[Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Financial Position](index=6&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, PT Telekomunikasi Indonesia's total assets grew to IDR 290,478 billion from IDR 275,192 billion, driven by increases in current and non-current assets, while total liabilities rose to IDR 150,127 billion and total equity decreased to IDR 140,351 billion Consolidated Statement of Financial Position Highlights (in billions of IDR) | Financial Item | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | 65,890 | 55,057 | | **Total Non-current Assets** | 224,588 | 220,135 | | **Total Assets** | **290,478** | **275,192** | | **Total Current Liabilities** | 95,350 | 70,388 | | **Total Non-current Liabilities** | 54,777 | 55,542 | | **Total Liabilities** | **150,127** | **125,930** | | **Total Equity** | **140,351** | **149,262** | | **Total Liabilities and Equity** | **290,478** | **275,192** | [Consolidated Statement of Profit or Loss and Comprehensive Income](index=8&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Comprehensive%20Income) For the six months ended June 30, 2023, revenues increased by 2.1% to IDR 73,478 billion, but profit for the period declined to IDR 16,821 billion, leading to a decrease in profit attributable to owners and basic earnings per share Income Statement Summary for the Six Months Ended June 30 (in billions of IDR, except per share data) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Revenues** | 73,478 | 71,983 | | **Operating Profit** | 23,019 | 22,936 | | **Profit Before Income Tax** | 21,302 | 21,429 | | **Profit for the Period** | 16,821 | 17,555 | | **Profit Attributable to Owners of the Parent** | 12,756 | 13,310 | | **Basic Earnings Per Share (in full IDR)** | 128.77 | 134.36 | [Consolidated Statement of Changes in Equity](index=9&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity decreased from IDR 149,262 billion at the beginning of 2023 to IDR 140,351 billion by June 30, primarily due to cash dividend payments and other comprehensive loss offsetting the period's profit Equity Movement for the Six Months Ended June 30, 2023 (in billions of IDR) | Description | Amount | | :--- | :--- | | Balance, January 1, 2023 | 149,262 | | Profit for the period | 12,756 | | Other comprehensive income (loss) - net | (1,567) | | Cash dividend | (16,602) | | **Net Equity Attributable to Owners** | **123,845** | | Non-controlling interests movement | (3,498) | | **Total Equity, June 30, 2023** | **140,351** | [Consolidated Statement of Cash Flows](index=11&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For H1 2023, net cash from operating activities decreased to IDR 25,620 billion, while financing activities shifted to a net inflow of IDR 798 billion, resulting in an increased cash balance of IDR 40,521 billion Cash Flow Summary for the Six Months Ended June 30 (in billions of IDR) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | 25,620 | 34,944 | | Net cash used in investing activities | (17,669) | (17,569) | | Net cash provided by (used in) financing activities | 798 | (15,707) | | **Net Increase in Cash and Cash Equivalents** | **8,749** | **1,668** | | **Cash and Cash Equivalents at End of Period** | **40,521** | **40,160** | [Notes to the Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [Note 1: General Information](index=12&type=section&id=1.%20GENERAL) This note provides corporate background, business scope, and key corporate actions, including the spin-off of IndiHome to Telkomsel for IDR 58,250 billion and Mitratel's acquisition of 997 towers from Indosat - The company executed a significant restructuring by spinning off its IndiHome Business Segment to its subsidiary, Telkomsel, for a total value of **IDR 58,250 billion**, increasing Telkom's effective ownership in Telkomsel to **69.9%** effective July 1, 2023[53](index=53&type=chunk) - Subsidiary Mitratel acquired **997** telecommunication towers from PT Indosat Tbk for **IDR 1,648 billion** in February 2023, coupled with a 10-year leaseback agreement[55](index=55&type=chunk) - The Group's total employee count was **20,879** as of June 30, 2023, a slight decrease from **20,951** at the end of 2022[32](index=32&type=chunk) [Note 2: Summary of Significant Accounting Policies](index=28&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the principal accounting policies, including the basis of consolidation, revenue recognition (PSAK 72), lease accounting (PSAK 73), and significant management judgments and estimates applied in preparing the financial statements - The financial statements are prepared on an accrual basis in accordance with Indonesian Financial Accounting Standards (SAK), using historical cost as the measurement basis, with exceptions for certain accounts[58](index=58&type=chunk)[59](index=59&type=chunk) - Revenue from contracts with customers is recognized under a five-step model (PSAK 72), with detailed policies for major revenue streams including Mobile, Consumer, Enterprise, and Wholesale & International Business (WIB)[128](index=128&type=chunk)[129](index=129&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[141](index=141&type=chunk) - Leases are accounted for under PSAK 73, requiring recognition of right-of-use (ROU) assets and lease liabilities for most contracts, with exemptions for short-term and low-value asset leases[107](index=107&type=chunk)[110](index=110&type=chunk)[115](index=115&type=chunk) - Significant