Financial Performance - Total revenues for the six months ended June 30, 2024, increased to IDR 75,292 billion, up from IDR 73,478 billion in the same period of 2023, representing a growth of 2.5%[13] - Operating profit for the period was IDR 21,635 billion, a decrease of 6.0% compared to IDR 23,019 billion in the previous year[13] - Profit for the period attributable to owners of the parent company was IDR 11,761 billion, down from IDR 12,756 billion, reflecting a decline of 7.8%[13] - Total comprehensive income for the period was IDR 15,772 billion, compared to IDR 15,254 billion in the same period last year, indicating an increase of 3.4%[13] - Basic earnings per share for the period was IDR 118.72, down from IDR 128.77 in the previous year[13] - The company reported a profit for the period of IDR 15,424 billion for the first half of 2024, compared to IDR 16,821 billion for the same period in 2023, reflecting a decrease of approximately 8.3%[16] Assets and Liabilities - Current assets as of June 30, 2024, totaled IDR 54,733 billion, slightly down from IDR 55,613 billion at the end of 2023[12] - Total liabilities increased to IDR 138,718 billion as of June 30, 2024, compared to IDR 130,480 billion at the end of 2023, marking an increase of 6.3%[12] - Total equity decreased to IDR 147,274 billion from IDR 156,562 billion, reflecting a decline of 5.9%[12] - Total assets for PT Telekomunikasi Indonesia Tbk. as of June 30, 2024, amounted to 108,250 billion Rupiah, a decrease from 112,966 billion Rupiah in 2023, representing a decline of approximately 6.1%[47] Cash Flow and Investments - Cash receipts from customers and other operators increased to IDR 72,497 billion in 2024 from IDR 71,175 billion in 2023, representing a growth of 1.85%[18] - Net cash provided by operating activities rose to IDR 29,687 billion in 2024, up from IDR 25,620 billion in 2023, indicating an increase of 15.5%[18] - Total cash used in investing activities was IDR 14,206 billion in 2024, a decrease from IDR 17,669 billion in 2023, indicating a reduction of 19.5%[18] - Cash and cash equivalents at the end of the period decreased to IDR 25,458 billion in 2024 from IDR 40,521 billion in 2023, a decline of 37.2%[18] Personnel and Expenses - Personnel expenses rose to IDR 9,485 billion, up from IDR 7,844 billion, indicating a significant increase of 20.9%[13] - The company reported finance income of IDR 705 billion, an increase from IDR 526 billion in the same period last year[13] Shareholder and Capital Information - The company paid cash dividends totaling IDR 17,683 billion to stockholders in 2024, compared to IDR 16,602 billion in 2023, marking an increase of 6.5%[18] - The company’s total authorized share capital was reduced from Rp20,000 billion to Rp19,500 billion as approved at the AGM held on April 27, 2018[43] - The company’s Series B shares are listed on the IDX, with 41,907,921 ADS equivalent to 4,190,792,080 Series B shares listed on the NYSE as of June 30, 2024[44] Subsidiaries and Acquisitions - The company has consolidated subsidiaries as of June 30, 2024, with details provided in the financial statements[46] - Mitratel conducted a share buyback amounting to 422,564,000 shares, equivalent to Rp268 billion from January 1, 2024, to June 30, 2024[53] - Mitratel acquired 997 telecommunications towers from Indosat for Rp1,648 billion and agreed to lease back 983 slots for a 10-year period[56] - Mitratel also acquired 803 telecommunications towers from PT Gametraco Tunggal for Rp1,753 billion[56] Accounting Policies and Financial Statements - The consolidated financial statements were authorized for issuance by the Board of Directors on July 29, 2024[60] - The financial statements are prepared in accordance with Indonesian Financial Accounting Standards, with amounts expressed in billions of Rupiah[61] - The Group's accounting policies were adjusted in line with new and revised financial accounting standards effective from January 1, 2024, with no material effect on reported amounts[65] - The consolidated statements of cash flows are prepared using the direct method, reflecting changes in cash and cash equivalents from operating, investing, and financing activities[63] Revenue Recognition - The Group's revenue recognition policy includes mobile, consumer, enterprise, and wholesale segments, with mobile services recognized based on actual usage or plan allowances[125][127][132]. - Revenue from mobile services includes cellular service, internet and data service, and SMS, with initial package sales recognized as contract liabilities[125][126]. - Consumer revenue primarily comes from fixed telephone and IndiHome services, with a contract period of 12 months followed by a monthly contract[129][130]. - Enterprise revenue includes telephone service, internet, and data, recognized over time based on actual usage or elapsed time[132][134]. Taxation and Financial Liabilities - Current and deferred income taxes are recognized in the consolidated statements of profit or loss, except when arising from transactions recognized directly in equity[154]. - Financial liabilities include trade and other payables, accrued expenses, customer deposits, interest-bearing loans, and lease liabilities[184]

