there is a change in facts and
circumstances.
31
Page 35
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
q. Taxes (continued)
Uncertainty over income tax treatments (continued)
If the acceptance of the tax treatment by the Tax Authorities is probable, the measurement is in
line with income tax fillings. If the acceptance of the tax treatment by the Tax Authorities is not
probable, the Group measures its tax balances using the method that provides the better prediction
of resolution (i.e. most likely amount or expected value).
Final tax
Indonesian tax regulations impose final tax on several types of transactions based on the gross
value of the transaction. Therefore, final tax which is charged based on such transaction remains
subject to tax even though the taxpayer incurred a loss on the transaction.
The final tax is scoped out from PSAK 212: Income Tax. Final tax on construction services and
leases are presented as part of “Other income - net”.
r. Financial instruments
The Group classifies financial instruments into financial assets and financial liabilities. A financial
instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
i. Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, and subsequently measured at amortized
cost, fair value through OCI (“FVTOCI”), and fair value through profit or loss (“FVTPL”).
The classification of financial assets at initial recognition depends on the financial asset’s
contractual cash flow characteristics and the Group’s business model for managing them. With
the exception of trade receivables that do not contain a significant financing component or for
which the Group has applied the practical expedient, the Group initially measures a financial
asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs.
Trade receivables that do not contain a significant financing component or for which the Group
has applied the practical expedient are measured at the transaction price determined under
PSAK 115.
In order for a financial asset to be classified and measured at amortized cost or FVTOCI, it
needs to give rise to cash flows that are Solely Payments of Principal and Interest (“SPPI”) on
the principal amount outstanding. This assessment is referred to as the solely payments of
principal and interest test and is performed at an instrument level.
The Group’s business model for managing financial assets refers to how it manages its
financial assets in order to generate cash flows. The business model determines whether cash
flows will result from collecting contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the marketplace (regular way trades) are recognized
on the trade date, i.e., the date that the Group commits to sell the asset.
32
Page 36
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
r. Financial instruments (continued)
i. Financial assets (continued)
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
(a) Financial assets at amortized cost (debt instruments)
The Group measures financial assets at amortized cost if both of the following conditions
are met:
• The financial asset is held within a business model with the objective to hold financial
assets in order to collect contractual cash flows; and
• The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount
outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest
rate (“EIR”) method and are subject to impairment. Gains and losses are recognized in
profit or loss when the asset is derecognized, modified or impaired. The Group’s financial
assets at amortized cost consist of cash and cash equivalents, trade and other
receivables, other current financial assets, and other non-current assets.
(b) Financial assets at FVTOCI with recycling of cumulative gains and losses (debt
instruments)
The Group measures debt instruments at FVTOCI if both of the following conditions are
met:
• The financial asset is held within a business model with the objective of both holding
to collect contractual cash flows and selling; and
• The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount
outstanding.
For debt instruments at FVTOCI, interest income, foreign exchange revaluation, and
impairment losses or reversals are recognized in the statements of profit or loss and
computed in the same manner as for financial assets measured at amortized cost. The
remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative
fair value change recognized in OCI is recycled to profit or loss.
(c) Financial assets designated at FVTOCI with no recycling of cumulative gains and losses
upon derecognition (equity instruments)
Upon initial recognition, the Group can elect to classify irrevocably its equity investments
as equity instruments designated at FVTOCI when they meet the definition of equity under
PSAK 232, Financial Instruments: Presentation and are not held for trading. The
classification is determined on an instrument-by-instrument basis. Gains and losses on
these financial assets are never recycled to consolidated statements of profit or loss and
other comprehensive income. Dividends are recognized as other income in the statement
of profit or loss when the right of payment has been established, except when the Group
benefits from such proceeds as a recovery of part of the cost of the financial asset, in
which case, such gains are recorded in OCI. Equity instruments designated at FVTOCI
are not subject to impairment assessment. The Group’s financial assets at this category
consists of long-term investments in financial instruments.
33
Page 37
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
r. Financial instruments (continued)
i. Financial assets (continued)
Subsequent measurement (continued)
(d) Financial assets at FVTPL
Financial assets at FVTPL include financial assets held for trading, financial assets
designated upon initial recognition at FVTPL, or financial assets mandatorily required to
be measured at fair value. Financial assets are classified as held for trading if they are
acquired for the purpose of selling or repurchasing in the near term. Derivatives, including
separated embedded derivatives, are also classified as held for trading unless they are
designated as effective hedging instruments. Financial assets with cash flows that do not
meet the SPPI requirement are classified and measured at FVTPL, irrespective of the
business model. Notwithstanding the criteria for debt instruments to be classified at
amortized cost or at FVTOCI, as described above, debt instruments may be designated
at FVTPL on initial recognition if doing so eliminates, or significantly reduces, an
accounting mismatch.
Financial assets at FVTPL are carried in the consolidated statements of financial position
at fair value with net changes in fair value recognized in the consolidated statements of
profit or loss and other comprehensive income. The Group’s financial assets at FVTPL
consists of other long-term investments in financial instruments and other current financial
assets.
Expected credit losses (“ECL”)
The Group recognizes an allowance for ECL for all debt instruments not held at FVTPL. ECL
are based on the difference between the contractual cash flows due in accordance with the
contract and all the cash flows that the Group expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash
flows from the sale of collateral held or other credit enhancements that are integral to the
contractual terms.
ECL are recognized in two stages. For credit exposures for which there has not been
a significant increase in credit risk since initial recognition, ECL are provided for credit losses
that result from default events that are possible within the next 12-months (a 12-month ECL).
For those credit exposures for which there has been a significant increase in credit risk since
initial recognition, a loss allowance is required for credit losses expected over the remaining
life of the exposure, irrespective of the timing of the default (a lifetime ECL).
For trade receivables and contract assets, the Group applies a simplified approach in
calculating ECL. Therefore, the Group does not track changes in credit risk, but instead
recognizes a loss allowance based on lifetime ECL at each reporting date. The Group has
established an allowance for expected credit loss methodology that is based on its historical
credit loss experience, adjusted for forward-looking factors specific to the debtors and the
economic environment.
34
Page 38
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
r. Financial instruments (continued)
i. Financial assets (continued)
Expected credit losses (“ECL”) (continued)
The Group considers a financial asset in default when contractual payments are 90 days past
due. However, in certain cases, the Group may also consider a financial asset to be in default
when internal or external information indicates that the Group is unlikely to receive the
outstanding contractual amounts in full before taking into account any credit enhancements
held by the Group. Trade receivables are written-off when there is a low possibility of
recovering the contractual cash flow, after all collection efforts have been done and have been
fully provided for allowance.
ii. Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings, payables or as derivatives designated as hedging
instruments in an effective hedge, as appropriate.
All financial liabilities are recognized initially at fair value and, in the case of loan and
borrowings and payables, net of directly attributable transaction costs.
The Group classifies its financial liabilities as: (a) financial liabilities at FVTPL or (b) financial
liabilities measured at amortized costs.
The Group’s financial liabilities include trade and other payables, accrued expenses, customer
deposits, interest-bearing loans, and lease liabilities. Interest-bearing loans consist of short-
term bank loans, bonds, and long-term bank loans.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
(a) Financial liabilities at FVTPL
Financial liabilities at FVTPL include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at FVTPL. Financial liabilities are
classified as held for trading if they are incurred for the purpose of repurchasing in the
near term. This category also includes derivative financial instruments entered into by the
Group that are not designated as hedging instruments in hedge relationships. Separated
embedded derivatives are also classified as held for trading unless they are designated
as effective hedging instruments. Gains or losses on liabilities held for trading are
recognized in the statement of profit or loss.
Financial liabilities designated upon initial recognition at FVTPL are designated at the
initial date of recognition, and only if the criteria in PSAK 109 are satisfied. The Group
has not designated any financial liability as at FVTPL.
35
Page 39
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
r. Financial instruments (continued)
ii. Financial liabilities (continued)
Subsequent measurement (continued)
(b) Financial liabilities measured at amortized cost
This is the category most relevant to the Group. After initial recognition, interest-bearing
loans and other borrowings are subsequently measured at amortized cost using the EIR
method. Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through the EIR amortization process. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortization is included as finance
costs in the statement of profit or loss. This category generally applies to interest-bearing
loans and other borrowings. For more information, refer to Note 19.
iii. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the consolidated
statements of financial position when there is a legally enforceable right to offset the
recognized amounts and there is an intention to settle them on a net basis, or realize the
assets and settle the liabilities simultaneously. The right of offset must not be contingent on a
future event and must be legally enforceable in all of the following circumstances:
(a) the normal course of business;
(b) the event of default; and
(c) the event of insolvency or bankruptcy of the Group and all of the counterparties.
iv. Derecognition of financial instruments
The Group derecognizes a financial asset when the contractual rights to the cash flows from
the financial asset expire, or when the Group transfers substantially all the risks and rewards
of ownership of the financial asset.
The Group derecognizes a financial liability when the obligation specified in the contract is
discharged or cancelled or has expired.
s. Treasury stock
Reacquired the Company’s shares of stock are accounted for at their reacquisition cost and
classified as “Treasury Stock” and presented as a deduction in equity. The cost of treasury stock
sold/transferred is accounted for using the weighted average method. No gain or loss is recognized
in profit or loss on the acquisition, resale, issuance, or cancellation of the Group’s equity
instruments. Any difference between the carrying amount and consideration from future re-sale of
treasury stocks, is recognized as part of additional paid-in-capital in the equity.
t. Dividends
Dividend for distribution to the stockholders is recognized as a liability in the consolidated financial
statements in the year in which the dividend is approved by the stockholders. The interim dividend
is recognized as a liability based on the Directors’ decision supported by the approval from the
Board of Commissioners.
36
Page 40
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
u. Basic earnings per share and earnings per ADS
Basic earnings per share is computed by dividing profit for the year attributable to owners of the
parent company by the weighted average number of shares outstanding during the year. Income
per ADS is computed by multiplying the basic earnings per share by 100, the number of shares
represented by each ADS.
v. Segment information
The Group's segment information is presented based upon identified operating segments in
accordance with PSAK 108: Operating Segment. An operating segment is a component of an
entity:
i. that engages in business activities from which it may earn revenues and incur expenses
(including revenues and expenses relating to transactions with other components of the same
entity);
ii. whose operating results are regularly reviewed by the Group’s Chief Operating Decision Maker
(“CODM”) i.e., the Directors, to make decisions about resources to be allocated to the segment
and assess its performance; and
iii. for which discrete financial information is available.
w. Provisions
Provisions are recognized when the Group has present obligations (legal or constructive) arising
from past events and it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligations and the amount can be measured reliably.
Provisions for onerous contracts are recognized when the contract becomes onerous for the lower
of the cost of fulfilling the contract and any compensation or penalties arising from failure to fulfill
the contract.
x. Impairment of non-financial assets
At the end of each reporting period, the Group assesses whether there is an indication that an non-
financial assets may be impaired. These assets include property and equipment, current assets,
and other non-current assets, including intangible assets. If such indication exists, the recoverable
amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount
of the individual asset, the Group determines the recoverable amount of the Cash-Generating Unit
(“CGU”) to which the asset belongs (“the asset’s CGU”).
The recoverable amount of an asset (either individual asset or CGU) is the higher of the asset’s
fair value less costs to sell and its value in use (“VIU”). Where the carrying amount of the asset
exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount. In assessing the value in use, the estimated net future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset.
In determining fair value less costs to sell, recent market transaction prices are taken into account,
if available. If no such transactions can be identified, the Group uses an appropriate valuation
model to determine the fair value of the asset. These calculations are corroborated by multiple
valuations or other available fair value indicators.
Impairment losses of continuing operations are recognized in the consolidated statements of profit
or loss and other comprehensive income.
37
Page 41
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
x. Impairment of non-financial assets (continued)
At the end of each reporting period, the Group assesses whether there is any indication that
previously recognized impairment losses for an asset, other than goodwill, may no longer exist or
may have decreased. If such indication exists, the recoverable amount is estimated. A previously
recognized impairment loss for an asset, other than goodwill, is reversed only if there has been a
change in the assumptions used to determine the asset’s recoverable amount since the last
impairment loss was recognized. The reversal is limited such that the carrying amount of the asset
does not exceed its recoverable amount, nor exceeds the carrying amount that would have been
determined, net of depreciation, had no impairment been recognized for the asset in prior periods.
Reversal of an impairment loss is recognized in consolidated statements of profit or loss and other
comprehensive income.
Goodwill is tested for impairment annually and when circumstances indicate that the carrying value
may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of
each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the
CGU is less than its carrying amount, an impairment loss is recognized. Impairment loss relating
to goodwill cannot be reversed in future periods.
y. Current and non-current classifications
The Group presents assets and liabilities in the statements of financial position based on current/
non-current classification. An asset is presented as current when it is:
i. expected to be realized or intended to be sold, or consumed in the normal operating cycle;
ii. held primarily for the purpose of trading;
iii. expected to be realized within twelve months after the reporting period; or
iv. cash or cash equivalent unless restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period.
Assets which do not meet above criteria are classified as non-current assets.
A liability is presented as current when:
i. it is expected to be settled in the normal operating cycle;
ii. it is held primarily for the purpose of trading;
iii. it is due to be settled within twelve months after reporting period;
iv. there is no right by the end of reporting period to defer the settlement of the liability for at least
twelve months after the reporting period.
The terms of liability that could, at the option of counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.
Liabilities which do not meet above criteria are classified as long-term liabilities.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
z. Significant accounting judgements, estimates, and assumptions
The preparation of the Group's consolidated financial statements requires management to make
judgements, estimates, and assumptions that affect the reporting amounts of revenue, expenses,
assets and liabilities, and the accompanying disclosures, and disclosures of contingent liabilities,
at the end of the reporting period.
Uncertainty about these assumptions and estimates can produce results that require a material
adjustment to the carrying amounts of assets and liabilities affected in the coming periods.
38
Page 42
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
z. Significant accounting judgements, estimates and assumptions (continued)
i. Judgements
The following judgements were made by management in applying the Group's accounting
policies that have the most significant influence on the amounts recognized in the consolidated
financial statements:
Segment information
For management purposes, the Group uses a business pillars-based as follows: Business to
Customer (“B2C”), Business to Business Infrastructure (“B2B Infra”), Business to Business
ICT (“B2B ICT”), International, and Others. The Group has determined the reportable segment
reported based on, among others, the structure of the organization as well as the components
of the Group whose operating results are regularly reviewed by CODM. The Group has
determined that the Directors is the CODM, as it monitors the operating results od each
segment separately for the purposes of resource allocation ation and performance
assessment.
Income taxes
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax
laws, and the amount and timing of future taxable income could necessitate future adjustments
to tax income and expense already recorded. Judgement is also involved in determining the
provision for corporate income tax. There are certain transactions and computation for which
the ultimate tax determination is uncertain during the ordinary course of business.
The Group recognizes liabilities for anticipated tax audit issues based on estimates of whether
additional taxes will be due. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will impact the current and deferred
income tax assets and liabilities in the year in which such determination is made.
ii. Estimates and assumptions
Estimates and assumption are continually evaluated and are based on historical experience
and other factors, including expectations of future events that are believed to be reasonable
under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and
assumptions at the reporting date that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the next financial year are addressed
below.
(a) Retirement benefits
The present value of the retirement benefit obligations depends on a number of factors
that are determined on an actuarial basis using a number of assumptions. The
assumptions used in determining the net cost (income) for pensions include the discount
rate and return on investment (“ROI”). Any changes in these assumptions will impact the
carrying amount of the retirement benefit obligations.
39
Page 43
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
z. Significant accounting judgements, estimates and assumptions (continued)
ii. Estimates and assumptions (continued)
(a) Retirement benefits (continued)
The Group determines the appropriate discount rate at the end of each reporting period.
This is the interest rate that should be used to determine the present value of estimated
future cash outflows expected to be required to settle the obligations. In determining the
appropriate discount rate, the Group considers the interest rates of Government bonds
that are denominated in the currency in which the benefits will be paid and that have
terms to maturity approximating the terms of the related retirement benefit obligations.
If there is an improvement in the ratings of such Government bonds or a decrease in
interest rates as a result of improving economic conditions, there could be a material
impact on the discount rate used in determining the post-employment benefit obligations.
Other key assumptions for retirement benefit obligations are based in part on current
market conditions. Additional information is disclosed in Notes 30 and 31.
(b) Useful lives of property and equipment
The Group estimates the useful lives of its property and equipment based on expected
asset utilization, considering strategic business plans, expected future technological
developments, and market behavior. The estimates of useful lives of property and
equipment are based on the Group’s collective assessment of industry practice, internal
technical evaluation, and experience with similar assets.
The Group reviews its estimates of useful lives at least each financial year-end and such
estimates are updated if expectations differ from previous estimates due to changes in
expectation of physical wear and tear, technical or commercial obsolescence, and legal
or other limitations on the continuing use of the assets. The amounts of recorded
expenses for any year will be affected by changes in these factors and circumstances. A
change in the estimated useful lives of the property and equipment is a change in
accounting estimates and is applied prospectively in profit or loss in the period of the
change and future periods.
In 2025, the Company determined changes in the estimated useful lives for several assets
owned by the Company are as follows:
Change in
Estimated estimated
useful lives useful lives
Property and equipment Asset class (years) (years)
Cable network Optical Line Terminal 25 8
Switching equipment Switching equipment 10-15 5-10
Transmission installation,
and equipment Terrestrial transmission 10-15 8
Satellite, earth station, IP Multimedia Subsystem
and equipment ("IMS") 10-15 8
40
Page 44
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
z. Significant accounting judgements, estimates and assumptions (continued)
ii. Estimates and assumptions (continued)
(c) Determining the lease term of contracts with renewal and termination options - Group as
lessee
The Group determines the lease term as the non-cancellable term of the lease, together
with any periods covered by an option to extend the lease if it is reasonably certain to be
exercised, or any periods covered by an option to terminate the lease, if it is reasonably
certain not to be exercised.
The Group has several lease contracts that include extension and termination options.
The Group applies judgement in evaluating whether it is reasonably certain whether or
not to exercise the option to renew or terminate the lease. That is, it considers all relevant
factors that create an economic incentive for it to exercise either the renewal or
termination. After the commencement date, the Group reassesses the lease term if there
is a significant event or change in circumstances that is within its control and affects its
ability to exercise or not to exercise the option to renew or to terminate.
(d) Allowance for expected credit losses for financial assets
The Group applies a simplified approach in calculating ECLs for trade receivables and
contract assets. Therefore, the Group does not track changes in credit risk, but instead
recognizes a loss allowance based on lifetime ECLs at each reporting date. For other
receivables, the Group assesses whether there is objective evidence that other
receivables have been impaired at the end of each reporting period.
The Group has established an allowance for expected credit losses methodology for trade
receivables and contract assets that is based on its historical credit loss experience and
latest supportable data to better reflect the current change in circumstances, adjusted for
forward-looking factors specific to the debtors, and the economic environment. Methods
and approaches will continue to be monitored and updated if additional reasonable and
supportable data and information are available.
(e) Revenue
(i) Critical judgements in determining the performance obligation, timing of revenue
recognition and revenue classification
The Group provides information technology services that are bespoke in nature.
Bespoke products consist of various goods and/or services bundled together in order
to provide integrated solution services to customers. In addition to the bespoke
service, the Group also provides multiple standard products as bundling product in
contract with customer. Significant judgement is required in determining the number
and nature of performance obligations promised to customers in those contracts.
The number and nature of performance obligations will determine the timing of
revenue recognition for such contract.
The Group reviews the determination of performance obligations on a contract-by-
contract basis. When a contract consisting of several goods and/or service is
assessed to have one performance obligation, the Group applies a single method of
measuring progress for the performance obligation based on the measurement
method that best depicts the economics of the contract, which in most cases is over
time.
41
Page 45
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
z. Significant accounting judgements, estimates and assumptions (continued)
ii. Estimates and assumptions (continued)
(e) Revenue (continued)
(i) Critical judgements in determining the performance obligation, timing of revenue
recognition and revenue classification (continued)
The Group also presents the revenue classification using consistent approach.
When a contract consisting of several goods and/or service is assessed to have one
performance obligation, the Group presents that performance obligations in one
financial statement line items which best represent the main service of the Group,
which in most cases is the internet, data communication and information technology
services.
(ii) Critical judgements in determining the stand-alone selling price
The Group provides wide array of products related to telecommunication and
technology. To determine the stand-alone selling price for goods and/or services that
do not have any readily available observable price, the Group uses the expected
cost-plus margin approach. The Group determines the appropriate margin based on
historical achievement.
(f) Test for impairment of non-current assets and goodwill
The application of the acquisition method in a business combination requires the use of
accounting estimates in allocating the purchase price to the fair market value of the assets
and liabilities acquired, including intangible assets. Certain business acquisitions by the
Group resulted goodwill, which is not amortized but is tested for impairment annually and
every indication of impairment exists.
The calculation of future cash flows in determining the fair value of property and
equipment and other non-current assets of the acquired entity at the acquisition date
involves significant estimation. Although management believes that the assumptions
used are appropriate, significant changes to those assumptions can materially affect the
evaluation of recoverable amounts and may result in impairment according to PSAK 236.
(g) Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the statements
of financial position cannot be measured based on quoted prices in active markets, their
fair value is measured using valuation techniques including the discounted cash flow
(“DCF”) model. The inputs to these models are taken from observable markets where
possible, but where this is not feasible, a degree of judgement is required in establishing
fair values. Judgements include considerations of inputs such as liquidity risk, credit risk
and volatility. Changes in assumptions relating to these factors could affect the reported
fair value of financial instruments.
42
Page 46
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
z. Significant accounting judgements, estimates and assumptions (continued)
ii. Estimates and assumptions (continued)
(h) Acquisition
The Group evaluates each acquisition transaction to determine whether it will be treated
as an asset acquisition or business combination. For transactions that are treated as an
asset acquisition, the purchase price is allocated to the assets obtained, without the
recognition of goodwill. For acquisitions that meet the business combination definition,
the Group applies the accounting for business acquisiton method for assets acquired and
liabilities assumed which are recorded at fair value at the acquisition date, and the results
of operations are included with the Group's results from the date of each acquisition.
Any excess from the purchase price paid for the amount recognized for assets acquired
and liabilities incurred is recorded as goodwill. The Group continues to evaluate
acquisitions that are counted as a business combination for a period not exceeding one
year after the applicable acquisition date of each transaction to determine whether
additional adjustments are needed to allocate the purchase price paid for the assets
acquired and liabilities assumed. The fair value of assets acquired and liabilities incurred
are usually determined using either an estimated replacement cost or a discounted cash
flow valuation method. When determining the fair value of tangible assets acquired, the
Group estimates the cost of replacing assets with new assets by considering factors such
as the age, condition, and economic useful lives of the assets. When determining the fair
value of the intangible assets obtained, the Group estimates the applicable discount rate
and the time and amount of future cash flows, including the rates and terms for the
extension and reduction.
iii. Change in accounting policy
In 2025, following a detailed reassessment of the physical characteristics, operational
deployment, and asset topology of drop cable, the Group concluded that drop cable should be
identified and classified as a separate component of telecommunication infrastructure assets
rather than remaining embedded within broader shared access-network cable component. In
reaching this conclusion, the Group determined that the revised componentization policy
provides more reliable and more relevant information as it better reflects drop cable’s distinct
nature as a last-mile, customer-specific connection asset.