management estimates and judgments are applied in areas such as retirement benefit obligations, useful lives of property and equipment, allowance for expected credit losses, and fair value of financial instruments[217](index=217&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) [Notes on Financial Position Items](index=77&type=section&id=Financial%20Position%20Details) This section details key Statement of Financial Position accounts, including cash and equivalents rising to **IDR 40,521 billion**, increased trade receivables, P&E at **IDR 175,471 billion**, and a rise in total borrowings, with short-term loans nearly doubling to **IDR 15,129 billion** Key Asset & Liability Balances (in billions of IDR) | Account | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 40,521 | 31,947 | | Trade Receivables - Net | 10,151 | 8,634 | | Property and Equipment - Net | 175,471 | 173,329 | | Intangible Assets - Net | 8,105 | 8,302 | | Short-term Bank Loans | 15,129 | 8,191 | | Long-term Loans & Borrowings (Non-current) | 26,503 | 27,331 | | Non-controlling Interests | 16,505 | 20,004 | - Long-term investments grew to **IDR 9,218 billion**, largely due to an unrealized gain of **IDR 451 billion** from the investment in PT GoTo Gojek Tokopedia Tbk (GOTO)[266](index=266&type=chunk)[267](index=267&type=chunk) [Notes on Operations and Other Items](index=116&type=section&id=Operational%20and%20Other%20Notes) This section details operational performance, including H1 2023 revenues growing 2.1% to **IDR 73,500 billion**, significant related party transactions, a net debt-to-equity ratio increase to **27.32%**, and subsequent financing activities Revenue by Segment - H1 2023 (in billions of IDR) | Segment | Revenue | Segment Result | | :--- | :--- | :--- | | Mobile | 42,169 | 14,757 | | Consumer | 13,283 | 4,380 | | Enterprise | 9,284 | (66) | | WIB | 8,156 | 4,541 | | **Total External Revenue** | **73,081** | **23,062** | - The company has significant transactions with related parties, including revenues from and expenses to other state-owned enterprises, with expenses paid to PLN amounting to **IDR 1,289 billion** in H1 2023[421](index=421&type=chunk) - The net debt-to-equity ratio increased to **27.32%** as of June 30, 2023, from **24.06%** at year-end 2022, while remaining compliant with all debt covenants[508](index=508&type=chunk) - Subsequent to June 30, 2023, subsidiary Telkomsel made loan repayments of **IDR 6,500 billion**, and the parent company drew down an **IDR 800 billion** facility from HSBC[511](index=511&type=chunk)

Financial Data and Key Metrics - Telkomsel reported a 2.5% YoY increase in revenue and a 5.5% YoY increase in net income for Q1 2023 [7] - EBITDA decreased by 2% YoY due to significant spectrum costs allocated to maintain competitive advantages in the mobile business [7] - Telkomsel's EBITDA margin remained stable at 55.7% [8] - IndiHome's revenue grew by 5% YoY, contributing IDR7.2 trillion to total consolidated revenue [28] - Enterprise segment revenue grew by 7.8% YoY to IDR4.5 trillion [10] - Wholesale & International business segment revenue increased by 4.0% YoY to IDR4 trillion [29] Business Line Performance - Mobile and fixed broadband segments dominated revenue contributions due to favorable competition and new customer growth [26] - Data, internet, and IT services grew by 5.5% YoY [26] - IndiHome's blended ARPU was diluted to IDR264,000, with subscriber growth of 7% YoY, reaching 9.4 million customers [28] - Enterprise segment growth was driven by connectivity, digital solutions, and satellite businesses [10] - Wholesale business growth was supported by international wholesale voice and digital infrastructure [29] Market Performance - Fixed broadband competition intensified, particularly in high-income household segments served by IndiHome and competitors [9] - Telkomsel maintained healthy revenue growth of 1.1% YoY in the mobile segment [8] - The company faced high competition in big cities, with competitors offering attractive pricing and high-speed internet [20] Strategic Direction and Industry Competition - Telkom Group is focusing on B2B and B2C markets, emphasizing digital connectivity, platforms, and business [5] - The company is implementing the "Five Bold Moves" strategy, including the FMC initiative and InfraCo project [11][14] - Telkomsel aims to improve internal capabilities in data center cloud, B2B IT services, and digital business [6] - The company is exploring infra-sharing opportunities and positioning InfraCo as a solution to industry challenges [14] - Data center and cloud businesses are a key focus, with significant demand growth [15] Management Commentary on Operating Environment and Future Outlook - Management highlighted the impact of inflation, which reached nearly 5% in Q1 2023, affecting customer offerings [38] - The company expects to maintain low- to mid-single-digit growth in wireless revenue for 2023 [86] - Synergy benefits from the IndiHome-Telkomsel merger are expected to yield IDR5 trillion in additional EBITDA by 2027 [82][83] - The company is optimistic about growth in the second half of 2023, driven by fixed mobile convergence and other business initiatives [121] Other Important Information - Telkom signed a conditional spin-off agreement (CSA) with Telkomsel, transferring IndiHome business to Telkomsel [30] - Telkom's shareholding in Telkomsel