Core Insights - The article discusses the evaluation of value stocks using various metrics, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [1] - It emphasizes the effectiveness of combining a strong Zacks Rank with a high Value category grade for optimal returns [2] Valuation Metrics - PT Telekomunikasi (TLK) has a P/B ratio of 1.77, while Telus (TU) has a P/B ratio of 1.82, indicating TLK is slightly more attractive in terms of book value comparison [3] - TLK has a forward P/E ratio of 11.24 compared to TU's 21.01, suggesting TLK is undervalued relative to its earnings potential [7] - TLK's PEG ratio is 1.45, while TU's PEG ratio is 2.37, further indicating TLK's superior valuation when considering expected earnings growth [7] Zacks Rank and Value Grades - TLK currently holds a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to TU, which has a Zacks Rank of 4 (Sell) [4] - TLK has been assigned a Value grade of B, while TU has a Value grade of C, highlighting TLK's better positioning for value investors [5] Investment Consideration - Investors in the Diversified Communication Services sector may find TLK to be a more attractive option than TU based on the discussed valuation metrics and earnings outlook [6][9]

Company Overview - PT Telekomunikasi (TLK) is headquartered in Bandung and operates in the Utilities sector, experiencing a price change of -28.92% this year [3] - The company currently pays a dividend of $0.85 per share, resulting in a dividend yield of 4.64%, which is significantly higher than the Diversified Communication Services industry's yield of 1.58% and the S&P 500's yield of 1.57% [3] Dividend Performance - The current annualized dividend of $0.85 represents a 0.2% increase from the previous year [4] - Over the last 5 years, PT Telekomunikasi has increased its dividend 3 times year-over-year, with an average annual increase of 7.97% [4] - The company's current payout ratio is 53%, indicating that it paid out 53% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - PT Telekomunikasi is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2024 at $1.72 per share, reflecting a 5.52% increase from the previous year [5] Investment Considerations - TLK is viewed as an attractive dividend investment opportunity, supported by a Zacks Rank of 2 (Buy) [7] - The company is positioned as a compelling option for income investors, particularly due to its higher dividend yield compared to industry peers [7]

Company Comparison - PT Telekomunikasi (TLK) has a Zacks Rank of 2 (Buy), indicating a stronger improvement in its earnings outlook compared to BCE, which has a Zacks Rank of 4 (Sell) [3] - TLK's forward P/E ratio is 10.65, significantly lower than BCE's forward P/E of 15.21, suggesting TLK is more attractively valued [5] - TLK has a PEG ratio of 1.38, which is lower than BCE's PEG ratio of 5.30, indicating TLK offers better value considering its expected earnings growth [5] - TLK's P/B ratio is 1.68, compared to BCE's P/B ratio of 2.47, further supporting TLK's valuation advantage [6] - TLK earns a Value grade of B, while BCE has a Value grade of C, based on key metrics such as P/E, P/S, earnings yield, and cash flow per share [4][6] Valuation Metrics - The Value category grades stocks using traditional metrics like P/E ratio, P/S ratio, earnings yield, and cash flow per share, which are crucial for value investors [4] - TLK's lower forward P/E and PEG ratios, along with its P/B ratio, highlight its superior valuation compared to BCE [5][6] Earnings Outlook - TLK's improving earnings outlook makes it stand out in the Zacks Rank model, reinforcing its position as the better value option [7]

