TLK

PT Telekomunikasi Indonesia Tbk remains a buy, following my evaluation of its recent corporate transaction and near-term prospects. The spin-off of TLK's wholesale fiber business into a separate infrastructure-focused entity unlocks value, enhances margins, and preserves cash flows for shareholder returns. TLK's proactive restructuring, disciplined pricing, and product simplification support margin expansion and a likely positive Q3 earnings surprise.

I upgrade PT Telekomunikasi Indonesia Tbk to 'Buy' after identifying favorable read-throughs from recent events. TLK secured the largest spectrum share at significantly reduced costs, enhancing its 5G capacity and competitive positioning. Potential special distributions from future asset sales support a compelling capital return outlook.

Bloomberg's 2026 Dividend Focus list highlights 16 'safer' stocks with free cash flow yields exceeding dividend yields, signaling attractive risk-adjusted income opportunities. PT Telekom, Continental, and KION Group stand out as 'IDEAL' dividend stocks, with dividends from $1,000 invested surpassing single share prices. Analyst forecasts suggest the top ten yielders could deliver average net gains of 25% by May 2027, with PT Telecom projected to lead at 46.94%.

JAKARTA, Indonesia, May 15, 2026 /PRNewswire/ -- As required by Section 203.01 of the New York Stock Exchange Listed Company Manual, Telkom Indonesia (IDX: TLKM) (NYSE: TLK) confirms that it has filed its annual report on Form 20-F for the year 2025 with the U.S. Securities and Exchange Commission. Telkom Indonesia's 20-F report is available on its website at www.telkom.co.id (http://www.telkom.co.id/) as well as through the SEC website at www.sec.gov (http://www.sec.gov/).

My updated rating for Telekomunikasi Indonesia is a "Hold" (versus a "Buy" previously), considering poor financial prospects and solid corporate restructuring efforts. FY2025 results missed expectations, with EPS down 24.7%; its FY26 revenue growth outlook was below consensus, while its EBITDA margin guidance implies limited improvement. But TLK is making strong progress on portfolio rationalization, and 5G transition risks are easing.