increased from 65% to 69.9%, with Singtel diluting its stake to 30.1% [12] - The company expects to add 21 megawatts to its data center capacity in 2023 [54] Q&A Session Summary Question: What is driving the sequential decline in mobile revenue, and is mid-single-digit growth still targeted for 2023? - The decline is attributed to seasonal impacts and legacy revenue declines, which still contribute 15% of total revenue [97] - The company maintains its guidance for low- to mid-single-digit growth in mobile revenue for 2023 [86] Question: What are the synergy benefits from the IndiHome-Telkomsel merger? - Synergy benefits are expected to reach IDR5 trillion in additional EBITDA by 2027, with CapEx savings reducing from 25% to 20-22% of revenue [82][83] Question: How is inflation impacting price increases and growth prospects? - Inflation has led to cautious price adjustments, with selective portfolio updates to balance competitiveness and customer affordability [118] Question: What is the outlook for legacy revenue alignment with peers? - Legacy revenue is expected to stabilize at 5-10% of total revenue within the next 2-2.5 years [115] Question: What is the guidance for 2023? - The company maintains its guidance, expecting growth acceleration in the second half of 2023, driven by fixed mobile convergence and other initiatives [121]

Corporate Presentation 1Q23 Results PT Telkom Indonesia (Persero) Tbk May 2023 Disclaimer This document may contain forward-looking statements within the meaning of safe-harbor. Actual results could differ materially from projections, estimations or expectations. These may involve risks and uncertainties and may cause actual results and development to differ substantially from those expressed or implied in the statements. The company does not guarantee that any action, which may have been taken in reliance ...

PART I [Key Information](index=26&type=section&id=ITEM%203.%20KEY%20INFORMATION) The company identifies numerous risks across operational, business, financial, legal, and regulatory domains - The company faces significant operational risks, including potential network failures, competition from new technologies like **5G and OTT services** which diminish legacy revenue, and increasing physical and cybersecurity threats[156](index=156&type=chunk)[173](index=173&type=chunk)[199](index=199&type=chunk) - Business risks are centered on **intense competition** in the Indonesian cellular market, which may affect margins and market share, and the substantial capital required for ongoing infrastructure investment in 4G/LTE and 5G networks[161](index=161&type=chunk)[218](index=218&type=chunk)[233](index=233&type=chunk) - Financial risks include exposure to **interest rate fluctuations** on its bank borrowings and the potential inability to fund the large capital expenditures necessary to remain competitive[158](index=158&type=chunk)[237](index=237&type=chunk)[241](index=241&type=chunk) - Regulatory and legal risks stem from potential changes in the legal environment, tariff regulations, and anti-competitive practice liabilities; the company's **majority ownership by the Indonesian government** presents a unique risk, as government interests may not always align with those of other shareholders[159](index=159&type=chunk)[162](index=162&type=chunk)[236](index=236&type=chunk) - Broader risks related to Indonesia include political and social instability, macroeconomic fluctuations such as **currency volatility and inflation**, and vulnerability to natural disasters and climate change[167](index=167&type=chunk)[168](index=168&type=chunk)[170](index=170&type=chunk) [Information on the Company](index=88&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) PT Telekomunikasi Indonesia Tbk is Indonesia's largest telecommunications firm, focusing on digital transformation [History and Development of the Company](index=88&type=section&id=A.%20HISTORY%20AND%20DEVELOPMENT%20OF%20THE%20COMPANY) This section traces Telkom's evolution from a state-owned entity to its IPO and key 4G/5G milestones - Key corporate milestones include the **1995 IPO on IDX and NYSE**, the 2014 launch of 4G/LTE services, the 2021 launch of 5G services, and the 2021 IPO of its subsidiary Mitratel[361](index=361&type=chunk)[364](index=364&type=chunk)[368](index=368&type=chunk) Consolidated Capital Expenditures (2020-2022) | Year | Amount (Rp billion) | Amount (US$ million) | | :--- | :--- | :--- | | 2020 | 29,279 | - | | 2021 | 30,329 | - | | 2022 | 34,146 | 2,194 | [Business Overview](index=97&type=section&id=B.%20BUSINESS%20OVERVIEW) Telkom's strategy centers on its 'five bold moves' initiative across five customer-facing business segments - The company's core strategy is the **'five bold moves' initiative**, focused on Fixed-Mobile Convergence, InfraCo, DC Co, B2B Digital IT Services Co, and DigiCo[378](index=378&type=chunk) - The business is structured into five customer-facing units (CFUs) or segments: **Mobile, Consumer, Enterprise, Wholesale and International Business, and Other** (Digital Services)[384](index=384&type=chunk) - The Mobile segment, operated by Telkomsel, is the largest revenue contributor; in 2022, the total cellular subscriber base **decreased by 10.9% to 156.8 million**, while mobile broadband data users slightly increased to 120.9 million[386](index=386&type=chunk)[388](index=388&type=chunk)[389](index=389&type=chunk) - The Consumer