{"url_path":"/sec/tlk/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 FINANCIAL INFORMATION**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1001807/0001104659-26-062051-index.html","accession_number":"0001104659-26-062051","cik":"0001001807","ticker":"TLK","issuer_name":"PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK","edgar_url":"https://www.sec.gov/Archives/edgar/data/1001807/0001104659-26-062051-index.html","primary_entity_key":"0001001807","primary_entity_name":"PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK"},"word_count":2124,"has_tables":true,"body_markdown":"**ITEM 8.              FINANCIAL INFORMATION**\n\n**A.                         CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION**\n\nSee also *“Item 18. Financial Statements”* for our Consolidated Financial Statements filed as part of this Form 20-F.\n\n**Legal Proceedings**\n\nWe are subject to legal, regulatory, and arbitration proceedings, investigations, and claims. In the past, we have been named as a defendant in various legal actions relating to land disputes, monopolistic practice and unfair business competition, and SMS cartel practices, among others. The following describes proceedings and investigations currently material to our business. See also “*Item 3D — Risk Factors — Risks Related to Our Business — Operational Risks — Damage to our reputation could negatively impact our business, financial condition, and results of operations*”, “*Item 3D — Risk Factors — Risks Related to Our Business — Financial Risks — If we fail to maintain an effective system of internal control over financial reporting, we may be unable to accurately report our financial results or prevent fraud*”, “*Item 3D — Risk Factors — Risks Related to Our Business — Legal and Compliance Risks — We are and may be subject to legal proceedings, claims and investigations, including for allegations relating to our public disclosures and disputes and litigation with regulators, competitors and other parties. If the outcomes of these proceedings, claims and investigations are adverse to us, our business, results of operations and financial condition could be materially and adversely affected, including because we may be subject to criminal or civil sanctions, or be required to restate our financial statements from prior periods*,” and “*Item 15. Controls and Procedures*.”\n\nU.S. Government Investigations\n\nIn October 2023, we received a document request from the SEC relating to Telkom Infra’s involvement in a project with the Indonesian Information and Telecommunication Accessibility Agency of the Ministry of Communication and Information (“**BAKTI Kominfo**”) regarding the provision of 4G BTS infrastructure. The SEC has since expanded its investigation to include accounting and disclosure issues relating to our revenue recognition and financial reporting practices and ICFR, as well as public reports regarding certain Indonesian legal proceedings involving our Company, various subsidiaries and affiliates, and certain of our clients and suppliers. Beginning in May 2024, we also received requests for information from the DOJ focused on compliance with the U.S. Foreign Corrupt Practices Act (“**FCPA**”). Each U.S. authority is aware of the other agency’s investigation. The SEC and DOJ investigations are ongoing. We are cooperating with the U.S. authorities (the “**U.S. Authorities**”) and have retained outside counsel and a forensic accounting firm to conduct an internal investigation (the “**Internal Investigation**”) into these issues.\n\nIn February 2025, the U.S. administration issued an executive order titled “Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security,” pausing DOJ enforcement of the FCPA for 180 days. Shortly thereafter, the DOJ and SEC informed our Company of an indefinite pause on the FCPA-related aspects of their investigations. We cannot be certain how any changes to FCPA enforcement will affect the DOJ’s investigation of our business.\n\nAs previously disclosed in the March 2026 Form 6-K, as amended by the April 2026 Form 6-K/A, under the caption \"*Internal Investigation on Legacy Matters*,\" we are also responding to various requests from the SEC and DOJ relating to their investigations. The requests primarily relate to the regulators’ investigations into accounting and disclosure issues relating to our revenue recognition, financial reporting practices, and ICFR, as well as public reports regarding certain Indonesian legal proceedings involving our Company, various subsidiaries and affiliates, and certain of our clients and suppliers.\n\n​\n\n167\n\n[Table of Contents](#TOC)\n\nInternal Investigation Findings\n\nAs of the date hereof, the Internal Investigation is substantially complete. The Internal Investigation focused on the review of approximately US$324 million of revenues, spread across approximately 140 transactions originating from 2014 through 2021, and primarily in 2016 through 2019, impacting historical trade receivables and revenues, to determine whether goods and services associated with these transactions were delivered or otherwise recorded in accordance with IFRS and whether such transactions were consistent with our policies, procedures, and ICFR. Our internal audit team also completed investigations for certain of these transactions, and those conclusions have been considered as part of the Internal Investigation.