A. HISTORY AND DEVELOPMENT OF THE COMPANY Profile of Telkom ​ Telkom is the largest telecommunications company in Indonesia, in terms of revenue and number of subscribers, as of December 31, 2025. We provide fixed and mobile telecommunications services and solutions and ancillary services. We are innovative and continue to strengthen and optimize our portfolio businesses, services and solutions by creating strategic programs that aim to maximize synergies and active portfolio management. Our existential purpose is to build Indonesia into a more prosperous and competitive nation while delivering the best value to our stakeholders. Our long-term vision is to be the most preferred digital telecommunications company and empower Indonesian society. To achieve this vision, we focus on three missions that cover many aspects of empowering society, including rapidly building sustainable digital infrastructure and smart platforms that are affordable and accessible to a wide range of customers, nurturing best-in-class digital talents to help develop Indonesia’s digital capabilities and increase the adoption of digital technologies and services, and orchestrating a comprehensive digital ecosystem to deliver a superior customer experience. ​ In order to achieve our vision and missions, we continue to work to transform key aspects of our business: technology, organization, operations, people, and culture. Company Name : Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk Abbreviated Name : PT Telkom Indonesia (Persero) Tbk Commercial Name : Telkom Line of Business : Telecommunications and informatics networks and services Tax Identification Number : 01.000.013.1-093.000 Business Identification Number : 9120304490415 Business License : 9120304490415 Domicile : Bandung, West Java Address : Jl. Japati No. 1, Bandung 40133, Indonesia Telephone : +62-22-4527117 Call Center : +62-21-147 Website : www.telkom.co.idThe information found on our website does not form part of this Form 20-F and is not incorporated by reference herein. E-mail : [email protected]; [email protected] Ratings : International Ratings: “Baa1 (Stable)” by Moody’s, “BBB (Stable)” by Fitch, “BBB” by MSCI ESG Ratings for 2025, and “Medium Risk” ESG Risk Rating by Sustainalytics, Carbon Disclosure Project (CDP) rating “b” for climate and “c” for Water in 2025 (CDP Supporter for 2025), and “Very 60 Table of Contents Good” rating by the Indonesian Institute for Corporate Directorship in the Asean Corporate Governance Scorecard (ACGS) with a 101.98 rating.Domestic Rating: “idAAA” by PT Pemeringkat Efek Indonesia (“Pefindo”) for 2025. Date of Legal Establishment : November 19, 1991 Legal Basis of Establishment : Based on Government Regulation No. 25 of 1991, the status of our Company was converted into a state-owned limited liability corporation (“Persero”), based on the Notarial Deed of Imas Fatimah, S.H. No.128 dated September 24, 1991, as approved by the Ministry of Justice of the Republic of Indonesia by virtue of Decision Letter No. C2-6870.HT.01.01.Th.1991 dated November 19, 1991 and as announced in the State Gazette of the Republic of Indonesia No. 5 dated January 17, 1992, Supplement to the State Gazette No.210 Ownership : As of December 31, 2025:– PT Danantara Asset Management – 52.09%-Government - 0.00% (one share)– Public – 47.91% Listing on Stock Exchanges : Our shares of common stock were listed on the IDX and the New York Stock Exchange (the “NYSE”) on November 14, 1995 Stock Codes : – "TLKM" on the IDX– "TLK" on the NYSE Authorized Capital : 1 Dwiwarna Share and 389,999,999,999 shares of common stock Issued and Fully Paid Capital : 1 Dwiwarna Share and 99,062,216,599 shares of common stock Offices : -1 Head Office-5 Telkom Regional Offices and 31 Telecommunications Areas Service Centers : -10 Global Offices in Indonesia, Australia, Dubai, Hong Kong, Malaysia, Myanmar, Singapore, Taiwan, Timor-Leste, and the United States, a total of 5 Sales Representatives in Canada, India, the Philippines, Vietnam, and the United Kingdom, and 1 Sales Representative of Telkomsel in Saudi Arabia-463 GraPARI centers in Indonesia Other Information : – Registered Public Accounting FirmPublic Accounting Firm (“KAP”) Purwanto Susanti dan Surja (a member firm of Ernst & Young Global Limited) (PCAOB ID 1381) (“EY Indonesia”)Indonesia Stock Exchange Building, Tower 2, 7th Floor, Jl. Jend. Sudirman Kav. 52–53, Jakarta 12190, Indonesia ​ ​ – Securities Administration BureauPT Datindo EntrycomJl. Hayam Wuruk No.28, 2nd Floor, Jakarta 10120, Indonesia ​ ​ – TrusteePT Bank Tabungan Negara (Persero) Tbk.Menara BTN, 18th Floor, Jl. Gajah Mada No.1, Jakarta 10130, IndonesiaPT Bank Permata Tbk.Gedung WTC II, 28th Floor, Jl. Jend. Sudirman Kav. 29-31, Jakarta 12920, Indonesia ​ ​ – CustodianPT Kustodian Sentral Efek IndonesiaIndonesia Stock Exchange Building, Tower 1, 5th Floor, Jl. Jend. Sudirman Kav. 52–53, Jakarta 12190, Indonesia ​ ​ – Rating AgenciesPT Pemeringkat Efek IndonesiaPanin Tower Senayan City, 17th Floor, Jl. Asia Afrika Lot. 19, Jakarta 10270 Moody’s Investors Service Singapore Pte. Ltd. 61 Table of Contents 50 Raffles Place #23-06, Singapore Land Tower, Singapore 048623Fitch Hong Kong Ltd.19/F Man Yee Building, 68 Des Voeux Rd, Hong KongCDP127 West 26th Street, Suite 300, New York, NY 10001, United StatesMSCI7 World Trade Center 250 Greenwich Street New York, NY 10007, United StatesSustainalyticsFour World Trade Center 150, Greenwich Street, Floor 48, New York, NY 10007IICDGedung Prof. M. Sadli (Gedung Magister Akuntansi) 1st Floor, Jl. Salemba No. 4 Jakarta Pusat, Indonesia ​ ​ – ADR DepositaryThe Bank of New York Mellon Corporation240 Greenwich Street, NY, USA – 10286 ​ ​ – Authorized Agent for Service of Process in the United StatesCogency Global Inc.122 E. 42nd St. 18th Fl. New York, NY 10168, USA Employee Union : The Telkom Employees Union (Serikat Karyawan Telkom or “SEKAR”) We are subject to the periodic reporting and other informational requirements of the Exchange Act as applicable to foreign private issuers. Under the Exchange Act, we are required to file reports and other information with the Securities and Exchange Commission (“SEC”). Specifically, we are required to annually file a Form 20-F within four months after the end of each fiscal year. Copies of reports and other information, when so filed with the SEC, can be inspected and copied at the public reference facilities maintained by the SEC at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. You can request copies of these documents, upon payment of a duplicating fee, by writing to the SEC. The public may obtain information regarding the Washington, D.C. Public Reference Room by calling the Commission at 1-800-SEC-0330. SEC maintains a website (http://www.sec.gov), which contains reports, proxy and information statements, and other information regarding us that are filed electronically with the SEC. Telkom’s Milestones In 1965, the Government created the first state-owned company specifically focused on telecommunications services as part of a restructuring of the state-owned telecommunications industry in Indonesia. In 1974, PN Telekomunikasi became Perusahaan Umum Telekomunikasi Indonesia, which provided domestic and international telecommunications services, and subsequently spun-off PT Industri Telekomunikasi Indonesia, which manufactured telecommunications equipment, into an independent company. In 1991, as a result of a transformation into a state-owned limited liability company and rebranding, we became Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. In 1995, we and Indosat established Telkomsel. We completed our initial public offering and our shares were listed on the Jakarta Stock Exchange and the Surabaya Stock Exchange (which have since merged to become the IDX). Our shares were also listed on the NYSE and the London Stock Exchange in the form of ADSs, and were publicly offered without listing on the Tokyo Stock Exchange. In 1999, we launched the Telkom-1 satellite. We lost contact with this satellite in 2017, one year ahead of its planned decommissioning and replacement by the Telkom Merah Putih satellite which launched in 2018. 62 Table of Contents In 2001, we and Indosat eliminated joint ownership and cross-ownership in certain companies as part of the restructuring of the telecommunications industry in Indonesia and as a result, we also lost our exclusive rights as the sole operator of fixed-line services in Indonesia. In 2004, we launched an international direct dialing service for fixed lines with the access code of 007. In 2005, we launched the Telkom-2 satellite. This satellite was retired in 2021 when it reached the end of its operational life. In 2009, we transformed from an information telecommunications company to a Telecommunications, Information, Media and Edutainment (“TIME”) company. We also rebranded, introducing a new corporate logo and the slogan “the world in your hand.” In 2011, we launched the Telkom Nusantara Super Highway project to unite the Indonesian archipelago through the deployment of multiple submarine cables. We also launched the True Broadband Access project to provide internet access with a capacity of between 20 Mbps and 100 Mbps to customers throughout Indonesia. In 2012, we began installing Wi-Fi access points around Indonesia to create a public wireless network called Indonesia Wi-Fi as part of our “Indonesia Digital Network” program. We also expanded our business portfolio from TIME to TIMES. In 2014, we became the first cellular operator in Indonesia to commercially launch 4G/LTE service. In 2015, we launched the retail brand “IndiHome,” under which we market fixed voice, fixed broadband, IPTV, and consumer digital services in a bundled package. In 2017, we launched the Telkom-3S satellite and commenced operations on schedule. In 2018, we launched the Telkom Merah Putih satellite, which began providing coverage for all of Indonesia, Southeast Asia and South Asia. We also inaugurated The Telkom Hub, a smart office complex for developing digital entrepreneurs and fostering a digital culture in line with digital Government initiatives such as “Making Indonesia 4.0,” “2020 Go Digital Vision,” and “One Data Indonesia.” In 2019, we reconfigured our business portfolio from TIMES to a five-segment portfolio of mobile, consumer, enterprise, wholesale, international business, and other. In 2021, Telkomsel became the first cellular operator to commercially launch 5G service in Indonesia. Telkomsel also refreshed its brand and conducted a product simplification. Mitratel, our subsidiary, conducted an initial public offering in November 2021 which provided Rp18,463 billion in proceeds to be used for organic and inorganic business expansion. In 2022, Telkom launched a cable gateway in Manado, the second international communication gateway that we own. We completed the first stage of our HyperScale data center, in Jakarta, and our subsidiary, PT Telkom Data Ekosistem (“TDE”), began construction of our second HyperScale data center, in Batam. We also established strategic partnerships with several global technology companies such as Microsoft. In April 2023, in line with our FMC initiative, we entered into an agreement with Telkomsel to combine our fixed broadband and mobile broadband services into a single business entity, by transferring a portion of our assets and liabilities allocated to the IndiHome business segment to Telkomsel. See also “Item 10C. — Material Contracts.” In August 2023, our subsidiary Metranet collaborated with edtech startup PT Cerdas Digital Nusantara (“Cakap”) to provide digital educational content, and in October 2023, we completed the construction of our PATARA-2 submarine 63 Table of Contents cable system connecting multiple islands across eastern Indonesia. In November 2023, we collaborated with KT Corp, a South Korean telecommunications company, to form a joint task force team to generate a business model for the data centers in Nusantara, Indonesia’s new capital. In February 2024, we launched our Merah Putih-2 satellite. In December 2024, Mitratel acquired 100.0% of the shares in PT Ultra Mandiri Telekomunikasi from PT PP Infrastruktur. This acquisition added 12,524 km of fiber optic network, increasing Mitratel's fiber optic network to over 59,486 km and strengthening its fiber-to-the-tower business. Additionally, in 2024, we signed an MoU for the construction of the Indonesia Cable Express (“ICE”) Cable System, NDP Batam, CLS Pluit, and Minahasa. In October 2025, the first data center building in Batam (BTM-1) reached the topping-off milestone, signifying the