Spin-Off Details - The Spin-Off of the IndiHome Business Segment is valued at Rp 58,249,920,571,200 (approximately 58.25 trillion Indonesian Rupiah) [26] - The valuation of Telkomsel at the time of the Spin-Off is Rp 319,359,999,960,480 (approximately 319.36 trillion Indonesian Rupiah) [26] - After the Spin-Off, the Company's ownership in Telkomsel will increase to 69.9% while Singtel's ownership will be 30.1% [26] - The Spin-Off is expected to accelerate the provision of broadband services across all regions of Indonesia [24] - The Company plans to merge its fixed broadband and mobile broadband services into a single business entity through this Spin-Off [23] - The Spin-Off is classified as a material transaction requiring approval from Independent Shareholders [12] - The Spin-Off will involve the transfer of certain assets and liabilities related to the IndiHome Business Segment to Telkomsel [10] - The Spin-Off is conducted in compliance with the Company Law and relevant regulations [20] - The Company has confirmed the completeness and correctness of the information presented in the Spin-Off Plan [8] - The Spin-Off will involve the provision of infrastructure, devices, and professional services to support the IndiHome Business Segment [29][31] - The transaction is structured to fulfill criteria for tax facilities according to PMK 56 [32] - The Company has obtained necessary approvals from its general meeting of shareholders and Telkomsel's general meeting of shareholders for the Spin-Off [36] - The Spin-Off of the IndiHome Business Segment to Telkomsel is set to be effective on July 1, 2023 [130] - The IndiHome Business Segment will be transferred to Telkomsel, which will assume all related operations, assets, and legal obligations [149] - The signing of the Deed of Spin-Off is set for June 30, 2023, or another date determined by the Company [147] - The Company confirms that the Proposed Transaction is a Material Transaction and does not involve any conflict of interest [150] - The Board of Directors and Board of Commissioners are responsible for the accuracy of the information disclosed in the Spin-Off Plan [151] - The Spin-Off Plan aims to benefit shareholders, employees, and the public, with information available at the Company's office starting from the announcement date [152] - Any inquiries regarding the Spin-Off Plan should be directed to the Investor Relations department of the Company [153] Financial Performance - Total revenue for the company increased from Rp 136,462 billion in 2020 to Rp 147,306 billion in 2022, representing an increase of 7.5% [81] - IndiHome segment revenue grew by 5.7% to Rp 26.55 trillion in 2022, with a customer base reaching 9.2 million [87] - Current year profit for the company was Rp 27,680 billion in 2022, down from Rp 33,948 billion in 2021, a decrease of 18.5% [82] - Total liabilities decreased from Rp 131,785 billion in 2021 to Rp 125,930 billion in 2022, a reduction of 4.4% [79] - Total equity increased from Rp 145,399 billion in 2021 to Rp 149,262 billion in 2022, an increase of 2.0% [79] - Operating profit decreased from Rp 47,563 billion in 2021 to Rp 39,581 billion in 2022, a decline of 16.7% [81] - The company’s basic profit per share was Rp 209.49 in 2022, compared to Rp 249.94 in 2021, a decrease of 16.2% [82] - Total assets decreased slightly from Rp 277,184 billion in 2021 to Rp 275,192 billion in 2022, a decline of 0.7% [79] - The pro forma total assets of the company after the spin-off of the IndiHome business segment increased to IDR 277,905 billion [94] - After the spin-off, Telkomsel's total assets rose to IDR 109,470 billion, with an increase of IDR 8,479 billion due to the transfer [95] - The market value of the IndiHome business segment as of December 31, 2022, was estimated at IDR 58,165 billion [106] - The market value of 100% shares of Telkomsel and subsidiaries as of December 31, 2022, was estimated at IDR 320,479 billion [116] - The company's revenue from 2018 to 2022 experienced a Compound Annual Growth Rate (CAGR) of 3.02% [121] - The consolidated EBITDA showed a fluctuating increase with a CAGR of 7.49% during the same period [121] Strategic Goals - The Company aims to enhance competitiveness in the Indonesian telecommunications sector through this strategic move [22] - The Proposed Transaction is expected to improve company performance and strengthen Telkom Group's positioning as a market leader in digital telco [75] - The integration of mobile and broadband businesses is anticipated to provide cost efficiency and enhance customer loyalty [74] - The Proposed Transaction is projected to support government revenue through increased taxes and dividends [75] - The projected revenue for 2027 with the Transaction Plan is IDR 191.59 trillion, compared to IDR 189.20 trillion without it [122] - The company's expenses and costs are projected to decrease to IDR 92.96 trillion with the Transaction Plan, down from IDR 93.58 trillion without it [122] - Total assets are projected to decrease from IDR 341.75 trillion to IDR 338.82 trillion by 2027 with the Transaction Plan [122] - Total liabilities are expected to decrease from IDR 126.57 trillion to IDR 117.31 trillion by 2027 with the Transaction Plan [122] - Total equity is projected to increase to IDR 221.52 trillion with the Transaction Plan, compared to IDR 215.17 trillion without it by 2027 [122] Shareholder Information - The current capital structure of the Company includes a total of 99,062,216,599 issued and paid-up shares, with a total nominal value of Rp 4,953,110,830,000 [61] - The shareholder composition shows that the Government of the Republic of Indonesia holds 52.09% of the shares, while the public holds 47.91% [61] - Telkomsel's authorized capital is 650,000 shares with a nominal value of Rp 1,000,000 per share, totaling Rp 650,000,000,000 [71] - The issued and paid-up capital for Telkomsel is 182,570 shares, with a total nominal value of Rp 182,570,000,000 [71] - The ownership structure of Telkomsel indicates that the Company owns 65% of Telkomsel's total issued and paid-up capital [76] - The Company's ownership percentage in Telkomsel increased from 65.00% to 69.90% post spin-off [96][97] - The total equity of the company after the spin-off was reported at IDR 151,975 billion [94] Future Projections - The service fee from the Wholesale Agreement (WSA) is projected to be Rp 18,747,341,007,230 (approximately $1.2 billion) based on revenue from the IndiHome Business Segment for the period of 2023 H2 to 2024 H1 [54] - The Fixed Broadband Core Transition Service Agreement (TSA-1) is estimated to generate a service fee of Rp 495,971,226,790 (approximately $32 million) during the same period [54] - The IT System Transition Service Agreement (TSA-2) is expected to yield a service fee of Rp 489,264,960,646 (approximately $31.8 million) from 2023 H2 to 2025 H1 [54] - Telkomsel will issue 33,300 new shares to the Company as part of the spin-off transaction [36] - Singtel will inject capital amounting to Rp 2,713,081,886,064 (approximately $175 million) by subscribing for 1,551 new shares in Telkomsel [36] - The transaction price is within the upper limit of the fairness range of 7.5% of market value, indicating the transaction is fair [126]

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 ...

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, 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 (Addre ...

[Filing Information](index=1&type=section&id=Filing%20Information) This section details the administrative aspects of the Form 6-K filing, including the entity, report type, and authorization [Report Details](index=1&type=section&id=Report%20Details) This document is a Form 6-K report filed by PT Telekomunikasi Indonesia Tbk, a foreign private issuer, for the month of April 2022 - Filing entity: **Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk**[2](index=2&type=chunk) - Report type: **Form 6-K** for the month of **April 2022**[2](index=2&type=chunk) - The company files its annual reports under **Form 20-F**[2](index=2&type=chunk) [Authorization and Signature](index=2&type=section&id=Authorization%20and%20Signature) The report was duly authorized and signed on April 21, 2022, by Andi Setiawan, VP of Investor Relations - The report was signed by **Andi Setiawan**, VP Investor Relations[3](index=3&type=chunk) - The signing date is **April 21, 2022**[3](index=3&type=chunk) [Announcement to Investors](index=3&type=section&id=Announcement%20to%20Investors) This section informs investors about the filing and accessibility of the 2021 Annual Report, along with a company overview [Filing of 2021 Annual Report (Form 20-F)](index=3&type=section&id=Filing%20of%202021%20Annual%20Report%20%28Form%2020-F%29) PT Telkom Indonesia announced the filing of its 2021 Annual Report on Form 20-F and its Audited Financial Statement with the US-SEC on April 