\n\nBased on results to date, we believe that substantially all of the approximately 140 transactions lacked economic substance, resulting in an overstatement of revenues, gross trade receivables, and net trade receivables. These transactions were entered into by our former management or its subsidiaries, primarily in the enterprise business segment, in circumvention of IFRS and our policies and ICFR, to manage reported earnings. For any such transaction, (i) revenue and trade receivables should not have been recognized, and (ii) any future allowance for expected credit losses and bad debt expense related to these trade receivables would have been unnecessary. Other members of former management, including those who were in place during later periods, failed to take corrective action when these transactions were identified as improper or potentially improper. We do not believe that this overstatement of revenues constituted a misstatement that was quantitatively material to our consolidated financial statements for any period presented in our prior annual or interim financial statements. The estimated overstatement of revenues, gross trade receivables, and net trade receivables by year based on the results of the Internal Investigation are disclosed in the table under the caption \"*Results of the Company’s Internal Investigation to Date*\" in the March 2026 Form 6-K (as amended by the April 2026 Form 6-K/A), and this table is hereby incorporated by reference in this annual report on Form 20-F.\n\nBy December 31, 2020, the vast majority of the trade receivables associated with these transactions had full corresponding income statement provisions and related allowances for expected credit losses, and therefore the net trade receivables for these transactions reflected on our previously published statements of financial position from 2020 onward were de minimis. Accordingly, as of the date hereof, we believe that these historical transactions do not require any corrections to our statements of financial position as of December 31, 2023, 2024, and 2025, or the statements of profit or loss and other comprehensive income for the years ended December 31, 2023, 2024, and 2025.\n\nWe have encountered challenges compiling detailed historical information for a significant portion of the approximately 140 transactions due to the age of the transactions, accounting system limitations, and challenges related to the retention and retrieval of historical accounting support that in some cases dates back nearly ten years. We have assumed that certain transactions lacked economic substance unless accounting and other supporting information was available to demonstrate otherwise. There is a risk that the number and amount of legacy transactions that lacked economic substance could be higher than we have been able to determine through the Internal Investigation.\n\nReclassification of Certain Historical Trade Receivables\n\nIn connection with the Internal Investigation, we also determined that certain historical trade receivables should be reclassified to other non-current assets to better reflect their economic substance. As of December 31, 2023, 2024, and 2025, gross trade receivables of Rp1,945 billion, Rp1,762 billion, and Rp1,898 billion, respectively, along with corresponding allowances for expected credit losses in the same amounts, were reclassified, as these balances related to transactions that had been reviewed or were scheduled for review as part of the Internal Investigation. This reclassification was made to achieve a more appropriate presentation in our consolidated financial statements of the economic substance of the relevant transactions. We concluded that these receivables had no reasonable expectation of recovery and therefore no longer met the criteria for presentation as trade receivables. As the reclassified gross receivables and the related allowances fully offset each other, the reclassification had no impact on net trade receivables, other non-current assets, as of December 31, 2023, 2024, and 2025. As reflected in the Consolidated Financial Statements, these receivables were written off based on their carrying amounts as of December 31, 2024, as they lack economic substance, have no reasonable expectation of recovery and following the approvals obtained in accordance with the applicable Indonesian regulations; however, such write-off does not constitute a waiver of our Company’s collection rights. The Company is an SOE, and\n\n168\n\n[Table of Contents](#TOC)\n\naccordingly, its receivable write-off process is subject to specific governance and regulatory requirements applicable to SOEs. Under the applicable write-off policy, receivables exceeding certain thresholds and/or receivables of certain nature require approvals from relevant authorities and/or government bodies. As such, the completion and timing of the write-off process are not solely within our management’s control, as they depend on external review and approval processes involving various governmental stakeholders. See Note 33c(iv) to our Consolidated Financial Statements and the discussion under the caption \"Financial Statement Note 6 in the 2024 Form 20-F\" in the March 2026 Form 6-K, as amended by the April 2026 Form 6-K/A, for additional information.