completion of the main structural phase of the Hyperscale Data Center development at the Kabil Industrial Estate. In December 2025, we obtained shareholder approval at our Extraordinary General Meeting of Shareholders for the partial spin-off of our wholesale fiber connectivity business and assets to our subsidiary, TIF. This is the first phase of a broader plan to transfer the entire wholesale fiber connectivity business to this subsidiary. See also “Item 10C. — Material Contracts.” For the years ended December 31, 2023, 2024, and 2025, our consolidated capital expenditures totaled Rp32,858 billion, Rp24,436 billion, and Rp24,577 billion (US$1,474 million), respectively. TelkomGroup’s capital expenditures primarily consisted of expenditures relating to the construction of Telkomsel's BTS infrastructure for 4G and 5G networks, the development of a hyperscale data center in Batam, the expansion of hyperscale data center capacity in Cikarang, the addition of towers and supporting infrastructure capacity, as well as the development of international submarine cable system projects, including the TOPAZ, BIFROST, and SJC2 submarine cables. See also “Item 5B. Operating and Financial Review and Prospects — Liquidity and Capital Resources — Capital Expenditures” for more information on our capital expenditures for the year ended December 31, 2025. B. BUSINESS OVERVIEW Strategy As the largest telecommunications company in Indonesia in terms of revenue and number of subscribers, our objective is to be the preferred digital telecommunications company in Indonesia, contribute to national development, and deliver value to our stakeholders. Our strategy focuses on developing sustainable and efficient digital infrastructure and smart platforms that are accessible and affordable to a wide range of customers. We also aim to support Indonesia’s digital growth by fostering digital talent through workforce planning, skill development, and strategic partnerships. We expect these efforts to promote the wider adoption of digital technologies across different sectors. In addition, we seek to improve customer experience by building a comprehensive digital ecosystem, which includes offering services such as gaming and IPTV and collaborating with strategic partners to deliver innovative solutions. We aim to continue transforming to meet the evolving needs of Indonesian consumers and businesses as Indonesia’s leading digital telecommunications company. Our strategy is anchored in five business pillars: (1) Integrated B2C Services, providing comprehensive consumer connectivity and digital solutions; (2) B2B ICT Services, delivering innovative ICT solutions, including connectivity, IT services, and value-added offerings; (3) Digital Infrastructure, optimizing assets to support connectivity solutions and enable an integrated digital ecosystem; (4) International Business, strengthening global presence by driving focused and strategic regional expansion; and (5) Other (Non-Core) Business, enabling portfolio refocusing and reformatting to maximize enterprise value for our Group. Together, these pillars guide our efforts to drive sustainable growth, unlock stakeholder value, and foster inclusive digitalization across Indonesia. Our core programs for implementing our strategy are as follows: ● Execute FMC offerings & Beyond Connectivity services to increase customer productivity, supported by efficient territory management to ensure sales quality in both mobile and fixed markets: As growth 64 Table of Contents opportunities in the core connectivity business become increasingly limited, we intend to expand into Beyond Connectivity businesses as part of our growth strategy. We expect to drive this expansion through the development of FMC offerings and Beyond Connectivity services, with a focus on enhancing customer experience to strengthen customer loyalty and improve customer retention. In parallel, we aim to implement more efficient territory management practices to optimize resource allocation and improve market coverage. Through these initiatives, we expect to improve sales quality in both the mobile and fixed markets, and to strengthen our competitive position and market leadership. ● Improve B2B competitiveness by strengthening consultative selling and streamlining business processes and technology systems: To strengthen our competitive position and capture growth opportunities in the B2B market, we intend to enhance our overall business competitiveness. We expect these enhancements to be driven by strengthening our consultative selling capabilities to better understand customers’ business needs and address their challenges through end-to-end solutions, supported by a competitive B2B product and service portfolio. Simultaneously, we aim to accelerate the implementation of more efficient business processes and ensure the readiness of integrated IT tools. Through these initiatives, we expect to drive comprehensive B2B performance across our Group, particularly by improving financial visibility. ● Improve network efficiency and asset utilization, and strengthen Group-wide capital expenditure and procurement coordination to increase profitability: We believe our competitiveness is fundamentally driven by the efficiency, reliability, and quality of the infrastructure that underpins our businesses. Accordingly, we are focused on operating and managing our infrastructure in a cost-efficient and competitive manner through cost-leadership initiatives, higher asset utilization, and continuous improvements in infrastructure quality. In addition, we intend to manage capital expenditures more effectively and efficiently by strengthening collaboration in capital expenditure planning and aligning procurement processes across our Group. Through these initiatives, we expect to enhance our competitiveness and drive improvements in our overall profitability. In 2025, we launched our “TLKM 30 Strategy,” a long-term transformation strategy aimed at repositioning Telkom as a strategic holding company that evolves into a more focused, agile, and globally competitive digital telecommunications company. As the foundation of this transformation, we established four key transformation pillars designed to strengthen operational and service excellence, streamline our business portfolio, unlock value from infrastructure assets, and support Telkom’s transition into a strategic holding company. Through this framework, we aim to enhance execution discipline, organizational clarity, governance alignment, operational effectiveness, customer experience, and long-term value creation across the TelkomGroup. We are implementing this strategy progressively in line with a defined strategic roadmap. During 2025, our priorities included strengthening business fundamentals through transition toward a strategic holding structure, sharpening the business focus of each Group operating company, accelerating the monetization of high-value infrastructure assets, and enhancing organizational and technological capabilities. Further Development of 5G Services In 2021, our majority-owned subsidiary, Telkomsel, became the first cellular operator to offer 5G services in Indonesia. Since then, we have strategically focused on expanding our 5G network, with deployment paced by factors such as ecosystem maturity, demand in B2B and B2C segments, and the availability of additional 5G spectrum. Our 5G development aims to support Indonesia’s broader digital ecosystem goals by integrating emerging technologies and scalable infrastructure. To achieve this, we are implementing end-to-end network automation and transitioning to autonomous networks to improve operational efficiency and deliver next-generation services. We are expanding our 5G network through the Hyper 5G initiative in a focused and gradual manner. Since its commercial launch, Telkomsel’s Hyper 5G network has expanded to approximately 4,900 BTS covering more than 80 65 Table of Contents cities and regencies. As of December 31, 2025, Telkomsel provides 5G services in locations including Bandung, Surabaya, and Batam. In December 2024, Telkomsel completed the expansion of its Hyper 5G network in the Greater Jakarta area. In the near future, Telkomsel plans to further extend its 5G network to other key locations across Indonesia. Strategic Partnerships In 2025, we executed several key strategic partnerships to strengthen national digital infrastructure and expand our advanced technology capabilities and digital service offerings. A notable example is our collaboration with Fortinet in November 2025, which focuses on improving network security and SD-WAN services to support the growing demand for secure and reliable enterprise connectivity. In June 2025, we partnered with IBM to deliver a domestically operated sovereign AI platform powered by watsonx. We believe that these partnerships demonstrate our long-term strategy of leveraging global technology expertise combined with local market insight to expand digital services and create sustainable value for customers and Indonesia's digital ecosystem. Through our subsidiary MDMedia, we have partnered with Accenture to develop AdXelerate, an AI-driven programmatic advertising platform. AdXelerate leverages Telkomsel's data insights to deliver more efficient, relevant, and targeted digital advertising solutions for advertisers. We believe that this collaboration strengthens our position in Indonesia's digital advertising ecosystem and accelerates the adoption of AI-based solutions for data-driven media advertising. In 2025, Telkomsat partnered with Space42 to explore direct-to-device satellite connectivity and with Myriota to deliver low-power satellite IoT services in Indonesia. These collaborations strengthen Telkomsat's capabilities in expanding coverage, enabling new digital use cases, and enhancing satellite-based connectivity across remote and underserved areas. In May 2024, Telkomsat became an authorized Starlink reseller in Indonesia, having previously collaborated with SpaceX's Starlink to provide backhaul services. We also reinforce our digital services ecosystem through strategic investments, including Telkomsel's investment in PT GoTo Gojek Tokopedia Tbk (“GoTo”). In November 2023, we partnered with KT Corp. to develop a sustainable smart city model for Nusantara, Indonesia's new planned capital. Enhancing our Assets through Acquisitions and Spin-offs In April 2023, as part of the FMC initiative, we entered into an agreement with Telkomsel for the IndiHome Integration. As of the date hereof, we have realized synergies from this integration in areas including content optimization, cross-selling, and cost savings. In our tower business portfolio, Mitratel has expanded its fiber optic and tower portfolio through various acquisitions. These acquisitions are expected to improve asset utilization and enhance Mitratel’s infrastructure portfolio value. Environmental, Social, and Governance (“ESG”) Matters Our sustainability strategy is guided by ESG principles. We focus on responsible business practices through three pillars: Save Our Planet, Empower Our People, and Elevate Our Business. We believe this approach enhances our competitiveness, strengthens stakeholder trust, and supports our long-term sustainability. Our oversight of environmental and social matters is centralized under the head of each relevant business unit, promoting clear accountability, consistent governance, and effective execution. ​ 66 Table of Contents Environmental Stewardship Our strategy focuses on managing our environmental impact, with a focus on climate-related risks and waste management. Climate Transition Pathway We established a Climate Transition Pathway that serves as a long-term strategic roadmap toward achieving Net Zero Emissions by 2060. It is guided by six strategic decarbonization levers: energy efficiency, equipment modernization, operational electrification, renewable energy adoption, and market-based mechanisms, including renewable energy certificates (“RECs”), power purchase agreements (“PPAs”), and carbon offsets. The pathway is structured across three phases: ● Short-term (2023–2030): We are targeting up to a 20% reduction in Scope 1 and Scope 2 emissions through energy efficiency improvements, network modernization, and initial solar photovoltaic (“PV”) deployment of more than 14 megawatts peak (“MWp”). ● Medium-term (2030–2050): We aim to expand emissions reductions to between 40% and 70%, supported by electrification of our operational fleet, increased renewable energy use in our data centers, and continued efficiency improvements. ● Long-term (2050–2060): We aim to achieve net zero emissions by minimizing residual emissions and offsetting them through verified carbon credits and nature-based solutions. We believe this approach strengthens our resilience to climate-related risks, drives operational efficiency, and creates long-term sustainable value. Energy and Emissions We continue to implement initiatives to reduce energy consumption. Our practices include using LED lighting, optimizing cooling systems, and replacing older network equipment with more energy-efficient alternatives. We also continue to assess the feasibility of installing rooftop solar panels. In 2025, we purchased 35,066 RECs to support the operations of 69 main PoPs across various regions of Indonesia. In addition, we calculated our Scope 3 GHG emissions across 12 categories, and our GHG emissions inventory was independently verified by TUV Rheinland Indonesia in April 2026. Waste Management We manage waste responsibly, including electronic waste, and reduce paper use through digitalization, such as by providing paperless invoices and encouraging the use of online communication. These efforts are reinforced by the ISO 14001:2015 and ISO 45001:2018 certifications we obtained in 2025. During the same year, we reduced operational waste by 7,013 tons compared to 2024 (or 24% decrease), primarily as a result of decreased office and fiber optic cable waste. Water and Biodiversity Our water-saving initiatives include using automatic taps and recycling wastewater from our cooling systems for other uses. To support local ecosystems, we conduct mangrove planting and coral reef transplantation. In 2025, we planted 110,042 mangrove trees and transplanted 760 coral reefs. ​ 67 Table of Contents Social Responsibility We focus on empowering our employees, customers, and society. Our goal is to provide a safe and productive workplace and use our digital capabilities to positively impact society. Our key human capital initiatives include: ● Workplace Environment and Employee Support: Throughout 2025, we continued to strengthen our commitment to diversity, equality, and inclusion. In 2025, women represented 23.2% of managerial positions in our Group, supported by our DayCare facilities and the Srikandi Telkom program to promote gender inclusion. This commitment is reinforced through our Respectful Workplace Policy, which provides a structured approach to preventing, addressing, and reporting discrimination, violence, and harassment. In 2025, we also introduced our Digital Ways of Work: BISA (an acronym for Bravery, Integrity, Service Excellence, and Agility) as a behavioral framework to strengthen a digital mindset and support our ongoing streamlining and transformation initiatives. ● Talent Development: Our Digital Talent program provides training and upskilling opportunities for our employees. In 2025, 20.2% of our digital workforce received training through this program. ● Workplace Safety: We prioritize workplace safety in a manner that aligns with the ISO 45001:2018 Occupational Safety and Health Management System standard. In 2025, we recorded one work-related fatality. Corporate Governance We believe that strong governance is fundamental to our business, and that it strengthens trust and supports long-term value creation. ● Ethical Business Practice: Anchored in the principles of transparency, accountability, and compliance, we implemented our business transformation agenda in 2025 to strengthen alignment with our Governance, Risk, and Compliance (“GRC”) framework. We also aimed to maintain ISO 37001:2016 Anti-Bribery Management System certification across our operations, including our subsidiaries. In line with our commitment to transparency and accountability, in 2025, all whistleblowing reports received through our reporting channels were reviewed and addressed in accordance with applicable procedures. ● Cyber and Data Privacy: Throughout 2025, we maintained robust data security controls, which resulted in no critical data breaches and ensured that all data processing activities were conducted securely. Business Portfolios Our business portfolios are organized by business lines that are categorized into five business pillars: · Integrated B2C Services: We provide comprehensive consumer connectivity and digital solutions. Our B2C services consist of (i) B2C Legacy, which comprises mobile voice, mobile SMS, and fixed voice services; (ii) B2C Data, which comprises mobile broadband and fixed broadband services; and (iii) B2C Digital Services, which comprises mobile digital services (e.g., music, gaming, digital ads) and fixed digital services, including IPTV; · B2B ICT Services: We deliver digital and ICT solutions to enterprise customers, including enterprise-grade connectivity, IT services, cloud services, cybersecurity, and other value-added offerings; 68 Table of Contents · Digital Infrastructure: We optimize our infrastructure assets to support connectivity solutions and enable an integrated digital ecosystem. Our digital infrastructure segment includes wholesale domestic telecommunications network, wholesale FTTx, telecommunications tower operations, satellite services, data centers; · International Business: We strengthen our global presence by driving focused and strategic regional expansion. International business includes wholesale international telecommunications network and traffic services, wholesale international platform and services, and potential international play (data center, tower, and B2B ICT); and · Other (Non-Core) Business: This segment is designed to enable portfolio refocusing and reformatting to create focused businesses that aligned with our Core Businesses. Historically, the Integrated B2C Services segment has generated the largest share of our total revenue and our business has not experienced significant seasonality. The following is a brief overview of our product portfolios: 1. Integrated B2C Services We provide comprehensive consumer connectivity and digital solutions. Our B2C services consist of (i) mobile services, including mobile broadband, mobile digital, and legacy mobile services; and (ii) fixed services, including fixed broadband, fixed voice, and fixed digital services, including Internet Protocol Television ("IPTV"). 1.1 Mobile Services Our mobile services portfolio comprises legacy services such as voice and SMS, alongside digital products such as data and value-added services, provided through Telkomsel, our majority-owned subsidiary. In 2025, mobile services, particularly digital business revenue, which amounted to 92.0% of Telkomsel's total revenues, remained the principal driver of our revenue. Telkomsel's prepaid mobile services, branded as “SIMPATI” (relaunched in mid-2025) and “by.U” (introduced in 2019), accounted for approximately 95.0% of the total number of cellular subscribers as of December 31, 2025. Telkomsel's postpaid mobile services, branded as “Telkomsel Halo,” represented approximately 5.0% of the total number of cellular subscribers as of the same date. The total number of cellular subscribers decreased by 3.3 million subscribers from 159.4 million (comprising 151.4 million prepaid and 8.0 million postpaid subscribers) to 156.1 million (comprising 147.6 million prepaid and 8.4 million postpaid subscribers) as of December 31, 2025. The decrease in our subscriber base is attributed to industry-wide adjustments going beyond an exclusive focus on price rationalization and aiming to remedy market disfunctions in the Indonesian telecommunications sector. In response, our strategies aimed at catering to market demand and addressing affordability concerns, while focusing on enhancing customer productivity through a wide variety of products and services, including digital offerings. Telkomsel's annual average revenue per user ("ARPU") decreased by 3.1% from 2024 to 2025, reflecting, among other things, the continued downward trend in legacy services and macroeconomic pressures on consumer purchasing power. Telkomsel recorded a 3.6% quarter-on-quarter increase in ARPU in the fourth quarter of 2025. This increase was attributable to the implementation of disciplined pricing strategies, sustained efforts to remain relevant amid shifting customer usage behavior, and continued industry adjustments, with the ARPU uplift signaling the early positive impact of a more rational and sustainable industry pricing environment. To maintain ARPU stability and support long-term growth amid challenging macroeconomic conditions and market competition, Telkomsel continues to expand its digital product portfolio, optimize customer value management (“CVM”) initiatives, implement the right pricing, deliver segmented offers, and unlock cross-selling opportunities, including leveraging fixed-mobile convergence (“FMC”) offerings to enhance customer productivity and strengthen ARPU resilience over time. 69 Table of Contents Our mobile broadband services are supported by 5G, 4G, and 2G technology. Despite macroeconomic challenges, we have observed positive indicators of usage and productivity, driven primarily by increased data consumption. This is reflected in a year-on-year increase of 15.0% in data traffic, from 19,909 petabytes as of December 31, 2024 to 22,895 petabytes as of December 31, 2025. In 2025, Telkomsel continued to support and incentivize healthier market behavior aimed at strengthening business profitability and industry rationalization through selected price adjustments. Major competitors also implemented price rationalization initiatives in 2025. Telkomsel officially launched 5G services in May 2021, becoming the first cellular operator to offer 5G in Indonesia. As of 2025, Telkomsel has made 5G available by deploying 4,913 base transceiver stations (“BTS”) at selected locations in more than 80 cities and regencies in Indonesia, as part of its strategy to roll out 5G through a demand-based approach for B2C and B2B segments, including in the manufacturing, infrastructure, and education sectors. We intend to maximize the use of 5G and highlight the advantages of the 5G network to further encourage the growth of digital connectivity, digital platforms, and digital services in Indonesia, as well as the development of future technology solutions such as AI, cloud computing, and IoT. The deployment of 5G services will be gradual, based on assessable demand and ecosystem readiness, and will be conducted with our partners. In addition to our digital connectivity business, we have established several digital service offerings within our mobile services with a specific focus on financial services, video on demand, music, gaming, advertising, and IoT. We offer on-demand video content through the MAXstream application, a platform that collaborates with partners to co-produce content with studios. We provide music and gaming services that offer a mobile entertainment experience by targeting various consumer segments and leveraging Telkomsel's billing system, including the Langit Musik music application and Dunia Games, which provides a comprehensive gaming ecosystem combining media content, distribution, payment facilities, e-sports, and gaming communities to enhance customer experience. Our mobile services segment previously comprised a financial payment platform, T-Cash, which pioneered digital payments when it was introduced in 2007 by Telkomsel. In 2019, T-Cash became LinkAja under Finarya. As of the date hereof, Telkomsel owns a 24.8% equity interest in Finarya. At its establishment, Finarya was formed through collaboration among several Indonesian SOEs across multiple sectors, including state-owned banks in the Himbara group (Bank Mandiri, BRI and BNI), infrastructure operators (Jasa Marga and Kereta Commuter Indonesia), oil and gas (Pertamina), and other financial services entities (IFG Life, Taspen, and Danareksa Capital). As its business continues to evolve, LinkAja has expanded its service ecosystem across various digital platforms, including MyTelkomsel and other strategic partners, through services such as account linking, payment balance, and the provision of digital products. In addition, LinkAja has strengthened its presence in the advertising business by developing advertising solutions that support the business growth of its partners. Following Telkomsel's investment in GoTo in November 2020 and May 2021, the two companies have deepened their strategic partnership with the shared objectives of accelerating MSME digitization and enhancing the digital experience for users, drivers, and merchants across Indonesia. Their collaboration encompasses co-created connectivity packages, advertising solutions, and co-branding initiatives designed to expand market reach and deliver value to both customer bases. Telkomsel’s connectivity packages are specifically designed to enhance Gojek driver productivity through tailored telco features and digital solutions. Telkomsel has also expanded its presence within GoTo's ecosystem by onboarding GoTo partners as Telkomsel product resellers, integrating MyTelkomsel with GoPay, and introducing connectivity privacy and security enhancements, including number-masking services. In addition, Telkomsel works with GoTo to deepen insights into customer behavior and consumption patterns to enable continuous refinement of our product and service offerings. Looking ahead, we plan to broaden this strategic partnership by driving digital initiatives that support innovation and customer-centric growth. 