Financial Data and Key Metrics Changes - The consolidated revenue for the first quarter of 2024 increased by 32.7% year-on-year to IDR 28.5 trillion, with mobile revenue contributing IDR 31.9 trillion and fixed broadband revenue at IDR 6.6 trillion [55][84] - Operating net income grew by 3.1% year-on-year to IDR 6.3 trillion, reflecting stable profitability levels supported by mobile business growth [55][83] - EBITDA stood at IDR 19.4 trillion, an increase of 2.2% from the previous year, indicating effective expense management [83] Business Line Data and Key Metrics Changes - Digital business revenue of Telkomsel grew by 8.6% year-on-year, increasing its contribution to mobile revenue from 84.4% to 89.9% [48] - The mobile customer base expanded to 159.7 million, while IndiHome B2C customers reached 8.9 million [48] - The data center business recorded revenue of IDR 449 billion, growing by 6.4% year-on-year, with plans to increase capacity to 60 megawatts by the end of 2024 [57][49] Market Data and Key Metrics Changes - The wholesale and international business segment contributed IDR 4.8 trillion, growing by 17.8% due to increased international wholesale voice business and digital connectivity infrastructure [49] - Data usage increased by 11% year-on-year, indicating a positive trend in customer engagement and service utilization [32][126] Company Strategy and Development Direction - The company aims to become the largest coverage operator in Indonesia by targeting youth and mass market segments through products like Telkomsel Lite [84][46] - The integration of Fixed Mobile Convergence (FMC) is a key strategy to enhance customer engagement and optimize service offerings [46][84] - The company is focused on maintaining profitability while fostering healthy competition in the market, with a commitment to smart acquisitions and quality customer retention [84][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by macroeconomic factors such as inflation and geopolitical situations but emphasized a stable outcome and increased traffic as indicators of improved customer productivity [53] - The outlook for mobile revenue growth is maintained at low-to-mid single digits for 2024, with expectations for a spectrum auction in the second half of the year [111][111] Other Important Information - The company is actively pursuing partnerships for its data center business to enhance capabilities and market reach [49][57] - The company has initiated a monetization process expected to conclude by the end of 2024, focusing on optimizing network consolidation and operational efficiency [58][57] Q&A Session Summary Question: Impact of Telkomsel Lite on mobile revenue outlook for 2024 - Management noted that the attraction of Telkomsel Lite aligns with internal plans, showing positive trends in customer engagement and traffic growth [66][71] Question: Update on spectrum auction timelines - Management expects the auction to occur in the second half of the year, pending official government announcements [111] Question: Reasons for decline in IndiHome B2C revenue and ARPU - The decline is attributed to customer type alignment, but there was a net addition of 222,000 customers in Q1, indicating positive progress [95][95] Question: Reactions from competitors following Telkomsel Lite launch - Management indicated that competitors are expected to respond with appropriate pricing and offerings, maintaining healthy market conduct [28][25] Question: Cost optimization programs and target savings - Management discussed ongoing cost optimization efforts, expecting a synergy impact of IDR 1.8 trillion from the integration of IndiHome [39][129] Question: Clarification on B2B vs B2C revenue reclassification - Management confirmed that the reclassification is between Telkomsel and Telkom, with no significant impact on transaction values [22][123]

Subscriber Base and Customer Segments - Telkom has 10.1 million IndiHome fixed broadband subscribers and 159.3 million cellular subscribers, including 7.5 million postpaid and 151.8 million prepaid subscribers[21]. - The company serves 524 groups of SOEs, 1,694 private customers, 618,854 SME customers, and 714 government institution customers[22]. - Telkom's digital services have 17.7 million active users in digital music, 15.6 million paying users in digital games, and 10.5 million paying users in digital edutainment[24]. Infrastructure and Network - The company is focused on expanding its infrastructure through the Indonesia Cyber Core Program, which includes id-Service, id-Convergence, and id-Network[25]. - Telkom's subsidiaries include Telkomsel, which covers over 90% of Indonesia's population, and PT Telkom Akses, which manages fixed broadband access networks[18]. - The company operates a fiber optic backbone network of 176,663 km, with 111,663 km domestic and 