21, 2022 - The company's **2021 Annual Report on Form 20-F** and Audited Financial Statement have been filed with the **US-SEC**[4](index=4&type=chunk)[5](index=5&type=chunk) - The filing date was **April 21, 2022**[5](index=5&type=chunk) - The announcement is made pursuant to **Section 203.01 of the NYSE Listed Company Manual**[5](index=5&type=chunk) [Report Accessibility](index=4&type=section&id=Report%20Accessibility) The 2021 Annual Report is available for viewing on the company's website, and hard copies can be requested via email, mail, or phone - The reports are available for viewing online at **www.telkom.co.id**[5](index=5&type=chunk) - Hard copies can be requested by emailing **investor@telkom.co.id**, writing to the Investor Relations department, or calling **+62-21-5215109**[6](index=6&type=chunk) [Company Overview](index=4&type=section&id=Company%20Overview) PT Telkom Indonesia is the largest ICT and telecommunications network company in Indonesia, offering digital connectivity, platforms, and services - **Telkom** is the largest information and communications technology (**ICT**) enterprise and telecommunications network in **Indonesia**[7](index=7&type=chunk) - The business portfolio includes three digital domains (**connectivity, platforms, services**) and legacy services (**voice, SMS**)[7](index=7&type=chunk) - The company's shares are traded on the **Indonesia Stock Exchange (IDX: TLKM)** and the **New York Stock Exchange (NYSE: TLK)**[7](index=7&type=chunk)

PART I [Key Information](index=21&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section presents selected financial data and outlines key business, operational, and regulatory risks [Selected Financial Data](index=21&type=section&id=A.%20SELECTED%20FINANCIAL%20DATA) The company shows steady growth in revenues, profits, and total assets over the past several fiscal years Selected Financial Performance | Indicator | 2019 (Rp billion) | 2020 (Rp billion) | 2021 (Rp billion) | | :--- | :--- | :--- | :--- | | **Revenues** | 135,557 | 136,447 | 143,210 | | **Operating Profit** | 43,994 | 43,958 | 47,653 | | **Profit for the Year** | 27,860 | 29,890 | 34,099 | | **Profit attributable to owners** | 19,068 | 21,052 | 24,877 | | **Basic and Diluted EPS (Rp)** | 192.49 | 212.51 | 251.13 | Selected Balance Sheet Data | Indicator | As of Dec 31, 2019 (Rp billion) | As of Dec 31, 2020 (Rp billion) | As of Dec 31, 2021 (Rp billion) | | :--- | :--- | :--- | :--- | | **Total Current Assets** | 40,917 | 46,529 | 61,288 | | **Total Non-Current Assets** | 194,140 | 199,344 | 214,870 | | **Total Assets** | 235,057 | 245,873 | 276,158 | | **Total Current Liabilities** | 61,349 | 68,500 | 68,695 | | **Total Non-Current Liabilities** | 56,484 | 56,859 | 62,291 | | **Total Liabilities** | 117,833 | 125,359 | 130,986 | | **Total Equity** | 117,224 | 120,514 | 145,172 | - The financial statements are prepared in accordance with **International Financial Reporting Standards (IFRS)** and Rupiah amounts are converted to U.S. Dollars for convenience[117](index=117&type=chunk)[118](index=118&type=chunk)[137](index=137&type=chunk) [Risk Factors](index=23&type=section&id=D.%20RISK%20FACTORS) The company faces significant risks from intense competition, regulatory changes, and its majority government ownership - Operational risks include potential **network failures**, infrastructure sharing mandates, the **COVID-19 pandemic's impact**, and increasing cybersecurity threats[143](index=143&type=chunk)[157](index=157&type=chunk)[164](index=164&type=chunk)[170](index=170&type=chunk) - The company faces **intense competition** in cellular services and declining subscribers in wireline voice services due to mobile and OTT substitution[149](index=149&type=chunk)[185](index=185&type=chunk)[193](index=193&type=chunk) - The **changing legal and regulatory environment** in Indonesia, including the Job Creation Law, introduces uncertainty and could impact margins[150](index=150&type=chunk)[218](index=218&type=chunk)[226](index=226&type=chunk)[228](index=228&type=chunk) - The Indonesian government's **52.09% controlling stake** and special 'Dwiwarna Share' with veto rights present potential conflicts of interest[205](index=205&type=chunk)[252](index=252&type=chunk) - The company is exposed to **Indonesia's macroeconomic and political environment**, including currency fluctuations and political instability[153](index=153&type=chunk)[255](index=255&type=chunk)[264](index=264&type=chunk)[273](index=273&type=chunk) [Information on the Company](index=82&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section details the company's history, strategic business segments, and extensive network infrastructure [History and Development of the Company](index=82&type=section&id=A.