This change constitutes a change in accounting policy as it reflects a revision in the principles
applied in determining the unit of account and asset classification. Following the identification
of drop cable assets as a separate component, the Group determined a useful life of 5 years,
reflecting their specific characteristics and pattern of economic benefits consumption.
The Group applied this voluntary change in accounting policy retrospectively in accordance
with the provisions of PSAK 208. The Group determined that the information required to
restate the comparative period was available and reliable. The consolidated financial
statements for the six month period ended June 30, 2025 have been adjusted to reflect the
change in accounting policy as disclosed in the Group’s consolidated financial statements for
the year ended December 31, 2025.
43
Page 47
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION (continued)
z. Significant accounting judgements, estimates and assumptions (continued)
iii. Change in accounting policy (continued)
Impact on the Consolidated Statements of Proft or Loss and Other Comprehensive Income
As
previously As
June 30, 2025 Notes reported Adjustment adjusted
Depreciation and amortization expenses 11,12a (16,198) (620) (16,818)
Operating profit 19,901 (620) 19,281
Profit before income tax 18,137 (620) 17,517
Income tax benefit
Deferred tax 27d 111 118 229
Profit for the period 14,126 (502) 13,624
Comprehensive income for the period 14,250 (502) 13,748
Profit for the period attributable to
Owners of the parent company 10,975 (502) 10,473
Comprehensive income for the period attributable to
Owners of the parent company 11,099 (502) 10,597
Basic earnings per share (in full amount)
Profit for share 110.79 (5.07) 105.72
Profit per ADS (100 Series B shares per ADS) 11,078.90 (506.76) 10,572.14
Rienc
44
Page 48
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
3. CASH AND CASH EQUIVALENTS
June 30, 2026 December 31, 2025
Balance Balance
Currency Rupiah Currency Rupiah
Currency (in million) equivalent (in million) equivalent
Cash on hand Rp - 51 - 39
Cash in banks
Related parties
PT Bank Rakyat Indonesia (Persero) Tbk. (“BRI”) Rp - 7,590 - 4,959
US$ 233 4,161 240 4,007
TWD 1 1 4 2
PT Bank Mandiri (Persero) Tbk. (“Bank Mandiri”) Rp - 8,433 - 5,780
US$ 49 874 34 567
EUR 2 45 2 44
HKD 2 5 3 7
AU$ 0 2 0 1
JPY 6 1 6 1
PT Bank Tabungan Negara (Persero) Tbk. ("BTN") Rp - 6,226 - 2,925
PT Bank Negara Indonesia (Persero) Tbk. (“BNI”) Rp - 4,011 - 2,785
US$ 49 883 39 652
GBP 0 1 0 1
EUR 0 0 0 0
SGD 0 0 0 0
AU$ 0 0 0 0
PT Bank Syariah Indonesia Tbk. (“BSI”) Rp - 149 - 71
US$ 0 0 0 0
Others Rp - 0 - 1
Sub-total 32,382 21,803
Third parties
PT Bank Maybank Indonesia Tbk. ("Maybank") Rp - 1,260 - 839
MYR 2 8 1 4
The Hongkong and Shanghai Banking Corporation Ltd.
("HSBC Hong Kong") US$ 29 522 22 364
HKD 30 69 12 27
PT Bank UOB Indonesia ("UOB Indonesia") Rp - 11 - 2
US$ 1 16 1 24
SGD 19 261 2 23
MYR 0 1 1 3
MMK 14 0 15 0
DBS Bank (Hong Kong) Ltd. ("DBS Hong Kong") US$ 13 238 10 165
HKD 0 1 0 1
Standard Chartered Bank ("SCB") SGD 8 112 12 160
US$ 4 79 8 135
PT Bank HSBC Indonesia ("HSBC Indonesia") Rp - 172 - 15
US$ - - 0 0
Bank Central Asia ("BCA") Rp - 124 - 95
US$ 0 2 0 2
EUR 0 0 0 0
Others (each below Rp100 billion) Rp - 321 - 502
US$ 10 172 19 306
TWD 35 20 34 18
AU$ 0 1 0 2
EUR 0 1 0 2
SGD 0 0 - -
MYR 0 0 - -
MMK 0 0 - -
HKD 0 0 0 0
Sub-total 3,391 2,689
Total of cash in banks 35,773 24,492
Time deposits
Related parties
BSI Rp - 4,584 - 1,150
BNI Rp - 1,863 - 497
US$ 24 429 34 567
BTN Rp - 2,202 - 1,530
US$ 3 54 - -
BRI Rp - 1,439 - 1,159
US$ 17 307 10 168
Bank Mandiri Rp - 974 - 190
US$ 15 268 10 167
Sub-total 12,120 5,428
45
Page 49
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
3. CASH AND CASH EQUIVALENTS (continued)
June 30, 2026 December 31, 2025
Balance Balance
Currency Rupiah Currency Rupiah
Currency (in million) equivalent (in million) equivalent
Time deposits (continued)
Third parties
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk.
("BJB") Rp - 807 - 58
US$ 29 517 22 367
Bank Pembangunan Daerah ("BPD") Rp - 1,311 - 804
PT Bank Mega Tbk. (“Bank Mega”) Rp - 498 - 433
US$ 40 710 38 637
PT Bank Danamon Tbk. ("Bank Danamon") Rp - 1,190 - 89
UOB Indonesia US$ 25 439 16 274
SGD 8 115 3 44
Maybank Rp - 532 - 99
PT Bank China Construction Bank Indonesia Tbk.
("CCB Indonesia") Rp - 54 - 184
US$ 7 126 13 209
SCB US$ 10 179 7 117
Others (each below Rp100 billion) Rp - 130 - 927
US$ 1 13 1 13
MYR 4 15 4 15
Sub-total 6,636 4,270
Total of time deposits 18,756 9,698
Allowance for expected credit losses (1) (1)
Total 54,579 34,228
Interest rates per annum on time deposits are as follows:
June 30, 2026 December 31, 2025
Rupiah 0,50%-7,10% 0,53%-7,08%
Foreign currencies 1,01%-6,00% 1,01%-5,25%
The Group places the majority of its cash and cash equivalents in state-owned banks (related parties)
that have good reputations and credit ratings. Based on management’s assessment of expected credit
risk, there has been no significant increase in credit risk, therefore, the allowance for expected credit
losses on these assets is not material.
46
Page 50
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
4. OTHER CURRENT FINANCIAL ASSETS
June 30, 2026 December 31, 2025
Balance Balance
Currency Rupiah Currency Rupiah
Currency (in million) equivalent (in million) equivalent
Time deposits
Related parties
BRI Rp - 121 - 50
US$ 26 464 5 84
Bank Mandiri Rp - 133 - -
US$ 5 89 5 84
BSI Rp - 120 - 120
Others (each below Rp100 billion) Rp - 80 - 100
Third parties
United Overseas Bank Limited Singapore
("UOB Singapore") US$ 32 571 33 554
Standard Chartered Bank (Singapore) Limited
("SCB Singapore") US$ 11 196 6 101
Others (each below Rp100 billion) Rp - 0 - 10
Total time deposits 1,774 1,103
Escrow accounts
Related parties
Others (each below Rp100 billion) Rp - 20 - 106
US$ 0 3 0 4
Third parties
Others Rp - 6 - 1
US$ 4 75 4 67
Total escrow accounts 104 178
Mutual funds
Related parties
Others Rp - 89 - 94
Total mutual funds 89 94
Others Rp - 41 - 44
MYR - - 0 1
Total others 41 45
Allowance for expected credit losses (0) (0)
Total 2,008 1,420
The time deposits have maturities of more than three months but not more than one year, with interest
rates as follows:
June 30, 2026 December 31, 2025
Rupiah 2,50%-5,50% 3,00%-6,50%
Foreign currencies 3,49%-4,00% 3,75%-4,45%
47
Page 51
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES
Trade receivables arise from services provided to both retail and non-retail customers, with details as
follows:
a. By debtor
(i) Related parties
June 30, 2026 December 31, 2025
State-owned enterprises 1,606 1,702
PT Indosat Tbk. ("Indosat") 854 906
PT Indonusa Telemedia ("Indonusa") 386 387
Others (each below Rp100 billion) 123 134
Total 2,969 3,129
Allowance for expected credit losses (1,024) (1,089)
Net 1,945 2,040
(ii) Third parties
June 30, 2026 December 31, 2025
Individual and business subscribers 14,806 13,758
Overseas international carriers 1,509 1,291
Total 16,315 15,049
Allowance for expected credit losses (6,486) (5,866)
Net 9,829 9,183
b. By age
June 30, 2026 December 31, 2025
Allowance for Expected Allowance for Expected
expected credit expected credit
Gross credit losses loss rate Gross credit losses loss rate
Not past due 6,690 475 7.1% 6,687 263 3.9%
Past due up to 3 months 4,241 545 12.9% 3,155 414 13.1%
Past due more than 3 to 6 months 1,462 423 28.9% 1,573 454 28.9%
Past due more than 6 months 6,891 6,067 88.0% 6,763 5,824 86.1%
Total 19,284 7,510 18,178 6,955
The Group has made allowance for expected credit losses based on the collective assessment of
historical impairment rates and individual assessment of its customers’ credit history, adjusted for
forward-looking factors specific from the customers and the economic environment. The Group
does not apply a distinction between related party and third party receivables in assessing amounts
past due. As of June 30, 2026 and December 31, 2025, the carrying amounts of trade receivables
of the Group considered past due but not impaired amounted to Rp5,559 billion and Rp4,799 billion,
respectively. Management believes that receivables past due but not impaired, along with trade
receivables that are neither past due nor impaired, are due from customers with good credit history
and are expected to be recoverable.
c. By currency
June 30, 2026 December 31, 2025
Rupiah 16,730 15,554
U.S. Dollar 2,310 2,423
Singapore Dollar 176 156
Others 68 45
Total 19,284 18,178
Allowance for expected credit losses (7,510) (6,955)
Net 11,774 11,223
48
Page 52
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
5. TRADE RECEIVABLES (continued)
d. Movements in the allowance for expected credit losses
June 30, 2026 December 31, 2025
Beginning balance 6,955 6,064
Allowance for expected credit losses 1,189 1,465
Receivables written-off (634) (574)
Ending balance 7,510 6,955
The receivables written-off relate to both related parties and third parties trade receivables.
Management believes that the allowance for expected credit losses of trade receivables is adequate
to cover losses on uncollectible trade receivables.
As of June 30, 2026 and December 31, 2025, certain trade receivables of the subsidiaries
amounting to Rp2,531 billion and Rp3,131 billion, respectively, have been pledged as collateral
under lending agreements (Notes 18 and 19b).
6. CONTRACT ASSETS
The breakdown of contract assets is as follows:
June 30, 2026 December 31, 2025
Contract assets 2,755 2,529
Allowance for expected credit losses (132) (130)
Net 2,623 2,399
Current portion (2,496) (2,290)
Non-current portion 127 109
Management believes that the allowance for expected credit losses is adequate to cover losses on
uncollectible contract assets.
Refer to Note 32 for details of related party transactions.
7. INVENTORIES
Inventories, all recognized at net realizable value, consist of:
June 30, 2026 December 31, 2025
SIM cards and prepaid vouchers 394 457
Others (each below Rp100 billion) 454 504
Total 848 961
Provision for obsolescence (60) (60)
Net 788 901
Management believes the provision is adequate to cover losses from the decline in inventory value
due to obsolescence.
The inventories recognized as expenses included in operations, maintenance, and telecommunication
service expenses in June 30, 2026 and 2025 amounted to Rp276 billion and Rp262 billion, respectively
(Note 25).
There were no inventories pledged as collateral under lending agreements as of June 30, 2026 and
December 31, 2025.
49
Page 53
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
8. OTHER CURRENT ASSETS
The breakdown of other current assets is as follows:
June 30, 2026 December 31, 2025
Prepaid frequency license fees - current
portion (Note 35c.i) 3,791 6,384
Advances 536 511
Prepaid salaries 361 178
Other receivables 271 173
Prepaid rent 185 162
Others (each below Rp100 billion) 866 634
Total 6,010 8,042
9. CONTRACT COSTS
Movements of contract costs the six months period ended June 30, 2026 and for the year ended
December 31, 2025 are as follows:
June 30, 2026
Cost to obtain Cost to fulfill Total
At January 1, 2026 1,686 616 2,302
Addition during the period 233 504 737
Amortization during the period (415) - (415)
Expense during the period - (340) (340)
At June 30, 2026 1,504 780 2,284
Current (470) (362) (832)
Non-current 1,034 418 1,452
December 31, 2025
Cost to obtain Cost to fulfill Total
At January 1, 2025 1,666 1,064 2,730
Addition current year 519 323 842
Amortization during the year (499) - (499)
Expense during the year - (763) (763)
Impairment - (8) (8)
At December 31, 2025 1,686 616 2,302
Current (472) (460) (932)
Non-current 1,214 156 1,370
50
Page 54
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
10. LONG-TERM INVESTMENTS
The breakdown of long-term investment is as follows:
June 30, 2026 December 31, 2025
Financial instruments
At fair value through profit or loss:
Equity 6,252 6,901
Convertible bonds 309 353
At fair value through other comprehensive income:
Equity 27 27
Convertible bonds 44 -
6,632 7,281
Associates
PT Jalin Pembayaran Nusantara ("Jalin") 105 106
105 106
Total long-term investments 6,737 7,387
Investments in equity at fair value through profit or loss are long-term investments in the form of shares
in various start-up companies engaged in information and technology. The Group does not have
significant influence in these start-up companies.
Investments in equity at fair value through profit or loss include:
(i) Telkomsel's investment in PT GoTo Gojek Tokopedia Tbk. (“GOTO”).
As of June 30, 2026 and 2025, Telkomsel assessed the fair value of the investment in GOTO
using level 1 based on GOTO’s market value of Rp50 per share and Rp58 per share, respectively.
The total unrealized loss from changes in fair value of Telkomsel’s investment in GOTO the six
months period ended June 30, 2026 and 2025 amounted to Rp332 billion and
Rp285 billion, respectively. These amounts were presented as unrealized gain loss on changes in
fair value of investments in the consolidated statements of profit or loss.
(ii) Investments by MDI in several start-up entities engaged in the information and technology sector.
In June 30, 2026 and 2025, the additional investments by MDI amounted to RpNil and
Rp111 billion, respectively.
Detailed information regarding the level 1 and level 3 fair value measurement techniques is disclosed
in Note 37.
Investments in convertible bonds at fair value through profit or loss represent long-term investments
owned by MDI and Telkomsel in the form of convertible bonds in various start-up companies engaged
in information and technology. These convertible bonds provide the holders with an option to convert
the bonds into shares upon maturity, in accordance with the agreed terms and conditions. In the event
that the conversion option is not exercised, the bondholders are entitled to receive the principal
repayment of the bonds.
The unrecognized share of losses from investments in associates, accounted for under the equity
method, amounted cumulatively to Rp334 billion and Rp332 billion as of June 30, 2026 and 2025,
respectively.
51
Page 55
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT
The details of property and equipment are as follows:
December 31, Reclassifications/ June 30,
2025 Additions Deductions Translations 2026
At cost:
Directly acquired assets
Land rights 1,995 3 - 7 2,005
Buildings 21,963 14 (7) 397 22,367
Leasehold improvements 1,901 5 (11) 153 2,048
Switching equipment 19,700 62 (79) 539 20,222
Telegraph, telex, and data communication
equipment 2 - - - 2
Transmission installation and equipment 186,890 585 (1,242) 4,258 190,491
Satellite, earth station, and equipment 15,107 44 - 106 15,257
Cable network 67,175 976 - (111) 68,040
Drop cable 19,790 90 - 2 19,882
Power supply 27,535 56 (98) 1,608 29,101
Data processing equipment 22,877 184 (527) 333 22,867
Other telecommunication peripherals 13,274 297 (352) - 13,219
Office equipment 2,616 31 (43) 28 2,632
Vehicles 516 - - (123) 393
Other equipment 71 - - - 71
Property under construction 4,011 7,101 - (7,524) 3,588
Total 405,423 9,448 (2,359) (327) 412,185
Accumulated depreciation:
Directly acquired assets
Buildings 8,356 228 (5) 78 8,657
Leasehold improvements 1,449 71 (10) - 1,510
Switching equipment 14,900 848 (79) 26 15,695
Telegraph, telex, and data communication
equipment 2 - - - 2
Transmission installation and equipment 114,133 5,927 (1,187) 270 119,143
Satellite, earth station, and equipment 8,481 375 - 55 8,911
Cable network 25,490 1,698 - (2) 27,186
Drop cable 15,438 808 - 2 16,248
Power supply 20,901 1,139 (96) (188) 21,756
Data processing equipment 17,470 889 (519) (62) 17,778
Other telecommunication peripherals 10,822 580 (277) - 11,125
Office equipment 2,223 82 (43) 6 2,268
Vehicles 265 1 - (44) 222
Other equipment 40 1 - - 41
Total 239,970 12,647 (2,216) 141 250,542
Net book value 165,453 161,643
52
Page 56
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT (continued)
The details of property and equipment are as follows (continued):
December 31, Reclassifications/ December 31,
2024 Additions Deductions Translations 2025
At cost:
Directly acquired assets
Land rights 1,981 - - 14 1,995
Buildings 20,907 197 (2) 861 21,963
Leasehold improvements 1,795 5 (46) 147 1,901
Switching equipment 19,470 285 (1,722) 1,667 19,700
Telegraph, telex, and data communication
equipment 5 - - (3) 2
Transmission installation and equipment 182,170 1,836 (5,178) 8,062 186,890
Satellite, earth station, and equipment 14,795 143 (202) 371 15,107
Cable network 63,471 3,505 (13) 212 67,175
Drop cable 18,104 1,686 - - 19,790
Power supply 25,604 483 (476) 1,924 27,535
Data processing equipment 21,940 407 (1,245) 1,775 22,877
Other telecommunication peripherals 12,238 1,047 - (11) 13,274
Office equipment 2,719 128 (85) (146) 2,616
Vehicles 530 2 (5) (11) 516
Other equipment 60 3 - 8 71
Property under construction 2,930 14,850 (1) (13,768) 4,011
Total 388,719 24,577 (8,975) 1,102 405,423
Accumulated depreciation:
Directly acquired assets
Buildings 7,461 701 (2) 196 8,356
Leasehold improvements 1,347 121 (46) 27 1,449
Switching equipment 14,795 1,755 (1,717) 67 14,900
Telegraph, telex, and data communication
equipment 4 - - (2) 2
Transmission installation and equipment 106,321 12,320 (5,076) 568 114,133
Satellite, earth station, and equipment 7,377 918 (203) 389 8,481
Cable network 20,531 4,944 (12) 27 25,490
Drop cable 13,497 1,941 - - 15,438
Power supply 18,720 2,300 (432) 313 20,901
Data processing equipment 16,532 1,837 (1,248) 349 17,470
Other telecommunication peripherals 9,216 1,608 - (2) 10,822
Office equipment 2,284 253 (85) (229) 2,223
Vehicles 250 31 (5) (11) 265
Other equipment 49 2 - (11) 40
Total 218,384 28,731 (8,826) 1,681 239,970
Net book value 170,335 165,453
The property and equipment group consists of (1) switching equipment; (2) telegraph, telex, and data
communication equipment; (3) transmission installation and equipment; (4) satellite, earth station, and
equipment; (5) cable network; (6) drop cable; (7) power supply; (8) data processing equipment; and
(9) other telecommunication peripherals are the main telecommunication infrastructure of the Group.
a. Gain on sale of property and equipment
2026 2025
Proceeds from sale of property and equipment 62 1
Net book value (49) 0
Gain on disposal or sale of property and equipment 13 1
53
Page 57
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT (continued)
b. Others
(i) During 2025, the CGUs that independently generate cash inflows are fixed wireline, cellular,
and others. Management believes that there is no indication of impairment in the assets of
such CGUs as of December 31, 2025.
(ii) Interest capitalized to property under construction amounted to Rp4 billion and Rp2 billion for
the six months period ended June 30, 2026 and 2025, respectively. The capitalization rate
used to determine the amount of borrowing costs eligible for capitalization ranged from 4.73%
and 4.70% for the six months period ended June 30, 2026 and 2025, respectively.
(iii) No foreign exchange loss was capitalized as part of property under construction for the six
months period ended June 30, 2026 and for the year ended December 31, 2025.
(iv) During the six months period ended June 30, 2026 and 2025, the Group obtained proceeds
from the insurance claim on lost and damaged property and equipment, with a total value of
Rp3 billion and Rp114 billion, respectively, and were recorded as part of “Other income - net”
in the consolidated statements of profit or loss and other comprehensive income. During the
six months period ended June 30, 2026 and 2025, the net carrying values of these assets
amounted to Rp8 billion and Rp86 billion, respectively, were charged to the consolidated
statements of profit or loss and other comprehensive income.
(v) The Group owns several pieces of land located throughout Indonesia with Right to Build
(“Hak Guna Bangunan” or “HGB”) for a period of 6 to 50 years which will expire between 2026
and 2070. Management believes that there will be no issue in obtaining the extension of the
land rights when they expire.
(vi) As of June 30, 2026 and December 31, 2025, the Group’s property and equipment excluding
land rights, with a net carrying amount (before intercompany eliminations and adjustments) of
Rp152,106 billion and Rp160,374 billion, respectively, were insured against fire, theft,
earthquake and other specified risks, including business interruption. The total blanket policies
as of June 30, 2026 and December 31, 2025, amounted to Rp42,163 billion and
Rp44,267 billion, HKD12 million and HKD35 million, SGD139 million and SGD197 million, and
MYR46 million and MYR46 million, respectively. The total policies for first loss basis as of
June 30, 2026 and December 31, 2025, amounted to Rp2,750 billion and Rp2,750 billion,
respectively. Management believes that the insurance coverage is adequate to cover potential
losses from the insured risks.
(vii) As of June 30, 2026 and December 31, 2025, the percentage of completion of property under
construction was approximately 50.80% and 44.12%, respectively, of the total contract value
or Rp3,588 billion and Rp4,011 billion are recorded as expenditures in property under
construction, respectively. The estimated completion dates are until February 2027 and
December 2026, respectively. The balance of property under construction mainly consists of
buildings, transmission installation and equipment, cable network, and power supply.
Management believes that there is no impediment to the completion of the construction in
progress.
