Telkom Indonesia Faces Challenges Amidst Competitive Landscape

Financial Performance Review

PT Telkom Indonesia (TLKM) reported a challenging financial performance for the first nine months of 2025, with revenue declining by 2.31% year-on-year to Rp 109.61 trillion. The company's net profit also experienced a significant decrease, falling by 10.69% yoy to Rp 15.78 trillion. In Q3 2025, Telkom's revenue remained stagnant at around Rp 36.6 trillion, showing only a marginal increase of 0.7% compared to the previous quarter.

Customer Base Analysis

Despite the financial challenges, Telkom's subsidiaries maintained a robust customer base. Telkomsel, the mobile arm, retained 157.6 million subscribers, indicating a strong market presence. Additionally, IndiHome's business-to-customer (B2C) segment demonstrated positive growth, with subscribers increasing by 9.4% yoy to reach 10.3 million users.

Analyst Insights

Sukarno Alatas, an analyst from Kiwoom Sekuritas, highlighted that the Average Revenue Per User (ARPU) would be a critical factor in determining Telkom's recovery path. The company's ability to enhance ARPU through strategic initiatives will likely play a pivotal role in shaping its future financial performance. As the telecommunications sector remains highly competitive, Telkom's focus on improving ARPU and maintaining its customer base will be crucial for regaining momentum.