Kiwoom Research | Equity Update - 07 September 2026 PT. Telkom Indonesia (Persero) Tbk. (TLKM) Digital Growth Takes Over as Earnings Inflection Emerges Key Takeaways - Data & IT Services Drive Growth: Revenue +4% y/y to IDR75.9tn, supported by Data, Internet & IT Services (+13%), while legacy businesses declined. Mobile ARPU rose 9% y/y, supporting monetization. - 2Q26 Earnings Momentum Improved: EBITDA and net profit grew 11% and 28% y/y, respectively, with EBITDA margin rising to 50.5%, driven by lower finance costs and operating leverage. - Fiber Spin-off Positive Strategically: The IDR49.86tn fiber spin-off is neutral to near-term earnings as assets remain consolidated, but supports asset optimization, potential value unlocking, and TLKM’s Strategic Holding transformation. Recommendation “BUY” We revised our target price for TLKM at IDR 3,450 per share (from IDR 3,630), based on a blended valuation approach using EV/EBITDA and DCF methods, and supported by the company’s long-term prospects and potential. This target implies a forward P/E of 18.8x, EV/EBITDA of 4.8x, and PBV of 2.1x. At the current price of IDR 2,610, the stock is trading at an estimated P/E of 14.23x (vs. peers’ average of 12.5x) and a PBV of 1.59x (vs. peers’ average of 1.95x). Downside risks: ARPU pressure, intensifying mobile competition, higher spectrum and network capex, slower data center/digital infrastructure monetization, execution risks, and regulatory intervention. Sukarno Alatas Equity research KIWOOM SEKURITAS INDONESIA