%20HISTORY%20AND%20DEVELOPMENT%20OF%20THE%20COMPANY) This sub-section traces the company's evolution, highlighting key milestones like its IPO and recent 5G launch Corporate Profile | Item | Detail | | :--- | :--- | | **Company Name** | Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. | | **Line of Business** | Telecommunications and informatics networks and services | | **Ownership** | Government of Indonesia: 52.09%, Public: 47.91% | | **Listing** | IDX (TLKM), NYSE (TLK) since Nov 14, 1995 | | **Issued Capital** | 1 Dwiwarna Share and 99,062,216,599 common shares | - Recent strategic milestones include the **launch of 5G services in May 2021**, significant investments in GoTo, and the successful IPO of its tower subsidiary, Mitratel[336](index=336&type=chunk)[337](index=337&type=chunk)[340](index=340&type=chunk) [Business Overview](index=93&type=section&id=B.%20BUSINESS%20OVERVIEW) The company's strategy focuses on digital leadership across its five core customer-facing business segments - The company's strategy centers on **building digital infrastructure**, nurturing digital talent, and orchestrating a digital ecosystem[304](index=304&type=chunk)[342](index=342&type=chunk) - The business is organized into **five customer-facing units (CFUs)**: Mobile, Consumer, Enterprise, Wholesale & International Business, and Digital Service[343](index=343&type=chunk)[347](index=347&type=chunk) Key Business Segments | Segment | Key Products/Services | | :--- | :--- | | **Mobile** | Mobile broadband, digital services (financial, VOD, gaming, IoT), legacy voice/SMS via Telkomsel. | | **Consumer** | Fixed broadband (IndiHome), fixed voice, IPTV. | | **Enterprise** | ICT solutions, data center & cloud, satellite services for corporate and government clients. | | **Wholesale & International** | Carrier services, tower business (Mitratel), international operations. | | **Other** | Digital platforms, e-commerce, venture capital (MDI Ventures), property management. | - Telkomsel remains Indonesia's largest cellular provider with a **59.3% market share** and **176.0 million subscribers** as of year-end 2021[484](index=484&type=chunk)[495](index=495&type=chunk) [Organizational Structure](index=155&type=section&id=C.%20ORGANIZATIONAL%20STRUCTURE) The company is organized into five customer-facing units supported by four functional units - The company's organizational structure is based on **five customer-facing units (CFUs)** to align with its customer-centric business strategy[545](index=545&type=chunk) Customer Facing Units and Key Subsidiaries | Customer Facing Unit (CFU) | Key Subsidiary/Business | | :--- | :--- | | **Mobile** | PT Telekomunikasi Selular (Telkomsel) | | **Consumer** | PT Telkom Akses (Telkom Akses) | | **Enterprise** | PT Sigma Cipta Caraka (Sigma), PT Infomedia Nusantara | | **Wholesale and International** | PT Dayamitra Telekomunikasi (Mitratel), PT Telekomunikasi Indonesia International (Telin) | | **Digital Services** | PT Metra-Net (Metranet), PT Melon Indonesia (Melon) | [Property and Equipment](index=158&type=section&id=D.%20PROPERTY%20AND%20EQUIPMENT%20AND%20RIGHT%20OF%20USE%20OF%20ASSETS) The company's telecommunications assets are insured and partially pledged as collateral for debt obligations - As of December 31, 2021, property and equipment with a net carrying amount of **Rp161,287 billion** were insured under blanket policies[553](index=553&type=chunk) - All parent company assets and certain subsidiary assets with a gross carrying value of **Rp22,939 billion** have been pledged as collateral for bonds and loans[552](index=552&type=chunk) [Operating and Financial Review and Prospects](index=160&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section analyzes the company's financial performance, liquidity, and capital resources for fiscal year 2021 [Operating Results](index=162&type=section&id=A.