The buyback is a modest positive signal but insufficient to offset the fundamental deterioration (revenue -2.2%, net profit -17.1%) and regulatory overhang from SEC/DOJ probes. Monitor the GMS vote on June 8 and subsequent execution pace; the buyback is discretionary and may be terminated early. The 12-month window means limited near-term urgency.
Price Chart
Executive Summary
Telkom Indonesia updated its disclosure regarding a proposed share buyback of up to Rp4 trillion (approximately $275M at current rates), funded from internal cash, to be executed over 12 months following shareholder approval on June 8, 2026. The buyback is capped at 10% of issued capital and aims to support share price and stakeholder confidence, but comes against the backdrop of a 2.2% revenue decline and 17.1% net profit drop reported in the FY2025 20-F filed 20 days prior, along with ongoing SEC/DOJ investigations.
Key Facts
- Buyback authorized up to Rp4 trillion (~$275M), funded from internal cash, not debt or equity offering.
- Buyback period: up to 12 months from GMS approval on June 8, 2026 (through June 8, 2027).
- Maximum 10% of issued and paid-up capital may be repurchased; free float will remain above 15%.
- Pro forma EPS impact: from Rp179.8 to Rp183.1 (1.8% increase) assuming full buyback of 10% of shares.
- Assets and equity would decrease by up to Rp4 trillion if fully executed; revenue not expected to be affected.
- Company faces ongoing SEC and DOJ investigations related to revenue recognition and FCPA compliance (per 20-F).
- FY2025 results showed revenue down 2.2% to Rp146.7T and net profit down 17.1% to Rp17.8T (per 20-F).
Financial Impact
Buyback up to Rp4 trillion (~$275M), representing ~1.8% of market cap. Pro forma EPS improvement of ~1.8% (Rp179.8 to Rp183.1) if fully executed. No impact on revenue or operating cash flow.
Risk Factors
- SEC/DOJ investigations could result in material penalties or operational restrictions, overshadowing buyback benefits.
- Buyback may be executed at a slow pace or terminated early, limiting actual share reduction.
- Continued revenue and profit declines could further pressure the stock despite the buyback authorization.
- Indonesian rupiah depreciation could reduce USD-equivalent buyback impact.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001001807-26-000038 |
| Document: 0001001807-26-000038-index-headers.html | 0001001807-26-000038 |
| Document: 0001001807-26-000038-index.html | 0001001807-26-000038 |
| Document: 0001001807-26-000038.txt | 0001001807-26-000038 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | 6-K | $12.21 | awaiting T+20 | — | $11.76 (−3.69%) |
Oct 2, 2026 25d ago | 6-K | $12.55 | awaiting T+20 | — | $11.76 (−6.29%) |
Oct 2, 2026 25d ago | 6-K | $12.55 | awaiting T+20 | — | $11.76 (−6.29%) |
Oct 2, 2026 25d ago | 6-K | $12.55 | awaiting T+20 | — | $11.76 (−6.29%) |
Sep 18, 2026 5w ago | 6-K | $14.17 $11.03 | ▼ −22.16% | ▼ −22.36% | $11.76 (−17.01%) |
Aug 7, 2026 11w ago | 6-K | $15.10 $14.85 | ▼ −1.66% | ▼ −1.26% | $11.76 (−22.12%) |
Aug 7, 2026 11w ago | 6-K | $15.10 $14.85 | ▼ −1.66% | ▼ −1.26% | $11.76 (−22.12%) |
Jul 1, 2026 16w ago | 6-K | $13.73 $14.37 | ▲ +4.66% | ▲ +6.85% | $11.76 (−14.35%) |
Jun 18, 2026 18w ago | 6-K | $14.88 $14.27 | ▼ −4.10% | ▼ −4.63% | $11.76 (−20.97%) |
Jun 10, 2026 19w ago | 6-K | $15.33 $14.06 | ▼ −8.28% | ▼ −11.91% | $11.76 (−23.29%) |
US Market Status
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