(viii) As of June 30, 2026 and December 31, 2025, all assets owned by the Company have been
pledged as collateral for bonds (Note 19a) while certain property and equipment of the
Company’s subsidiaries with gross carrying value amounting to Rp2,205 billion and
Rp2,205 billion, respectively, have been pledged as collateral under borrowing agreements
(Notes 18 and 19b).
54
Page 58
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
11. PROPERTY AND EQUIPMENT (continued)
b. Others (continued)
(ix) As of June 30, 2026 and December 31, 2025, the cost of fully depreciated property and
equipment of the Group that are still used in operations amounted to Rp118,694 billion and
Rp100,603 billion, respectively. The Group is currently conducting modernization of network
assets to replace the fully depreciated property and equipment.
(x) In 2025, the Company determined changes in the estimated useful lives for several assets
owned by the Company (Note 2z.ii.(b)). The impact of the increase in depreciation expense
(before intercompany eliminations and adjustments) for the six months period ended
June 30, 2026 is Rp867 billion. The estimate for the increase (decrease) in depreciation
expense for at least the next 5 (five) years is as follows:
Years Increase (Decrease)
2026 579
2027 653
2028 228
2029 (96)
2030 (381)
(xi) In 2025, the Company conducted an evaluation of the physical condition of its assets and
recognized an accelerated depreciation of Rp1,945 billion for several types of assets that were
assessed to no longer be optimally utilized.
(xii) In 2025, the total fair values of land rights and buildings of the Group amounted to
Rp54,474 billion.
12. LEASES
a. The Group as a lessee
The Group leases several assets including land rights, building, transmission installation and
equipment, vehicles, and others which used in operations, which generally have lease term
between 1 and 30 years.
The carrying amounts of right-of-use assets recognized and the movements during the period are
as follows:
Transmission
installation and
Land rights Buildings equipment Vehicles Others Total
As at January 1, 2025 5,175 588 19,097 493 1,557 26,910
Additions 2,320 138 4,471 413 99 7,441
Deductions and reclassifications (137) 23 (603) (12) - (729)
Depreciation expense (1,142) (193) (3,977) (310) (39) (5,661)
As at December 31, 2025 6,216 556 18,988 584 1,617 27,961
Additions 1,023 173 2,700 61 21 3,978
Deductions and reclassifications 42 22 (285) 49 0 (172)
Depreciation expense (600) (102) (2,001) (181) (25) (2,909)
As at June 30, 2026 6,681 649 19,402 513 1,613 28,858
55
Page 59
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
12. LEASES (continued)
a. The Group as a lessee (continued)
The carrying amounts of the lease liabilities and the movements during the period are as follows:
June 30, 2026 December 31, 2025
Beginning balance 24,137 23,959
Accretion of interest 717 1,466
Additions (Note 39a) 3,978 7,441
Deductions (4,862) (8,729)
Ending balance 23,970 24,137
Current (5,655) (5,590)
Non-current 18,315 18,547
The maturity analysis of lease payments is as follows:
June 30, 2026 December 31, 2025
No later than a year 6,945 6,844
Later than 1 year and no later than 5 years 13,186 14,676
Later than 5 years 8,844 7,517
Total lease payments 28,975 29,037
Interest (5,005) (4,900)
Net present value of lease payments 23,970 24,137
Current (5,655) (5,590)
Non-current 18,315 18,547
The Group also has certain leases with lease terms of twelve months or less and low-value leases.
The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for
these leases. There are no lease contracts with variable lease payments.
The following are the amounts recognized in profit or loss:
2026 2025
Depreciation expense of right-of-use assets 2,909 2,776
Expense relating to short-term leases 1,741 1,742
Interest expense on lease liabilities 717 730
Expense relating to leases of low-value assets 7 8
b. The Group as a lessor
The Group entered into non-cancelable lease agreements with both third and related parties.
The lease agreements cover leased lines, telecommunication equipment and land and building with
terms ranging from 1 to 25 years and with expiry dates between 2027 and 2039. Periods may be
extended based on the agreement by both parties.
The minimum amount of future lease payments and receipts for operating lease agreements are
as follows:
June 30, 2026 December 31, 2025
No later than 1 year 3,107 3,188
Later than 1 year and no later than 5 years 9,624 10,670
Later than 5 years 3,947 4,701
Total 16,678 18,559
56
Page 60
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
13. OTHER NON-CURRENT ASSETS
The breakdown of other non-current assets is as follows:
June 30, 2026 December 31, 2025
Claims for tax refund - net of current portion (Note 27b) 2,671 3,996
Prepaid expenses 1,431 1,432
Prepaid frequency license fees -
net of current portion (Note 35c.i) 1,004 1,201
Advances 786 734
Security deposits 228 284
Others (each below Rp100 billion) 230 226
Total 6,350 7,873
14. INTANGIBLE ASSETS
The details of intangible assets are as follows:
Other intangible
Goodwill Software License assets Total
Gross carrying amount:
Balance, January 1, 2026 1,389 23,597 725 1,714 27,425
Additions - 1,282 25 2 1,309
Deductions (1) - - - (1)
Reclassifications/translations - 2 5 - 7
Balance, June 30, 2026 1,388 24,881 755 1,716 28,740
Accumulated amortization:
Balance, January 1, 2026 (475) (16,203) (370) (1,140) (18,188)
Amortization - (1,447) (55) (31) (1,533)
Deductions - - - - -
Reclassifications/translations - (16) (2) 1 (17)
Balance, June 30, 2026 (475) (17,666) (427) (1,170) (19,738)
Net book value 913 7,215 328 546 9,002
Other intangible
Goodwill Software License assets Total
Gross carrying amount:
Balance, January 1, 2025 1,474 20,531 647 1,703 24,355
Additions - 2,878 68 16 2,962
Deductions - (8) (1) (3) (12)
Reclassifications/translations (85) 196 11 (2) 120
Balance, December 31, 2025 1,389 23,597 725 1,714 27,425
Accumulated amortization:
Balance, January 1, 2025 (479) (13,086) (277) (1,071) (14,913)
Amortization - (2,906) (94) (72) (3,072)
Deductions - 7 - - 7
Reclassifications/translations 4 (218) 1 3 (210)
Balance, December 31, 2025 (475) (16,203) (370) (1,140) (18,188)
Net book value 914 7,394 355 574 9,237
(i) Goodwill resulted from the acquisition by Mitratel, Metranet, Sigma, TDE, Telkomsat, and Metra
amounted to Rp467 billion, Rp220 billion, Rp78 billion, Rp77 billion, Rp68 billion, and Rp3 billion,
respectively.
(ii) The remaining amortization periods of software for the periods ended June 30, 2026 and
December 31, 2025 are from 1 to 6 years, respectively. The amortization expense is presented
as part of “Depreciation and amortization expenses” in the consolidated statements of profit or
loss and other comprehensive income.
(iii) As of June 30, 2026 and December 31, 2025, the cost of fully amortized intangible assets that
are still utilized in operations amounted to Rp11,601 billion and Rp10,664 billion, respectively.
57
Page 61
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
15. TRADE PAYABLES
The breakdown of trade payables is as follows:
June 30, 2026 December 31, 2025
Related parties
Purchases of equipment, materials, and services 222 337
Payables to other telecommunication providers 241 234
Sub-total 463 571
Third parties
Purchases of equipment, materials, and services 8,534 10,006
Payables to other telecommunication providers 2,987 3,123
Radio frequency usage charges, concession fees,
and Universal Service Obligation (“USO”) charges 1,360 2,484
Sub-total 12,881 15,613
Total 13,344 16,184
Trade payables by currency are as follows:
June 30, 2026 December 31, 2025
Rupiah 10,369 13,476
U.S. Dollar 2,864 2,657
Others 111 51
Total 13,344 16,184
Terms and conditions of the above trade payables:
a. The Group’s trade payables are non-interest bearing and normally settled within 1 year term.
b. Refer to Note 32c for details on related party transactions.
c. Refer to Note 37b.v for the Group’s liquidity risk management.
Telkom Akses and Mitratel entered into supply chain financing with several banks. Those facilities can
be used by the Telkom Akses and Mitratel's supplier to obtain payment of invoices that have been
approved to be paid by the bank in accordance with certain terms and conditions. As of June 30, 2026
and December 31, 2025, the carrying amount of liabilities under supplier finance arrangement is as
follows:
June 30, 2026 December 31, 2025
Liabilities under supplier finance arrangement 178 353
Total amount of which the supplier has received payment
from finance provider 178 353
Range of payment due dates 1-3 month 1-3 month
There were no material business combinations or foreign exchange differences that would affect the
liabilities under the supplier finance arrangement in either period. There were no non-cash transfers
from trade payables to bank loans under supplier finance arrangements as of June 30, 2026 and
December 31, 2025.
58
Page 62
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
16. ACCRUED EXPENSES
The breakdown of accrued expenses is as follows:
June 30, 2026 December 31, 2025
Operation, maintenance,
and telecommunication services 5,561 5,459
General, administrative, and marketing expenses 5,483 3,525
Salaries and benefits 3,779 5,673
Interest and bank charges 201 210
Total 15,024 14,867
-
Refer to Note 32 for details of related party transactions.
17. CONTRACT LIABILITIES
The breakdown of contract liabilities is as follows:
a. Current
June 30, 2026 December 31, 2025
Advances from customers for B2C 3,590 3,396
Advances from customers for B2B ICT 2,750 2,774
Advances from customers for International 872 814
Advances from customers for B2B Infra 437 492
Advances from customers for others 606 494
Total 8,255 7,970
b. Non-Current
June 30, 2026 December 31, 2025
Advances from customers for International 1,519 1,059
Advances from customers for B2C 408 558
Advances from customers for B2B ICT 366 581
Advances from customers for others 561 653
Total 2,854 2,851
Refer to Note 32 for details of related party transactions.
18. SHORT-TERM BANK LOANS
Outstanding
Lenders June 30, 2026 December 31, 2025
Related parties
BNI 2,544 586
BRI 1,800 100
Bank Mandiri 363 804
Sub-total 4,707 1,490
Third parties
MUFG Bank ("MUFG") 1,755 2,805
PT Bank HSBC Indonesia ("HSBC") 1,799 2,100
PT Bank DBS Indonesia ("DBS") 400 420
PT Bank Maspion Indonesia Tbk. ("Bank Maspion") 136 95
Others 19 19
Sub-total 4,109 5,439
Total 8,816 6,929
59
Page 63
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
18. SHORT-TERM BANK LOANS (continued)
Other significant information relating to short-term bank loans as of June 30, 2026 is as follows:
Total
facility
(in Interest Interest rate per
Borrower Currency billions)* Maturity date rate annum Security**
BNI
2014 Sigma Rp 150 January 9, 2027 Monthly 8.50% Trade
receivables
and property
and
equipment
2017-2021 Infomedia, Rp 985 March 28, 2027- Monthly 1 month IndONIA + None
Telkom Infra June 6, 2027 2.64%-2.78%
2019 Metranet Rp 150 February 18, 2027 Monthly 1 month Trade
IndONIA + 2.88% receivables
2022 The Company Rp 2,000 September 26, 2026 Monthly 5.75% None
BRI
2022-2025 The Company, Rp 3,500 September 8, 2026- Monthly, 5.00%-7.20% None
Finnet, Mitratel March 19, 2027 Quarterly
Bank Mandiri
2020 Finnet Rp 500 April 28, 2027 Monthly 1 month None
IndONIA + 1.50%
2021 Nutech Rp 100 September 27, 2026 Monthly 9.00% Trade
receivables
and property
and
equipment
MUFG
2019 Infomedia, GSD, Rp 1,876 July 31, 2026- Monthly, 1 month IndONIA + None
Telkom Infra, October 31, 2026 Quarterly 1.22%-1.98%;
Telkomsat 3 months
IndONIA + 2.16%
HSBC
2019-2023 Sigma, TDE, Rp 2,004 July 10, 2026- Monthly 1 month None
Metranet, April 2, 2027 IndONIA + 1.22%
Telkomsat, GSD
2026 Mitratel Rp 500 May 5, 2027 Monthly 5.89% None
DBS
2018 Telkom Infra, Rp 600 August 1, 2026 Monthly, 1 month None
Infomedia Quarterly IndONIA + 1.2%;
3 months
IndONIA + 1.2%
Bank Maspion
2023 Metranet Rp 170 October 26, 2026 Monthly 7.25% None
* In original currency
** Refer to Note 5 and Note 11 for details of trade receivables and property and equipment pledged as collateral.
As stated in the agreements, the Group is required to comply with all covenants or restrictions such
as limitation that the Company must have a majority shareholding of at least 51% of the subsidiaries
and must maintain certain level of financial ratios. As of December 31, 2025, the Group has complied
with all covenants regarding these financial ratios, except for Sigma which debt to service coverage
ratio is still lower than required. As of December 31, 2025, the Group obtained waiver for loan
amounting to Rp9 billion from HSBC to not require payment as the consequence of the breach for
Sigma. The waiver from HSBC was received on December 15, 2025 and effective for 12 months after
reporting period. As of June 30, 2026, the Group has complied with all covenants regarding these
financial ratios.
The credit facilities were obtained by the Group for working capital purposes.
60
Page 64
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
19. LONG-TERM LOANS
Current maturities of long-term loans consist of the following:
Notes June 30, 2026 December 31, 2025
Bank loans 19b 20,477 17,746
Long-term loans consist of the following:
Notes June 30, 2026 December 31, 2025
Bonds 19a 2,696 2,696
Bank loans 19b 24,926 23,403
Total 27,622 26,099
Scheduled principal payments as of June 30, 2026 are as follows:
Year
Notes Total 2027 2028 2029 2030 Thereafter
Bonds 19a 2,696 - - - 1,200 1,496
Bank loans 19b 24,926 3,206 6,158 5,623 4,775 5,164
Total 27,622 3,206 6,158 5,623 5,975 6,660
a. Bonds
Outstanding
Bonds June 30, 2026 December 31, 2025
Bonds Telkom 2015
Series C 1,200 1,200
Series D 1,500 1,500
Total 2,700 2,700
Unamortized debt issuance cost (4) (4)
2,696 2,696
Current maturities - -
Long-term portion 2,696 2,696
Listed Issuance Interest Interest rate
Bonds Principal Issuer on date Maturity date payment period per annum
Series A 2,200 The Company IDX June 23, 2015 June 23, 2022 Quarterly 9.93%
Series B 2,100 The Company IDX June 23, 2015 June 23, 2025 Quarterly 10.25%
Series C 1,200 The Company IDX June 23, 2015 June 23, 2030 Quarterly 10.60%
Series D 1,500 The Company IDX June 23, 2015 June 23, 2045 Quarterly 11.00%
Total 7,000
The bonds are not secured by specific security but by all of the Company’s assets, movable or non-
movable, either existing or in the future (Note 11b.viii). The underwriters of the bonds are
PT. Bahana TCW Investment Management (“Bahana TCW”), PT BRI Danareksa Sekuritas,
PT Mandiri Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk., and the trustee is Bank Permata.
The Company received the proceeds from the issuance of bonds on June 23, 2015.
61
Page 65
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
19. LONG-TERM LOANS (continued)
a. Bonds (continued)
The funds received from the public offering of bonds net of issuance costs, were used to finance
capital expenditures which consisted of broadband, backbone, metro network, regional metro
junction, information technology application and support, and acquisition of some domestic and
international entities.
As of June 30, 2026, the rating of the bonds issued by Pefindo is idAAA (Triple A).
Based on the Indenture Trusts Agreement, the Company is required to comply with all covenants
or restrictions, including maintaining financial ratios as follows:
(a) Debt to equity ratio should not exceed 2:1;
(b) EBITDA to interest ratio should not be less than 4:1;
(c) Debt service coverage is at least 125%.
As of June 30, 2026, the Company has complied with the above-mentioned ratios.
b. Bank loans
June 30, 2026 December 31, 2025
Outstanding Outstanding
Foreign Foreign
currency Rupiah currency Rupiah
Lenders Currency (in millions) equivalent (in millions) equivalent
Related parties
BNI Rp - 13,059 - 13,155
Bank Mandiri Rp - 4,272 - 7,635
BSI Rp - 3,458 - 1,666
BRI Rp - 232 - 261
Sub-total 21,021 22,717
Third parties
BCA Rp - 10,347 - 7,313
DBS Rp - 5,917 - 4,350
Bank of China Rp - 1,900 - 1,900
Bank CIMB Niaga Rp - 1,583 - 1,750
US$ 9 157 10 173
Bank Permata Rp - 1,458 - 1,229
PT Bank Sinarmas Tbk. (“Bank Sinarmas”) Rp - 1,000 - 1,000
PT Bank ANZ Indonesia ("Bank ANZ") Rp - 1,000 - -
HSBC Rp - 681 - 784
PT Bank Muamalat Indonesia Tbk.
("Bank Muamalat") Rp - 400 - -
Bank Danamon Rp - 13 - 16
Others MYR 6 25 6 26
Sub-total 24,481 18,541
Total 45,502 41,258
Unamortized debt issuance cost (99) (109)
45,403 41,149
Current maturities (20,477) (17,746)
Long-term portion 24,926 23,403
62
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
19. LONG-TERM LOANS (continued)
b. Bank loans (continued)
Other significant information relating to bank loans as of June 30, 2026, is as follows:
Current
Total period
facility payment Principal Interest
(in (in payment payment Interest rate
Borrower Currency billions)* billions)* schedule period per annum Security**
BNI
2013 Sigma Rp 650 17 2021-2027 Monthly 1 month Trade
IndONIA + 3.12% receivables
and property
and equipment
2018 TLT Rp 1,540 0 2018-2033 Quarterly 3 months Property and
IndONIA + 1.54% equipment
2021-2025 Mitratel, PST, Rp 21,650 4,779 2018-2032 Monthly, 1 month None
UMT, TIF, Quarterly IndONIA + 0.75%;
Telkomsel 3 months IndONIA +
0.25%-1.62%
Bank Mandiri
2018 Telkomsel Rp 4,000 3,000 2018-2026 Quarterly 5.00% None
2019-2024 GSD, PST, Rp 5,400 363 2021-2031 Monthly, 1 month None
Mitratel Quarterly IndONIA + 0.85%;
3 months IndONIA +
0.95%-2.85%
BSI
2021 Telkomsel Rp 2,000 1,000 2025-2027 Monthly 6.80% None
2024 Mitratel Rp 2,500 208 2024-2029 Monthly 1 month None
IndONIA + 0.85%
BRI
2023 Mitratel Rp 1,000 29 2024-2030 Monthly 1 month None
IndONIA + 1.00%
BCA
2020-2026 The Company, Rp 10,356 1,094 2022-2033 Monthly, 1 month IndONIA + None
PST, GSD, Quarterly 0.75%-0.90%;
Mitratel, TIF 3 months IndONIA +
1.25%-2.50%
2021-2025 The Company, Rp 5,000 71 2022-2033 Monthly, 6.80%-7.55% None
Telkomsel, TIF Quarterly
DBS
2021-2025 The Company, Rp 9,500 433 2022-2031 Monthly, 1 month None
Mitratel, TIF Quarterly IndONIA + 0.95%;
3 months
IndONIA + 1.30%
2025 Telkomsel Rp 1,000 1,000 2025-2026 Quarterly 4.70% None
Bank of China
2019 Telkomsel Rp 1,900 3,800 2019-2026 Monthly 6.00% None
Bank CIMB
Niaga
2022 Mitratel Rp 2,000 167 2024-2028 Monthly 1 month None
IndONIA + 0.90%
2025 Telkomsel Rp 1,000 2,500 2025-2027 Monthly 6.40% None
2021-2022 Telin US$ 0 0 2025-2030 Semi- 6 months None
annually SOFR + 1.82%
Bank Permata
2020-2024 Mitratel Rp 2,250 771 2021-2031 Monthly 1 month None
IndONIA + 1.02%
2025 Telkomsel Rp 1,000 1,000 2025-2027 Monthly 5.60% None
Bank Sinarmas
2024 Telkomsel Rp 1,000 3,000 2025-2026 Quarterly 6.42% None
Bank ANZ
2025 Telkomsel Rp 1,500 - 2025-2027 Monthly 7.45% None
HSBC
2021-2023 Mitratel Rp 1,250 103 2023-2030 Monthly 1 month None
IndONIA + 0.90%
Bank Muamalat
2026 Mitratel Rp 400 - 2026-2033 Monthly 3 months None
IndONIA + 0.75%
Bank Danamon
2024 SSI Rp 24 2 2024-2029 Monthly 8.75% None
** In original currency
** Refer to Note 5 and Note 11 for details of trade receivables and property and equipment pledged as collateral.
63
Page 67
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
19. LONG-TERM LOANS (continued)
b. Bank loans (continued)
As stated in the agreements, the Group is required to comply with all covenants or restrictions such
as dividend distribution, obtaining new loans, and maintaining financial ratios. As of
December 31, 2025, the Group has complied with all covenants regarding these financial ratios,
except for Sigma which debt to service coverage ratio is still lower than required. As of
December 31, 2025, the Group obtained waiver for loan amounting to Rp47 billion from BNI to not
require payment as the consequence of the breach for Sigma. The waiver from BNI was received
on December 15, 2025 and effective for 12 months after reporting period. As of June 30, 2026, the
Group has complied with all covenants regarding these financial ratios.
The credit facilities were obtained by the Group for working capital purposes and investment
purposes.
20. NON-CONTROLLING INTERESTS
The details of non-controlling interests are as follows:
June 30, 2026 December 31, 2025
Non-controlling interests in net assets of subsidiaries:
Telkomsel 7,526 10,381
Mitratel 7,835 8,404
Others (each below Rp100 billion) 1,154 1,067
Total 16,515 19,852
2026 2025
Non-controlling interests in profit (loss)
in current period of subsidiaries:
Telkomsel 3,120 2,881
Mitratel 313 213
Others 150 57
Total 3,583 3,151
Material partly-owned subsidiaries
The non-controlling interests which are considered material to the Company are the non-controlling
interests in Telkomsel and Mitratel. On June 30, 2026 and December 31, 2025, the non-controlling
interest in Telkomsel holds 30.10% and Mitratel holds 28.16%.
The summarized financial information of Telkomsel and Mitratel are provided below. These information
are based on amounts before intercompany eliminations and adjustments.