segment is driven by the IndiHome fixed broadband service, which grew its customer base to **9.2 million** by the end of 2022, representing an estimated **75.2% market share** in Indonesia[396](index=396&type=chunk)[403](index=403&type=chunk) - The Wholesale and International segment manages a significant infrastructure portfolio, including approximately **40,588 telecommunications towers** as of December 31, 2022[414](index=414&type=chunk) - Telkom operates an extensive network including **265,194 Base Transceiver Stations (BTS)**, a domestic fiber optic backbone of 108,566 km, and 28 data centers globally; it also operates two satellites, Telkom-3S and Telkom-4[446](index=446&type=chunk)[452](index=452&type=chunk)[454](index=454&type=chunk) - The company faces strong competition in the cellular market from **Indosat Ooredoo Hutchison and XL Axiata**, and in the fixed broadband market from providers like First Media and Biznet Home[564](index=564&type=chunk)[567](index=567&type=chunk) [Organizational Structure](index=166&type=section&id=C.%20ORGANIZATIONAL%20STRUCTURE) Telkom organizes its subsidiaries into five customer-facing units supported by corporate functional units - The company's structure is based on **five customer-facing units (CFUs)** that manage subsidiaries and business portfolios aligned with specific customer segments: Mobile, Consumer, Enterprise, Wholesale & International, and Digital Services[612](index=612&type=chunk)[613](index=613&type=chunk)[615](index=615&type=chunk) Key Subsidiaries and Ownership (as of Dec 31, 2022) | Subsidiary | Segment | Ownership Interest (%) | Voting Power (%) | | :--- | :--- | :--- | :--- | | PT Telekomunikasi Selular (Telkomsel) | Mobile | 65 | 65 | | PT Dayamitra Telekomunikasi (Mitratel) | Wholesale and International | 72 | 72 | | PT Telekomunikasi Indonesia International (Telin) | Wholesale and International | 100 | 100 | | PT Sigma Cipta Caraka (Sigma) | Enterprise | 100 | 100 | [Property, Equipment and Right of Use Assets](index=170&type=section&id=D.%20PROPERTY%2C%20EQUIPMENT%20AND%20RIGHT%20OF%20USE%20ASSETS) The company's telecommunications assets had a net carrying amount of Rp172,112 billion as of year-end 2022 - As of December 31, 2022, property and equipment had a net carrying amount of **Rp172,112 billion** and were insured against various risks[623](index=623&type=chunk) - Certain property and equipment with a gross carrying value of **Rp18,370 billion** as of year-end 2022 have been pledged as collateral for loan agreements[622](index=622&type=chunk) [Operating and Financial Review and Prospects](index=172&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) Revenue grew 2.9% in 2022, but higher expenses and investment losses caused a 16.6% drop in net profit [Operating Results](index=172&type=section&id=A.%20OPERATING%20RESULTS) Revenue growth from data services was offset by legacy declines and a significant unrealized loss on investments Consolidated Financial Highlights (2021 vs 2022) | Metric (Rp billion) | 2021 | 2022 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | 143,210 | 147,306 | 2.9% | | Data, Internet & IT Services | 82,224 | 86,410 | 5.1% | | IndiHome Revenues | 26,325 | 28,020 | 6.4% | | Cellular Telephone Revenues | 14,737 | 12,052 | -18.2% | | **Total Expenses** | 95,635 | 107,677 | 12.6% | | **Operating Profit** | 47,653 | 39,716 | -16.7% | | **Profit for the Year** | 34,099 | 27,720 | -18.7% | | **Profit Attributable to Owners** | 24,877 | 20,736 | -16.6% | - The company recorded an **unrealized loss on changes in fair value of investments of Rp6,438 billion** in 2022, compared to a gain of Rp3,432 billion in 2021, primarily due to the valuation of its investment in GoTo[676](index=676&type=chunk) - Depreciation and amortization expenses **increased by 4.5% to Rp33,129 billion** in 2022, in line with the development of network infrastructure for both mobile and fixed businesses[672](index=672&type=chunk) [Liquidity and Capital Resources](index=195&type=section&id=B.%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company funds operations and capital expenditures through operating cash flow and external borrowings Consolidated Cash Flow Summary (2021 vs 2022) | Cash Flow (Rp billion) | 2021 | 2022 | | :--- | :--- | :--- | | Net cash from operating activities | 68,353 | 73,354 | | Net cash used in investing activities | (37,914) | (39,122) | | Net cash used in financing activities | (12,775) | (40,965) | Capital Expenditures by Entity (2021 vs 2022) | Entity (Rp billion) | 2021 | 2022 | | :--- | :--- | :--- | | Telkom (parent company) | 15,347 | 15,650 | | Telkomsel | 10,540 | 12,343 | | Other Subsidiaries | 4,442 | 6,153 | | **Total Telkom Group** | **30,329** | **34,146** | Total Indebtedness by Currency (as of Dec 31) | Currency (Rp billion) | 2021 | 2022 | | :--- | :--- | :--- | | Indonesian Rupiah | 67,587 | 62,107 | | U.S. Dollar | 671 | 531 | | Japanese Yen | 285 | 181 | | Malaysian Ringgit | 36 | 34 | | **Total** | **68,579** | **62,853** | [Research and Development, Patents and Licenses, etc.](index=210&type=section&id=C.