Investor Concerns Send Telkom Indonesia Shares Tumbling 14,86%

JAKARTA – Jakartaweekly.com — Shares of state-owned telecommunications giant PT Telkom Indonesia (Persero) Tbk (TLKM) came under heavy selling pressure during the second trading session on Monday (June 9, 2026), plunging 14.86% or 410 points to close at Rp2,350 per share.

According to data from the Indonesia Stock Exchange (IDX), TLKM opened at Rp2,620 and briefly reached an intraday high of Rp2,650 before intense selling activity pushed the stock down to the Auto Reject Lower (ARB) threshold by the close of trading.

Mirae Asset Sekuritas analyst Nafan Aji Gusta said the sharp decline reflects growing investor anxiety over the broader macroeconomic outlook as well as uncertainty surrounding the company’s Annual General Meeting of Shareholders (AGMS).

“The decline in Telkom’s share price is also related to the AGMS results. There is a tendency for the market to act prudently and secure positions while waiting for official decisions, particularly regarding dividend certainty,” Nafan said.

He explained that institutional and foreign investors typically make investment decisions based on legal certainty, business growth prospects, and the potential for increased corporate capitalization. As a result, improving Indonesia’s overall investment ecosystem remains essential to reversing the current “Sell Indonesia” sentiment and restoring investor confidence.

Adding to investor caution, Telkom is preparing a major corporate action in the form of a share buyback program worth up to Rp4 trillion. However, the market is still awaiting formal approval from shareholders before the initiative can proceed.

Based on previously disclosed plans, the buyback program is expected to begin after obtaining shareholder approval at the AGMS and could run from June 2026 through June 2027.

“If it receives approval, the execution is expected to start on June 9, 2026, and continue until June 2027. That is my understanding of the plan,” Nafan added.

Meanwhile, Indonesian capital market observer and analyst Fendi Susiyanto emphasized that Telkom’s operational performance remains fundamentally strong. The company continues to maintain an EBITDA margin of around 48%, while net profit levels remain healthy.

“TLKM’s share price decline is largely driven by investor concerns over a major procurement case that has become a significant issue for the market. Investors are choosing to reduce their exposure by selling the stock,” Fendi said on Monday.

Despite the market reaction, Telkom reported solid financial results in the first quarter of 2026. The company recorded consolidated revenue of Rp37.18 trillion during the period.

Of that total, Rp10.16 trillion, or approximately 27.33%, was generated from business-to-business (B2B) infrastructure services, B2B ICT solutions, international operations, and supporting business segments. The performance highlights Telkom’s success in diversifying its revenue streams and reducing reliance on its traditional consumer-focused business.

Although the Business-to-Consumer (B2C) segment, led by Telkomsel’s mobile and fixed broadband services, remained the largest contributor with Rp27.02 trillion in revenue, non-retail business lines continue to play an increasingly strategic role in the company’s long-term growth plans.

These emerging business segments are expected to become key growth engines for the Telkom Group in the years ahead.

A closer look at non-B2C revenue shows that the B2B ICT segment—which includes services provided by Telkomsigma, Infomedia, Digiserve, and Nutech—generated external revenue of Rp3.08 trillion.

The B2B Infrastructure segment, represented by subsidiaries such as Mitratel, Inframedia, NeutraDC, and Telkomsat, contributed Rp2.35 trillion in external revenue, out of the segment’s total gross revenue of Rp16.29 trillion.

Meanwhile, the International Business segment, managed by Telin through its global submarine cable network operations, generated Rp2.80 trillion in external revenue.

Supporting and ancillary businesses, including Telkom Metra, Finnet, Metranet, and MDI Ventures, completed the portfolio with external revenue contributions totaling Rp1.92 trillion.

The latest figures underscore Telkom’s ongoing transformation from a traditional telecommunications operator into a broader digital infrastructure and technology services provider, even as short-term market sentiment weighs heavily on its share performance.