Summarized statements of financial position:
Telkomsel Mitratel
June 30, December 31, June 30, December 31,
2026 2025 2026 2025
Current assets 14,578 17,651 4,578 3,051
Non-current assets 96,127 96,976 55,528 55,299
Current liabilities (49,869) (41,560) (11,217) (7,500)
Non-current liabilities (42,041) (44,791) (16,837) (17,499)
Total equity 18,795 28,276 32,052 33,351
Attributable to:
Owners of the parent company 11,269 17,895 24,217 24,947
Non-controlling interests 7,526 10,381 7,835 8,404
64
Page 68
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
20. NON-CONTROLLING INTERESTS (continued)
Material partly-owned subsidiaries (continued)
Summarized statements of profit or loss and other comprehensive income:
Telkomsel Mitratel
2026 2025 2026 2025
Revenues 55,607 53,844 4,691 4,596
Operation expenses (40,573) (40,617) (2,653) (2,502)
Other expenses - net (1,816) (966) (863) (917)
Profit before income tax 13,218 12,261 1,175 1,177
Income tax expense - net (2,849) (2,686) (63) (83)
Profit for the period 10,369 9,575 1,112 1,094
Other comprehensive income (loss) - net 0 0 - -
Total comprehensive
income for the period 10,369 9,575 1,112 1,094
Attributable to
non-controlling interests 3,120 2,881 313 213
Dividends paid to
non-controlling interests 1,798 6,729 538 545
Summarized statements of cash flows:
Telkomsel Mitratel
2026 2025 2026 2025
Operating 23,569 18,603 4,627 4,734
Investing (6,143) (5,776) (730) (809)
Financing (17,363) (12,680) (2,554) (1,753)
Net increase in
cash and cash equivalents 63 147 1,343 2,172
CF
21. CAPITAL STOCK
June 30, 2026
Percentage of Total paid-in
Description Number of shares
ownership capital
Series A Dwiwarna share
Government 1 - -
Series B shares
Pemerintah 516,023,535 0.52 26
DAM 51,086,330,024 51.57 2,554
The Bank of New York Mellon Corporation* 6,224,018,780 6.28 311
Directors (Note 1b):
Dian Siswarini 202,000 0 0
Veranita Yosephine 90,000 0 0
Nanang Hendarno 32,500 0 0
Faizal Rochmad Djoemadi 248,500 0 0
Commissioners (Note 1b):
Rizal Mallarangeng 3,240,600 0 0
Public (individually less than 5%) 40,750,754,860 41.14 2,038
Sub-total 98,580,940,800 99.51 4,929
Share buyback (Note 1c) 481,275,800 0.49 24
Total 99,062,216,600 100.00 4,953
65
Page 69
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
21. CAPITAL STOCK (continued)
December 31, 2025
Percentage of Total paid-in
Description Number of shares
ownership capital
Series A Dwiwarna share
Government 1 0 0
Series B shares
DAM 51,602,353,559 52.09 2,580
The Bank of New York Mellon Corporation* 4,356,822,980 4.40 218
Directors (Note 1b):
Dian Siswarini 203,000 0 0
Veranita Yosephine 90,000 0 0
Nanang Hendarno 32,500 0 0
Faizal Rochmad Djoemadi 248,500 0 0
Commissioners (Note 1b):
Rizal Mallarangeng 3,240,600 0 0
Silmy Karim 1,344,700 0 0
Public (individually less than 5%) 43,088,935,360 43.50 2,155
Sub-total 99,053,271,200 99.99 4,953
Share buyback (Note 1c) 8,945,400 0.01 0
Total 99,062,216,600 100.00 4,953
* The Bank of New York Mellon Corporation serves as the Depositary of the registered ADS holders for the Company’s ADSs.
The Company issued only 1 Series A Dwiwarna share which is held by the Government of the Republic
of Indonesia and cannot be transferred to any party, and has a veto right in the General Meeting of
Stockholders of the Company with respect to the election and removal of the Boards of Commissioners
and Directors, issuance of new shares, and amendments of the Company’s Articles of Association.
Based on Notarial Deed of Jose Dima Satria, S.H., M.Kn., No. 121, dated March 22, 2025, the
Government transferred its ownership of 51,602,353,559 Series B shares, representing 52.09% of the
Company's total shares, to PT Biro Klasifikasi Indonesia (“BKI”) through “inbreng” capital contribution.
This share transfer was conducted in accordance with prevailing legal regulations, specifically:
(a) Government Regulation Number 15 Year 2025 regarding the Addition of Capital Participation of
the Republic of Indonesia into the Share Capital of BKI for the Establishment of an Operational
Holding;
(b) Government Regulation Number 16 Year 2025 regarding the Addition of State Capital
Participation of the Republic of Indonesia into the Daya Anagata Nusantara Investment
Management Agency (“Danantara”).
BKI, as the transferee, serves as the Operational Holding Company, with all of its shares owned by
the Government through the Minister of State-Owned Enterprises and Danantara. The Government
retains its position as the Company's Ultimate Beneficial Owner through its direct ownership of 1 Series
A Dwiwarna share with special rights and its indirect ownership of BKI's Series B shares through
Danantara. Based on Notarial Deed of Jose Dima Satria, S.H., M.Kn., No. 163, dated May 23, 2025,
BKI changed its name to DAM.
On January 6, 2026, based on the Agreement on the Transfer of the Republic of Indonesia’s State
Owned Shares in the Form of Series B Shares on State-Owned Enterprise to the State-Owned
Enterprises Regulatory Agency (Badan Pengaturan BUMN/”BP BUMN”) Number
PERJ 1/BPU/01/2026 and Number LGL1.001/PERJ/DIDAM.DO/2026 between the Head of BP BUMN
and DAM. DAM has handed over 516,023,535 Series B shares owned by the Company to BP BUMN,
which represents 1% of the total State ownership through BP BUMN and DAM or 0.52% of all shares
issued and fully paid up by the Company. After the transfer, the Government remains the Controlling
Shareholder of the Company (ultimate beneficial owner). Through direct ownership of BP BUMN of
1 Series A Dwiwarna share with special rights and 516,023,535 Series B shares, as well as through
DAM of 51,086,330,024 Series B shares consolidated in Danantara. The change in share ownership
was made in order to fulfill the provisions of Law No. 16 of 2025 concerning the Fourth Amendment to
Law No. 19 of 2003 concerning State-Owned Enterprises and has been recorded in the Company's
Shareholder Register on January 6, 2026.
66
Page 70
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
22. OTHER EQUITY
June 30, 2026 December 31, 2025
Difference from the acquisition of non-controlling
interests in subsidiaries 8,364 8,364
Exchange rate translation adjustment 1,957 1,462
Effect of changes in associates’ equity 386 386
Unrealized gain on available-for-sale securities 10 10
Other equity components 37 37
Total 10,754 10,259
23. REVENUES
The Group derives revenues in the following major product lines:
Consolidated
2026 B2C B2B Infra B2B ICT International Others revenue
Data, internet, and information
technology service revenues
Cellular data and internet 38,133 - - - - 38,133
Internet, data communication, and
information technology services 253 657 5,345 908 - 7,163
Others 105 689 319 91 1,684 2,888
Total data, internet, and information
technology service revenues 38,491 1,346 5,664 999 1,684 48,184
IndiHome revenues 12,798 - - - - 12,798
Interconnection revenues 186 438 - 3,821 - 4,445
Telephone revenues
Cellular 1,307 - - 92 - 1,399
Fixed lines - 35 211 - - 246
SMS 1,790 - 8 - - 1,798
Total telephone revenues 3,097 35 219 92 - 3,443
Network revenues 1 1,090 192 826 - 2,109
Other services
E-payment - - - - 1,022 1,022
Call center service - - 589 - - 589
Manage service and terminal - - 389 2 - 391
Others 156 303 222 4 763 1,448
Total other services 156 303 1,200 6 1,785 3,450
Total revenues from
contract with customer 54,729 3,212 7,275 5,744 3,469 74,429
Revenues from lessor transactions - 1,449 - - - 1,449
Total revenues 54,729 4,661 7,275 5,744 3,469 75,878
Consolidated
2025 B2C B2B Infra B2B ICT International Others revenue
Data, internet, and information
technology service revenues
Cellular data and internet 33,961 - - - - 33,961
Internet, data communication, and
information technology services 208 538 5,413 906 - 7,065
Others 29 607 248 75 1,346 2,305
Total data, internet, and information
technology service revenues 34,198 1,145 5,661 981 1,346 43,331
IndiHome revenues 13,251 - - - - 13,251
Interconnection revenues 190 618 - 4,154 - 4,962
Telephone revenues
Cellular 2,701 - - 100 - 2,801
Fixed lines - 28 246 - - 274
SMS 1,755 - 16 - - 1,771
Total telephone revenues 4,456 28 262 100 - 4,846
Network revenues 2 993 271 580 - 1,846
Other services
E-payment - - - - 747 747
Call center service - - 628 - - 628
Manage service and terminal - - 368 2 - 370
E-health - - - - 362 362
Others 118 187 182 14 687 1,188
Total other services 118 187 1,178 16 1,796 3,295
Total revenues from
contract with customer 52,215 2,971 7,372 5,831 3,142 71,531
Revenues from lessor transactions - 1,473 - - - 1,473
Total revenues 52,215 4,444 7,372 5,831 3,142 73,004
67
Page 71
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
23. REVENUES (continued)
Management expects that most of the transaction price allocated to the unsatisfied contracts as of
June 30, 2026 will be recognized as revenue during the next reporting periods. Unsatisfied
performance obligations as of June 30, 2026, which management expects to be realised within one
year is Rp10,317 billion, and more than one year is Rp5,979 billion.
The Group entered into non-cancellable lease agreements with both third and related parties. The
lease agreements cover leased lines, telecommunication equipment and land and building with terms
ranging from 1 to 25 years and with expiry dates between 2027 and 2039. Periods may be extended
based on the agreement by both parties.
Refer to Note 32 for details of related parties transactions.
24. PERSONNEL EXPENSES
The breakdown of personnel expenses is as follows:
2026 2025
Salaries and related benefits 4,666 5,024
Vacation pay, incentives, and other benefits 2,021 2,002
Pension and other post-employment
benefits (Note 30) 796 864
LSA expense (Note 31) 155 161
Others 83 24
Total 7,721 8,075
Refer to Note 32 for details of related parties transactions.
25. OPERATION, MAINTENANCE, AND TELECOMMUNICATION SERVICE EXPENSES
The breakdown of operation, maintenance, and telecommunication service expenses is as follows:
2026 2025
Operation and maintenance 12,911 11,602
Radio frequency usage charges (Note 35c.i) 3,902 3,844
Leased lines and Customer Premise
Equipment ("CPE") 1,748 1,663
Concession fees and USO charges (Note 15) 1,638 1,437
Electricity, gas, and water 548 509
Cost of SIM cards, vouchers, and
sales of peripherals (Note 7) 275 262
Project management 192 162
Insurance 141 164
Others (each below Rp100 billion) 119 117
Total 21,474 19,760
Refer to Note 32 for details of related parties transactions.
68
Page 72
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
26. GENERAL AND ADMINISTRATIVE EXPENSES
The breakdown of general and administrative expenses is as follows:
2026 2025
Allowance for expected credit losses
trade receivables (Note 5) 1,189 980
General expenses 1,172 1,224
Professional fees 296 314
Training, education, and recruitment 191 155
Traveling 178 151
Meeting 150 159
Social contribution 137 143
Collection expenses 113 45
Others (each below Rp100 billion) 240 171
Total 3,666 3,342
Refer to Note 32 for details of related parties transactions.
27. TAXATION
a. Prepaid income taxes
June 30, 2026 December 31, 2025
Subsidiaries:
Income Tax
Corporate income tax 91 4
Article 4(2) - Final tax 45 16
Article 22 - Withholding tax on goods delivery and imports 3 -
Article 23 - Withholding tax on services 234 55
VAT 1,845 1,587
Total prepaid taxes 2,218 1,662
Current portion (2,218) (1,662)
Non-current portion - -
b. Claims for tax refund
June 30, 2026 December 31, 2025
The Company
Income Tax
Corporate income tax 297 663
Article 21 - Individual income tax 41 42
VAT 219 746
Subsidiaries
Income Tax
Corporate income tax 1,390 1,806
Article 21 - Individual income tax - 6
Article 23 - Withholding tax on service delivery 32 60
VAT 919 990
Total claims for tax refund 2,898 4,313
Current portion (227) (317)
Non-current portion (Note 13) 2,671 3,996
69
Page 73
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
c. Taxes payable
June 30, 2026 December 31, 2025
The Company:
Income taxes
Article 4(2) - Final tax 13 31
Article 21 - Individual income tax 48 2
Article 22 - Withholding tax on goods delivery
and imports 1 1
Article 23 - Withholding tax on services 32 46
Article 29 - Corporate income tax 250 -
VAT 621 304
VAT - Tax collector 181 185
1,146 569
Subsidiaries:
Income taxes
Article 4(2) - Final tax 143 219
Article 21 - Individual income tax 195 52
Article 22 - Withholding tax on goods delivery
and imports 4 5
Article 23 - Withholding tax on services 43 183
Article 25 - Installment of corporate income tax 506 52
Article 26 - Withholding tax on non-resident income 291 14
Article 29 - Corporate income tax 1,042 317
VAT 302 147
VAT - Tax collector 645 467
3,171 1,456
Total taxes payable 4,317 2,025
d. The components of consolidated income tax expense (benefit) are as follows:
2026 2025
Current
The Company 682 612
Subsidiaries 4,050 3,510
4,732 4,122
Deferred
The Company 123 173
Subsidiaries (263) (402)
(140) (229)
Net income tax expense 4,592 3,893
70
Page 74
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
d. The components of income tax expense (benefit) are as follows (continued):
The reconciliation between the profit before income tax and the estimated taxable income of
the Company for six months period ended June 30, 2026 and 2025 are as follows:
2026 2025
Profit before income tax consolidation 18,798 18,137
Add back consolidation eliminations 15,959 11,170
Consolidated profit before income tax and eliminations 34,757 29,307
Less: profit before income tax of the subsidiaries (21,145) (16,860)
Profit before income tax attributable to the Company
before deduction of income subject to final tax 13,612 12,447
Less: income subject to final tax (658) (531)
Profit before income tax attributable to the Company
after deduction of income subject to final tax 12,954 11,916
Temporary differences:
Allowance for expected credit losses 320 (98)
Deferred installation fee - 32
Leases (3) (20)
Provision for employee benefits 556 24
Land rights, intangible assets, and other (22) 22
Net periodic pension and other post-employment
benefits costs (1,131) (76)
Difference between accounting and tax bases
of property and equipment (229) (1,423)
Accrued expenses 58 -
Others 2 67
Net temporary differences (449) (1,472)
Permanent differences:
Net periodic post-retirement health care benefit costs 196 184
Donations 76 89
Employee benefits 11 5
Expense related to income subject to final tax - 116
Equity in net income of associates and subsidiaries (10,004) (8,129)
Other expense from tax assesment result 167 -
Others 319 82
Net permanent differences (9,235) (7,653)
Taxable income of the Company 3,270 2,791
Current corporate income tax expense 621 530
Final income tax expense 61 82
Total current income tax expense of the Company 682 612
Current income tax expense of the subsidiaries 4,050 3,510
Total current income tax expense 4,732 4,122
71
Page 75
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
d. The components of income tax expense (benefit) are as follows (continued):
The reconciliation between the income tax expense calculated by applying the applicable tax rate
of 19% to the profit before income tax less income subject to final tax, and the net income tax
expense as shown in the consolidated statements of profit or loss and other comprehensive income
is as follows:
2026 2025
Profit before income tax consolidation 18,798 17,517
Less consolidated income subject to final tax - net (1,329) (4,555)
17,469 12,962
Income tax expense calculated at the Company’s
applicable statutory tax rate 3,319 2,463
Difference in applicable statutory tax rate for
subsidiaries 490 311
Non-deductible expenses 94 777
Final income tax expense 59 82
Deferred tax adjustment 176 (1)
Unrecognized deferred tax 2 13
Others 452 248
Net income tax expense 4,592 3,893
In Law No. 7 of 1983 concerning Income Tax as amended several times, most recently by
Law No. 6 of 2023 concerning Stipulation of Government Regulations in Lieu of Law No. 2 of 2022
concerning Job Creation becomes Law, Article 17 paragraph (1) letter b which stipulates that the
tax rate applied to Taxable Income for domestic corporate taxpayers and permanent
establishments is 22%, which comes into force in the 2022 fiscal year, and in article 17 paragraph
(2b) stipulates that for corporate taxpayers in the form of a limited liability company with a total
number of paid-up shares is traded on a stock exchange in Indonesia of at least 40% and meeting
certain requirements can receive 3% tax rate lower than the expected rate.
The Company applied the tax rate of 19% for the six months period ended June 30, 2026 and for
the year ended December 31, 2025. The subsidiaries applied the tax rate of 22% for the six months
period ended June 30, 2026 and for the year ended December 31, 2025.
e. Tax assessments
(i) The Company
In June 2025, the Company received a number of tax assessments resulting from the 2023
tax audit. In August 2025, from all tax assessments, the Company received a net refund
amounting to Rp589.1 billion after deducting other types of tax collection letters and
assessments. In August 2025, the Company received a Tax Underpayment Assessment
Letters (“SKPKB”) of VAT audit results for 2022 fiscal year amounting to Rp10.1 billion
(including tax fine).
In August 2025, the Company received a Field Audit Notification Letter for all 2024 taxes.
In October 2025, the Company received a tax approval decision letter rejecting the Company's
application for approval of the 2019 and 2020 tax assessments amounting of Rp35.7 billion.
The Company is currently in the process of appealing the 2019 and 2020 tax assessments.
As of the issuance of these consolidated financial statements, the tax audit process for the
2024 tax year and the appeal process for the 2019 and 2020 tax assessments are still ongoing.
72
Page 76
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
e. Tax assessments (continued)
(i) The Company (continued)
In April 2026, the Company received several tax assessment notices resulting from the tax
audit for the 2024 tax year. In May 2026, the Company received a total net refund amounting
to Rp756.4 billion, after deductions for outstanding claims and tax assessments. This 2026 tax
refund was not remitted to the Company’s bank account but was instead credited to the coretax
deposit balance for use in settling tax payments for subsequent periods.
(ii) Telkomsel
As of June 30, 2026, Telkomsel has a number of tax assessments that are in the appeal
process. The details of claims for tax refund, both associated with tax assessments or that
have not been determined by the Tax Authority, including tax assessment exposure that are
not accompanied by tax claims by Telkomsel, are as follows:
June 30, 2026
Objection Appeal Judicial Review Others Total
Claims for tax refund which are not yet
confirmed by the Tax Authority
Telkomsel
Corporate Income Tax
2025 fiscal year - - - 261 261
Subsidiaries
VAT
2025 fiscal year - - - 41 41
Withholding tax
2025 fiscal year - - - 1 1
Tax assessment with claims for
tax refund
Corporate Income Tax
2024 fiscal year - - - 791 791
2014 fiscal year - - 55 - 55
Witholding tax
2015 fiscal year - - - 0 0
- - 55 1,094 1,149
Tax assesment with no associated
claims for tax refund
Corporate Income Tax
2024 fiscal year 388 - - - 388
2023 fiscal year 1,623 - - - 1,623
Withholding tax
2023 fiscal year 12,844 - - - 12,844
14,855 - - - 14,855
On October 6, 2025, Telkomsel received Underpayment Tax Assessment Letters for Article
23 Income Tax and Corporate Income Tax for the 2023 fiscal year, amounting to
Rp12,844 billion (including penalties of Rp3,823 billion) and Rp1,623 billion (incuding penalties
of Rp445 billion), respectively.
The underpayment of Income Tax Article 23 for the 2023 fiscal year related to the transfer of
the IndiHome consumer business from the Company and the accompanying supporting
transactions. Telkomsel believes that the Tax Authority's claim to remeasure the difference
between the book value and the transaction value of the business transfer as the object of
determining the underpayment of Income Tax Article 23 is inadequately justified.
For the underpayment of Corporate Income Tax for the 2023 fiscal year related to the
transaction value of the IndiHome business segment operational activities between Telkomsel
and the Company, a fair value has been used. Telkomsel has strong technical arguments to
support its tax position and believes it has complied with applicable tax laws and regulations.
Telkomsel filed an objection with the Tax Authorities on December 10, 2025. As of the
completion date of these consolidated financial statements, the results of the objection have
not been received.
73
Page 77
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
f. Deferred tax assets and liabilities
The details of the Group's deferred tax assets and liabilities are as follows:
Deferred tax asset and liabilities (Charged) credited to
in financial position profit or loss
June 30, 2026 December 31, 2025 2026 2025
The Company
Allowance for expected credit losses 779 718 61 (19)
Net periodic pension and other
post-employment benefit costs 786 1,001 (215) (14)
Difference between accounting and tax
bases of property and equipment 2,436 2,519 (83) (164)
Provision for employee benefits 405 298 107 5
Deferred installation fee 1,173 19 - 6
Land rights, intangible assets and others 43 47 (4) 4
Accrued expenses (4) - 12 13
Leases - 1 (1) (4)
Others 79 78 - -
Total deferred tax assets - net 5,697 4,681 (123) (173)
Telkomsel
Provision for employee benefits 1,683 1,698 (15) 103
Allowance for expected credit losses 755 571 184 121
Leases 249 15 234 178
Contract liabilities 351 399 (48) 34
Fair value measurement of financial
instruments (8) (8) - -
Difference between accounting and tax bases of
property and equipment (856) (857) 1 (38)
License amortization (219) (195) (24) (16)
Contract costs (11) (6) (5) 10
Other financial instruments (237) (270) 33 (32)
Deferred tax assets (liabilities) of Telkomsel - net 1,707 1,347 360 360
Deferred tax assets of the other subsidiaries - net 582 575 - (1)
Deferred tax liabilities of the other subsidiaries - net (2,494) (1,233) (97) 43
Deferred tax expense (benefit) 140 229
Total deferred tax assets - net 7,986 6,603
Total deferred tax liabilities - net (2,494) (1,233)
As of June 30, 2026 and December 31, 2025, the aggregate amounts of temporary differences
associated with investments in subsidiaries and associated companies, for which deferred tax
liabilities are not recognized were Rp58,377 billion and Rp28,516 billion, respectively.
Realization of the deferred tax assets is dependent upon the Group’s capability in generating future
profitable operations. Although realization is not assured, the Group believes that it is probable that
these deferred tax assets will be realized through reduction of future taxable income when
temporary differences reverse. The amount of deferred tax assets is considered realizable;
however, it can be reduced if actual future taxable income is lower than estimates.
g. Administration
In December 2024, the Government issued Decree of the Minister of Finance Number 465 of 2024
concerning the Implementation of the Core System of Tax Administration and Regulation of the
Minister of Finance concerning Tax Provisions in the Framework of Implementing the Core System
of Tax Administration No. 81 of 2024. In order to realize the aspect of justice in society, at the end
of December 2024 the Government issued Regulation of the Minister of Finance
Number 131 of 2024 concerning Value Added Tax Treatment on Imports of Taxable Goods,
Delivery of Taxable Goods, Delivery of Taxable Services, Utilization of Intangible Taxable Goods
from Outside the Customs Area within the Customs Area, and Utilization of Taxable Services from
Outside the Customs Area within the Customs Area (PMK 131/2024) which is effective as of
January 1, 2025. PMK 131/2024 regulates that on the Import and/or delivery of Taxable Goods
within the Customs Area by Entrepreneurs other than Taxable Goods classified as luxury, delivery
of Taxable Services within the Customs Area by Entrepreneurs, utilization of Intangible Taxable
Goods from outside the Customs Area within the Customs Area, utilization of Taxable Services
from outside the Customs Area within the Customs Area, Tax is payable VAT is calculated by
multiplying the 12% (twelve percent) rate by the Taxable Base, which is another value.