1.2 Fixed Services Our fixed services portfolio comprises fixed voice, fixed broadband, IPTV, and consumer digital services, marketed under the retail brand “IndiHome,” which allows customers to choose one or more such services in a bundled package. 70 Table of Contents In April 2023, in line with our FMC initiative, we entered into an agreement with Telkomsel to integrate our fixed broadband and mobile broadband services into a single business entity via the IndiHome Integration, in order to create new synergies and improve our product and service offerings, customer experience, cost efficiency, and revenue. As part of the implementation of our FMC initiative, Telkomsel also launched “Telkomsel One” in July 2023, a product designed to encourage more equitable distribution of digital connectivity through a wide selection of customer-centric packages and a multi-screen approach for content optimization. The IndiHome Integration aims to enhance customer engagement through cross-selling, integrated content delivery, and unified customer touchpoints, while driving operational and cost efficiencies, improving customer experience, and fostering synergies to deliver more competitive product offerings. As of the date hereof, we have realized synergies from content optimization, cross-selling, service integration, cost savings in CPE acquisition, and the streamlining of overlapping customer touchpoints across approximately 300 outlets. Telkomsel aims to accelerate fixed broadband penetration by targeting diverse customer segments with a targeted pricing strategy. This includes the launch of EZnet in 2024, which complements existing offerings to maintain competitiveness, capture new opportunities, and address affordability in mass-market segments within targeted customer groups and areas, while accelerating healthy growth in the fixed broadband customer base through higher-speed entry-level packages supported by improved network reliability. Concurrently, Telkomsel is enhancing its service offerings, aiming to maintain its standards to meet demand for reliable high-speed broadband by increasing customer productivity through more attractive digital products that elevate user experience, and delivering better-suited convergent offerings to enrich digital lifestyles, deepen customer engagement, and elevate perceived value across segments, including bundles with OTT and gaming platforms. In 2025, the number of IndiHome B2C subscribers increased by 7.4% while ARPU decreased, reflecting a shift in customer consumption patterns from triple-play (3P) to single-play (1P) services, in line with declining demand for fixed voice and IPTV services and a growing preference for internet-only offerings. This adjustment is aligned with IndiHome’s efforts to broaden fixed broadband penetration by expanding into entry-level segments, while maintaining a focus on building a healthy and sustainable customer base. Telkomsel also offers the wifi.id service to IndiHome customers, which is an add-on service that allows IndiHome customers to enjoy unlimited internet access at all wifi.id access points in Indonesia. Wifi.id (Indonesia Wi-Fi) is our wireless public internet network that provides public access to high-speed internet services and various other multimedia services. 2. B2B ICT Services We deliver digital and ICT solutions to enterprise customers, including enterprise-grade connectivity, IT services, cloud services, cybersecurity, and other value-added offerings. Our enterprise segment comprises primarily ICT and platform services that cover enterprise-grade connectivity services, satellite services, data center and cloud services, digital IT services, business process outsourcing, devices, and digital adjacent services. For enterprise connectivity, we offer fixed broadband, Wi-Fi, ethernet, and data communication services, including a software-defined wide area network (“SD-WAN”) ecosystem that enables higher performance of wide area networks (“WANs”), leased channels such as Metro Ethernet, VPN-IP, high-capacity data network solutions providing point-to-point connections with high-capacity bandwidth, and fixed voice services, among others. We also provide satellite services as part of our enterprise connectivity product offering in certain segments, such as aviation, maritime, mining, and plantation, as well as other satellite-based services for domestic and international users. In 2020, we launched FLOU Cloud to foster digital growth for Indonesian startups, small and medium enterprises (“SMEs”), large corporations, and Government entities by offering services such as cloud computing, data storage, networking, and data security. In 2022, Telkom Sigma upgraded FLOU Cloud's capabilities and performance to increase our market presence and strengthen data security. We have also obtained ISO 27001 certification in recognition of our 71 Table of Contents dedication to data security, and have implemented Cloud Security Alliance Security, Trust, and Assurance Registry (“STAR”) measures. In partnership with major cloud service providers, we primarily target Indonesian customers in sectors we expect to grow, such as finance, manufacturing, Government, and communications, to whom we offer professional cloud management and consultancy services. Our connectivity services support critical functions across various industries. Our ICT and industry solutions function as horizontal platforms encompassing IoT, data centers, cloud services, big data, cybersecurity, and payment systems. Our platforms aim to facilitate innovation by providing state-of-the-art solutions for our customers' applications, digital marketing, finance, E-health, and entertainment, among others. We assist our customers with customer relationship management and IoT deployments, including setting up smart buildings for purposes of energy management and fleet management, backed by consolidated communication systems and enhanced IT security. Our digital and IT services capabilities enhance our E-health offerings, for example by simplifying healthcare claims processing. In 2025, we focused on our ICT business, delivering specialized solutions for Government entities and the logistics, healthcare, education, financial, insurance, agriculture, and mining industries. 3. Digital Infrastructure We optimize our infrastructure assets to support connectivity solutions and enable an integrated digital ecosystem. Our digital infrastructure segment includes wholesale telecommunications network and traffic services, international business, wholesale platform and services, telecommunications tower operations, satellite services, data centers, and infrastructure and network management services. 3.1 Wholesale Network and Traffic Services Our domestic and international wholesale traffic, wholesale network, and wholesale digital platform and services offerings comprise network services, data and internet services, interconnection services, value-added services, voice hubbing, application-to-person (“A2P”) SMS, and platforms and solutions. We earn revenue principally from interconnection services that we provide to other telecommunications operators that utilize our network and infrastructure in Indonesia, both for calls that terminate at and calls that transit via our network. Similarly, we also pay interconnection fees to other telecommunications operators when we use their networks to connect calls from our customers. Interconnection services that we provide to other telecommunications operators comprise domestic and international interconnection services. We expect the continued deployment of 5G technology to provide additional growth opportunities to our wholesale segment. The deployment of 5G technology in Indonesia is subject to various factors and conditions, but we intend to become a leader in providing cost-efficient and phased 5G-related wholesale services in Indonesia. 3.2 Telecommunications Tower Business With respect to our telecommunications tower business, we lease space to other operators to place their telecommunications equipment on our towers, for which we receive a fee. As of December 31, 2025, we had approximately 44,702 towers, comprising approximately 40,230 towers owned by Mitratel and approximately 4,472 towers owned by Telkomsel. We aim to continue to expand our telecommunications tower business, which we believe is a strategic business in the telecommunications industry, and we intend to increase our tower rental revenues. We also seek to improve our operation and maintenance efficiency by digitalizing our internal business processes. 3.3 Infrastructure and Network Management Services 72 Table of Contents Telin is a significant digital infrastructure provider in the Asia-Pacific (“APAC”) region, focused primarily on its submarine cable business. Through an extensive portfolio of international submarine cable systems and strategic landing points, Telin delivers high-capacity, low-latency connectivity linking key markets across Southeast Asia, Australia, East Asia, and beyond. Building on this core infrastructure, Telin offers a suite of derivative services including IPLC, Ethernet, IP Transit, and scalable cross-border connectivity solutions tailored for hyperscalers, OTT players, enterprises, and wholesale carriers. Telin continues to expand its submarine cable network and increase capacity utilization to meet growing demand for digital connectivity across the APAC region. We provide managed infrastructure and network services by performing network construction and maintenance, including laying and maintaining submarine cables, and energy solutions for telecommunications infrastructure ecosystems. We accomplish this by leveraging existing businesses in our portfolio and developing in-house capabilities and innovative solutions. As part of our infrastructure portfolio, we provide energy management solutions supporting telecommunications infrastructure. In 2023, we completed construction of our PATARA 2 submarine cable system connecting multiple islands across Indonesia, enhancing connectivity among the cities of Waisai, Manokwari, and Supiori. We plan to add additional landing points for redundancy and further deploy submarine cables in the future. 3.4 Satellite Services Telkomsat provides satellite-based connectivity services to enterprise customers in segments such as aviation, maritime, mining, and plantation, as well as other satellite-based services for domestic and international users, while continuing its presence and support in cellular backhaul and Government services. In October 2025, Telkomsat and Myriota entered into a memorandum of understanding to collaborate on the development of satellite-based IoT services and to explore business and market opportunities in the IoT sector, including market analysis, business model development, and partnership strategy. In November 2025, Telkomsat entered into a partnership with Space42 to explore the use of Space42's Equatys platform to enable Direct-to-Device (“D2D”) satellite communication services to customers globally, and to assess the potential utilization of Telkomsat's satellite infrastructure and facilities in connection with that platform. We believe that these collaborations strengthen Telkomsat's capabilities in expanding coverage, enabling new digital use cases, and enhancing satellite-based connectivity across remote and underserved areas. In May 2024, Telkomsat became an authorized Starlink reseller in Indonesia, having previously collaborated with SpaceX's Starlink to provide backhaul services. 