Net Profit Plunges 21.8% Amid Ongoing SEC/DOJ Probes; Rp3T Share Buyback Approved

summarizeSummary

PT Telekomunikasi Indonesia Tbk reported a 21.8% drop in 2025 net profit, confirmed ongoing SEC and DOJ investigations into accounting irregularities, and announced a Rp3.0 trillion share buyback program.

check_boxKey Events

• Significant Net Profit Decline

  Profit attributable to owners of the parent company decreased by 21.8% to US$1.049 billion in 2025, down from US$1.326 billion in 2024.

• Ongoing SEC and DOJ Investigations

  The company faces continuing SEC and DOJ investigations into accounting and disclosure issues, with an internal investigation identifying approximately US$324 million in revenues from 2014-2021 that lacked economic substance.

• ICFR Effectiveness Confirmed Post-Reclassification

  Management concluded that internal controls over financial reporting were effective as of December 31, 2025, after reclassifying prior accounting issues related to drop cable assets as a voluntary policy change rather than errors.

• Rp3.0 Trillion Share Buyback Program

  Shareholders approved a share buyback program of up to Rp3.0 trillion (approximately US$180 million), with 8,945,400 shares repurchased in 2025.

auto_awesomeAnalysis

This annual report confirms a substantial 21.8% decline in the company's 2025 net profit and details serious ongoing SEC and DOJ investigations into accounting practices and alleged corruption. The internal investigation found approximately US$324 million in past revenues lacked economic substance. While the company reclassified prior accounting issues as a policy change and affirmed effective internal controls, the financial underperformance and unresolved investigations pose considerable risks. The announced Rp3.0 trillion share buyback program, representing over 1% of the market cap, is a notable effort to boost shareholder confidence amidst these challenges.