%20RESEARCH%20AND%20DEVELOPMENT%2C%20PATENTS%20AND%20LICENSES%2C%20ETC.) R&D focuses on network enhancement and innovation through internal programs and venture capital investments - R&D efforts are focused on key technologies such as **fixed-mobile convergence, Wi-Fi 6, and 5G** to maintain a leading position in digital connectivity[747](index=747&type=chunk) - The company fosters innovation through multiple programs: **ITDRI** (research institute), **Amoeba** (intrapreneurship), and **Indigo** (startup incubation)[752](index=752&type=chunk)[754](index=754&type=chunk)[755](index=755&type=chunk) - **MDI Ventures**, the corporate venture capital arm, manages and invests funds in digital startups to create synergies with Telkom Group's businesses, focusing on sectors like fintech, healthcare, and logistics[756](index=756&type=chunk)[758](index=758&type=chunk) [Directors, Senior Management and Employees](index=217&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) The company is managed by a Board of Directors and supervised by a Board of Commissioners, with 23,793 employees 2022 Remuneration for Board of Commissioners | Commissioner | Position | Total Remuneration (Rp) | | :--- | :--- | :--- | | Bambang P. S. Brojonegoro | President Commissioner | 12,072,655,968 | | Ismail | Commissioner | 16,109,225,086 | | Marcelino Rumambo Pandin | Commissioner | 16,111,153,657 | | Rizal Mallarangeng | Commissioner | 15,781,008,571 | | **Total for Board** | | **119,259,284,770** | 2022 Remuneration for Board of Directors | Director | Position | Total Remuneration (Rp) | | :--- | :--- | :--- | | Ririek Adriansyah | President Director | 25,568,268,800 | | Heri Supriadi | Director of Finance & Risk | 21,516,000,000 | | FM Venusiana R. | Director of Consumer/Enterprise | 21,516,000,000 | | **Total for Board** | | **170,957,095,175** | - As of December 31, 2022, the Telkom Group had a total of **23,793 employees**, with 87.7% being permanent employees[828](index=828&type=chunk) Employee Profile by Position (as of Dec 31, 2022) | Position | Telkom Group Total | Percentage (%) | | :--- | :--- | :--- | | Senior Management | 322 | 1.3 | | Middle Management | 6,209 | 26.1 | | Supervisors | 12,632 | 53.1 | | Others | 4,630 | 19.5 | | **Total** | **23,793** | **100.0** | [Major Shareholders and Related Party Transactions](index=241&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) The Indonesian Government is the controlling shareholder with 52.09% ownership and special veto rights Shareholder Composition (as of March 31, 2023) | Shareholder | Common Stock | Ownership (%) | | :--- | :--- | :--- | | Government | 51,602,353,559 | 52.09 | | Public | 47,459,863,040 | 47.91 | | **Total** | **99,062,216,599** | **100.00** | - The Indonesian Government holds a single **Series A Dwiwarna Share**, which grants it special voting and veto rights over critical matters such as the appointment/removal of directors and commissioners, issuance of new shares, and amendments to the Articles of Association, ensuring effective control regardless of its common stock percentage[848](index=848&type=chunk)[862](index=862&type=chunk) - The government's relationship with the company is multifaceted, acting as the **majority shareholder, the primary industry regulator**, a significant customer, and a lender through two-step loan facilities[859](index=859&type=chunk)[864](index=864&type=chunk)[866](index=866&type=chunk)[868](index=868&type=chunk) [Financial Information](index=248&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section includes consolidated financial statements, legal proceedings, and the company's dividend policy Dividend History (2018-2021) | Dividend Year | Payout Ratio (%) | Total Dividend (Rp million) | Dividend per Share (Rp) | | :--- | :--- | :--- | :--- | | 2018 | 90.00 | 16,228,619 | 163.82 | | 2019 | 81.78 | 15,262,338 | 154.07 | | 2020 | 80.00 | 16,643,443 | 168.01 | | 2021 | 60.00 | 14,855,921 | 149.97 | - The company is subject to various legal proceedings incidental to its business but does not believe the final outcome will have a **material adverse effect** on its financial condition[878](index=878&type=chunk) [The Offer and Listing](index=250&type=section&id=ITEM%209.%20THE%20OFFER%20AND%20LISTING) The company's common stock and ADSs are listed on the IDX (TLKM) and NYSE (TLK) respectively - The company's common stock is listed on the **Indonesia Stock Exchange (IDX: TLKM)** and its American Depositary Shares (ADSs) are listed on the **New York Stock Exchange (NYSE: TLK)**[885](index=885&type=chunk)[888](index=888&type=chunk) - The ratio for the American Depositary Shares is **one ADS representing 100 shares** of common stock[885](index=885&type=chunk) [Additional Information](index=254&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section details the Articles of Association, foreign exchange controls, and tax implications for shareholders - Dividends distributed to non-resident holders are subject to a **20% Indonesian withholding tax**, which may be reduced under applicable double taxation treaties, provided a valid Certificate of Domicile is submitted[973](index=973&type=chunk)[974](index=974&type=chunk) - The sale of common stock through the Indonesia Stock Exchange (IDX) is subject to a final withholding tax of **0.1% of the gross transaction value**[978](index=978&type=chunk) - For U.S. Holders, dividends are generally taxable as ordinary income; they may qualify for reduced tax rates as the company believes it is a **"qualified foreign corporation"** and does not anticipate being classified as a Passive Foreign Investment Company (PFIC)[990](index=990&type=chunk)[991](index=991&type=chunk)[992](index=992&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=298&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURE%20ABOUT%20MARKET%20RISK) The