Net Profit Plunges 21.8% Amid Ongoing SEC/DOJ Probes; Rp3T Share Buyback Approved
TLK is trading near its 52-week low of $15.63 (6.1% above the low) on light trading volume (0.1× avg).
Summary
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.
Key Events · Earnings and Guidance · TLK
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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.
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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.
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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.
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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.
Analysis · TLK · Technology
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.
At the time of this filing, TLK was trading at $16.58 on NYSE in the Technology sector, with a market capitalization of approximately $16.7B. The 52-week trading range was $15.63 to $23.52. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.