74
Page 78
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
27. TAXATION (continued)
g. Administration (continued)
The issuance of PMK 131/2024 is in accordance with Law Number 7 of 2021 concerning the
Harmonization of Tax Regulations (HPP Law), which stipulates that a VAT rate of 12% will be
implemented no later than January 1, 2025. In February 2025, the Government issued Minister of
Finance Regulation Number 11 of 2025 concerning Provisions on Other Values as Taxable Bases
and Certain Amounts of Value Added Tax. The Company ensures coordination with relevant units,
the IT Team and tax authorities to ensure smooth tax administration processes conducted through
the Tax Administration Core System application, as well as the provisions for using other values
as VAT Taxable Bases.
In response to the implementation of the Organisation for Economic Co-operation and
Development (“OECD”) Pillar Two framework, on December 31, 2024, Indonesian Government
implemented Pillar Two framework through Regulation of the Minister of Finance No. 136/2024
(PMK 136/2024). The Pillar Two model rules as implemented under PMK 136/2024 which came
into effect on January 1, 2025.
PMK 136/2024 applies new taxing mechanisms under which a Multinational Enterprises (“MNE”)
would pay a top-up tax in a jurisdiction whenever the effective tax rate, determined on a
jurisdictional basis under the Pillar Two rules is below a 15% minimum rate. PMK 136/2024 sets
out the mechanics for determining which entity or entities in an MNE Group should apply the top-
up tax and the portion of such tax that is charged to each relevant entity.
The Group has conducted an analysis based on applicable tax regulations and identified potential
top-up tax for constituent entities operating in the jurisdiction of Timor Leste. The Group believes,
based on the results of the analysis, that the impact of these potential top-up tax is not material to
the consolidated financial statements for the year ended December 31, 2025.
Related to the implementation of the provisions of Article 222 of the Minister of State-owned
Enterprise Regulation Number PER-2/MBU/03/2023 concerning Guidelines for Governance and
Significant Corporate Activities of State-owned Enterprise. State-owned enterprise is required to
convey the realization of contributions to the state. Details of contributions to the state as of
June 30, 2026 are as follow:
June 30, 2026
Tax
Income tax 7,774
VAT and VAT on luxury goods 6,234
Import/exit duties, customs, and stamp duties 1
Regional taxes and levies, including
property tax for urban and rural 59
Total tax contribution 14,068
Non-tax contribution
Dividend -
Other non-tax contribution 3,599
Total other non-tax contribution 3,599
Total contribution to the state 17,667
75
Page 79
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
28. BASIC EARNINGS PER SHARE
Basic earnings per share is computed by dividing profit for the year attributable to owners of the parent
company amounting to Rp10,623 billion and Rp10,473 billion by the weighted average number of
shares outstanding during the year totaling to 98,815,834,912 and 99,062,216,600 shares for the six
months period ended June 30, 2026 and 2025, respectively.The weighted average number of shares
takes into account the weighted average effect of changes in treasury stock transaction during the
period.
Basic earnings per share amounting to Rp107.50 and Rp105.72 (in full amount) for the six months
period ended June 30, 2026 and 2025, respectively. The Company does not have potentially dilutive
financial investments for the six months period ended June 30, 2026 and 2025, respectively.
29. CASH DIVIDENDS AND GENERAL RESERVE
Pursuant to the AGM of Stockholders of the Company stated in Notarial Deed No. 10 dated June 8,
2026, the Company’s stockholders approved the distribution of cash dividend for 2025 amounting to
Rp21,999 billion (Rp223,17 per share). The Company paid cash dividend on July 10, 2026.
Pursuant to the AGM of Stockholders of the Company stated in Notarial Deed No. 52 dated
May 27, 2025 of Ashoya Ratam, S.H., M.Kn., the Company’s stockholders approved the distribution of
cash dividend for 2024 amounting to Rp21,047 billion (Rp212.47 per share). The Company paid cash
dividend on June 19, 2025.
Under the Limited Liability Company Law, the Company is required to establish a statutory reserve
amounting to at least 20% of its issued and paid-up capital.
The balance of the appropriated retained earnings of the Company as of June 30, 2026 and
December 31, 2025 is Rp15.337 billion, respectively.
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS
The details of pension and other post-employment benefit liabilities are as follows:
Notes June 30, 2026 December 31, 2025
Pension benefit and other post-employment
benefit obligations
Pension benefit program
The Company - funded 30a.i.a
Defined pension benefit obligation 30a.i.a.i 3,545 3,725
Additional pension benefit obligation 30a.i.a.ii 40 42
The Company - unfunded 30a.i.b 165 216
Telkomsel 30a.ii 5,831 5,978
Projected pension benefit obligations 9,581 9,961
Net periodic post-employment health care
benefit 30b 1,904 1,708
Other post-employment benefit 30c 152 187
Long service employee benefit 30d 1 1
Obligation under the Labor Law 30e 1,217 1,139
Total 12,855 12,996
76
Page 80
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The details of net pension benefit expense recognized in the consolidated statements of profit or loss
and other comprehensive income is as follows (continued):
Notes 2026 2025
Pension benefit cost
The Company - funded 30a.i.a
Defined pension benefit obligation 30a.i.a.i 152 215
Additional pension benefit obligation 30a.i.a.ii 2 1
The Company - unfunded 30a.i.b (35) 12
Telkomsel 30a.ii 371 342
Total periodic pension benefit cost 24 490 570
Net periodic post-employment health care
benefit cost 24,30b 196 188
Other post-employment benefit cost 24,30c 6 9
Long service employee benefit cost 24,30d 0 0
Labor Law employee benefit cost 24,30e 104 97
Total 796 864
The following table presents the changes in projected pension benefit obligation and post-employment
health care benefit obligations, changes in pension benefit and post-employment health care benefit
plan assets, funded status of the pension plan and post-employment health care benefit plan, and net
amount recognized in the consolidated statements of financial position as of June 30, 2026 and
December 31, 2025, under the defined benefit pension plan:
Funded Post-employment
Defined pension benefit obligation health care benefit
The Company Telkomsel The Company
Projected
Projected Projected post-employment Post-employment
pension Pension pension Pension health care health care
benefit benefit benefit benefit benefit benefit
obligations plan assets obligations plan assets obligation plan assets Total
Balance, January 1, 2026 23,129 (19,404) 6,687 (709) 14,950 (13,242) 11,411
Service costs 73 - 182 - - - 255
Interest costs (income) 721 (611) 188 - 494 (436) 356
Plan administration cost (58) 58 - 1 - 138 139
Cost recognized in the consolidated
statement of profit or loss 736 (553) 370 1 494 (298) 750
Actuarial (gain) loss on:
Changes in financial assumptions (1,911) - - - (1,245) - (3,156)
Return on plan assets
(excluding amount included in
net interest expense) - 1,911 - - - 1,245 3,156
Cost recognized in OCI (1,911) 1,911 - - (1,245) 1,245 -
Employer’s contributions - (363) - (518) - - (881)
Pension plan participants’ contributions 4 (4) - - - - -
Benefits paid from plan assets (944) 944 - - (313) 313 -
Benefits paid by employer (16) 16 - - - - -
Balance, June 30, 2026 20,998 (17,453) 7,057 (1,226) 13,886 (11,982) 11,280
Projected pension benefit
obligation at end of period 3,545 5,831 1,904 11,280
77
Page 81
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The following table presents the changes in projected pension benefit obligation and post-employment
health care benefit obligations, changes in pension benefit and post-employment health care benefit
plan assets, funded status of the pension plan and post-employment health care benefit plan, and net
amount recognized in the consolidated statements of financial position as of June 30, 2026 and
December 31, 2025, under the defined benefit pension plan (continued):
Funded Post-employment
Defined pension benefit obligation health care benefit
The Company Telkomsel The Company
Projected
Projected Projected post-employment Post-employment
pension Pension pension Pension health care health care
benefit benefit benefit benefit benefit benefit
obligations plan assets obligations plan assets obligation plan assets Total
Balance, January 1, 2025 22,377 (18,834) 6,089 (1,139) 14,152 (12,602) 10,043
Service costs 177 - 332 - - - 509
Past service costs - - 294 - - - 294
Interest costs (income) 1,500 (1,271) 406 (55) 970 (862) 688
Plan administration cost (110) 110 - 1 - 173 174
Cost recognized in the consolidated
statement of profit or loss 1,567 (1,161) 1,032 (54) 970 (689) 1,665
Actuarial (gain) loss on:
Experience adjustments (17) - (187) - (66) - (270)
Changes in demographic assumptions (1) - - - 0 - (1)
Changes in financial assumptions 1,053 - 261 - 478 - 1,792
Return on plan assets
(excluding amount included in
net interest expense) - (654) - 3 - (535) (1,186)
Cost recognized in OCI 1,035 (654) 74 3 412 (535) 335
Employer’s contributions - (605) - (27) - - (632)
Pension plan participants’ contributions 10 (10) 1 (1) - - -
Benefits paid from plan assets (1,843) 1,843 - - (584) 584 -
Benefits paid by employer (17) 17 (288) 288 - - -
Past benefits paid by employer - - (221) 221 - - -
Balance, December 31, 2025 23,129 (19,404) 6,687 (709) 14,950 (13,242) 11,411
Projected pension benefit
obligation at end of year 3,725 5,978 1,708 11,411
The following table presents the changes in unfunded projected pension benefit obligations, additional
pension benefit obligations, other post-employment benefit obligations and obligations under the Labor
Law, changes in additional pension benefit plan assets, and net amount recognized in the consolidated
statements of financial position as of June 30, 2026 and December 31, 2025, under the defined benefit
pension plan:
The Company
The Company and its subsidiaries
Additional Other post- Long service Obligations
pension benefit employment benefit employee under
obligations Unfunded obligations benefit the Labor Law Total
Balance, January 1, 2026 42 216 187 1 1,139 1,585
Service costs 0 4 2 0 85 91
Past service costs - (45) (1) - - (46)
Interest costs 2 6 5 - 19 32
Cost recognized in the consolidated
statement of profit or loss 2 (35) 6 - 104 77
Benefits paid by employer (4) (16) (41) 0 (26) (87)
Balance, June 30, 2026 40 165 152 1 1,217 1,575
The Company
The Company and its subsidiaries
Additional Other post- Long service Obligations
pension benefit employment benefit employee under
obligations Unfunded obligations benefit the Labor Law Total
Balance, January 1, 2025 42 215 175 1 1,064 1,497
Service costs 0 10 5 1 134 150
Past service costs - - - - (10) (10)
Interest costs 3 15 12 - 68 98
Cost recognized in the consolidated
statement of profit or loss 3 25 17 1 192 238
Actuarial (gain) loss recognized in OCI 1 (14) 6 - (5) (12)
Benefits paid by employer (4) (10) (11) (1) (68) (94)
Divestment - - - - (44) (44)
Balance, December 31, 2025 42 216 187 1 1,139 1,585
78
Page 82
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
The components of net periodic pension benefit cost for the six months period ended
June 30, 2026 and 2025 are as follows:
The Company
and its
The Company Telkomsel subsidiaries
Post- Other
Defined Additional employment post- Long Defined
penison pension health care employment service penison Obligations
benefit benefit benefit benefit employee benefit under
2026 obligations obligations Unfunded cost obligations benefit obligations the Labor Law Total
Service costs 73 0 4 - 2 0 182 85 346
Past service costs - - (45) - (1) - - - (46)
Interest costs 110 2 6 58 5 - 188 19 388
Plan administration cost - - - 138 - - 1 - 139
Net periodic pension benefit cost 183 2 (35) 196 6 0 371 104 827
Additional welfare benefits 16 - - - - - - - 16
Amount charged to subsidiaries - - - - - - - -
under contractual agreements (47) - - - - - - - (47)
Net periodic pension benefit
cost less charged
to subsidiaries 152 2 (35) 196 6 0 371 104 746
The Company
and its
The Company Telkomsel subsidiaries
Post- Other
Defined Additional employment post- Long Defined
penison pension health care employment service penison Obligations
benefit benefit benefit benefit employee benefit under
2025 obligations obligations Unfunded cost obligations benefit obligations the Labor Law Total
Service costs 93 0 5 - 3 0 164 82 347
Interest costs 114 1 7 54 6 - 178 15 375
Plan administration cost - - - 130 - - 0 - 130
Net periodic pension benefit cost 207 1 12 184 9 0 342 97 852
Additional welfare benefits 17 - - - - - - - 17
Amount charged to subsidiaries
under contractual agreements (9) - - 4 - - - - (5)
Net periodic pension benefit
cost less charged
to subsidiaries 215 1 12 188 9 0 342 97 864
a. Pension benefit program
i. The Company
(a) Funded pension plan
(i) Defined pension benefit obligation
The Company sponsors a defined benefit pension plan for employees with permanent
status prior to July 1, 2002. The plan is governed by the pension laws in Indonesia and
managed by Telkom Pension Fund (“Dana Pensiun Telkom” or “Dapen”). Pension Fund
Management in accordance with the Pension Fund and Investment Directives
Regulations determined by the Founder is carried out by the Board of Management.
The Board of Management is monitored by the Oversight Board consisting of
representatives of the Company and participants.
The pension benefits are paid based on the participating employees’ latest basic salary
at retirement and the number of years of their service. The participating employees
contribute 18% (before March 2003: 8.4%) of their basic salaries to the pension fund.
The Company made contributions to the pension fund amounted to Rp363 billion and
Rp605 billion, for the six months period ended June 30, 2026 and for the year ended
December 31, 2025, respectively.
79
Page 83
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit program (continued)
i. The Company (continued)
(a) Funded pension plan (continued)
(i) Defined pension benefit obligation (continued)
Risks exposed to defined benefit programs are risks such as asset volatility and
changes in bond yields. The project liabilities are calculated using a discount rate that
refers to the level of government bond yields, if the return on program assets is lower,
it will result in a program deficit. A decrease in the yield of government bonds will
increase the program liabilities, although this will be offset in part by an increase in the
value of the program bonds held. The Company ensures that the investment position is
set within the framework of asset-liability matching ("ALM") that has been formed to
achieve long-term results that are in line with the liabilities in the defined benefit pension
plan. Within the ALM framework, the Company's objective is to adjust its pension assets
and liabilities by investing in a well diversified portfolio to produce an optimal rate of
return, taking into account the level of risk. Investment in the program has been well
diversified, so that one investment's poor performance will not have a material impact
on all asset groups.
As of June 30, 2026 and December 31, 2025, plan assets consist of:
June 30, 2026 December 31, 2025
Quoted in Quoted in
active market Unquoted active market Unquoted
Cash and cash equivalents 895 - 1,255 -
Equity instruments:
Financials 780 - 1,004 -
Consumer non-cyclicals 283 - 325 -
Basic material 254 - 383 -
Infrastructures 278 - 431 -
Energy 138 - 175 -
Technology 72 - 91 -
Industrials 196 - 268 -
Consumer cyclicals 61 - 60 -
Properties and real estate 50 - 75 -
Healthcare 96 - 141 -
Transportation and logistic 4 - 7 -
Equity-based mutual fund 46 - 74 -
Fixed income instruments:
Corporate bonds - 1,906 - 2,031
Government bonds 10,684 - 11,191 -
Index mutual funds 10 - 14 -
Medium-term notes ("MTN") - 102 - 105
Asset-backed securities ("EBA") - 5 - 5
Sukuk - 923 - 980
Non-public equity:
Direct placement - 359 - 359
Property - 204 - 204
Others - 384 - 495
Total 13,847 3,883 15,494 4,179
Pension plan assets include Series B shares issued by the Company with fair values
totaling to Rp159 billion and Rp256 billion, representing 0.91% and 1.32% of total plan
assets as of June 30, 2026 and December 31, 2025, respectively, and bonds issued by
the Company with fair value totaling to Rp231 billion and Rp248 billion representing
1.32% and 1.28% of total plan assets as of June 30, 2026 and December 31, 2025,
respectively.
80
Page 84
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit program (continued)
i. The Company (continued)
(a) Funded pension plan (continued)
(i) Defined pension benefit obligation (continued)
The expected return is determined based on market expectation for returns over the
entire life of the obligation by considering the portfolio mix of the plan assets. The actual
return on plan assets was Rp(1,309) billion and Rp1,924 billion for the six months period
ended June 30, 2026 and for the year ended December 31, 2025, respectively. Based
on the Company’s policy issued on January 14, 2014 regarding Dapen’s Funding Policy,
the Company will not contribute to Dapen when Dapen’s Funding Sufficiency Ratio
(“FSR”) is above 105%. Based on Dapen’s financial statements as of December 31,
2025 and 2024, Dapen’s FSR is below 105%. Therefore, the Company will contribute
to the defined benefit pension plan.
Based on the Company Regulations issued on September 30, 2022, regarding the
Pension Fund Regulations from the Telkom Pension Fund, the Company stipulates
those retirees who quit other than because of Disciplinary Punishment, Early
Retirement, and at their own request and receive Pension Benefits of less than
Rp1 million per month are given increase in monthly Pension Benefits to Rp1 million. In
2025 and 2024, the Company provided employee welfare benefit to pensioners and
pension beneficiaries who entered their retirement period before June 30, 2002
amounting to Rp16 billion and Rp17 billion, respectively.
The actuarial valuation for the defined benefit pension plan was performed based on
the measurement date as of December 31, 2025 and 2024, with reports dated
April 15, 2026, and March 19, 2025, respectively, by KKA I Gde Eka Sarmaja, FSAI.
The principal actuarial assumptions used by the independent actuary for
December 31, 2025 and 2024 are as follows:
2025 2024
Discount rate 6.50% 7.00%
Rate of compensation increases 8.00% 8.00%
Indonesian mortality table 2019 2019
(ii) Additional pension benefit obligation
Based on the Company Regulations issued on September 30, 2022, regarding the
Regulations on Pension Funds from Telkom Pension Funds, the Company organizes a
Defined Contribution Other Benefit Program (“PMLIP”) in the form of Additional Benefits.
PMLIP participants are entitled to receive Periodic Pension Benefits every month in
accordance with the provisions in the Pension Fund Regulations. Additional Benefit
Funds are sourced from Employer Additional Benefit contributions and provision for
investment development proceeds if the FSR is achieved above 102% and the rate of
Return on Investment (“ROI”) is above the actuarial interest rate for funding. The
employer's additional benefit contribution for each PMLIP participant is set at
Rp120 thousand for a 12-month contribution period which is calculated proportionally
according to the amount received.
81
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit program (continued)
i. The Company (continued)
(a) Funded pension plan (continued)
(ii) Additional pension benefit obligation (continued)
The actuarial valuation for additional pension benefit plan was performed based on
the measurement date as of December 31, 2025 and 2024, with reports dated
April 15, 2026 and March 19, 2025, respectively, by KKA I Gde Eka Sarmaja, FSAI.
The principal actuarial assumptions used by the independent actuary for
December 31, 2025 and 2024 are as follows:
2025 2024
Discount rate 6.50% 7.00%
Indonesian mortality table 2019 2019
Additional pension benefit obligation has been set aside since 2018 according to the
approval by the Oversight Board. As of December 31, 2025, there are no additional
obligations set aside because the requirements for recognizing additional benefits as
mentioned above have not been fulfilled.
(b) Unfunded pension plan
The Company sponsors unfunded defined benefit pension plans and a defined contribution
pension plan for its employees. The defined contribution pension plan is provided to
employees with permanent status hired on or after July 1, 2002. The plan is managed by
Financial Institutions Pension Fund (Dana Pensiun Lembaga Keuangan or “DPLK”). The
Company’s contribution to DPLK is determined based on a certain percentage of the
participants’ salaries and amounted to Rp29 billion and Rp48 billion, for the six months
period ended June 30, 2026 and for the year ended December 31, 2025, respectively.
Since 2007, the Company has provided pension benefit based on uniformization for both
participants prior to and from April 20, 1992 effective for employees retiring beginning
February 1, 2009. In 2010, the Company replaced the uniformization with Manfaat Pensiun
Sekaligus (“MPS”). MPS is given to those employees reaching retirement age, upon death
or upon becoming disabled starting from February 1, 2009.
The Company also provides benefits to employees during a pre-retirement period in which
they are inactive for 6 months prior to their normal retirement age of 56 years, known as
pre-retirement benefits (Masa Persiapan Pensiun or “MPP”). During the pre-retirement
period, the employees still receive benefits provided to active employees, which include,
but are not limited to, regular salary, health care, annual leave, bonus, and other benefits.
Since April 1, 2012, the employee is required to file a request for MPP and if the employee
does not file the request, such employee is required to work until the retirement date.
The actuarial valuation for the unfunded defined benefit pension plan was performed,
based on the measurement date as of December 31, 2025 and 2024, with reports dated
April 15, 2026 and March 19, 2025, respectively, by KKA I Gde Eka Sarmaja, FSAI. The
principal actuarial assumptions used by the independent actuary as of December 31, 2025
and 2024 are as follows:
2025 2024
Discount rate 6.25% 7.00%
Rate of compensation increases 6.00%-8.00% 6.00%-8.00%
Indonesian mortality table 2019 2019
82
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
a. Pension benefit program (continued)
ii. Telkomsel
Telkomsel provides a defined benefit pension plan to its employees. Under this plan, employees
are entitled to pension benefits determined based on their latest basic salary or take-home pay
(exclusive of functional allowances) and number of service years. The plan is managed by
PT Asuransi Jiwasraya (Persero) (“Jiwasraya”), a state-owned life insurance company, through
an annuity insurance contract. Until 2004, employees contributed 5% of their monthly salaries
to the plan, while Telkomsel contributed the remaining part required under the plan. Beginning
in 2005, Telkomsel has been taking responsibility for the full amount of the contributions.
On April 23, 2021, Telkomsel and Jiwasraya agreed to terminate the insurance program contract
(as mentioned above) and entered into restructuring agreement. The agreement replaced the
benefit plan from annuities to lumpsum benefit. Based on this agreement, both parties agreed
to determine the Cash Value (“CV”) at the termination date which divided into CV for active
participant and passive participant amounting to Rp857 billion and Rp73 billion, respectively.
There was a 5% cut from CV for active participant, hence the 95% of Rp857 billion (or equal to
Rp814 billion) plus Rp73 billion will be the amount that subsequently taken over by PT Asuransi
Jiwa IFG (“IFG Life”) when the agreement with IFG Life become effective and accordingly, the
restructuring agreement will be terminated. As of November 30, 2023, the cash fund had been
completely taken over by IFG Life with no changes was applied to the terms of the plan and
cash value being transferred at the transfer date, and accordingly, the restructuring agreement
was terminated.