64,700 km international[29]. - The mobile network consists of 247,472 base transceiver stations (BTS), including 654 BTS for 5G[30]. - Telkom has 38 million homes passed with its fiber optic access network[27]. Financial Performance - Total revenues for 2023 reached Rp149,216 billion, a 1.3% increase from Rp147,306 billion in 2022[31]. - EBITDA for 2023 was Rp77,579 billion, slightly down from Rp78,992 billion in 2022, resulting in an EBITDA margin of 51.9%[31][41]. - Profit for the year attributable to owners of the parent company increased to Rp24,560 billion, up 18% from Rp20,753 billion in 2022[31]. - Total assets as of 2023 amounted to Rp287,042 billion, an increase from Rp275,192 billion in 2022[32]. - Capital expenditure for 2023 was Rp32,968 billion, a decrease from Rp34,156 billion in 2022[33]. - Revenue for the financial year 2023 reached Rp149,216 billion, reflecting a 1.30% year-over-year growth[54]. - EBITDA decreased to Rp77,579 billion, down 1.79% year-over-year[54]. - Net profit increased to Rp24,560 billion, showing an 18.3% year-over-year growth[54]. Market Position and Growth Strategy - The company aims to enhance its market position through strategic partnerships and acquisitions in the telecommunications sector[18]. - The telecommunications industry in Indonesia is projected to grow by 5.3% in 2024, supported by strong domestic consumption and investment growth[62]. - The digital economy's contribution to Indonesia's GDP is expected to rise from 8% in 2022 to 14% in 2027[64]. - Telkom's CAPEX plan for future growth is set at 22% of total revenue, focusing on mobile, fixed broadband, data center & cloud, and infrastructure[83]. - The ICT sector contributed Rp812.81 trillion to the national GDP in 2022, with a predicted CAGR of 6.1% from 2023 to 2027[64]. Sustainability and Corporate Governance - Telkom has initiated a commitment to Net Zero Emission through NeutraDC, emphasizing sustainability in operations[53]. - The ASEAN Corporate Governance Scorecard (ACGS) score improved from 97.87 to 98.5, reflecting enhanced corporate governance practices[90]. - The company is committed to maintaining transparency and good corporate governance practices[179]. Digital Transformation and Innovation - The company is actively involved in various digital services, including e-commerce for B2B and property management to optimize its assets across Indonesia[23]. - Telkom's digital transformation strategy includes a diverse portfolio of products and services across various business segments, including mobile, consumer, and enterprise[159]. - The company is transforming towards B2B Digital IT Services through partnerships with major technology firms like Microsoft and AWS[142]. - The company has increased collaboration with major technology firms, including Microsoft, to enhance its service offerings[155]. Employee and Organizational Structure - As of the end of 2023, Telkom has a total of 23,064 employees, a decrease of 729 employees or 3% compared to 2022[207]. - The number of employees from the parent company is 7,469, down from 8,919 in 2022[208]. - The largest proportion of employees, 68% or 15,624 people, hold an undergraduate degree[209]. - 73.4% or 16,925 employees are under the age of 45, a decrease of 1% compared to the previous period[210]. - The company emphasizes creating a professional and safe work environment for its employees[205]. Strategic Initiatives and Future Plans - The company is implementing a transformation strategy with five bold moves, including Fixed Mobile Convergence and InfraCo, to enhance operational efficiency and market penetration[138][139]. - The company plans to build and manage data centers with a target capacity of 62 MW by 2025, including Hyperscale Data Centers and Edge Data Centers[115]. - A strategic acquisition of a local tech firm is anticipated to enhance the company's capabilities and is expected to close by Q2 2024[170]. - The company is investing $50 million in research and development for new technologies aimed at improving user experience[171]. - Operational efficiency initiatives are projected to reduce costs by 10%, enhancing overall profitability[172].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT O ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of October 2023 Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (Exact name of Registrant as specified in its charter) Telecommunications Indonesia (A state-owned public limited liability Company) (Translation of registrant's name into English) Jl. Japati No. 1 Bandung 40133, Indonesia (Addr ...