%20OPERATING%20RESULTS) Revenue and profit growth in 2021 was driven by strong performance in data and IndiHome services Revenue Performance by Stream | Revenue Stream | 2020 (Rp billion) | 2021 (Rp billion) | % Change | | :--- | :--- | :--- | :--- | | Cellular Telephone | 19,510 | 14,737 | -24.5% | | Data, Internet, & IT Service | 75,816 | 82,224 | +8.5% | | IndiHome | 22,214 | 26,325 | +18.5% | | **Total Revenues** | **136,447** | **143,210** | **+5.0%** | Expense Performance by Item | Expense Item | 2020 (Rp billion) | 2021 (Rp billion) | % Change | | :--- | :--- | :--- | :--- | | Operation, Maintenance, & Telecom Service | 34,575 | 38,133 | +10.3% | | Depreciation and Amortization | 28,925 | 31,714 | +9.6% | | **Total Expenses** | **93,498** | **95,635** | **+2.3%** | - **Operating profit increased by 8.4%** to Rp47,653 billion, and profit attributable to owners **grew by 18.2%** to Rp24,877 billion in 2021[604](index=604&type=chunk)[612](index=612&type=chunk) [Liquidity and Capital Resources](index=185&type=section&id=B.%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains strong liquidity, with operating cash flow and IPO proceeds funding capital expenditures Consolidated Cash Flow Summary | Cash Flow Item | 2020 (Rp billion) | 2021 (Rp billion) | | :--- | :--- | :--- | | Net cash provided by operating activities | 65,317 | 68,353 | | Net cash used in investing activities | (35,099) | (37,914) | | Net cash used in financing activities | (27,910) | (12,775) | | **Net increase in cash and cash equivalents** | **2,308** | **17,664** | - Cash and cash equivalents **increased by 86.1%** to Rp38,311 billion, boosted by **Rp18,463 billion in proceeds** from the Mitratel IPO[626](index=626&type=chunk)[643](index=643&type=chunk) - Capital expenditures in 2021 amounted to **Rp30,329 billion**, primarily for broadband services and network infrastructure[655](index=655&type=chunk)[660](index=660&type=chunk) - As of December 31, 2021, total indebtedness was Rp68,579 billion, with a **net debt to equity ratio of 0.25**[650](index=650&type=chunk)[652](index=652&type=chunk) [Research and Development, Patents and Licenses, etc.](index=200&type=section&id=C.%20RESEARCH%20AND%20DEVELOPMENT%2C%20PATENTS%20AND%20LICENSES%2C%20ETC.) R&D efforts focus on next-generation technologies and fostering innovation through internal and external programs - Research and development efforts are concentrated on **next-generation technologies** including Fixed Mobile Convergence, Wi-Fi 6, and 5G[664](index=664&type=chunk) - The company fosters innovation through its **Indigo program**, which has incubated 196 startups, and its venture capital arm, **MDI Ventures**, which has invested in over 57 startups[670](index=670&type=chunk)[671](index=671&type=chunk)[673](index=673&type=chunk) - A special task force, **ITDRI**, was established in 2021 to enhance research in market-demanded digital platforms like AI and blockchain[669](index=669&type=chunk) [Directors, Senior Management and Employees](index=208&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details the corporate governance structure, board compensation, and employee demographics [Directors and Senior Management](index=208&type=section&id=A.%20DIRECTORS%20AND%20SENIOR%20MANAGEMENT) The company is managed by a two-tier board system consisting of a Board of Commissioners and a Board of Directors - The company operates under a **two-tier board structure** with a supervisory Board of Commissioners and a management Board of Directors[683](index=683&type=chunk) - As of December 31, 2021, the Board of Commissioners had nine members, and the Board of Directors had nine members[685](index=685&type=chunk)[701](index=701&type=chunk) [Compensation](index=219&type=section&id=B.%20COMPENSATION) Board compensation, determined by shareholders, includes salaries, allowances, and performance-based bonuses Board Remuneration for 2021 | Board | Total Remuneration for 2021 (Rp billion) | | :--- | :--- | | Board of Commissioners | 128.7 | | Board of Directors | 298.3 | [Employees](index=229&type=section&id=D.%20EMPLOYEES) The company focuses on developing digital talent within its highly educated workforce of over 23,000 employees - The Telkom Group had a total of **23,756 employees** as of December 31, 2021, with **64.9% being university graduates**[745](index=745&type=chunk)[748](index=748&type=chunk) - The company is actively developing digital talent, having identified and trained **2,171 individuals** as of year-end 2021[749](index=749&type=chunk)[753](index=753&type=chunk) - Employee relations are managed through a collective labor agreement with the employee union, **SEKAR**, representing 64.96% of the parent company's workforce[758](index=758&type=chunk)[759](index=759&type=chunk) [Major Shareholders and Related Party Transactions](index=235&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) The Government of Indonesia is the controlling shareholder, and the company engages in numerous transactions with state-owned entities [Major Shareholders](index=235&type=section&id=A.