On June 27, 2023, the Company and Telkomsel signed an agreement regarding Dapen to
appoint Telkomsel as a Partner of the Company as the sole Founder, which resulted in rights
and obligations to Telkomsel as governed in the Pension Fund Agreement effective from the
business transfer of IndiHome consumer business segment to Telkomsel.
Effective from the business transfer of IndiHome consumer business segment to Telkomsel,
Telkomsel sponsors a defined benefit pension plan for transferring employees hired prior to
July 1, 2002. The plan is governed by the pension laws in Indonesia and managed by Dapen.
Dapen is managed in accordance with the Pension Fund and Investment Directives
Regulations, which is determined by the Company as the Founder and is carried out by the
Board of Management. The Board of Management is monitored by the Oversight Board,
appointed by the Founder.
The pension benefits are paid based on the participating employee’s latest basic salary at
retirement and the number of years of their service. The participating employees contribute 18%
of their basic salaries to the pension fund. Telkomsel’s contribution to the pension fund for the
year ended December 31, 2025 was amounting to Rp518 billion (2025: Rp27 billion).
The actuarial valuation for the defined benefit pension plan was performed based on the
measurement date as of December 31, 2025 and 2024 with reports dated April 15, 2026 and
March 19, 2025, respectively, by KKA Halim and Partner, an independent actuary in association
with Milliman. The principal actuarial assumptions used by the independent actuary as of
December 31, 2025 and 2024, are as follows:
2025 2024
Discount rate 6.30% 7.10%
Rate of compensation increases 7.00%-8.00% 7.25%-8.00%
Indonesian mortality table 2019 2019
83
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Post-employment health care benefit cost
The Company provides post-employment health care benefits to all its employees hired before
November 1, 1995 who have worked for the Company for 20 years or more when they retire, and
to their eligible dependents. The requirement to work for 20 years does not apply to employees
who retired prior to June 3, 1995. The employees hired by the Company starting from
November 1, 1995 are no longer entitled to this plan. The plan is managed by Yayasan Kesehatan
Telkom (“Yakes Telkom”).
The defined contribution post-employment health care benefit plan is provided to employees with
permanent status hired on or after November 1, 1995 or employees with terms of service less than
20 years at the time of retirement. The Company did not make contributions to Yakes Telkom for
the six months period ended June 30, 2026 and for the years ended December 31, 2025. As of
June 30, 2026 and December 31, 2025, plan assets consists of:
June 30, 2026 December 31, 2025
Quoted in Quoted in
active market Unquoted active market Unquoted
Cash and cash equivalents 415 - 700 -
Equity instruments:
Financials 784 - 983 -
Consumer non-cyclicals 256 - 300 -
Basic material 227 - 276 -
Infrastructures 365 - 500 -
Energy 158 - 238 -
Technology 44 - 62 -
Industrials 171 - 296 -
Consumer cyclicals 90 - 95 -
Properties and real estate 51 - 79 -
Healthcare 68 - 99 -
Transportation and logistic 1 - 3 -
Equity-based mutual funds 247 - 326 -
Fixed income instruments:
Government obligations 2,348 - 2,321 -
Corporate obligations 560 - 447 -
Fixed income mutual funds 5,656 - 5,972 -
Exchange Traded Fund ("ETF") 43 - 35 -
Unlisted shares:
Private placement - 522 - 535
Total 11,484 522 12,732 535
Yakes Telkom plan assets also include Series B shares issued by the Company with fair value
totaling Rp172 billion and Rp251 billion, representing 1.43% and 1.89% of total plan assets as of
June 30, 2026 and December 31, 2025, respectively. Bonds issued by The Company with a fair
value of Rp92 billion and Rp99 billion each represent 0.77% and 0.74% of total assets as of
June 30, 2026 and December 31, 2025. The expected return is determined based on market
expectation for the returns over the entire life of the obligation by considering the portfolio mix of
the plan assets. The actual return on plan assets was Rp(857) billion and Rp1,397 billion for the
six months period ended June 30, 2026 and for the year ended December 31, 2025, respectively.
84
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
b. Post-employment health care benefit cost (continued)
The actuarial valuation for the post-employment health care benefits plan was performed based on
the measurement date as of December 31, 2025 and 2024, with reports dated April 15, 2026 and
March 19, 2025, respectively, by KKA I Gde Eka Sarmaja, FSAI. The principal actuarial
assumptions used by the independent actuary for December 31, 2025 and 2024 are as follows:
2025 2024
Discount rate 6.75% 7.00%
Health care costs trend rate assumed for next year 7.00% 7.00%
Ultimate health care costs trend rate 7.00% 7.00%
Indonesian mortality table 2019 2019
c. Other post-employment benefits cost
The Company provides other post-employment benefits in the form of cash paid to employees on
their retirement or termination. These benefits consist of final housing allowance (Biaya Fasilitas
Perumahan Terakhir or “BFPT”) and home passage leave (Biaya Perjalanan Pensiun dan
Purnabhakti or “BPP”) and death allowance (Meninggal Dunia or “MD” allowance) is given to
employees who have passed away with an amount of 12 times from the last salary.
The actuarial valuation for the other post-employment benefits plan was performed based on
measurement date as of December 31, 2025 and 2024, with reports date April 15, 2026 and
March 19, 2025, respectively, by KKA I Gde Eka Sarmaja, FSAI. The principal actuarial
assumptions used by the independent actuary for December 31, 2025 and 2024 are as follows:
2025 2024
Discount rate 6.00% 7.00%
Indonesian mortality table 2019 2019
d. Long service employee benefits
The Company provides long service employee benefits to employee hired before July 1, 2002 and
have a service period of more than 30 years and retired after September 19, 2019. Total obligation
recognized as of June 30, 2026 and December 31, 2025 amounted to Rp1 billion and
Rp1 billion, respectively. The related long service employee benefits cost charged to expense
amounted to Rp0 billion and Rp0 billion the six months period ended June 30, 2026 and 2025,
respectively.
e. Obligation under the Labor Law
Under Law No. 11 Year 2020, the Group is required to provide minimum pension benefits, if not
covered yet by the sponsored pension plans, to its employees upon retirement. Total obligation
recognized as of June 30, 2026 and December 31, 2025 amounted to Rp1,217 billion and
Rp1,139 billion, respectively. The related pension empoyee benefits cost charged to expense
amounted to Rp104 billion and Rp97 billion for the six months period ended June 30, 2026 and
2025, respectively.
85
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
f. Maturity Profile of Defined Benefit Obligation (“DBO”)
The timing of benefits payments and weighted average duration of DBO for June 30, 2026 and
December 31, 2025 are as follows:
Expected Benefits Payment
The Company
Funded Post- Other
Defined Additional employment post- Obligation
pension benefit pension benefit health care employment under
Time Period obligation obligation Unfunded Telkomsel benefits benefits the Labor Law
June 30, 2026
Within next 10 years 19,180 34 236 6,688 8,341 159 1,847
Within 10-20 years 14,464 27 95 9,486 13,671 119 5,030
Within 20-30 years 8,069 13 195 5,080 13,558 60 3,243
Within 30-40 years 2,667 4 6 77 7,185 1 238
Within 40-50 years 430 1 - - 1,800 - -
Within 50-60 years 26 - - - 281 - -
Within 60-70 years 0 - - - 52 - -
Within 70-80 years - - - - 5 - -
Weighted average
duration of DBO 8.11 years 8.11 years 6.28 years 10 years 16.34 years 5.04 years 11.35 years
December 31, 2025
Within next 10 years 20,124 38 253 6,688 8,654 200 1,848
Within 10-20 years 14,464 27 95 9,486 13,671 119 5,030
Within 20-30 years 8,069 13 195 5,080 13,558 60 3,243
Within 30-40 years 2,667 4 6 77 7,185 1 238
Within 40-50 years 430 1 - - 1,800 - -
Within 50-60 years 26 - - - 281 - -
Within 60-70 years - - - - 52 - -
Within 70-80 years 0 - - - 5 - -
Weighted average
duration of DBO 8.11 years 8.11 years 6.28 years 10 years 16.34 years 5.04 years 11.35 years
g. Sensitivity Analysis
As of June 30, 2026 and December 31, 2025, 1% change in discount rate and rate of compensation
would have effect on DBO, are as follows:
Discount Rate Rate of Compensation
1% Increase 1% Decrease 1% Increase 1% Decrease
Increase (decrease) in amounts Increase (decrease) in amounts
Sensitivity
June 30, 2026
Funded:
Defined pension benefit obligation (1,713) 2,003 126 (122)
Unfunded (8) 9 9 (9)
Telkomsel (492) 558 595 (534)
Post-employment health care benefits (1,822) 2,220 2,118 (1,775)
Other post-employment benefits (8) 8 3 (3)
Obligation under the Labor Law (93) 100 137 (126)
December 31, 2025
Funded:
Defined pension benefit obligation (1,885) 2,205 139 (134)
Unfunded (10) 11 12 (11)
Telkomsel (492) 558 595 (534)
Post-employment health care benefits (1,738) 2,118 2,020 (1,693)
Other post-employment benefits (9) 10 3 (3)
Obligation under the Labor Law (93) 100 135 (124)
The sensitivity analysis was determined based on a method that extrapolates the impact on DBO
as a result of reasonable changes in key assumptions occurring at the end of the reporting period.
86
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)
g. Sensitivity Analysis (continued)
The sensitivity results above determine the individual impact on the Plan’s DBO at the end of the
year. In reality, the Plan is subject to multiple external experience items which may move the DBO
in similar or opposite directions, and the Plan’s sensitivity to such changes can vary over time.
There are no changes in the methods and assumptions used in preparing the sensitivity analysis
from the previous period.
31. LONG SERVICE AWARDS (“LSA”) PROVISIONS
Telkomsel and Telkomsat provide certain cash awards or certain number of days leave benefits to
28. their employees based on the employees’ length of service requirements, including LSA and Long
Service Leaves (“LSL”). LSA are either paid at the time the employees reach certain years of
employment, or at the time of termination. LSL are either certain number of days leave benefit or cash,
subject to approval by management, provided to employees who meet the requisite number of years
of service and reach a certain minimum age.
The obligation with respect to these awards which was determined based on an actuarial valuation
using the Projected Unit Credit method amounted to Rp1,356 billion and Rp1,308 billion as of
June 30, 2026 and December 31, 2025, respectively. The related benefit costs charged to expense
amounted Rp155 billion and Rp161 billion for the six months period ended June 30, 2026 and 2025,
respectively (Note 24).
32. RELATED PARTIES TRANSACTIONS
a. Nature of relationships and accounts or transactions with related parties
Details of the nature of relationships and accounts or transactions with significant related parties
are as follows:
Related parties Nature of relationships parties Nature of accounts or transactions
The Government
Ministry of Finance Majority stockholder Internet and data service revenues, other telecommunication
service revenues, finance costs, and investment in financial
instruments
State-owned enterprises
Indosat Entity under common control Interconnection revenues, leased lines revenues, satellite
transponder usage revenues, interconnection expenses,
telecommunication facilities usage expenses, operating and
maintenance expenses, and usage of data communication
network system expenses
PT Pertamina (Persero) (“Pertamina”) Entity under common control Internet and data service revenues and other telecommunication
service revenues
State-owned banks Entity under common control Finance income and finance costs
BNI Entity under common control Internet and data service revenues, other telecommunication
service revenues, consultant expenses, medical expenses,
finance income, and finance costs
BRI Entity under common control Internet and data service revenues, other telecommunication
service revenues, finance income, and finance costs
Bank Mandiri Entity under common control Internet and data service revenues, other telecommunication
service revenues, finance income, and finance costs
PT Perusahaan Listrik Negara Entity under common control Internet and data service revenues, other telecommunication
(Persero) (“PLN”) service revenues, and electricity expenses
Bahana TCW Entity under common control Mutual funds
Sarana Multi Infrastruktur Entity under common control Other borrowing and finance costs
Other state-owned enterprises Entity under common control Internet and data service revenues, other telecommunication
services revenues, operating expenses, and purchase of
property and equipments
PT Fintek Karya Nusantara (“Finarya”) Associated
Associatedcompany
company Marketing expenses and distribution of SIM cards and pulse
reload voucer
PT Kereta Cepat Indonesia China (“KCIC”) Other related entities Other telecommunication service revenue
Padi UMKM Other related entities Operational and maintenance expenses, collection fees, training
expenses, internal security expenses, research and
development expenses, printing expenses, meeting expenses,
general and other administrative expenses, promotion
expenses, advertising expenses, sales fees, customer
education expenses, and marketing expenses
Directors Key management personnel Honorarium and facilities
Commissioners Supervisory personnel Honorarium and facilities
87
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
a. Nature of relationships and accounts or transactions with related parties (continued)
The outstanding balances of trade receivables and payables as of June 30, 2026 and
December 31, 2025 are unsecured and interest-free and the settlement occurs in cash. There have
been no guarantees provided or received for any related party receivables or payables. As of
June 30, 2026 and December 31, 2025, the Group recorded an increase (decrease) of impairment
loss from trade receivables of related party amounted to Rp(65) billion and Rp(29) billion,
respectively.
b. Significant transactions with related parties
The following table presents significant transactions with related parties:
2026 2025
% of total % of total
Amount revenues Amount revenues
Revenues
Majority Stockholder
Ministry of Finance 139 0.18 105 0.14
Entities under common control
Indosat 1,112 1.47 1,198 1.64
Pertamina 330 0.43 328 0.45
BNI 276 0.36 329 0.45
Bank Mandiri 147 0.19 100 0.14
BRI 146 0.19 161 0.22
Others (each below Rp100 billion) 269 0.35 332 0.45
Sub-total 2,280 2.99 2,448 3.35
Other related entities 140 0.18 87 0.12
Associated companies 2 0.00 3 0.00
Total 2,561 3.35 2,643 3.61
2026 2025
% of total % of total
Amount expenses Amount expenses
Expenses
Entities under common control
PLN 1,478 2.66 1,440 2.68
Indosat 264 0.47 308 0.57
Others (each below Rp100 billion) 92 0.17 150 0.28
Sub-total 1,834 3.30 1,898 3.53
Other related entities
Padi UMKM 185 0.33 173 0.32
Others 28 0.05 30 0.06
Sub-total 213 0.38 203 0.38
Associated companies 53 0.10 37 0.07
Total 2,100 3.78 2,138 3.98
2026 2025
% of total % of total
Amount finance income Amount finance income
Finance income
Entities under common control
State-owned banks 169 22.68 204 23.00
Total 169 22.68 204 23.00
88
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
b. Significant transactions with related parties (continued)
The following table presents significant transactions with related parties (continued):
2026 2025
% of total % of total
Amount finance cost Amount finance cost
Finance cost
Entities under common control
State-owned banks 514 24.72 637 24.06
Total 514 24.72 637 24.06
2026 2025
% of total % of total
Amount purchases Amount purchases
Purchase of property
and equipment
Entities under common control - - 23 0.24
Total - - 23 0.24
2026 2025
% of total % of total
Amount revenues Amount revenue
Distribution of SIM
card and voucher
Associated companies 42 0.06 32 0.04
Total 42 0.06 32 0.04
c. Balance of accounts with related parties
The following table presents significant transactions with related parties:
June 30, 2026 December 31, 2025
% of total % of total
Amount assets Amount assets
Cash and cash equivalents
(Note 3) 44,502 14.68 27,231 9.46
Other current financial
asset (Note 4) 1,119 0.37 642 0.22
Trade receivables
(Note 5) 1,945 0.64 2,040 0.71
Contract assets
Majority stockholder
Ministry of Finance 43 0.01 94 0.03
Entities under common control 200 0.07 210 0.07
Associated companies 1 0.00 1 0.00
Other related entities 4 0.00 4 0.00
Total 248 0.08 309 0.10
Other current asset 163 0.05 151 0.05
Other non-current asset 4 0.00 7 0.00
89
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
c. Balance of accounts with related parties (continued)
The following table presents significant transactions with related parties (continued):
June 30, 2026 December 31, 2025
% of total % of total
Amount liabilities Amount liabilities
Trade payables (Note 15)
Majority stockholder
Ministry of Finance - - 7 0.01
Entities under common control
State-owned enterprises 187 0.11 281 0.20
Indosat 159 0.09 200 0.15
Sub-total 346 0.20 481 0.35
Associated companies 11 0.01 3 0.00
Other related entities 106 0.06 80 0.06
Total 463 0.27 571 0.42
Accrued expenses
Entities under common control
State-owned enterprises 283 0.17 279 0.20
State-owned banks 61 0.04 58 0.04
Others 2 0.00 1 0.00
Sub-total 346 0.21 338 0.24
Associated companies 7 0.00 7 0.01
Total 353 0.21 345 0.25
Contract liabilities
Majority stockholder
Ministry of Finance 55 0.03 58 0.04
Entities under common control
State-owned enterprises 648 0.39 698 0.51
Others 1 0.00 1 0.00
Sub-total 649 0.39 699 0.51
Associated companies 8 0.00 5 0.00
Other related entities
KCIC 934 0.56 1,023 0.75
Others 11 0.01 8 0.01
Sub-total 945 0.57 1,031 0.76
Total 1,657 0.99 1,793 1.31
Customer deposits 19 0.01 19 0.01
Short-term bank loans (Note 18) 4,707 2.80 1,490 1.09
Long-term bank loans (Note 19b) 21,021 12.49 22,717 16.55
90
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
32. RELATED PARTIES TRANSACTIONS (continued)
d. Significant agreements with related parties
Indosat
The Company has an agreement with Indosat to provide international telecommunications services
to the public.
The Company has also entered into an interconnection agreement between the Company’s fixed
line network (Public Switched Telephone Network or “PSTN”) and Indosat’s Global System for
Mobile (“GSM”) cellular telecommunications network in connection with the implementation of
Indosat Multimedia Mobile services and the settlement of related interconnection rights and
obligations.
The Company also has an agreement with Indosat for the interconnection of Indosat's GSM mobile
cellular telecommunications network with the Company's PSTN, which enable each party’s
customers to make domestic calls between Indosat’s GSM mobile network and the Company’s
fixed line network, as well as enabling Indosat’s mobile customers to access the Company’s
International Direct Dialing (“IDD”) service by dialing “007”.
Indosat's owner, Ooredoo, has merged with Tri, CK Hutchison Holdings (“CKHH”) by merging their
companies into Indosat Ooredoo Hutchison. With this merger and the latest MoCI Regulation
No. 5 of 2021, the Company has amended the interconnection cooperation agreement for fixed-
line networks (local, Sambungan Langsung Jarak Jauh ("SLJJ"), and international) and mobile
networks on May 30, 2023 in order to implement cost-based tariff obligations based on the 2014
Interconnection Offering Document.
The Company also provides leased lines to Indosat and its subsidiaries, namely PT Aplikanusa
Lintasarta (“Lintasarta”). The leased lines can be used by these companies for telephone,
telegraph, data, telex, facsimile, or other telecommunication services.
e. Remuneration of key management and supervisory personnel
Key management personnel consists of the Board of Directors of the Company and supervisory
personnel consists of the Board of Commissioners.
The Company provides remuneration in the form of salaries or honorarium and facilities to support
the governance and oversight duties of the Board of Commissioners along with the leadership and
management duties of the Board of Directors. Total of such remuneration is as follows:
2026 2025
% of total % of total
Amount expenses Amount expenses
Directors 312 0.56% 278 0.52%
Board of Commissioners 26 0.05% 102 0.19%
The amounts disclosed in the table above are amounts recognized as general and administration
expense during the reporting periods.
91
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
33. OPERATING SEGMENTS
In 2025, Management changed the basis for grouping the Group’s operating segments from a
Customer Facing Unit (“CFU”) based approach to a business pillar based approach. This change was
made to reflect how CODM reviews the performance of operating segments and allocates resources.
In connection with this change, the segment information for the prior year has been restated to conform
with the presentation of segment information in the current year.
The Group has identified five reportable segments, namely B2C, B2B Infra, B2B ICT, International,
and Others. There is no aggregation of operating segments in determining these reportable segments.
The B2C segment comprises the provision of telecommunications services to individual and residential
customers, including mobile and fixed broadband services. The B2B Infra segment comprises the
provision, management, and maintenance of telecommunications infrastructure, including
telecommunications towers, fiber optic networks, backbone infrastructure, data centers, and satellites.
The B2B ICT segment comprises the provision of system integration services, information technology
services, and digital solutions to corporate and institutional customers. The International segment
comprises the provision of international connectivity and wholesale services to telecommunications
operators and customers abroad. The Other segment comprises support business activities, including
media and content services, business consulting and management services, trading and distribution,
certain information technology services, as well as investment and other business development
activities.
CODM reviews the performance of each segment based on the segment’s profit or loss, which is
measured consistently with operating profit or loss in the consolidated financial statements. Segment
revenues and expenses also include intersegment transactions. These transactions are eliminated
upon consolidation and are determined based on prevailing market prices (on an arm’s length basis).
2026
Adjustment
Total and Total
B2C B2B Infra B2B ICT International Others segment elimination consolidated
Segment results
Revenues
External revenues 54,729 4,661 7,275 5,744 3,469 75,878 - 75,878
Inter-segment revenues 880 28,402 1,481 580 11,719 43,062 (43,062) -
Total segment revenues 55,609 33,063 8,756 6,324 15,188 118,940 (43,062) 75,878
Segment results 15,048 8,071 678 416 (995) 23,218 (4,420) 18,798
Other information
Capital expenditures (5,444) (2,817) (299) (193) (25) (8,778) (670) (9,448)
Depreciation and
amortization (11,044) (6,960) (802) (407) (329) (19,542) 2,339 (17,203)
Provision recognized in
current period (901) (61) (206) (29) (67) (1,264) 75 (1,189)
2025
Adjustment
Total and Total
B2C B2B Infra B2B ICT International Others segment elimination consolidated
Segment results
Revenues
External revenues 52,215 4,444 7,372 5,831 3,142 73,004 - 73,004
Inter-segment revenues 1,555 23,341 1,888 758 11,197 38,739 (38,739) -
Total segment revenues 53,770 27,785 9,260 6,589 14,339 111,743 (38,739) 73,004
Segment results 13,147 7,457 1,384 472 (2,016) 20,444 (2,927) 17,517
Other information
Capital expenditures (4,969) (2,629) (460) (135) (95) (8,288) (1,185) (9,473)
Depreciation and
amortization (10,791) (6,272) (1,220) (330) (297) (18,910) 2,092 (16,818)
Provision recognized in
current period (540) (4) (413) (58) 15 (1,000) 30 (970)
92
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
33. OPERATING SEGMENTS (continued)
Segment result reconciliation:
2026 2025
Total segment results 23,218 20,444
Unrealized gain (loss) on changes in fair value of investments (335) (276)
Other income (expense) - net (75) 243
Gain on foreign exchange - net 282 31
Finance income - net 745 887
Finance cost (2,079) (2,647)
Share of loss of long term investment in associates (1) (4)
Adjustment and inter-segment elimination (2,957) (1,161)
Consolidated profit before income tax 18,798 17,517
Geographic information:
2026 2025
External revenues
Indonesia 71,195 68,030
Abroad 4,683 4,974
Total 75,878 73,004
The revenue information above is based on the location of the customers.