3.5 Data Centers Since 2021, we have consolidated and expanded our data center capabilities, including cloud services and marketplace services, under our subsidiary PT Telkom Data Ekosistem (“NeutraDC”). We transferred our then-under-construction Cikarang HyperScale data center to NeutraDC in 2021 and transferred our enterprise data center business in Sentul, Serpong, and Surabaya from Telkom Sigma in 2022. NeutraDC continues to expand the capacity of our HyperScale data center in Cikarang and has begun building a second HyperScale data center in Batam. In 2025, we signed a contract with PLN Batam to secure electrical support with a total capacity of 90 MVA for the Batam data center, and we are exploring renewable energy initiatives in collaboration with PLN Batam. In October 2025, the first data center building in Batam (BTM-1) reached the topping-off milestone, signifying the completion of the main structural phase of the HyperScale Data Center development at the Kabil Industrial Estate. The first campus of the NeutraDC Batam project is a three-campus development and became operational in 2026. This development aims to support digital transformation and economic development in Indonesia, particularly in Batam and the surrounding region, addressing demand from Singapore. In 2024, we further expanded our neuCentrIX data center capacity and services through the deployment of three new neuCentrIX data centers. We also integrated our international data centers by transferring Telin Singapore's data center business to NeutraDC Singapore. As of the date hereof, we are continuing to build new neuCentrIX data centers in 73 Table of Contents Indonesia that will provide carrier-neutral connectivity and custom-made services for enterprise clients throughout the Asia Pacific region. NeutraDC continues to explore data center expansion options at the regional level. To support this expanding infrastructure, NeutraDC has entered into a range of strategic partnerships. In 2025, NeutraDC entered into a strategic partnership with Sembcorp Development Ltd. to develop low-carbon data centers across Southeast Asia, alongside ongoing collaborations with NAVER Cloud and Cisco to support cloud adoption and enterprise digital services. NeutraDC has also entered into agreements with Advanced Micro Devices and Cirrascale Cloud Services in 2024 to deliver accelerator infrastructure and GPU-as-a-Service capabilities for regional customers, including those operating in Singapore. NeutraDC has further partnered with DataCanvas for automated AI model development workflows, established cross-border GPU connectivity with the Ishikari Renewable Energy Data Center No. 1 in January 2026, and developed agentic AI framework capabilities in collaboration with Lynx Analytics in 2025. NeutraDC also uses application security and delivery technologies from F5, Inc. to support its multi-cloud infrastructure platform across Asia Pacific. At NeutraDC Summit 2025, held in August 2025, NeutraDC introduced two new solutions built on this partnership ecosystem: Neutra Compute and Neutra Connect. Neutra Compute is a GPU-as-a-Service platform that allows enterprises to access high-performance AI computing resources without significant upfront capital investment. Neutra Connect is a data center interconnection service designed to provide faster and more reliable connectivity for enterprise customers. Together, these solutions are designed to address growing demand for AI and digital infrastructure across the region. 4. International Business Our subsidiary, Telin, continues to reinforce its international business primarily through the expansion of its global subsea cable footprint, which serves as the backbone of Telin's digital infrastructure strategy. Telin is actively progressing the deployment of major international cable systems, including Bifrost, SJC2, and SEAMEWE 6, while advancing the ICE initiative, a multi-route program aimed at delivering low-latency, direct data center–to–data center connectivity across key regional corridors. Telin also aims to strengthen its network resilience by securing additional capacity on systems such as PEACE, TOPAZ, and the SEAUS East Segment, supporting global traffic flows across Asia, the Pacific, and intercontinental routes. Complementing its subsea investments, Telin continues to enhance its digital platform ecosystem. NeuAPIX, Telin's cloud-based Communications Platform as a Service (“CPaaS”), enables enterprises of all sizes to integrate omni-channel communication capabilities, including messaging, chatbots, voice, video, and WhatsApp Business API, into their operations. NeuTrafiX, Telin's digital marketplace, facilitates automated wholesale trading of global voice and mobility services. TNeX, Telin's next-generation digital connectivity platform, allows enterprises and hyperscalers to procure and monitor connectivity across more than 120 data centers in over 50 countries. In 2024, Telin expanded its CPaaS offering through the launch of WABA for Business in partnership with Meta, strengthening its position in over-the-top (“OTT”)-based communication services for wholesale and enterprise customers. Telin's platform and service capabilities are supported by its global infrastructure, which includes 58 international Points of Presence and data center operations in Hong Kong and Timor-Leste, along with continued service presence in Singapore following the divestment of the Telin-3 Data Center in 2024. These assets collectively enable Telin to deliver integrated, high-capacity connectivity services built upon its expanding subsea cable network. As part of its transformation into One Telin in 2022, Telin has integrated and centralized its global operating model to deliver unified customer experiences worldwide. Although managed under a single global framework, Telin maintains operational presence in multiple jurisdictions through a combination of legal entities, branch offices, and sales representatives, enabling the delivery of international telecommunications, digital platform, and data connectivity services across key regions. 74 Table of Contents Telin operates in several countries through formal legal entities, including Telin Singapore, Telin Hong Kong, Telin Australia, Telin Malaysia, Telin USA, Telin Taiwan, and Telkomcel in Timor-Leste, where it provides a mix of services such as international data connectivity, cloud and IP transit services, wholesale voice and mobility services, enterprise solutions, mobile services (including as an MNO and MVNO), and data center operations. In 2024, the Telin-3 Data Center in Singapore was divested, but Telin continues to serve the Singapore market through its integrated international infrastructure and platforms. As of the date hereof, Telin also maintains branch offices in Myanmar and Dubai, supporting data connectivity, wholesale voice, enterprise solutions, and regional customer engagement. In addition, Telin extends its commercial reach through sales representatives located in the United Kingdom, the Philippines, Vietnam, Canada, and India, enabling Telin to engage customers and partners across Europe, South Asia, and Southeast Asia. Together, these international touchpoints allow Telin to operate as a unified global organization while sustaining local presence in strategic markets. 5. Other (Non-Core) Business Our digital services portfolio primarily comprises media and edutainment services targeted to digital consumers, organized into smart platforms, digital content, and e-commerce. 5.1 Digital Services Our digital services portfolio primarily comprises media and edutainment services targeted to digital consumers. Our digital portfolio is clustered into a smart platform and provides access to digital content and e-commerce. We manage our venture capital activities through our subsidiary, PT Metra Digital Investama Ventura (“MDI Ventures”), which serves as our corporate venture capital arm. MDI Ventures operates a multi-fund investment platform focused on technology-driven startups from early to growth stages, both in Indonesia and internationally, with the objective of delivering financial returns and strategic value for us. These investment activities are aligned with our long-term digital ecosystem strategy and are conducted under our governance framework, which includes defined investment processes, clear accountability, and oversight consistent with our Good Corporate Governance (“GCG”) principles. Consistent with our corporate strategy, our digital segment focuses on innovation through the development of digital products that support our B2B ICT solutions and the transformation of public services, including through engagement with Government mandates and Danantara. To drive AI-based innovation across our Group, we have established an AI Centre of Excellence ("AI CoE") as a strategic platform to orchestrate and accelerate the adoption of artificial intelligence across TelkomGroup. The AI CoE is intended to provide a more integrated approach to AI implementation by aligning initiatives across business units, strengthening talent development, facilitating ecosystem collaboration, and supporting the prioritization of use cases with clear relevance to business needs. Through this approach, the AI CoE is expected to enhance our Group’s ability to capture value from AI adoption while promoting a more structured, focused, and coordinated implementation model across the organization. The AI CoE is implemented through five pillars, being AI Campus, AI Playground, AI Connect, AI Hub, and AI Native, that collectively support the AI value chain from capability building to solution development and internal adoption. AI Campus focuses on collaboration with universities for talent and applied research development. AI Playground supports experimentation and validation of AI capabilities. AI Connect facilitates ecosystem engagement with industry and communities. AI Hub supports the development of AI use cases into solutions with business applicability. AI Native embeds AI into internal operations to enhance effectiveness and efficiency. Through this structure, the AI CoE aligns AI initiatives across business units, strengthens talent development, and supports the prioritization of use cases with clear relevance to business needs, while also serving as a platform for collaboration across academia, industry, government, communities, startups, and strategic partners. Building on the AI CoE framework, we also operate AI BigBox, an ecosystem of AI and big data solutions that helps organizations analyze data, automate workflows, and improve decision-making. AI BigBox is an analytics-driven platform designed for cross-industry use across government, retail, technology, media, and financial services sectors, 75 Table of Contents combining packaged products with solution delivery and consultative support. AI BigBox's current product portfolio consists of four core products: ● BigSocial is a social media analytics product that supports real-time social media monitoring, including public sentiment analysis, competitive benchmarking, brand reputation management, and trend insights for campaigns and service improvements. ● BigAssistant is an AI chatbot platform that enables organizations to build, train, and deploy AI chatbots across communication channels. It features a chatbot builder, knowledge management, Application Programming Interface integration, and multi-channel endpoint support, and can be deployed via dashboards and channels including WhatsApp. ● BigLegal is a legal analytics product designed for AI-enabled legal and policy work. It uses AI and natural language processing to support legal search, clause extraction, document review and summarization, and policy drafting workflows with automated checks for errors, duplication, and inconsistencies. ● BigVision is a video and image analytics product that provides capabilities including object detection, optical character recognition (“OCR”), and face recognition. It supports use cases such as AI-enabled closed-circuit television (“CCTV”) analytics, e-KYC verification, and document extraction, and can be deployed across cloud or on-premise infrastructure. In 2025, Metranet strengthened its digital solutions portfolio across the education and public service segments, reinforcing its role as a key vehicle of TelkomGroup in supporting national development priorities under the RPJMN 2025–2029 (Rencana Pembangunan Jangka Menengah Nasional, or the National Medium-Term Development Plan of Indonesia). In the public service segment, Metranet contributed to improving national health outcomes through the implementation of the Stunting Management Dashboard, an integrated platform deployed across 32 cities and regencies that enables central and local governments to monitor, report, and manage stunting programs