SETYAWAN Customer-centric telco operator | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|----------|-------|-------|-------|-------|-------|-------|-----------| | | | | | | | | | | | | 1H23 | | | 9.3 | 7.5 | | | 5.4 5.5 | | | Revenues | | | | | 4.2 | 4.5 | | Corporate Presentation 1H23 Results Disclaimer 3 1H23 Financial and Operational Results | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------------------------------------------------------------|--------------- ...

Financial Performance - As of the second quarter of 2023, the company maintained revenue growth of 2.1% year-on-year, with EBITDA also increasing by 2.1% quarter-on-quarter, while quarterly net income decreased by 1.4% [6][24][25] - The EBITDA margin for Telkomsel was maintained at 56%, supported by revenue growth and a successful cost leadership program [7][24] - The company recorded a decline in IndiHome's ARPU to IDR 160,000 due to economic offers, although the EBITDA margin remained stable at around 50% [10][9] Business Line Performance - The mobile business segment experienced a 1% year-on-year revenue growth, driven by a 6.1% increase in data internet and IT services [24][25] - The enterprise segment grew by 7.8% year-on-year, reaching IDR 4.5 trillion, indicating successful strategic alignment [11] - IndiHome added approximately 316,000 customers in the first half of 2023, bringing total subscribers to 8.9 million, a 7.2% year-on-year increase [9] Market Data - Telkomsel's customer base increased to 153.3 million in the second quarter of 2023, up from 151.1 million in the previous quarter, with ARPU rising from IDR 45,300 to IDR 49,700 [25][26] - The company reported a 4% year-on-year revenue growth in the Wholesale & International business segment, driven by the international wholesale voice business and digital infrastructure [53] Company Strategy and Industry Competition - The company is focusing on the B2B business as a future growth engine, with the establishment of a group business development directorate [5][12] - The Five Bold Moves strategy is seen as crucial for sustaining growth in the digital business sector in Indonesia [29][30] - The company aims to enhance competitiveness through the spin-off agreement with Telkomsel, which is expected to improve operational efficiency and market positioning [21][30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the B2B market's potential and the positive impact of recent spectrum costs on service quality and capacity [6][24] - The company anticipates that cost synergies from the fixed mobile convergence initiative will start to materialize in the second half of 2023, with an expected synergy of IDR 500 billion for the first year [68][49] - Management acknowledged challenges from legacy business declines but emphasized a focus on digital connectivity growth [48][93] Other Important Information - The company has signed a spinoff agreement with Telkomsel to enhance synergy between B2C and B2B businesses, aiming to become the strongest fixed-mobile converged operator in Indonesia [21][22] - Mitratel, the tower subsidiary, reported a revenue growth of 10.8% year-on-year, with a tenancy ratio improvement [34][59] Q&A Session Summary Question: What is the strategic objective of the Telkomsel-1 brand? - Management indicated that the objective is to enhance market share through bundling discounts and retention strategies, with cost synergies expected to kick in from the second half of 2023 [38][68] Question: What is driving the decline in EBITDA margin in the non-mobile segment? - Management explained that the decline is due to conservative recognition of costs and allowances for bad debt, particularly in the enterprise segment [39][64] Question: How does the company plan to address rising operational costs? - Management noted that costs are expected to normalize over the year, with a focus on efficiency in asset management and personnel costs [46][111] Question: What is the outlook for IndiHome's customer additions in the second half? - Management stated that the focus will be on both fixed wireless access and fiber customers, with expectations for continued growth [97][100] Question: How does the company view competition in the market? - Management acknowledged elevated competition but emphasized a focus on profitability and customer value management to maintain market share [98][103]