There are no revenue from major customer which exceeds 10% of total revenues for the six months
period ended June 30, 2026 and 2025.
June 30, 2026 December 31, 2025
Non-current operating assets
Indonesia 167,569 171,604
Abroad 3,076 3,086
Total 170,645 174,690
Non-current operating assets for segment reporting purpose consist of property and equipment and
intangible assets.
93
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
34. TELECOMMUNICATIONS SERVICE TARIFFS
Under Law No. 36 Year 1999 and Government Regulation No. 52 Year 2000, tariffs for operating
telecommunications network and/or services are determined by providers based on the tariff type,
structure, and with respect to the price cap formula set by the Government. Furthermore, these
regulations were superseded by Law No. 11 Year 2020 and Government Regulation No. 46 Year 2021
where the authorised minister is able to determine the upper and/or lower tariff limits.
c. Fixed line telephone tariffs
The Government has issued a new adjustment tariff formula which is stipulated in MoCI Regulation
No. 5/2021 dated March 31, 2021 concerning “Telecommunication Operation”. This Decree
replaced the previous Decree No. 15/PER/M.KOMINFO/4/2008 dated April 30, 2008.
Under the Decree, tariff structure for basic telephony services connected through fixed line network
consists of the following:
i. Activation fee
ii. Monthly subscription charges
iii. Usage charges, and
iv. Additional facilities fee.
b. Mobile cellular telephone tariffs
On March 31, 2021, MoCI issued MoCI Regulation No. 5/2021, which provides guidelines to
determine cellular tariffs with a formula consisting of network element cost and retail services
activity cost.
Under MoCI Regulation No. 5/2021, cellular tariffs for the operation of telecommunication services
connected through mobile cellular network consist of the following:
i. Basic telephony services tariff
ii. Roaming tariff, and/or
iii. Multimedia services tariff
with the following traffic structure:
i. Activation fee
ii. Monthly subscription charges, and/or
iii. Usage charges
c. Interconnection tariffs
The Indonesian Telecommunication Regulatory Body (“ITRB”), in its letter No. 262/BRTI/XII/2011
dated December 12, 2011, decided to change the basis for SMS interconnection tariff to cost basis
with a maximum tariff of Rp23 per SMS effective from June 1, 2012, for all telecommunication
provider operators.
Based on letter No.118/KOMINFO/DJPPI/PI.02.04/01/2014 dated January 30, 2014 of the Director
General of Post and Informatics, the Director General of Post and Informatics decided to implement
new interconnection tariff effective from February 1, 2014 until December 31, 2016, subject to
evaluation on an annual basis. Pursuant to the Director General of Post and Informatics letter, the
Company and Telkomsel are required to submit the Reference Interconnection Offer (“RIO”)
proposal to ITRB to be evaluated.
94
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
34. TELECOMMUNICATIONS SERVICE TARIFFS (continued)
c. Interconnection tariffs (continued)
Subsequently, ITRB in its letters No. 60/BRTI/III/2014 dated March 10, 2014 and
No. 125/BRTI/IV/2014 dated April 24, 2014 approved Telkomsel and the Company’s revision of
RIO regarding the interconnection tariff. Based on the letter, ITRB also approved the changes to
the SMS interconnection tariff to Rp24 per SMS.
On January 18, 2017, ITRB in its letters No. 20/BRTI/DPI/I/2017 and No. 21/BRTI/DPI/I/2017,
decided to use the interconnection tariff based on the Company and Telkomsel’s RIO in 2014 until
the new interconnection tariff is set.
d. Network lease tariffs
In 2008, the Director General of Post and Telecommunication issued Decree No. 115 of 2008 which
stated its agreement on Agreement on Network Lease Service Type Document, Network Lease
Service Tariff, Available Capacity of Network Lease Service, Quality of Network Lease Service,
and Provision Procedure of Network Lease Service Owned by Dominant Network Lease Service
Provider in conformity with the Company’s proposal. Through MoCI Regulation No. 5/2021, the
Government regulated the form, type, tariff structure, and tariff formula for services of network
lease.
e. Tariff for other services
The tariffs for satellite lease, telephony services, and other multimedia are determined by the
service provider by taking into account the expenditures and market price. The Government only
determines the tariff formula for basic telephony services. There is no stipulation for the tariff of
other services.
95
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS, AGREEMENTS, AND OTHERS
a. Capital expenditures
As of June 30, 2026 capital expenditures committed under the contractual arrangements are
Rp13,455 billion and US$18 million.
The above balance includes the following significant agreements:
Contracting parties Period of agreement Significant part of the agreement
Development and Rollout Agreement
("DRA") and Technical Support Agreement
September 12, 2019-
Telkomsel and PT Phincon ("TSA") Customer Relationship
September 11, 2027
Management ("CRM") Solution System
Integrator
Telkomsel, PT Ericsson Indonesia, Procurement Agreement for Radio
February 1, 2021-
PT Huawei Tech Investment, and PT Ultimate Solution ("ROA") and Technical
January 31, 2027
ZTE Indonesia Service Agreements ("TSA")
Telkomsel and PT Ericsson February 13, 2022- Procurement Agreement for CS Core
Indonesia February 12, 2028 Solution ROA
Telkomsel and PT Lintas Teknologi February 13, 2022- Procurement Agreement for CS Core
Indonesia February 12, 2028 Solution ROA
June 24, 2024- Agreement for the Design, Development,
Telkomsel and PT Phincon
June 23, 2029 and Launch of the By.U Platform Solution
Procurement Agreement for Evolved
Telkomsel and PT Ericsson September 1, 2024-
Packet Core Technical Support Agreement
Indonesia August 31, 2027
("EPC TSA")
Telkomsel and PT Lintas Teknologi September 1, 2024-
Procurement Agreement for EPC TSA
Indonesia August 31, 2027
Telkomsel, Amdocs Software Agreement Online Charging System
October 8, 2024-
Solutions Limited Liability Company, (“OCS”) and Service Control Points
October 7, 2029
and PT Application Solutions (“SCP”) System Solution Development
Contract Agreement of General Contractor
October 14, 2024-
TDE and PT ZTE Indonesia ("GC") for Delta Project Level-2 Fit Out
October 14, 2027
Works
Telkomsel and PT Mahardika November 1, 2024- Procurement Agreement for Fixed
Teknotama Integrasi November 1, 2027 Broadband Core ("FBB Core")
Agreement Procurement and Installation
The Company and PT Packet December 18, 2024-
for OTN Metro ("OTM") Future State
Systems Indonesia December 17, 2026
Architecture ("FSA") - Platform Huawei
Procurement Agreement of Next
Telkomsel and PT Ericsson January 23, 2025-
Generation of Gateway GPRS Support
Indonesia January 22, 2028
Node ("GGSN") (Virtualized EPC)
Procurement Agreement for GGSN
Telkomsel and PT Huawei Tech March 25, 2022-
Service Complex/Policy Charging Rules
Investment March 24, 2028
Function (PCRF) Solution
Contract Agreement of General Contractor
TDE and PT Huawei Tech March 24, 2025-
("GC") for Delta Project Level-3 and Level-
Investment March 23, 2028
4 Fit Out Works
Telkomsel and PT Lintas Teknologi April 8, 2025- Procurement Agreement of Next
Indonesia April 7, 2028 Generation of GGSN (Virtualized EPC)
Telkomsel and PT Cahaya Mutiara May 26, 2025- Procurement Agreement of Next
Mandiri May 25, 2028 Generation of GGSN (Virtualized EPC)
Telkomsat and PT Starlink Services December 22, 2025- Agreement for the Resale of Starlink
Indonesia December 31, 2026 Services and Equipment
Procurement and Installation Agreement of
The Company and PT Lintas December 24, 2025-
the South Papua Submarine Cable
Teknologi Indonesia June 23, 2027
Communication System
TIF and PT Fiberhome Technologies June 2, 2026- Procurement and Installation Agreement of
Indonesia September 30, 2026 OSP FTTH PT-2 Fixed Broadband ("FBB")
96
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS, AGREEMENTS, AND OTHERS (continued)
b. Borrowings and other credit facilities
(i) As of June 30, 2026, the Company has bank guarantee facilities for tender bonds,
performance bonds, maintenance bonds, deposit guarantee, and advance payment bonds for
various projects of the Company, as follows:
Lenders Total facility Maturity Currency Facility utilized
BRI 500 March 14, 2027 Rp 2
BNI 500 March 31, 2027 Rp 63
Bank Mandiri 500 June 21, 2027 Rp 84
Total 1,500 149
The Company has sufficient bank facilities to meet their current obligations (Note 37b.v).
(ii) As of June 30, 2026, Telkomsel has bank guarantee facilities for various projects, as follows:
Lenders Total facility Maturity Currency Facility utilized
BRI 1,000 September 25, 2028 Rp 620
BNI 2,100 May 1, 2028 Rp 1,535
Total 3,100 2,155
Bank guarantee facility with BRI and BNI are mainly for performance bond and surety bond of
radio frequency (Note 35c.i).
(iii) Telin has a bank guarantee facilities from Bank Mandiri and BRI with a maximum credit limit
of US$25 million and US$5 million or equal to Rp417 billion and Rp83 billion, respectively.
As of June 30, 2026, there is no bank guarantee facility used.
c. Others
(i) Radio frequency usage
With reference to Law No. 36 of 1999, the use of radio frequency spectrum and the cost of
using radio frequency are determined by the government. With reference to the Decision Letter
No. 025/TEL.01.02/2022 Year 2022 dated January 28, 2022, of the MoCI, the MoCI granted
Telkomsel the rights to provide mobile telecommunication services with radio frequency
bandwidth in the 800 MHz, 900 MHz, 1,800 MHz, 2.1 GHz and 2.3 GHz; and basic
telecommunication services.
With reference to Decision Letters No. 509 Year 2016, No. 1896 Year 2017, No. 806
Year 2019, No. 620 Year 2020, No. 178 Year 2021, No. 479 Year 2022, No. 90 Year 2023,
and No. 188 Year 2023 of the MoCI, Telkomsel is required, among other things, to:
1. Issue a surety bond each year amounting Rp1.028 billion for spectrum 2.3 GHz.
2. Issue a surety bond each year amounting Rp360 billion for both spectrum 2.3 GHz
Block A and C.
3. Issue a surety bond amounting Rp617 billion for spectrum 2.1 GHz.
4. Pay an annual right of usage (“BHP”) as set forth in the decision letters. The BHP is
payable upon receipt of Surat Pemberitahuan Pembayaran (notification letter) from the
DGPI. The BHP fee is payable annually up to the expiry period of the license.
The following are radio frequency band licenses owned by Telkomsel along with the BHP fees
paid during current year:
1. Radio frequency for band 800 MHz, 900 MHz, and 1,800 MHz
Based on Decree No. 620 Year 2020 of the MoCI, concerning the extension of the
determination of radio frequency bands 800 MHz, 900 MHz and 1,800 MHz, Telkomsel
should pay annual frequency usage fees from 2020 to 2030.
97
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS, AGREEMENTS AND OTHERS (continued)
c. Others (continued)
(i) Radio frequency usage (continued)
The following are radio frequency band licenses owned by Telkomsel along with the BHP fees
paid during current year (continued):
2. Radio frequency for band up to 2.1 GHz
License No. Description
Decree No. 90 Year 2023 of On February 27, 2023, Telkomsel was granted to
the MoCI amd. Decree utilize the annual radio frequency license for band
No. 76 Year 2023 of the MoCI 1,975-1,980 MHz paired with 2,165-2,170 MHz until
March 18, 2033.
Decree No. 509 Year 2016 of MoCI granted the extension of the radio frequency
the MoCI amd. Decree license for band 1,970-1,975 MHz paired with
No. 76 Year 2023 of the MoCI 2,160-2,165 MHz until March 28, 2026.
Decree No. 806 Year 2019 of MoCI granted the extension of the radio frequency
the MoCI amd. Decree license for band 1,965-1,970 MHz paired with
No. 76 Year 2023 of the MoCI 2,155-2,160 MHz until September 30, 2029.
Decree No. 479 Year 2022 of Telkomsel as the winner of auction and was granted to
the MoCI amd. Decree utilize the radio frequency license for band
No. 76 Year 2023 of the MoCI 1,960-1,965 MHz paired with 2,150-2,155 MHz
effective from January 11, 2023 until
January 10, 2033.
3. Radio frequency for band up to 2.3 GHz
License No. Description
Decree No. 1896 Year 2017 Telkomsel was appointed to use the radio frequency
of the MoCI license for band 2,300-2,330 Mhz until 2026.
Decree No. 178 Year 2021 of Telkomsel as the winner to utilize the radio frequency
the MoCI license for band 2,330-2,340 MHz paired with
2,340-2,350 MHz for Block A and Block C, respectively
until 2030.
Decree No. 487 Year 2022 of On November 18, 2022, Telkomsel received a right to
the MoCI amd. Decree use reallocated radio frequency license for band
No. 92 Year 2023 of the MoCI 2,340-2,355 MHz paired with 2,330-2,360 MHz until
November 17, 2029.
Decree No. 188 Year 2023 of On April 18, 2023, Telkomsel was granted an approval
the MoCI to allocate part of the rights-of-use of 2.3 GHz radio
frequency spectrum to PT Smart Telecom.
(ii) Radio frequency spectrum cooperation agreement
The MoCI has given approval to Telkomsel for a cooperation on the use of radio frequency
spectrum with KCIC through a letter No. B-171/M.KOMINFO/SP.01.01/03/2023 dated
March 17, 2023, regarding the Cooperation Agreement on the Use of Radio Frequency
Spectrum in the range of 891-895 MHz paired with 936-940 MHz, with a period up to
December 14, 2030.
As result from this agreement, KCIC shall pay to the Company several compensations, which
are annual utilization fees totaling Rp878 billion, network recovery fee of Rp1,250 billion, as
well as incremental operational and maintenance costs.
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS, AGREEMENTS AND OTHERS (continued)
c. Others (continued)
(iii) USO
On December 27, 2011, Telkomsel (on behalf of Konsorsium Telkomsel, a consortium which
was established with Mitratel on December 9, 2011) was selected by Balai Penyedia dan
Pengelola Pembiayaan Telekomunikasi dan Informatika (“BPPPTI”), now has been renamed
as Badan Aksesibilitas Telekomunikasi dan Informasi (“BAKTI”) as a provider of the USO
Program in the border areas with a total price of Rp261 billion. In 2015, the Program was
ceased. In January 2016, Telkomsel filed an arbitration claim to BANI for the settlement of the
outstanding receivables of USO Programs.
On June 22, 2017, Telkomsel received a decision letter from BANI No. 792/1/ARB-BANI/2016
requesting BAKTI to pay compensation to Telkomsel amounting to Rp218 billion, and as of
the date of the issuance of these consolidated financial statements Telkomsel has received
the payment from BAKTI amounting to Rp91 billion (before tax) and no additional payment.
The MoCI issued Regulation No. 5 Year 2021 dated March 31, 2021, which replaced previous
regulations regarding policies underlying the USO program. The regulation requires
telecommunications operators in Indonesia to contribute 1.25% of gross revenues (with due
consideration for bad debts and/or interconnection charges and/or connection charges and/or
the exclusion of certain revenues that are not considered as part of gross revenues as a basis
to calculate the USO charged) for USO development.
Based on Decree No. 827/KOMINFO/BAKTI.31/KS.1/10/2021 dated October 4, 2021,
of BAKTI granted Telkomsel as operating cooperation partners (“KSO”) for eight packages
KSO, which cover Nusa Tenggara, Kalimantan, Sulawesi, Maluku, West Papua, West Central
Papua, North Central Papua and South East Papua for period from 2021 until 2031.
(iv) Contingency
Under PSAK 237: Provisions, Contingent Liabilities And Contingent Assets, a provision should
be recognized when there is a present obligation (legal or constructive) arising from a past
event, an outflow of economic benefits to settle the obligation is probable (more likely than
not), and the amount can be reliably estimated.
In October 2023, the Group received a document request from the U.S. Securities and
Exchange Commission (“SEC”) as it relates to Telkom Infra’s involvement in a project with the
Indonesian Information and Telecommunication Accessibility Agency of the Ministry of
Communication and Informatics (“BAKTI Kominfo”) regarding the provision of 4G Base
Transceiver Station (“BTS”) infrastructure. The SEC has since expanded its investigation to
include accounting and disclosures issues relating to the Group's revenue recognition and
financial reporting practices and internal control over financial reporting, as well as public
reports regarding certain Indonesian legal proceedings involving the Group, certain
subsidiaries and affiliates, and certain of the Group's clients and suppliers. Through the
Group’s internal audit process and investigations, the Group have determined, or the Group
suspect (for those projects and transactions which are still under investigation) that certain
transactions lack economic substance. Beginning in May 2024, the Group also received
additional requests for information from the U.S. Department of Justice (“DOJ”) focused on
compliance with the U.S. Foreign Corrupt Practices Act (“FCPA”). The Group retained outside
counsel and a forensic accounting firm to assist with its internal investigation into the issues
being investigated by the SEC and DOJ. The Internal Investigation is substantially complete
while the SEC and DOJ’s investigations remain ongoing and the Group continues to cooperate
with the U.S. authorities.
99
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS, AGREEMENTS AND OTHERS (continued)
c. Others (continued)
(iv) Contingency (continued)
Based on the results of the Internal Investigation to date, the Group has identified that
approximately 140 transactions, primarily those occurring prior to 2021 and particularly
between 2016 and 2019 and relate primarily to the enterprise business segment, lacked
economic substance and were not in compliance with applicable financial reporting standards
as well as the Group’s policies and internal controls, resulting in an overstatement of certain
financial information.
The Group does not believe that this overstatement constituted a misstatement that was
quantitatively material to the Group’s consolidated financial statements for any period
presented in the Group’s prior annual or interim financial statements.
The Group has encountered challenges compiling detailed historical information for
a significant portion of the 140 transactions due to the age of the transactions, accounting
system challenges, and challenges related to the retention and retrieval of historical
accounting support that in some cases dates back nearly 10 years. The Company has
assumed that certain transactions lacked economic substance unless accounting and other
supporting information was available to demonstrate otherwise.
By December 31, 2020, the vast majority of the trade receivables associated with these
transactions had a full corresponding income statement provision and related allowance for
expected credit losses, and therefore the net trade receivable for these transactions reflected
on the Company’s Statement of Financial Positions from 2020 onward were de minimis.
The Group determined that Rp1,762 billion of gross trade receivables, and a corresponding
Rp1,762 billion allowance for expected credit losses related to historical transactions that had
been reviewed or were scheduled for review as part of the internal investigation, did not have
a reasonable chance of recovery and therefore no longer met the criteria for presentation as
trade receivables, accordingly as of December 31, 2025, these receivables were written off,
as they lack economic substance and have no reasonable expectation of recovery and
following the approval obtained in accordance to the applicable regulations; however, such
write-off does not constitute a waiver of the Group’s collection rights.
100
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These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
35. SIGNIFICANT COMMITMENTS, AGREEMENTS AND OTHERS (continued)
c. Others (continued)
(iv) Contingency (continued)
The Company is a state-owned enterprise, and accordingly, its receivable write-off process is
subject to specific governance and regulatory requirements applicable to state-owned
enterprises. Under the applicable write-off policy, receivables exceeding certain thresholds
and/or receivables of certain nature require approvals from relevant authorities and/or
government bodies. As such, the completion and timing of the write-off process are not solely
within Management’s control, as they depend on external review and approval processes
involving various governmental stakeholders.
The Group has also cooperated with Indonesian government law enforcement authorities,
and has in certain instances self-reported to them various matters involving alleged or
potential violations of Indonesian laws and regulations by the Group, certain subsidiaries and
affiliates, including anti-corruption, alleged fraud, embezzlement, and issues associated with
trade receivables, some of which are related to the above-described matters investigated by
the SEC and the DOJ. The Group has implemented various remedial actions, including
strengthening policies, procedures, and internal controls, as well as enhancing its compliance
function and corporate governance.
For the above mentioned investigation on the Group's accounting and disclosure issues
relating to revenue recognition and financial reporting practices and internal control over
financial reporting, based on the Group's assessment up to the date of the issuance of the
consolidated financial statements, the Group currently does not believe that the above
mentioned investigation will have a material adverse effect on consolidated financial
statements as of June 30, 2026 and December 31, 2025, and for the six months period ended
June 30, 2026 and 2025.
As of the issuance date of the consolidated financial statements, the Group is not yet able to
reliably estimate the potential loss or range of losses that may arise from the investigations
by the SEC and DOJ, due to significant uncertainties regarding the final outcome, timing of
resolution, and potential sanctions or other impacts.
In addition, there is a possibility that the final outcome of the ongoing investigations or the
identification of additional information in the future could have a material impact on the
Group’s financial position, results of operations, or cash flows.
101
Page 105
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
36. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Assets and liabilities denominated in foreign currencies are as follows:
June 30, 2026
U.S. Dollar Others* Rupiah equivalent
(in millions) (in millions) (in billions)
Assets
Cash and cash equivalents 559.21 36.83 10,649
Other current financial assets 78.32 0.01 1,398
Trade receivables
Related parties 0.32 0.02 6
Third parties 129.04 13.53 2,548
Contract assets 4.68 - 84
Other receivables 1.61 0.92 45
Other current assets 3.57 0.34 70
Long-term investment in financial instruments 269.85 5.76 4,926
Other non-current assets 1.40 0.66 37
Total assets 1,048.00 58.07 19,763
Liabilities
Trade payables
Related parties (0.02) - (1)
Third parties (160.33) (6.22) (2,974)
Other payables (4.54) (1.63) (111)
Accrued expenses (10.07) (10.89) (380)
Customer deposits (4.12) (0.34) (80)
Current maturities of long-term loans
and lease liabilities (9.20) (0.35) (171)
Long-term loans and lease liabilities (21.56) (1.10) (406)
Other liabilities (0.83) - (14)
Total liabilities (210.67) (20.53) (4,137)
Assets (liabilities) - net 837.33 37.54 15,626
December 31, 2025
U.S. Dollar Others* Rupiah equivalent
(in millions) (in millions) (in billions)
Assets
Cash and cash equivalents 522.25 21.10 9,097
Other current financial assets 53.23 - 895
Trade receivables
Related parties 0.24 0.02 3
Third parties 144.38 11.90 2,620
Contract assets 4.42 - 75
Other receivables 0.62 - 10
Other current assets 1.45 0.35 30
Long-term investment in financial instruments 307.89 6.17 5,241
Other non-current assets 0.40 0.74 19
Total assets 1,034.88 40.28 17,990
Liabilities
Trade payables
Related parties (0.05) - (1)
Third parties (158.59) (3.06) (2,707)
Other payables (19.61) (2.17) (365)
Accrued expenses (11.17) (11.08) (373)
Customer deposits (3.98) (0.32) (72)
Current maturities of long-term loans
and lease liabilities (10.82) (0.35) (187)
Long-term loans and lease liabilities (23.03) (1.30) (408)
Other liabilities (0.36) - (6)
Total liabilities (227.61) (18.28) (4,119)
Assets (liabilities) - net 807.27 22.00 13,871
*Assets and liabilities denominated in other foreign currencies are presented as U.S. Dollar equivalents using the buy and sell rates quoted by
Reuters prevailing at the end of the reporting period.