company is primarily exposed to foreign exchange and interest rate risks, which it monitors via sensitivity analysis - The company is exposed to foreign exchange risk, primarily from U.S. Dollars and Japanese Yen; a sensitivity analysis as of Dec 31, 2022, indicates that a **1% appreciation of the USD** against the Rupiah would result in a **Rp92 billion profit**[1024](index=1024&type=chunk)[1026](index=1026&type=chunk) - The company is exposed to interest rate risk, with **56.1% of its total bank borrowings being floating-rate loans** as of year-end 2022; a sensitivity analysis shows that a **25 basis point decrease in interest rates** would increase equity and profit by **Rp88.2 billion**[1030](index=1030&type=chunk)[1032](index=1032&type=chunk) - Credit risk arises mainly from trade receivables; due to the COVID-19 pandemic, the company increased monitoring of customer accounts and made arrangements for **payment postponements** with certain enterprise customers to mitigate counterparty risk[1034](index=1034&type=chunk) [Description of Securities Other Than Equity Securities](index=304&type=section&id=ITEM%2012.%20DESCRIPTION%20OF%20SECURITIES%20OTHER%20THAN%20EQUITY%20SECURITIES) This section details the terms of the American Depositary Shares (ADSs) facility and associated holder rights - **Bank of New York Mellon Corporation** serves as the Depositary for the company's American Depositary Shares (ADSs)[1041](index=1041&type=chunk) ADS Holder Fees | Fee | Purpose | | :--- | :--- | | US$5.00 (or less) per 100 ADSs | Issuance or cancellation of ADSs | | US$0.02 (or less) per ADS | Cash distributions | | Up to US$0.05 per ADS | Receiving or distributing dividends | | US$0.02 (or less) per ADS per year | Depositary services | - If an ADS holder does not provide voting instructions by the specified date, the Depositary is deemed instructed to give a **discretionary proxy** to a person designated by the company, unless the matter materially and adversely affects shareholder rights[1050](index=1050&type=chunk) PART II [Controls and Procedures](index=312&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls, procedures, and internal control over financial reporting were effective - Management concluded that as of December 31, 2022, the company's **disclosure controls and procedures were effective**[1081](index=1081&type=chunk) - Based on an assessment using the COSO framework, management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2022[1084](index=1084&type=chunk) - The independent registered public accounting firm, KAP Purwantono, Sungkoro & Surja, audited the effectiveness of the internal control over financial reporting and issued an **unqualified opinion**[1085](index=1085&type=chunk) [Corporate Governance and Other Matters](index=314&type=section&id=ITEM%2016.%20[RESERVED]) This section covers the audit committee, code of ethics, accountant fees, and differences in governance practices - The Board of Commissioners has determined that Mr. Emmanuel Bambang Suyitno and Mr. Edy Sihotang, members of the Audit Committee, each qualify as an **Audit Committee Financial Expert**[1089](index=1089&type=chunk) - The company has adopted a **code of ethics** applicable to its directors, officers, and employees, in compliance with Section 406 of the Sarbanes-Oxley Act[1092](index=1092&type=chunk) Principal Accountant Fees (KAP Purwantono, Sungkoro & Surja) | Fee Type (Rp million) | 2021 | 2022 | | :--- | :--- | :--- | | Audit Fee | 59,050 | 59,700 | | All Other Fees | 11,540 | 5,440 | - The company avails itself of an **exemption under NYSE listing standards** (Rule 10A-3(c)(3)) regarding audit committee composition, as Indonesian regulations differ from U.S. requirements for director independence and the committee's direct responsibility for auditor appointment[1101](index=1101&type=chunk)[1102](index=1102&type=chunk) PART III [Financial Statements](index=322&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section contains the audited IFRS consolidated financial statements and the independent auditor's report - The consolidated financial statements were audited by KAP Purwantono, Sungkoro & Surja, who issued an **unqualified opinion**, stating the statements present fairly, in all material respects, the financial position of the Group in conformity with IFRS[1134](index=1134&type=chunk) - The auditor also issued an **unqualified opinion on the effectiveness of the Group's internal control** over financial reporting as of December 31, 2022, based on the COSO framework[1135](index=1135&type=chunk)[1148](index=1148&type=chunk) - A **Critical Audit Matter** was identified relating to the "Evaluation of property and equipment estimated useful lives," considered complex and requiring significant judgment due to factors like strategic business plans and future technological developments[1140](index=1140&type=chunk)[1141](index=1141&type=chunk)[1142](index=1142&type=chunk) - Subsequent to year-end, on April 6, 2023, the company signed a Conditional Spin-Off Agreement to transfer its **IndiHome Business Segment to its subsidiary Telkomsel** by July 1, 2023; the transaction is valued at **Rp58,250 billion**[1625](index=1625&type=chunk)

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 April, 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 (Addre ...