through real-time, data-driven insights, further enhanced with advanced analytics and real-time field data collection. In the education segment, Metranet supported the digitalization of national education systems through the implementation of digital student admission solutions across more than 5,000 schools, delivering greater efficiency, transparency, and accessibility for institutions, students, and parents. To remain adaptive to market dynamics and Government direction, Metranet has developed its digital business portfolio across Big Data, financial services, B2B e-commerce, and digital advertising. Xooply delivers end-to-end digital procurement and marketplace solutions for corporate, government, and education customers. Cazbox focuses on system integration and digital platform services for content and community-based ecosystems. Scala provides end-to-end digital transformation solutions, including advisory and operational support for public and private sector organizations. Uzone operates as an omnichannel digital media and advertising platform that delivers integrated marketing solutions. The digital content portfolio is managed through PT Nuon Digital Indonesia (“Nuon”), which operates across three segments: Digital Games, Digital Music, and Digital Lifestyle. Nuon plays a strategic role connecting content creation, platform distribution, and monetization, supported by end-to-end capabilities including content sourcing, platform provisioning, payment processing, and marketing. Leveraging the TelkomGroup ecosystem, Nuon integrates distribution, billing, and user reach to enhance conversion, retention, and monetization, while also supporting the growth of Indonesia's creative industry. In the music segment, Langit Musik is a digital streaming platform featuring licensed local and international content that has expanded through bundled subscription offerings and integration as a mini app across various platforms. The portfolio also includes Ring Back Tone/Nada Sambung Pribadi (NSP 1212), which offers personalized ringtone services. In the gaming segment, Upoint is a digital platform for game vouchers and in-game transactions, and Dunia Games combines game content, community engagement, and distribution services, further supported by local game publishing, e-sports activities, and partnerships for global gaming access. In the digital lifestyle segment, Tiketapasaja 76 Table of Contents operates as an event ticketing platform and official partner for major concerts and festivals, and the portfolio has expanded into broader entertainment activities including film production and event ecosystem development. 5.2 Property Management Consistent with our strategy to accelerate the creation of our digital ecosystem, we prioritize increasing the utilization of our network-related buildings and equipment to expand our digital capacity. We also construct data centers for data-intensive areas while leveraging our sizeable property asset portfolio in markets with lower data usage through external partnerships and collaborations. We execute our leveraging initiatives and space reconditioning through our subsidiary, PT Graha Sarana Duta (“Telkom Property”), which offers property development, property leasing, retail and leasing services, transportation management, and property management. In 2025, Telkom Property implemented the Digital Adjacent Portfolio Transformation strategy which prioritizes portfolio optimization and asset rationalization within Telkom's captive market. As part of this strategy, Telkom Property reviews its business models and addresses capability gaps to pursue new market opportunities through portfolio transformation and digital-led initiatives. Telkom Property also leverages Telkom's digital infrastructure, connectivity, and platform ecosystem to develop and commercialize integrated digital–property solutions tailored to customer and tenant needs. Telkom Property has also incorporated AI into its operations to improve operational efficiency, support data-driven asset management, and develop new property services. In addition to generating income, our property business also serves internal customers as part of our Group synergy initiatives by providing efficient space allocation for our network equipment and a functional work environment for our employees, partners, and subsidiaries. These assets include buildings that function as our network nodes, sales points, customer service centers, headquarters and branch offices, and land banks. Through these initiatives, we seek to achieve cost efficiency, including through economies of scale. Network Infrastructure and Development In line with our vision and mission, we classify our network infrastructure into two categories, namely: (i) our national network infrastructure (including IT, cybersecurity, and services), which supports our Indonesia Cyber Core program and (ii) our international network infrastructure, which supports our international expansion program. National Network Throughout 2025, we continued to develop our Group IT infrastructure, advance internal digitalization initiatives, and enhance customer services while expanding our Next Generation Network capabilities. We sought to drive innovation in digital connectivity services, strengthen cybersecurity, enhance network quality, deploy our Future State Architecture, optimize capital and operating expenditures, modernize our operating model, and improve talent management. We regularly conduct software, network vulnerability assessments, and provide cybersecurity training to all employees. Our dedication to network development aligns with the Indonesia Broadband Plan and is intended to support the expansion of broadband access nationwide. We have accelerated our digitalization initiatives, together with the deployment and expansion of 5G technology, to address Indonesia’s growing demand for advanced telecommunications infrastructure. Our digital business comprises Integrated B2C Services, B2B ICT Services, Digital Infrastructure and Other Non-Core Businesses, focusing on innovations that respond to evolving technology and information service requirements. We continue to promote digitalization in Indonesia through our Indonesia Cyber Core program, which comprises three main components, namely id-Service (“id-SEV”), id-Convergence (“id-COV”), and id-Network (“id-NET”), which are further described below: 77 Table of Contents · id-SEV: encapsulates our strategy to enhance digital connectivity products and foster innovation in digital and cybersecurity services to provide improved customer solutions. Our offerings include broadband internet, data, voice communications, and Wi-Fi for both fixed and mobile customers. We aim to continue growing our digital portfolio with services such as gaming, media streaming, online education, e commerce, mobile payments, travel, crowdsourcing, and healthcare, supported by the development of innovative platform infrastructures for applications, data management, GPU farming, in memory databases, AI, and big data. ● id-COV: outlines our strategy to strengthen our digital platform business by optimizing integration and reliability while expanding our data center facilities and cloud services. Our initiatives include the continued development of hyperscale data centers and the enhancement of capacities across our neuCentrIX data center network in parallel with our cybersecurity platforms. We have established a data governance council to strengthen data security and compliance. Our smart platform supports digital businesses in providing various services by offering an interconnected platform via cloud management, dedicated cybersecurity platforms, big data processing, and AI innovations. ●id-NET: sets out our approach to constructing a comprehensive network architecture through the adoption of next generation technologies, including FTTx, 5G, IODN, satellite solutions, and re-engineered Multi Service Aggregation Networks. We are working to future proof our digital services with cloud-based network solutions (such as SDN/NFV and SD WAN), while prioritizing the expansion of national fiber optic coverage and the modernization of our networks through the adoption of new technologies to enhance network performance. To support domestic and international connectivity, we participate in various submarine cable consortiums and operate satellites and other infrastructure to provide ICT services to remote areas and reduce dependency on foreign operators and networks. Cellular Network As of December 31, 2025, our subsidiary Telkomsel continued to operate the widest cellular network in Indonesia, encompassing GSM/DCS, GPRS, EDGE, 4G/LTE, and 5G technologies with a diverse spectrum allocation. Telkomsel added 18,298 new 4G and 3,938 new 5G BTS in 2025. As of December 31, 2025, the Telkomsel network encompassed a total of 293,136 BTS, including 2G, 4G, and 5G. Our subsidiary Mitratel has expanded its national telecommunications infrastructure portfolio through the acquisition and development of telecommunications towers. These acquisitions have strengthened Mitratel's position as Indonesia's leading independent tower company in terms of number of towers and enabled Telkomsel and other mobile operators to focus on network optimization and digital services. In 2023, Mitratel purchased 997 telecommunications towers from Indosat for Rp1.6 trillion and 803 telecommunications towers from PT Gametraco Tunggal for Rp1.8 trillion. In 2025, Mitratel focused on organic growth and did not undertake any acquisitions of towers or fiber assets. Growth was driven by the development of new towers and the selective rollout of fiber infrastructure to support tenancy demand. Data and Internet Network In 2025, we continued to improve the quality of our data network by installing additional capacity and expanding coverage. As of December 31, 2025, we provided broadband access through fiber optic cable to more than 40 million homes. Our Metro Ethernet network had an aggregate installed capacity of 539,960 Gbps as of December 31, 2025. We utilize our Metro Ethernet network to provide broadband services throughout Indonesia and as the main link for our IndiHome broadband services, softswitches, and IMS related to voice services, video services, enterprise VPN services, and GPON broadband services related to mobile backhaul and corporate business solutions. 78 Table of Contents As of December 31, 2025, we had extended the capacity of our internet gateway to reach an aggregate installed capacity of 7,800 Gbps, specifically to manage expected peak surges in traffic. In 2025, we operated CDNs with an aggregate content delivery capacity of 35,041 Gbps in collaboration with major partners. As of December 31, 2025, we had 64 Points of Presence in 50 cities in Indonesia. These include 12 main PoPs in Batam (at Batam Center and Bukit Dangas), Jakarta (at Jatinegara and Cikupa), Surabaya (at Rungkut and Kebalen), Manado (at Manado Centrum and Manado Paniki), Makassar (at Pettarani and Balaikota), and Banjarmasin (at Banjarmasin and Ulin). Additionally, we had 52 primary and secondary PoPs throughout Indonesia. In 2025, we conducted PoP simplification to improve traffic routing efficiency and brought two new primary PoPs in Kendari into operation. In 2025, we deployed additional Wi-Fi access points across Indonesia to enhance our Wi-Fi coverage, in alignment with our broader fixed broadband and mobile infrastructure deployments. We also decommissioned certain access points that exhibited low utilization to improve service quality, asset productivity, and operational efficiency. In line with our wireless access service roadmap and ongoing technology evolution, we transitioned our Wi-Fi business toward a managed access point and optical network terminal (“ONT”) Premium-based model, shifting focus to recurring revenue and higher-value service offerings. We further expanded our portfolio by introducing Wi-Fi Managed Services through ONT Premium, enabling SMEs to procure Wi-Fi across various bandwidth tiers with value-added service options. We also extended our managed Wi-Fi capabilities with satellite backhaul solutions to serve maritime and rural areas and expanded our CPE portfolio to address sector-specific customer requirements. We continue to strengthen Wi-Fi as a connectivity foundation for our B2B IT and wholesale businesses, including through mobile traffic offload and international roaming initiatives, to support sustainable revenue growth. As of December 31, 2025, we had installed a total of 148,052 Wi-Fi access points, comprising 99,647 managed