The Group’s activities expose them to a variety of financial risks, including the effects of changes in
debt and equity market prices, foreign currency exchange rates, and interest rates.
102
Page 106
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS
a. Financial assets and financial liabilities
i. Classification
(a) Financial assets
June 30, 2026 December 31, 2025
Amortized cost
Cash and cash equivalents 54,579 34,228
Other current financial assets 1,919 1,326
Trade receivables 11,774 11,223
Other receivables 271 172
Other non-current assets 163 208
FVTPL
Long-term investment in financial instruments 6,561 7,254
Other current financial assets 89 94
FVTOCI
Long-term investment in financial instruments 71 27
Total financial assets 75,427 54,532
(b) Financial liabilities
June 30, 2026 December 31, 2025
Financial liabilities measured at amortized cost
Trade payables 13,344 16,184
Other payables 24,886 648
Accrued expenses 15,024 14,867
Customers deposits 83 52
Short-term bank loans 8,816 6,929
Bonds 2,696 2,696
Long-term bank loans 45,403 41,149
Lease liabilities 23,970 24,137
Total financial liabilities 134,222 106,662
ii. Fair values
The following table presents comparison of the carrying amounts and fair values of the
Company’s financial instruments, other than those the fair values are considered to
approximate their carrying amounts as the impact of discounting is not significant:
Fair value measurement at reporting date using
Quoted prices in
active markets Significant
for identical other Significant
assets or observable unobservable
Carrying liabilities inputs inputs
June 30, 2026 value Fair value (level 1) (level 2) (level 3)
FVTPL
Other current financial assets 89 89 89 - -
Long-term investment in financial instruments 6,561 6,561 1,195 - 5,366
FVTOCI
Long-term investment in financial instruments 71 71 - - 71
Financial liabilities at amortized cost
Interest-bearing loans:
Bonds 2,696 3,214 3,214 - -
Long-term bank loans 45,403 45,178 - - 45,178
Lease liabilities 23,970 23,970 - - 23,970
Total 78,790 79,083 4,498 - 74,585
103
Page 107
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS (continued)
a. Financial assets and financial liabilities (continued)
ii. Fair values (continued)
The following table presents comparison of the carrying amounts and fair values of the
Company’s financial instruments, other than those the fair values are considered to
approximate their carrying amounts as the impact of discounting is not significant (continued):
Fair value measurement at reporting date using
Quoted prices in
active markets Significant
for identical other Significant
assets or observable unobservable
Carrying liabilities inputs inputs
December 31, 2025 value Fair value (level 1) (level 2) (level 3)
FVTPL
Other current financial assets 94 94 94 - -
Long-term investment in financial instruments 7,254 7,254 1,529 - 5,725
FVTOCI
Long-term investment in financial instruments 27 27 - - 27
Financial liabilities at amortized cost
Interest-bearing loans:
Bonds 2,696 3,458 3,458 - -
Long-term bank loans 41,149 40,863 - - 40,863
Lease liabilities 24,137 24,137 - - 24,137
Other liabilities 75 75 - - 75
Total 75,432 75,908 5,081 - 70,827
Loss on fair value measurement recognized in consolidated statements of profit or loss for the
six months period ended June 30, 2026 amounting to Rp1 billion.
Reconciliations of the beginning and ending balances for items measured at fair value using
significant unobservable inputs (level 3) for the six months period ended June 30, 2026 and
for the year ended December 31, 2025 are as follows:
June 30, 2026 December 31, 2025
Beginning balance 5,752 6,557
Loss recognized in consolidated
statement of profit or loss (1) (103)
Purchase/addition - 26
Settlement/deduction (314) (728)
Ending balance 5,437 5,752
104
Page 108
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS (continued)
a. Financial assets and financial liabilities (continued)
iii. Fair value measurement
Fair value is the amount for which an asset could be exchanged, or a liability settled, between
parties in an arm's length transaction.
The fair values of short-term financial assets and financial liabilities with maturities of one year
or less (cash and cash equivalents, trade and other receivables, other current financial assets,
trade and other payables, accrued expenses, and short-term bank loans) and other non-
current assets are considered to approximate their carrying amounts as the impact of
discounting is not significant.
The fair values of long-term financial assets (other non-current assets (long-term trade
receivables and restricted cash)) approximate their carrying amounts as the impact of
discounting is not significant.
The Group determined the fair value measurement for disclosure purposes of each class of
financial assets and financial liabilities based on the following methods and assumptions:
(a) Fair value through profit or loss, primarily consists of stocks, mutual funds, corporate and
government bonds, and convertible bonds. Stocks and mutual funds actively traded in an
established market are stated at fair value using quoted market price or, if unquoted,
determined using a valuation technique. The fair value of convertible bonds and
subsidiaries investments (non-listed equity investments) are determined using valuation
technique. Corporate and government bonds are stated at fair value by reference to
prices of similar securities at the reporting date.
(b) The fair values of long-term financial liabilities are estimated by discounting the future
contractual cash flows of each liability at rates offered to the Group for similar liabilities of
comparable maturities by the bankers of the Group, except for bonds which are based on
market price.
The fair value estimates are inherently judgemental and involve various limitations, including:
(a) Fair values presented do not take into consideration the effect of future currency
fluctuations.
(b) Estimated fair values are not necessarily indicative of the amounts that the Group would
record upon disposal/termination of the financial assets and liabilities.
b. Financial risk management objectives and policies
The Group’s activities expose it to a variety of financial risks such as market risks (including foreign
exchange risk, market price risk, and interest rate risk), credit risk, and liquidity risk. Overall, the
Group’s financial risk management program is intended to minimize losses on the financial assets
and financial liabilities arising from fluctuation of foreign currency exchange rates and the
fluctuation of interest rates. Management has a written policy on foreign currency risk management
mainly on time deposit placements and hedging to cover foreign currency risk exposures for periods
ranging from 3 up to 12 months.
Financial risk management is carried out by the Group Financial Accounting and Treasury Unit
under policies approved by the Directors. The Group Financial Accounting and Treasury Unit
identifies, evaluates and hedges financial risks.
105
Page 109
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS (continued)
b. Financial risk management objectives and policies (continued)
i. Foreign exchange risk
The Group is exposed to foreign exchange risk on sales, purchases and borrowings that are
denominated in foreign currencies. The foreign currency denominated transactions are
primarily in U.S. Dollars. The Group’s exposures to other foreign exchange rates are not
material.
Increasing risks of foreign currency exchange rates on the obligations of the Group are
expected to be partly offset by the effects of the exchange rates on time deposits and
receivables in foreign currencies that are equal to at least 25% of the outstanding current
foreign currency liabilities.
The following table presents the Group’s financial assets and financial liabilities exposure to
foreign currency risk:
June 30, 2026 December 31, 2025
U.S. Dollar U.S. Dollar
(in billions) (in billions)
Financial assets 1.05 1.03
Financial liabilities (0.21) (0.23)
Net exposure 0.84 0.80
Sensitivity analysis
A strengthening of the U.S. Dollar, as indicated below, against the Rupiah at June 30, 2026
would have decreased equity and profit or loss by the amounts shown below. This analysis is
based on foreign currency exchange rate variances that the Group considered to be
reasonably possible at the reporting date. The analysis assumes that all other variables, in
particular interest rates, remain constant.
Equity/profit (loss)
June 30, 2026
U.S. Dollar (1% strengthening) 150
A weakening of the U.S. Dollar against the Rupiah at June 30, 2026, would have had an equal
but opposite effect on the above currencies to the amounts shown above, on the basis that all
other variables remain constant.
ii. Market price risk
The Group is exposed to changes in debt and equity market prices related to financial assets
measured at FVTPL carried at fair value. Gains and losses arising from changes in the fair
value of financial assets measured at FVTPL are recognized in the consolidated statements
of profit or loss and other comprehensive income.
The performance of the Group’s financial assets measured at FVTPL is monitored periodically,
together with a regular assessment of their relevance to the Group’s long-term strategic plans.
As of June 30, 2026, management considered the price risk for the Group’s financial assets
measured at FVTPL to be immaterial in terms of the possible impact on profit or loss and total
equity from a reasonably possible change in fair value.
106
Page 110
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS (continued)
b. Financial risk management objectives and policies (continued)
iii. Interest rate risk
Interest rate fluctuation is monitored to minimize any negative impact to financial performance.
Borrowings at variable interest rates expose the Group to interest rate risk (Notes 18 and 19).
To measure market risk pertaining to fluctuations in interest rates, the Group primarily uses
interest margin and maturity profile of the financial assets and liabilities based on changing
schedule of the interest rate.
At reporting date, the interest rate profile of the Group’s interest-bearing borrowings was as
follows:
June 30, 2026 December 31, 2025
Fixed rate borrowings 44,774 37,407
Variable rate borrowings 36,111 37,504
Sensitivity analysis for variable rate borrowings
As of June 30, 2026, a decrease (increase) by 25 basis points in interest rates of variable rate
borrowings would have increased (decreased) equity and profit or loss by Rp90 billion,
respectively. The analysis assumes that all other variables, in particular foreign currency rates,
remain constant.
iv. Credit risk
The following table presents the maximum exposure to credit risk of the Group’s financial
assets:
June 30, 2026 December 31, 2025
Cash and cash equivalents 54,579 34,228
Other current financial assets 2,008 1,420
Trade receivables 11,774 11,223
Other receivables 271 172
Other non-current assets 163 208
Total 68,795 47,251
The Group is exposed to credit risk primarily from cash and cash equivalents, trade
receivables and other receivables. The credit risk is controlled by continuous monitoring of
outstanding balance and collection. Credit risk from balances with banks and financial
institutions is managed by the Group Financial Accounting and Treasury Unit in accordance
with the Group’s written policy.
The Group placed the majority of its cash and cash equivalents in state-owned banks because
they have the most extensive branch networks in Indonesia and are considered to be
financially sound banks, as they are owned by the State. Therefore, it is intended to minimize
financial loss through banks and financial institutions’ potential failure to make payments.
The customer credit risk is managed by continuous monitoring of outstanding balances and
collection. Trade and other receivables do not have any major concentration of risk whereas
no customer receivable balance exceeds 7.09% of trade receivables as of June 30, 2026
(2025: 7.95%).
Management is confident in its ability to continue to control and sustain minimal exposure to
the customer credit risk given that the Group has recognized sufficient provision for impairment
of receivables to cover incurred loss arising from uncollectible receivables based on existing
historical data on credit losses.
107
Page 111
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
37. FINANCIAL INSTRUMENTS (continued)
b. Financial risk management objectives and policies (continued)
v. Liquidity risk
Liquidity risk arises in situations where the Group has difficulties in fulfilling financial liabilities
when they become due.
Prudent liquidity risk management implies maintaining sufficient cash in order to meet the
Group’s financial obligations. The Group continuously performs an analysis to monitor
financial position ratios, such as liquidity ratios and debt-to-equity ratios, against debt covenant
requirements.
The following is the maturity profile of the Group’s financial liabilities based on contractual
undiscounted payments:
Carrying Contractual 2030 and
amount cash flows 2026 2027 2028 2029 thereafter
June 30, 2026
Trade payables 13,344 (13,344) (13,344) - - - -
Other payables 24,886 (24,886) (24,886) - - - -
Accrued expenses 15,024 (15,024) (15,024) - - - -
Customer deposits 83 (83) (83) - - - -
Interest bearing loans:
Short-term bank loans 8,816 (8,816) (8,816) - - - -
Bonds 2,696 (6,397) (296) (149) (297) (296) (5,359)
Long-term bank loans 45,403 (51,233) (22,179) (4,057) (7,482) (6,576) (10,939)
Lease liabilities 23,970 (28,975) (6,945) (1,770) (4,050) (3,849) (12,361)
Total 134,222 (148,758) (91,573) (5,976) (11,829) (10,721) (28,659)
Carrying Contractual 2029 and
amount cash flows 2025 2026 2027 2028 thereafter
December 31, 2025
Trade payables 16,184 (16,184) (16,184) - - - -
Other payables 648 (648) (648) - - - -
Accrued expenses 14,867 (14,867) (14,867) - - - -
Customer deposits 52 (52) (52) - - - -
Interest bearing loans:
Short-term bank loans 6,929 (6,929) (6,929) - - - -
Bonds 2,696 (6,544) (296) (296) (297) (296) (5,359)
Long-term bank loans 41,149 (45,311) (19,003) (7,279) (6,357) (5,499) (7,173)
Lease liabilities 24,137 (29,037) (6,844) (4,438) (3,604) (3,440) (10,711)
Other liabilities 75 (89) (4) (21) (21) (21) (22)
Total 106,737 (119,661) (64,827) (12,034) (10,279) (9,256) (23,265)
The difference between the carrying amount and the contractual cash flows is interest value.
The interest value of variable-rate borrowings are determined based on the effective interest
rates as of reporting date.
108
Page 112
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
38. CAPITAL MANAGEMENT
The capital structure of the Group is as follows:
June 30, 2026 December 31, 2025
Amount Portion Amount Portion
Short-term debts 8,816 4.43% 6,929 3.37%
Long-term debts 72,069 36.18% 67,982 33.07%
Total debts 80,885 40.61% 74,911 36.44%
Equity attributable to owners
of the parent company 118,333 59.39% 130,685 63.56%
Total 199,218 100.00% 205,596 100.00%
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern in order to provide returns for stockholders and benefits to other stakeholders and to
maintain an optimum capital structure to minimize the cost of capital.
Periodically, the Group conducts debt valuation to assess possibilities of refinancing existing debts
with new ones with have more efficient cost that will lead to more optimized cost-of-debt. In case of
idle cash with limited investment opportunities, the Group will consider buying back its shares of stock
or paying dividend to its stockholders.
In addition to complying with loan covenants, the Group also maintains its capital structure at the level
it believes will not risk its credit rating and which is comparable with its competitors.
Debt-to-equity ratio (comparing net interest-bearing debt to total equity) is a ratio which is monitored
by management to evaluate the Group’s capital structure and review the effectiveness of the Group’s
debts. The Group monitors its debt levels to ensure the debt-to-equity ratio complies with or is below
the ratio set out in its contractual borrowings arrangements and that such ratio is comparable or better
than that of regional area entities in the telecommunications industry.
The Group’s debt-to-equity ratio as of June 30, 2026 and December 31, 2025, respectively, were as
follows:
June 30, 2026 December 31, 2025
Total interest-bearing debts 80,885 74,911
Less: cash and cash equivalents (54,579) (34,228)
Net debts 26,306 40,683
Total equity attributable to owners of the parent company 118,333 130,685
Net debt-to-equity ratio 22.23% 31.13%
As stated in Note 19, the Group is required to maintain a certain debt-to-equity ratio and debt service
coverage ratio by the lenders. For the period ended June 30, 2026 and for the year ended
December 31, 2025, the Group has complied with externally imposed capital requirements.
109
Page 113
These consolidated financial statements are originally issued in the Indonesian language.
PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA Tbk. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2026 and For the Six Months Period Then Ended (unaudited)
(Amounts in the tables are expressed in billions of Rupiah, unless otherwise stated)
39. SUPPLEMENTAL CASH FLOWS INFORMATION
a. The non-cash investing activities for the six months period ended June 30, 2026 and 2025 are as
follows:
2026 2025
Acquisition of property and equipment:
Credited to trade payables 2,521 1,807
Borrowing cost capitalization 4 2
Addition of right-of-use assets:
Credited to leases (Note 12) 3,978 3,702
Acquisition of intangible assets:
Credited to trade payables 130 154
b. The changes in liabilities arising from financing activities is as follows:
Non-cash changes
Foreign
exchange Other
January 1, 2026 Cash flows movement New leases Changes June 30, 2026
Short-term bank loans 6,929 1,887 - - - 8,816
Bonds 2,696 - - - - 2,696
Long-term bank loans 41,148 4,229 15 - 11 45,403
Lease liabilities 24,138 (4,338) 21 3,978 171 23,970
Total liabilities from
financing activities 74,911 1,778 36 3,978 182 80,885
40. SUBSEQUENT EVENTS
a. Pursuant to the EGM of Shareholders Minutes Deed No. 150 dated 30 June 2026, notarized by
Mala Mukti, S.H., LL.M., the shareholders approved the merger of PST and UMT into Mitratel.
Mitratel had also obtained the effective statement from the Financial Services Authority (“OJK”)
through Letter No. S-55/D.04/2026 dated June 26, 2026. The merger was executed based on
Merger Deed No. 153 dated June 30, 2026 and was approved by the Ministry of Law and Human
Rights of the Republic of Indonesia through Letter No. AHU-AH.01.09-0365315, becoming effective
on July 1, 2026. From the effective date, all assets, liabilities, rights, obligations, and business
activities of both entities were transferred to Mitratel as the surviving entity. As the merger became
effective after the reporting date, it did not affect the amounts presented in the consolidated financial
statements as of June 30, 2026.
b. On 1 July 2026, 6 July 2026, and 22 July 2026, Telkomsel fully repaid its bank loans to BNI, Bank
ANZ, and Bank Sinarmas amounting to Rp3,000 billion, Rp1,000 billion, and Rp1,000 billion,
respectively.
c. During July 2026, Telkomsel has made loan drawdowns from Bank Sinarmas, Bank ANZ, and
CIMB Niaga amounting to Rp1,000 billion, respectively.
d. On 22 July 2026, the Company received the Decision of the Head of the Large Taxpayers Regional
Office of the Directorate General of Taxes No. KEP-00009/NB-CT/WPJ.19/2026, which rejected
the Company's application to apply book value for the transfer of assets in connection with the
business spin-off to TIF. The Company is currently evaluating the impact of the decision.
e. Telkomsel secured a total spectrum allocation of 100 MHz, consisting of 2x10 MHz in the 700 MHz
band and 80 MHz in the 2.6 GHz band, through the 2026 selection process for the allocation of the
700 MHz and 2.6 GHz radio frequency bands. Upon the expiry of the objection period for the
selection results on July 14, 2026, Telkomsel was officially designated as the successful bidder for
the spectrum allocation.
110
Names mentioned 128 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Telekomunikasi Indonesia Tbk.
p.1 ×172
unresolved
org
Government of the Republic of Indonesia
p.9 ×2
unresolved
person
Imas Fatimah
p.9
unresolved
org
Ministry of Justice
p.9
unresolved
person
Ashoya Ratam
p.9 ×7
unresolved
org
Minister of Communication and Digital Affairs
p.10
unresolved
org
Minister of Communication and Information
p.10
unresolved
org
Directorate General of Post and Informatics
p.10
unresolved
org
Directorate General of Post and Telecommunications
p.10
unresolved
org
Bank Indonesia
p.10 ×2
unresolved
org
Bank Indonesia License Electronic
p.10
unresolved
org
Financial Services Authority
p.11
unresolved
person
Edie Kurniawan
p.11 ×2
unresolved
org
Indonesia Stock Exchange
p.12
unresolved
person
A. Partomuan Pohan
p.12
unresolved
person
Titik Krisna Murti Wikaningsih Hastuti
p.13 ×4
unresolved
org
PT Dayamitra
p.14
unresolved
org
Telekomunikasi Tbk.
p.14
unresolved
org
PT Telkom
p.14
unresolved
org
PT Multimedia
p.14
unresolved
org
PT Telkom Data
p.14
unresolved
org
PT Telkom Satelit
p.14
unresolved
org
PT Graha Sarana Duta
p.14
unresolved
org
PT Sigma Cipta
p.14
unresolved
org
PT Telkom Akses
p.14
unresolved
org
PT Napsindo
p.14
unresolved
org
Singapore Pte. Ltd.
p.15
unresolved
org
PT Telkom Landmark
p.15
unresolved
org
PT Nuon Digital
p.15
unresolved
org
PT Infomedia
p.15
unresolved
org
PT Persada Sokka
p.15
unresolved
org
PT Finnet Indonesia
p.15
unresolved
org
PT Telkomsel Mitra
p.15
unresolved
org
PT Swadharma
p.16
unresolved
org
PT Ultra Mandiri
p.16
unresolved
org
PT Collega Inti
p.16
unresolved
org
PT Nusantara Sukses
p.16
unresolved
org
PT Graha Yasa
p.16
unresolved
org
PT Telkomsel
p.16
unresolved
org
PT Metra TV
p.16
unresolved
org
PT Nutech Integrasi
p.16
unresolved
org
PT Graha Telkomsigma
p.16
unresolved
org
Pty. Ltd.
p.17
unresolved
org
PT Pojok Celebes
p.17
unresolved
org
PT Metraplasa
p.17
unresolved
person
MLI.
p.17 ×2
unresolved
person
Mala Mukti
p.17
unresolved
person
Jimmy Tanal
p.17
unresolved
org
Nxera ID Pte.Ltd.
p.17
unresolved
person
Utiek Rochmuljati Abdurachman
p.18
unresolved
org
Healthcare Singapore Pte. Ltd.
p.18
unresolved
org
Bapepam-LK
p.18 ×6
unresolved
org
Minister of Finance
p.21 ×5
unresolved
org
Shanghai Banking Corporation Ltd.
p.48
unresolved
org
PT Bank Pembangunan Daerah Jawa Barat
p.49
unresolved
org
Banten Tbk.
p.49
unresolved
org
PT Indonusa Telemedia
p.51
unresolved
org
PT Jalin Pembayaran Nusantara
p.54
unresolved
org
Bank Maspion
p.62 ×2
unresolved
org
PT. Bahana TCW Investment Management
p.64
unresolved
org
PT BRI Danareksa Sekuritas
p.64
unresolved
org
PT Bank ANZ Indonesia
p.65
unresolved
org
Bank ANZ
p.65 ×2
unresolved
org
Bank Muamalat Indonesia Tbk.
p.65 ×2
unresolved
org
Bank Muamalat
p.65 ×2
unresolved
org
New York Mellon Corporation
p.68 ×3
unresolved
person
Jose Dima Satria
p.69 ×2
unresolved
org
Minister of State-Owned Enterprises and Danantara. The Government
p.69
unresolved
org
Minister of Finance Regulation
p.78
unresolved
org
Minister of State-owned Enterprise Regulation Number PER-
p.78
unresolved
org
Dana Pensiun Telkom
p.82
Extraction attempts how the parser did, and what it refused
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