Indonesia’s state-controlled telecom operator PT Telkom Indonesia is pressing ahead with its business streamlining programme, targeting six more divestments by the end of 2026.
The proposed divestments include two mergers and four business closures.
Telkom has so far completed two divestments, two mergers and shut down six businesses under its transformation programme, the company said during an earnings call on Monday after reporting its first-half 2026 results.
Telkom has already divested its healthcare units AdMedika and Telkomedika, booking an after-tax gain of about 429 billion rupiah ($23.9 million).
The company is also advancing the second phase of the Infranexia fibre asset carve-out, with management saying it is in discussions with potential strategic partners.
“We expect to announce an important milestone by the end of the third quarter, with implementation targeted to begin in the fourth quarter,” it said, referring to the fibre infrastructure transaction.
Separately, Telkom is seeking a strategic partner for its data centre business, which includes NeutraDC Group’s data centre and colocation facilities alongside the NeuCentrIX edge data centre network, with value-unlocking initiatives targeted for completion before the end of this year.
The restructuring forms part of Telkom’s broader TLKM30 transformation strategy, which focuses on simplifying the group’s portfolio, strengthening operational discipline and improving capital allocation while unlocking value from infrastructure assets.
President director Dian Siswarini said the company delivered stronger operating performance in the first half despite an uncertain macroeconomic environment, supported by disciplined execution of its transformation agenda.
“We remain committed to accelerating the execution of the TLKM30 transformation strategy to create sustainable value and build a stronger company for the long term,” Siswarini said.
Despite reporting stronger-than-expected first-half earnings, Telkom kept its full-year guidance unchanged, citing the impact of planned asset disposals on future growth.
“We are not changing our 2026 guidance. While first-half revenue growth exceeded our guidance range, the divestments planned for the second half are expected to have a moderate impact on revenue. Some of the businesses being prepared for sale are also likely to limit new project development during the process,” she said.
Telkom’s H1 2026 performance
Telkom posted a net profit of 10.6 trillion rupiah ($591.4 million) for the first six months of 2026, up 1% from a year earlier. Excluding one-off items, including gains from the healthcare divestments, accelerated depreciation, tax impacts from asset transfers and unrealised investment losses, normalised net profit rose 6% year on year to 11.3 trillion rupiah ($630.5 million), surpassing market expectations.
Revenue grew nearly 4% year on year to 75.9 trillion rupiah, while EBITDA increased about 4% to 37.5 trillion rupiah, maintaining an EBITDA margin of 49.4%. The improvement was driven by higher mobile ARPU and resilient operating performance despite the ongoing portfolio restructuring.
Mobile operator Telkomsel continued to benefit from higher-quality subscribers, with ARPU rising to 46,000 rupiah in the second quarter while its subscriber base remained broadly stable at 153.5 million users.
Meanwhile, IndiHome’s fixed broadband business continued to contract. Management attributed the decline in subscribers to an ongoing recalibration of its customer base, saying the company has been removing inactive users that had not generated revenue for more than 12 months and were unlikely to return.
Stockbit Sekuritas said the stronger operating performance provides a solid backdrop for Telkom’s restructuring efforts.
“The streamlining programme continues to make progress while operating performance remains resilient,” the brokerage wrote in a research note.
Stockbit noted that first-half revenue growth of 4% had already exceeded management’s full-year guidance of 1-3%, while normalised net profit reached 55% of the consensus full-year estimate, above the three-year average of 50%.
The brokerage also pointed to Telkom’s capital expenditure-to-revenue ratio of 14.2% in the first half, below the company’s guidance of 17-19%, which helped lift free cash flow by 12.8% year on year.
“The stronger free cash flow provides greater flexibility for Telkom to reduce debt or increase future dividend payouts,” Stockbit said.
