Jakarta, IDN Times — PT Telkom Indonesia (Persero) Tbk (TLKM) has announced plans for a share buyback program valued at Rp1 trillion. According to a disclosure filed with the Indonesia Stock Exchange (IDX) on Tuesday, May 5, 2026, the corporate action is aimed at reinforcing market confidence in the company’s long-term value and future prospects.
“This initiative is a strategic effort to balance market conditions with the company’s strong fundamentals, while also maintaining stakeholder trust as we work toward sustainable growth,” stated Telkom management.
1. Buyback Schedule
The buyback process will commence with a request for shareholder approval during the Annual General Meeting of Shareholders (RUPST), scheduled for June 8, 2026. Following authorization, the execution period for the share repurchase will run from June 9, 2026, to June 8, 2027.
Management emphasized that the company’s free float, even after the buyback, will remain well within regulatory requirements, ensuring it does not fall below 15 percent of the total listed shares.
2. Funding Sources
Telkom has confirmed that the Rp1 trillion buyback will be fully funded through the company’s internal cash reserves. This total allocation is comprehensive, covering not only the share repurchase itself but also transaction fees, brokerage commissions, and other associated costs.
3. Financial Impact
While the buyback will result in a reduction of assets and equity by Rp1 trillion, Telkom reassured investors that the move will not have a material negative impact on its business operations. The company maintains sufficient working capital and robust cash flow to support its ongoing activities.
For further insights into the company, explore these related topics: typical salaries and benefits for Telkom employees, the expansion of Telkomsat satellite services in Eastern Indonesia, and Telkom’s initiatives in empowering female-led MSMEs through digital transformation.
Summary
PT Telkom Indonesia (TLKM) has announced a share buyback program worth Rp1 trillion to strengthen market confidence and reflect the company’s strong fundamentals. The initiative is scheduled to seek shareholder approval on June 8, 2026, with the execution period running until June 8, 2027. Management ensures that the company’s free float will remain above the regulatory 15 percent threshold following the repurchase.
The buyback will be fully funded using internal cash reserves, covering all associated transaction costs and brokerage commissions. Although the program will result in a reduction of assets and equity, it is not expected to materially impact Telkom’s business operations or working capital. The company maintains robust cash flow to support its ongoing activities and sustainable growth goals.