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 April, 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 (Addre ...

Financial Data and Key Metrics - Revenue grew by 2.7% in the first 9 months of 2022, with EBITDA and net income margins at 54.6% and 15.2%, respectively [9] - Mobile segment revenue grew by 1.6% YoY, with EBITDA margin at 37.1% and net income margin at 25.4% [11] - Fixed broadband business (IndiHome) added 138,000 customers, reaching 9 million subscribers, contributing IDR 20.9 trillion in revenue with a growth of 6.4% and a stable blended ARPU of IDR 269,000 [11] - Enterprise segment revenue declined by 0.8% YoY to IDR 13.7 trillion due to the transfer of data center business, but showed a QoQ growth of 10.5% [12] - Wholesale and international business revenue increased by 7.6% YoY to IDR 11.3 trillion, driven by international wholesale voice and digital business [13] Business Line Performance - Mobile segment focused on maintaining customer value, resulting in better customer profiles and a 3.8% QoQ improvement in ARPU [10][27] - IndiHome (fixed broadband) maintained strong growth despite intense competition, with a focus on quality customer acquisition [11][41] - Enterprise segment saw growth in digital IT services and connectivity, despite a slight YoY decline due to business transfers [12] - Wholesale and international business benefited from international voice and digital services, including A2P (Application-to-Person) messaging [13] - Mitratel (tower business) managed over 35,000 towers with a tenancy ratio of 1.44, expanding into fiber-to-the-tower business [13][14] Market Performance - Mobile industry competition became more rational, with Telkomsel focusing on customer value and personalization [10] - Fixed broadband market faced increased competition, but IndiHome maintained its position as the market leader [11][41] - Wholesale and international business saw growth in international voice and digital services, driven by demand for A2P messaging [13] Strategic Direction and Industry Competition - The company is exploring collaborations in data center and cloud business with Microsoft and Singtel, aiming to diversify into retail platforms and services [8][9] - InfraCo initiative aims to optimize infrastructure assets, improve CapEx efficiency, and unlock value through infrastructure sharing [15][20] - The company is pursuing a 5 Bold Moves strategy, focusing on FMC (Fixed-Mobile Convergence), Data Center Co, and InfraCo [15] - Data center business is being consolidated under PT Telkom Data Ekosistem, with plans to complete restructuring by 2024 [17][18] Management Commentary on Operating Environment and Future Outlook - The company faces a challenging macroeconomic environment post-COVID-19, with higher inflation and interest rates impacting Indonesia [7] - Management is focused on maintaining healthy growth in mobile and fixed broadband segments, despite competitive pressures [10][41] - The company sees opportunities in the tower business due to increasing demand for cellular data and upcoming 5G technology [14] - Management is optimistic about the potential of fixed-mobile convergence (FMC) to drive efficiency and customer loyalty [42][71] Other Important Information - The company accelerated depreciation of legacy copper-based technology, impacting IDR 1.584 trillion in Q2 2022 [44][45] - Data center business contributed IDR 1.2 trillion in revenue for the first 9 months of 2022 [79] Q&A Session Summary Question: Subscriber decline in mobile segment - The decline in mobile subscribers is part of a consolidation strategy to focus on quality customers, resulting in a 3.8% QoQ ARPU improvement [26][27] - The consolidation process will continue to improve customer quality and reduce value-seeking customers [29] Question: Strategic intent behind InfraCo - InfraCo aims to optimize infrastructure investments, comply with new regulations, and unlock value through infrastructure sharing [31][32][33] - The company is considering private and strategic investors for InfraCo, with no immediate plans for an IPO [57] Question: Mobile pricing outlook - Mobile pricing adjustments are on hold due to macroeconomic conditions, with a focus on maintaining competitiveness [38][39] - The company is exploring optimal pricing levels while considering customer purchasing power and inflation [48][50] Question: Fixed broadband growth slowdown - Growth in fixed broadband slowed due to increased competition, but the company remains selective in acquiring quality customers [40][41] - The company believes in the long-term potential of the fixed broadband market, with current household penetration at 15% [43] Question: Data center business valuation - The data center business is expected to achieve EBITDA margins of 40%-50% at optimal utilization, with current revenue contribution at IDR 1.2 trillion [76][79] - The company is on track with data center consolidation and development, with plans to list the business in the future [59] Question: Fixed-mobile convergence (FMC) strategy - FMC aims to create value for customers by integrating fixed and mobile services, rather than offering discounts [62] - The company expects cost synergies from FMC, particularly in marketing and CapEx optimization [74][75]

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 2022 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 ...