access points and 48,405 ONT Premium access points. Data Centers As of December 31, 2025, we operate 35 data centers both in Indonesia and overseas. Of these, five are located overseas, including facilities in Singapore, Timor Leste, and Hong Kong. Our neuCentrIX data centers in Indonesia had an aggregate capacity of 2,757 racks as of December 31, 2025. In addition to our Singapore data centers, which have an installed capacity of 17 MW, NeutraDC in Indonesia also operates three enterprise data centers classified as Tier 3 or Tier 4, with a total IT load capacity of 17 MW. NeutraDC also operates one Hyperscale Data Center, classified as Tier 3 or Tier 4, located in Cikarang, with a current IT load capacity of 10 MW. In 2024, we further expanded our neuCentrIX data center capacity and services through the deployment of three new neuCentrIX data centers. We also integrated our international data centers by transferring Telin Singapore's data center business to NeutraDC Singapore. As of the date hereof, NeutraDC is also developing a Hyperscale data center in Batam (NeutraDC Nxera Batam). In 2025, we signed a contract with PLN Batam to secure electrical support with a total capacity of 90 MVA for the Batam data center. We are also exploring renewable energy initiatives in collaboration with PLN Batam. In October 2025, the first data center building in Batam (BTM-1) reached the topping-off milestone, signifying the completion of the main structural phase of the Hyperscale Data Center development at the Kabil Industrial Estate. The first campus of the NeutraDC Batam project is a three-campus development and became operational in 2026. This development aims to support digital transformation and economic development in Indonesia, particularly in Batam and the surrounding region, addressing demand from Singapore. As of the date hereof, we are continuing to build new neuCentrIX data centers in Indonesia that will provide carrier-neutral connectivity and custom-made services for enterprise clients throughout the Asia Pacific region. NeutraDC continues to explore data center expansion options at the regional level. ​ 79 Table of Contents Transmission Network Our backbone telecommunications network consists of transmission networks, switching facilities, and core routers that connect multiple access nodes. The transmission links between nodes and switching facilities comprise a terrestrial transmission network, specifically fiber optic, microwave, and submarine cable systems, as well as satellite transmission networks and other transmission technologies. In 2025, we continued to focus on reinforcing the reliability of our domestic backbone network and developing our broadband network, which serves as the foundation for our entire network infrastructure. We implemented preemptive measures to enhance network reliability and mitigate congestion, particularly in urban areas, including increasing network capacity and prioritizing sensitive areas to prevent service disruptions (e.g., for key Government agencies or ministries and critical backbone connection links within our network). We also allocated additional resources to monitor our network through integrated operation centers and field technicians to control the physical integrity of our systems and detect potential intrusions. We have continued to benefit from the enhancements to our network infrastructure and intend to maintain the reliability of our network. Communications Cable System As of December 31, 2025, our transmission network comprised 28 backbone rings in Indonesia with an aggregate installed capacity of 413.8 Gbps. Our domestic fiber optic backbone network totaled 115,643 km (compared to 112,743 km as of December 31, 2024). This domestic network is supplemented by an international fiber optic backbone network totaling 95,200 km. Since 2019, we have been deploying several submarine cable systems to strengthen our fiber optic backbone, and we continue to make progress on the deployment of our fiber optic backbone in eastern Indonesia. In October 2023, we completed the construction of our PATARA-2 submarine fiber optic cable system connecting across North Papua, Indonesia. In 2024, we completed the construction of the Labuha Obi submarine cable. In 2025, we commenced the necessary permitting and survey work for the PASELA submarine fiber optic cable system, which is designed to serve South Papua and is expected to become operational in the first half of 2028. We intend to leverage Indonesia’s strategic geographic location to provide an alternative direct broadband connection between Europe, Asia, and America. The IGG cable system connects two major submarine cable systems, namely SEA-ME-WE 5 and SEA-US. The IGG cable system also connects 12 major cities within Indonesia, including Batam, Jakarta, Surabaya, and Manado, spanning a length of 5,403 km. This cable system increases our domestic traffic capacity and ability to offer broadband services. In 2025, we continued to expand our international connectivity through participation in global submarine cable consortiums, including Bifrost and SEA-ME-WE 6, further strengthening our position in the international telecommunications ecosystem. Satellites In 2025, we own three satellites, Telkom-3S, Telkom Merah Putih, and the Telkom Merah Putih-2, which was successfully launched in February 2024. Across 2024, we transitioned from using TPE to Gbps as the measurement metric for satellite capacity to reflect the different technological characteristics of the Merah Putih-2 satellite. ​ 80 Table of Contents Details on our satellites are listed below: Satellite Launch Commencement of Commercial Operations Capacity Area of Coverage Telkom-3S February 2017 April 2017 4.4 Gbps Indonesia Telkom Merah Putih August 2018 September 2018 5.4Gbps Indonesia and South Asia Telkom Merah Putih-2 February 2024 March 27, 2025 32.4 Gbps Indonesia and parts of Southeast Asia We control our satellites from a main control station in Cibinong, Bogor in West Java. To promote continuity of service, we operate a backup control station in Banjarmasin, South Kalimantan. Additionally, we lease capacity of 26.04 TPE from the following satellites: JCSAT 4B (124 E) in the amount of 0.05 TPE, Chinasat-11 (98 E) in the amount of 11.43 TPE, Eutelsat-172B (172 E) in the amount of 11.56 TPE, and MySAT-1 (142 E) in the amount of 3 TPE. Furthermore, we also lease capacity of 5.36 Gbps from the following satellites: Apstar-5C HTS (138 E) in the amount of 1.7 Gbps and Merah Putih-3 (134 E) in the amount of 3.66 Gbps. In 2022, Telkomsat obtained landing rights from MoCD for Starlink’s satellite constellation. This allowed Telkomsat to provide backhaul services using the Starlink network, which is expected to improve internet broadband connectivity, especially 4G cellular broadband connectivity in rural areas throughout Indonesia. In May 2024, Telkomsat leveraged its partnership with Starlink by becoming the first Authorized Starlink Reseller in Indonesia. International Networks Through Telin, we continue to strengthen and expand our international network infrastructure, with a primary focus on building a resilient, high-capacity global subsea cable ecosystem to support our long-term strategy as a digital infrastructure and platform provider. The fast-growing demand for international bandwidth, driven by hyperscalers, digital enterprises, and data-intensive applications, has pushed utilization of Telin's existing subsea cable systems to between 80% and 90% in 2025. This level of utilization has accelerated our submarine cable expansion program, through both new builds and capacity acquisitions. In 2025, Telin advanced the deployment of two submarine cable systems. Bifrost is a trans-Pacific system connecting Singapore, Indonesia, the Philippines, Guam, and Los Angeles, developed in partnership with Meta and Keppel, and became operational in the fourth quarter of 2025. SJC2 (South East Asia–Japan 2) is an intra-Asia system linking Singapore to Japan through multiple regional landing points, and became operational in the third quarter of 2025. Beyond these systems, Telin has initiated the development of seven new submarine cable systems under the ICE program. In 2024, we executed four MoUs for ICE1, ICE2, ICE3, and ICE4, covering routes such as Batam–Singapore, Batam–Manado, Manado–Japan, and Jakarta–Middle East, in partnership with regional operators and global carriers. These systems are designed to provide low-latency, direct data center-to-data center connectivity, strengthening Indonesia's role as an interconnection hub. To secure near-term capacity while long-term projects are under construction, Telin acquired capacity on additional cable systems. In 2024, Telin acquired capacity on the PEACE Cable System (Singapore–Marseille), enhancing connectivity between Southeast Asia and Europe. Telin also acquired capacity on the TOPAZ trans-Pacific system (Japan–United States via Canada), which entered service in early 2025, and augmented capacity on the SEAUS East Segment (Guam–Los Angeles) to balance traffic with the SEAUS West Segment (Manado–Guam). Telin is also investing in expanding and upgrading capacity on existing systems, including SJC, IGG–SEAUS, and SEAMEWE-5, to meet rising bandwidth demand across Asia, the Pacific, and Europe. Supporting infrastructure — 81 Table of Contents including Beach Manholes (“BMH”), CLS and inland fiber connectivity to major data centers — is being developed and upgraded across Batam, Jakarta, Surabaya, and Manado to connect landing points with data centers for global customers. All submarine cable systems operated or co-owned by Telin utilize open cable technology, allowing flexible wavelength management and efficient capacity scaling. Network operations are monitored and supported 24 hours a day, seven days a week, by the Telin World Hub Operation and Command Center (“TOCC”), ensuring service reliability and real-time response across Telin's global infrastructure. As of December 31, 2025, Telin operates 58 PoPs worldwide to support our international voice and data services. This includes 26 PoPs in Asia and the Middle East, comprising 11 in Indonesia (supporting the international network), four in Singapore, four in Hong Kong, two in Kuala Lumpur, and one each in Dili, Tokyo, Taipei, Yangon, and Dubai. We also have 19 PoPs in Europe, including facilities in London, Amsterdam, Frankfurt, Warsaw, Vienna, St. Petersburg, Bucharest, Prague, Switzerland, Milan, Manchester, Luxembourg, Brussels, Sofia, Marseille, Paris, Moscow, Helsinki, and Madrid. We maintain a further 13 PoPs in the United States and Canada, including facilities in Montreal, Toronto, Los Angeles, Palo Alto, Ashburn, San Jose, New York, Guam, Hawaii, Seattle, San Francisco, and Atlanta. Geographic Distribution of Revenues International expansion is a necessity for us to be able to maintain and sustain a high growth rate. We are developing and expanding our business outside of Indonesia to broaden and diversify our market. The following table sets forth the distribution of our revenues by geographic markets for the years indicated therein. