| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | -100 |
| Intrinsic value (DCF) | 9.69 | -54 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 12.40 | -41 |
PT Telekomunikasi Indonesia Tbk (TLK) is Indonesia's largest integrated telecommunications provider, offering a comprehensive suite of services including mobile, fixed-line, broadband, and digital solutions. Headquartered in Bandung, the company operates across five key segments: Mobile, Consumer, Enterprise, Wholesale & International, and Others. With over 169 million cellular subscribers and 9.1 million fixed-line subscribers, TLK dominates Indonesia's telecom market, leveraging its extensive infrastructure to deliver mobile broadband, IPTV, IoT, cloud services, and digital financial solutions. As a state-owned enterprise, TLK benefits from government support and plays a critical role in Indonesia's digital transformation. The company's diversified revenue streams—spanning consumer, enterprise, and wholesale segments—position it as a leader in Southeast Asia's rapidly growing telecom sector. Its investments in 5G, data centers, and digital platforms align with Indonesia's push for digital inclusion and economic modernization.
TLK presents a stable investment opportunity with its dominant market position, government backing, and exposure to Indonesia's underpenetrated digital economy. The company's low beta (0.17) suggests defensive characteristics, while its 5.5% dividend yield (based on $1.1/share) offers income appeal. However, risks include high capital expenditures for 5G rollout (-IDR 29.99T in FY2023), regulatory pressures in a state-controlled industry, and competition from digital-native players. With a P/E of ~7x (based on FY2023 EPS of IDR 23,873), TLK trades at a discount to regional peers, reflecting its slower growth profile but strong cash flow generation (IDR 61.6T operating cash flow). Investors should monitor its enterprise digital services growth and debt management (IDR 76.8T total debt).
TLK's competitive advantage stems from its incumbent status as Indonesia's former telecom monopoly, granting it unparalleled infrastructure including 250,000+ km of fiber optic network and 33,000+ towers. Its integrated offerings—combining fixed, mobile, and enterprise services—create cross-selling opportunities competitors cannot match. The company's partnership with Indonesia's government (e.g., Palapa Ring broadband project) ensures preferential access to public-sector contracts. However, TLK faces challenges in digital innovation compared to agile competitors like GoTo's Gojek or Singtel-backed ShopeePay in fintech. Its enterprise segment benefits from end-to-end ICT solutions, but global players like AWS and Alibaba Cloud threaten its data center dominance. In mobile, TLK's 44% market share is pressured by XL Axiata's youth-focused strategies and Indosat Ooredoo Hutchison's merged scale. The company's competitive moat lies in its last-mile connectivity in Indonesia's archipelago geography, where infrastructure barriers deter new entrants.