Financial Data and Key Metrics - Revenue increased by 3.6%, EBITDA by 4.5%, and net income by 6.9% year-on-year in the first half of 2022 [11] - Telkomsel maintained a healthy EBITDA margin of 57.1% and a net income margin of 26.2% [11] - Unrealized gain of IDR305 billion from equity investment in GoTo shares [11] Business Line Data and Key Metrics - IndiHome revenue reached IDR13.8 trillion with 8.9 million customers, adding 288,000 new customers [12] - Enterprise segment contributed IDR8.7 trillion in revenue, driven by B2B IT Services and Enterprise Connectivity solutions [12] - Wholesale segment revenue increased by 14.6% year-on-year to IDR7.9 trillion [13] Market Data and Key Metrics - Telkom launched a second international communication gateway in Manado, enhancing connectivity for eastern Indonesia and the new capital city [9] - Completion of Phase 1 of the HyperScale Data Center (HDC) and ongoing development of submarine cables Bifrost and SEA-ME-WE 6, expected to be completed in 2024 and 2025 respectively [13][14] Company Strategy and Industry Competition - Telkom is transforming from a telco to a digital telco company, focusing on digital business growth and offsetting legacy revenue decline [9][11] - The company is enhancing its data center business with the completion of the first phase of the HyperScale Data Center, leveraging integrated networks for future business digitization needs [14] - Fixed-mobile convergence (FMC) is being explored to improve customer experience and data integration, with products like Orbit and Smooa [15] Management Commentary on Operating Environment and Future Outlook - Management emphasized the importance of maintaining competitive advantages and focusing on high-value customers to drive healthier growth [20][22] - The company is managing cost pressures and inflation through strategic initiatives, including cost transformation and efficient CapEx allocation [27][28] - Telkomsel aims to defend market share and drive personalized offerings, focusing on network leadership and digital service maximization [34] Other Important Information - Telkom is fostering its ESG strategy by reducing carbon dioxide emissions through the use of gas-fired power plants and solar panels in its HyperScale Data Center [15] - Mitratel acquired 6,000 towers from Telkomsel, strengthening its position as the largest tower provider in Indonesia [16] Q&A Session Summary Question: Mobile base reduction and broadband momentum slowdown [19] - The decline in mobile subscribers is attributed to rotational churn and post-festive season consolidation, with a focus on maintaining leadership and high-value customers [20] - Broadband growth slowdown is due to competition and a strategic focus on high-value customers, with complementary products like Orbit addressing low-end market competition [22] Question: O&M costs moderation and staff costs increase [25] - O&M costs were moderated due to lower content costs, with Telkomsel managing costs related to services like Disney, Netflix, and Zoom [27] - Staff costs increased due to the establishment of the new IndiHome company and its subsidiaries [29] Question: Telkomsel mobile growth and data center updates [33] - Telkomsel aims to defend market share and drive personalized offerings, focusing on network leadership and digital service maximization [34] - Data center revenue growth is expected to pick up with the completion of the HyperScale Data Center, with plans for additional data centers and potential IPO or strategic investment [36] Question: Tariff hikes and industry revenue growth [41] - Tariff hikes are focused on balancing profitability and market share, with competition in Java remaining intense [42] - Industry revenue growth is expected to recover with better competition and pricing strategies, though macro conditions and inflation will be monitored [47] Question: Data center expansion and fixed-mobile convergence strategy [52] - Telkom plans to build two additional HyperScale Data Centers in Cikarang and a greenfield data center in Batam with SingTel, with a capacity of 10 megawatts initially and up to 80 megawatts maximum [53][57] - Fixed-mobile convergence strategy is progressing, with discussions on the injection of IndiHome assets into Telkomsel and potential monetization of fiber assets [62][64]

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 July 2022 Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk Yes ¨ No þ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes ¨ No þ SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the r ...