%20MAJOR%20SHAREHOLDERS) The Government of Indonesia maintains effective control through majority ownership and a special Dwiwarna Share Shareholder Structure | Shareholder | Share Class | Number of Shares | Percentage of Ownership | | :--- | :--- | :--- | :--- | | Government | Dwiwarna Share | 1 | - | | Government | Common Stock | 51,602,353,559 | 52.09% | | Public | Common Stock | 47,459,863,040 | 47.91% | - The Government's **Dwiwarna Share provides special veto rights** over key corporate matters, ensuring its effective control over the company[764](index=764&type=chunk)[776](index=776&type=chunk) [Related Party Transactions](index=240&type=section&id=B.%20RELATED%20PARTY%20TRANSACTIONS) The company engages in arm's-length transactions with the government and other State-Owned Enterprises - The company's relationship with the Indonesian Government is multi-faceted, encompassing roles as **shareholder, regulator, lender, and customer**[773](index=773&type=chunk) - Transactions with related parties are conducted on an **arm's-length, commercial basis**, with revenues from government entities totaling Rp6,094 billion in 2021[781](index=781&type=chunk)[782](index=782&type=chunk) [Financial Information](index=240&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section references the consolidated financial statements and outlines the company's dividend policy Historical Dividend Payouts | Dividend Year | Payout Ratio (%) | Dividend per Share (Rp) | | :--- | :--- | :--- | | 2018 | 90.00 | 163.82 | | 2019 | 81.78 | 154.07 | | 2020 | 80.00 | 168.01 | - The dividend payout ratio for the **2021 fiscal year** will be decided at the AGMS scheduled for May 27, 2022[792](index=792&type=chunk) [The Offer and Listing](index=242&type=section&id=ITEM%209.%20THE%20OFFER%20AND%20LISTING) This section provides details on the trading markets for the company's common stock and American Depositary Shares - The company's common stock is listed on the **Indonesia Stock Exchange (IDX)** as "TLKM", and its ADSs are listed on the **New York Stock Exchange (NYSE)** as "TLK"[799](index=799&type=chunk)[802](index=802&type=chunk) - Each **ADS represents 100 shares** of common stock[799](index=799&type=chunk) [Additional Information](index=246&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section details the company's Articles of Association, shareholder rights, and key tax implications [Memorandum and Articles of Association](index=246&type=section&id=B.%20MEMORANDUM%20AND%20ARTICLES%20OF%20ASSOCIATION) This sub-section outlines the company's business scope, board powers, and a comparison of shareholder rights - The company's main business activities include the **provision and maintenance of telecommunications and informatics networks** and services[819](index=819&type=chunk)[820](index=820&type=chunk) - The Board of Directors must obtain **written approval from the Board of Commissioners** for significant corporate actions like major asset disposals or large debt incurrence[825](index=825&type=chunk) - A detailed comparison highlights differences between **Indonesian and Delaware corporate law** regarding shareholder rights, mergers, and director duties[836](index=836&type=chunk)[838](index=838&type=chunk)[851](index=851&type=chunk) [Taxation](index=270&type=section&id=E.%20TAXATION) This sub-section summarizes the primary Indonesian and U.S. federal income tax implications for shareholders - Under Indonesian law, dividends distributed to non-resident holders are subject to a **20% withholding tax**, potentially reduced by tax treaties[880](index=880&type=chunk) - The sale of common stock through the IDX is subject to a final **withholding tax of 0.1%** of the gross transaction value[886](index=886&type=chunk) - For U.S. Holders, distributions are generally taxable as ordinary dividend income; the company believes it **was not a Passive Foreign Investment Company (PFIC)** for 2021[898](index=898&type=chunk)[900](index=900&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=285&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURE%20ABOUT%20MARKET%20RISK) The