Telkom's Mixed Performance: Challenges and Opportunities

Financial Highlights for 9M 2025

PT Telkom Indonesia (TLKM), Indonesia's state-owned telecommunications giant, reported mixed financial results for the first nine months of 2025. The company recorded total revenue of Rp 109.61 trillion, representing a 2.31% year-on-year decline. This decrease was accompanied by a more significant drop in net profit, which fell 10.69% YoY to Rp 15.78 trillion.

Operational Metrics and Market Position

Despite the financial challenges, Telkom maintained its strong market presence through stable operational metrics. Telkomsel, its mobile subsidiary, retained a substantial subscriber base of 157.6 million customers. In the fixed-line broadband segment, IndiHome B2C customers showed robust growth, increasing 9.4% YoY to 10.3 million subscribers. This growth in IndiHome customers provides a positive note amid the overall revenue decline.

ARPU: A Key Performance Indicator

Analyst Sukarno Alatas from Kiwoom Sekuritas highlighted that while the subscriber numbers remained robust, Average Revenue Per User (ARPU) continues to face pressure. The ongoing decline in ARPU is attributed to slower broadband monetization and competitive pricing in the market. Despite these challenges, ARPU is identified as a potential catalyst for Telkom's future performance, as improvements in this metric could significantly impact the company's revenue trajectory.

Market Outlook and Analyst Perspectives

The telecommunications sector remains competitive, with pricing pressure affecting revenue streams. However, Telkom's strong infrastructure and customer base provide a foundation for potential recovery. Analysts are closely monitoring ARPU trends and the company's ability to enhance its revenue per user through strategic initiatives and service offerings.