\n\nIndonesian Legal Proceedings and Self-Reporting\n\nWe have cooperated with, and continue to cooperate with, and have in certain instances self-reported to, government authorities in Indonesia, including Indonesian National Police, the Public Prosecution Service, and the Corruption Eradication Commission, various matters involving alleged or potential violations of Indonesian laws and regulations by our business units, subsidiaries, and affiliates, including anti-corruption, alleged fraud, embezzlement, and issues associated with trade receivables, some of which are related to the matters under investigation by the SEC and DOJ.\n\nIn May 2025, the DKI Jakarta High Prosecutor’s Office designated eleven individuals as suspects and detained them in connection with alleged corruption involving fictitious financing at our Company, relating to conduct that took place primarily between 2016 and 2019. In April 2026, the Central Jakarta District Court issued its verdict against these eleven individuals. These actions followed our submission of internal audit findings to Indonesian authorities in support of the Government’s *Bersih-bersih BUMN* program. We fully support the applicable legal processes in Indonesia and continue to cooperate with Indonesian authorities. The length, scope, or results of these self-disclosures and proceedings, or their impact on our results of operations, business, or financial condition remain uncertain.\n\nRemediation\n\nIn connection with the Internal Investigation, our management has been actively engaged in efforts to improve our policies, procedures, and ICFR. Remediation measures include: (i) disciplinary action against employees involved in the transactions identified through the Internal Investigation; (ii) hiring additional qualified accounting, finance, and legal personnel to provide additional capacity and expertise to enhance our accounting and reporting review procedures; (iii) engaging consultants to provide additional technical accounting expertise; and (iv) streamlining and delayering our organizational structure to improve oversight of our accounting and controlling functions. During the fiscal year ended December 31, 2025, we created two new positions, the Directorate of Legal & Compliance and Chief Integrity Officer, to oversee and strengthen our corporate governance policies and help carry out our compliance responsibilities. We will continue to promote enhancements and update our internal procedures, policies, guidelines, and control systems. For a description of management’s conclusions regarding disclosure controls and ICFR effectiveness, see *“Item 15. Controls and Procedures.”*\n\n**Dividends**\n\nAn AGMS has the authority to determine the amount of dividends we pay. Our dividend payout ratio for the fiscal year ended December 31, 2025 will be decided at the AGMS scheduled for June 8, 2026.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Total Dividend**\n\n​\n\n**Dividend per**\n\n​\n\n​\n\n​\n\n​\n\n**Payout Ratio**\n\n​\n\n**Payment**\n\n​\n\n**Share**\n\n**Dividend Year**\n\n**  ​ ​ ​**\n\n**Payment Date**\n\n**(%)**(1)\n\n**(Rp million)**\n\n**(Rp)**\n\n2020\n\n \n\nJuly 2, 2021\n\n \n\n80.00\n\n​\n\n16,643,443\n\n(2)​\n\n168.01\n\n2021\n\n \n\nJune 30, 2022\n\n \n\n60.00\n\n​\n\n14,855,921\n\n(3)​\n\n149.97\n\n2022\n\n​\n\nJuly 5, 2023\n\n​\n\n80.00\n\n​\n\n16,602,697\n\n(4)​\n\n167.59\n\n2023\n\n​\n\nMay 29, 2024\n\n​\n\n72.00\n\n​\n\n17,683,019\n\n(5)​\n\n178.50\n\n2024\n\n​\n\nJune 19, 2025\n\n​\n\n89.00\n\n​\n\n21,047,403\n\n(6)​\n\n212.47\n\nNotes:\n\n​\n\n(1)Represents the percentage of profit attributable to owners of the parent paid to shareholders in dividends.\n\n(2)Consists of cash dividend amounting to Rp12,482,582 million and special cash dividend amounting to Rp4,160,860 million.\n\n169\n\n[Table of Contents](#TOC)\n\n(3)Consists of cash dividend amounting to Rp14,855,921 million.\n\n(4)Consists of cash dividend amounting to Rp16,602,697 million.\n\n(5) Consists of cash dividend amounting to Rp17,683,019 million.\n\n(6) Consists of cash dividend amounting to Rp21,047,403 million.\n\n**Telkomsel Dividend**\n\nBased on the resolution of the shareholders on April 17, 2025, Telkomsel declared an interim cash dividend amounting to Rp16,500 billion, which was paid in tranches (Rp5,500 billion each before withholding taxes) on April 30, May 16 and May 28, 2025. Based on the Annual General Meeting of Shareholders held on May 28, 2025, Telkomsel’s shareholders approved and ratified the final dividend to be Rp22,356 billion, which was computed at 100.0% of the 2024 profit. As a result, additional cash dividend amounting to Rp5,856 billion (before withholding tax) was paid on July 16, 2025.\n\n**B****.**                         **SIGNIFICANT CHANGES**\n\nSee Note 37 to our Consolidated Financial Statements.\n\n​\n\n​"}