company's primary market risks are foreign exchange and interest rate fluctuations - The company is primarily exposed to **foreign exchange risk** (USD, JPY) and **interest rate risk** from its floating-rate debt[924](index=924&type=chunk)[925](index=925&type=chunk)[932](index=932&type=chunk) Market Risk Sensitivity Analysis | Sensitivity Analysis (as of Dec 31, 2021) | Impact on Equity/Profit (Rp billion) | | :--- | :--- | | 1% appreciation of USD vs IDR | 164 (Profit) | | 5% appreciation of JPY vs IDR | (14) (Loss) | | 25 basis point decrease in interest rates | 109 (Increase) | - The company manages credit risk through ongoing monitoring and requires a **one-month deposit from new individual customers** to mitigate counterparty risk[935](index=935&type=chunk) [Description of Securities Other Than Equity Securities](index=290&type=section&id=ITEM%2012.%20DESCRIPTION%20OF%20SECURITIES%20OTHER%20THAN%20EQUITY%20SECURITIES) This section describes the terms and conditions of the company's American Depositary Shares - **Bank of New York Mellon Corporation** serves as the Depositary for the company's American Depositary Shares (ADSs)[941](index=941&type=chunk) - ADS holders are entitled to **instruct the Depositary on voting** the underlying shares; otherwise, a discretionary proxy may be given[947](index=947&type=chunk)[948](index=948&type=chunk) - The Depositary **distributes cash dividends** to ADS holders in U.S. Dollars and has procedures for handling non-cash distributions[950](index=950&type=chunk)[951](index=951&type=chunk)[953](index=953&type=chunk) PART II [Controls and Procedures](index=296&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management affirms the effectiveness of the company's disclosure controls and internal control over financial reporting - Management concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2021[978](index=978&type=chunk)[979](index=979&type=chunk) - Based on the COSO 2013 framework, management concluded that the company's **internal control over financial reporting was effective**[982](index=982&type=chunk) - The effectiveness of internal control over financial reporting has been **audited by the independent registered public accounting firm**[983](index=983&type=chunk) [Audit and Corporate Governance](index=298&type=section&id=ITEM%2016.%20AUDIT%20AND%20CORPORATE%20GOVERNANCE) This section covers the Audit Committee, Code of Ethics, principal accountant fees, and governance differences - The Board of Commissioners has determined that Mr. Emmanuel Bambang Suyitno qualifies as an **Audit Committee Financial Expert**[987](index=987&type=chunk) - The company has adopted a **code of ethics** applicable to all directors, officers, and employees[988](index=988&type=chunk) Principal Accountant Fees | Fee Type | 2020 (Rp million) | 2021 (Rp million) | | :--- | :--- | :--- | | Audit Fee | 63,461 | 59,050 | | All Other Fees | 1,925 | 11,540 | - As a foreign private issuer, the company **relies on exemptions from certain NYSE corporate governance standards** for its Audit Committee[996](index=996&type=chunk)[999](index=999&type=chunk) PART III [Financial Statements](index=305&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section contains the full audited consolidated financial statements prepared in accordance with IFRS - The independent auditor issued an **unqualified opinion** on the consolidated financial statements, confirming they present fairly in conformity with IFRS[1031](index=1031&type=chunk) - The auditor also issued an **unqualified opinion on the effectiveness of internal control** over financial reporting based on the COSO 2013 framework[1032](index=1032&type=chunk)[1043](index=1043&type=chunk) - A **critical audit matter** was the evaluation of the estimated useful lives of property and equipment due to significant management judgment required[1037](index=1037&type=chunk)[1038](index=1038&type=chunk)

PT Telekomunikasi Indonesia Tbk (NYSE:TLK) Q2 2021 Earnings Conference Call September 1, 2021 4:00 AM ET Company Participants Andi Setiawan - Investor Relations Ririek Adriansyah - Chief Executive Officer Heri Supriadi - Finance Director Rachel Goh - Marketing Director FM Venusiana - Consumer Service Director Budi Wijaya - Strategic Portfolio Director Conference Call Participants Piyush Choudhary - HSBC Arthur Pineda - Citigroup Foong Choong Chen - CIMB Niko Margaronis - BRI Danareksa Samuel Chen - Alliance ...