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ ​ 2023 ​ 2024 2025 ​ ​ ​ ​ (Rp billion) ​ ​ ​ (Rp billion) ​ ​ ​ (Rp billion) ​ ​ ​ (US$ million) External Revenues ​ Indonesia 141,157 141,062 137,858 8,267 Abroad 8,059 8,905 8,884 532 Total 149,216 149,967 146,742 8,799 Revenue Controls As a customer-facing business, we may face revenue leakage as a result of being unable to collect some revenues to which we are entitled. We mitigate such potential revenue leakage by implementing control functions in all of our existing business processes, cooperating with and sharing information between operating units to detect potential fraud, using revenue assurance methods, employing adequate policies and procedures, and implementing certain information system applications. Overview of Telecommunications Services Rates Under the Telecommunications Law and Government Regulation No. 52 of 2000 on Telecommunications Operations, as partially revoked by GR No. 46/2021 (“GR No. 52/2000, as amended”), tariffs for operating telecommunications services are determined by providers based on the tariff type and structure, and with respect to the price cap formula set by the Government. However, the Government may determine the (i) formula to calculate the tariff, and (ii) an upper limit tariff or lower limit tariff for the provision of telecommunications services based on public interest and fair competition. ​ 82 Table of Contents Telecommunications Services Tariffs Under the MoCD Regulation No. 5/2021, telecommunications services tariff consists of basic telephony service tariffs, value-added telephony service tariffs, and multimedia service tariffs, as described below: · Basic telephony services tariffs, comprising tariffs for the provision of basic telephony services, which include: o core features, such as telephony, facsimile, SMS, and/or MMS; and o additional features, including but not limited to Rich Communication Services. · Value-added telephony services tariffs, comprising tariffs for the provision of value-added telephony services, which include but are not limited to Information call center services and premium call services; and · Multimedia services tariffs, comprising tariffs for the provision of multimedia services, which include but are not limited to ISP and NAP services. All the aforementioned tariffs follow the below tariff structure: · Activation fee; · Monthly subscription charges; and/or · Usage charges. Telecommunications Network Tariffs Under the MoCD Regulation No. 5/2021, telecommunications network tariffs consist of basic interconnection tariffs, and network lease tariffs, as described below: Interconnection Tariffs The Indonesian Telecommunications Regulatory Authority (Badan Regulasi Telekomunikasi Indonesia or “BRTI”), in its letter No. 262/BRTI/XII/2011 dated December 12, 2011, mandated a shift to cost-based pricing for SMS interconnection tariffs among telecommunications providers, with a maximum tariff of Rp23 per SMS effective from June 1, 2012, applicable to all telecommunications service operators. In addition, based on Letter No. 118/KOMINFO/DJPPI/PI.02.04/01/2014 of the DGPIO, the DGPIO required our Company and Telkomsel to submit annual Reference Interconnection Offer (“RIO”) proposals to the BRTI for evaluation. The subsequent approvals of the RIO adjustments by the BRTI, as indicated in its letters No. 60/BRTI/III/2014 and No. 125/BRTI/IV/2014 approved our Company’s and Telkomsel’s RIO adjustments, set the SMS interconnection tariff at Rp24 per SMS (the “2014 RIO Proposal”). Furthermore, on January 18, 2017, through its letters No. 20/BRTI/DPI/I/2017 and No. 21/BRTI/DPI/I/2017, BRTI resolved to maintain the interconnection tariffs from the 2014 RIO Proposal between Telkom and Telkomsel, pending the establishment of new interconnection tariffs. Network Lease Tariffs MoCD Regulation No. 5/2021 establishes guidelines on the structure and pricing for network lease services, including the form, type, structure, and formula of tariffs for such services, which built upon Decree No. 115 of 2008 issued by the Director General of Post and Telecommunications in Indonesia on Agreement on Network Lease Service Type Document, Network Lease Service Tariff, Available Capacity of Network Lease Service, Quality of Network Lease 83 Table of Contents Service, and Provision Procedure of Network Lease Service Owned by Dominant Network Lease Service Providers in agreement with the Telkom proposal. Tariffs for Other Services The tariffs for satellite lease, telephony services, and other multimedia are determined by the service providers by taking into account the expenditures and market prices of such services. The Government only determines the tariff formula for basic telephony services. The Government does not determine the tariffs for other services. Marketing, Sales and Distribution We have implemented a comprehensive marketing and promotional strategy to bolster our brand and increase sales of our products and services, including through digital marketing and the development of our distribution channels. We use a variety of marketing channels, including above-the-line and below-the-line methods, to promote our services to specific customers and communities. We also place advertisements in printed and electronic media and implement marketing methods such as point-of-sale broadcasting and promotional and sponsorship events. The following provides a description of our marketing and promotional strategies by customer segment. Mobile Customers In 2025, Telkomsel continued to lead and support a more constructive competitive environment through disciplined pricing execution and a product simplification agenda as part of our efforts to stabilize and rationalize the mobile market. Following periods of heightened competition, we and certain of our major competitors have undertaken rationalization measures, including the recalibration of starter packs toward a more standardized price point and the continued streamlining of product offerings, aiming to improve effective yield and encourage more sustainable market conduct. As execution progressed, we observed early signs of stabilization, including sequential improvement in ARPU and yield productivity, supported by a strategic shift away from customers frequently switching between promotional offers toward customers renewing their existing plans. We also note that PT XL Axiata Tbk merged with PT Smartfren Telecom Tbk in 2025, a development we expect to foster a healthier industry environment by promoting market rationality and price stabilization. In recent years, we have also enhanced our digital lifestyle content offerings, including video, games, and music. For a description of our digital lifestyle content offerings, including MAXstream, Dunia Games, and Langit Musik, see “– Business Portfolios – 1. Integrated B2C Services –1.1 Mobile Services.” In 2025, we continued to develop Telkomsel Orbit, a home wireless internet service designed to leverage our network capacity and as a complementary broadband solution to cater demand in areas not penetrated by our fixed broadband services. As of December 31, 2025, we had 156.1 million cellular subscribers, comprising 147.6 million prepaid cellular subscribers and 8.4 million postpaid cellular subscribers. We implement personalized offerings for mobile customers through dynamic customer segmentation and customer value management. This data analytics-driven approach allows us to conduct targeted marketing campaigns. Concurrently, we address mass-market demand, work to strengthen our market presence, and address affordability concerns by delivering certain services and products designed to capture new customers, such as the Telkomsel Lite brand launched in early 2024. We also maintain focus on broad-based prepaid accessibility through targeted offerings, including our relaunch of the SIMPATI brand in 2025 as part of our product simplification initiatives, while reinforcing a strategy that prioritizes customer retention and revenue contribution over volume. 84 Table of Contents Our focus remains on maintaining a stable subscriber base and promoting average revenue per user (“ARPU”) resilience, which we believe helps establish a solid foundation of quality subscribers and market share. Our strategy includes encouraging customer upgrades to higher-tier packages and enhancing our digital content to attract higher-value segments over time, thereby fostering growth in customer consumption. Other strategic initiatives include network optimization and the strengthening of our core broadband services. For more information, see “Item 4B. Business Overview – Business Portfolios – 1. Integrated B2C Services.” Consumer Customers In 2025, IndiHome remained our flagship consumer product, with a continued strategy focused on accelerating fixed broadband penetration by addressing diverse segments with targeted pricing strategies and bundling strategies, while balancing disciplined execution with fit-for-purpose household offers. Telkomsel’s strategy seeks to bridge the home and mobile connectivity experience, a continued effort to strengthen FMC as a key differentiator. This strategy aims to increase fixed broadband adoption supported by ongoing cross-selling and retention initiatives, given the relatively low penetration of fixed broadband services in Indonesia as compared to the saturated cellular service market. Despite intensifying competition in fixed broadband market, we strive to remain competitive through various offerings, including the launch of EZnet, which complements existing offerings to capture new opportunities and address affordability concerns for certain mass-market segments and targeted areas, while maintaining a focus on customer retention and quality acquisition. We believe this strategy has enabled us to maintain a leading market position in Indonesia in terms of subscriber base. We have also implemented network enhancements and service improvements, such as improved response times to customer complaints. Our service offerings range from 10Mbps up to 300Mbps and are designed to provide value and affordability for a broad range of customer segments, including through bundled content. The integration of our IndiHome business into Telkomsel has fostered a unified customer strategy, enhancing our ability to cross-sell and up-sell. We offer personalized services through advanced data analytics, enabling us to refine our customer segmentation and tailor offerings. Our problem resolution is supported by an end-to-end traceable customer relationship management process. While our strategy to accelerate fixed broadband penetration has led to an increase in our customer base, we are also focused on encouraging higher-end customers to upgrade to premium packages to enhance ARPU. From the integration of our IndiHome B2C business into Telkomsel on July 1, 2023 to December 31, 2023, the number of fixed broadband IndiHome B2C subscribers increased by approximately 0.4 million, resulting in 8.7 million IndiHome B2C subscribers as of such date. As of December 31, 2025, we had a total of 10.3 million fixed broadband IndiHome B2C subscribers. Enterprise Customers In 2025, we continued to refine our enterprise customer approach by targeting high-value enterprise customers through strategic account management, which involves offering tailored solutions to deepen customer relationships. Our marketing strategy for enterprise customers aims to: ● Spearhead digital transformation for enterprises, including SOEs, to pursue and develop a leading bandwidth share in the digital connectivity market; ● Empower SMEs with digital platforms to improve access to markets, funding, and technology, contributing to Indonesia’s digital transformation; and ● Partner with the Government as a trusted ICT provider to support key national digital initiatives. Our sales approach provides tailored support across various enterprise customer segments: 85 Table of Contents ● Large Enterprises: Enterprise account managers offer a single point of contact, delivering comprehensive service from relationship initiation to after-sales customer care; ● Government: Government account managers cater to the ICT needs of Government agencies, with support from relationship officers to enhance service quality; and ● SMEs: Business account managers and tele-account managers cater to the needs of SME customers, with support from third-party value-added resellers. These efforts are supplemented by digital channels and mobile applications. Wholesale and International Business Customers Our wholesale and international business segment serves domestic operators, service providers, digital entities, global wholesalers, carriers, and enterprises utilizing overseas data centers and international connectivity. Additionally, through our Non-Geostationary Orbit satellites, we cater to certain retail customers internationally. Our marketing and sales strategy for this segment focuses on: ● Strengthening core wholesale revenue streams by optimizing our legacy voice and messaging businesses through disciplined business model and pricing strategies to maximize value amid structural shifts in usage; ● Scaling digital infrastructure to capture long-term growth by selectively expanding data-center capacity, enhancing end-to-end network competitiveness, and increasing international subsea cable capacity to serve global demand; ● Building a differentiated wholesale internet ecosystem by deepening content aggregation and CDN capabilities to improve service performance, resilience, and customer outcomes; and ● Expanding infrastructure platforms for future value creation through the continued growth and transformation of our tower and satellite businesses, positioning them as integrated, end-to-end infrastructure solutions. Digital Service Customers Our marketing strategy for digital service customers focuses on strengthening and improving digital innovation, including by enriching digital content, creating unique digital services, and growing our digital services portfolio through investments in digital startups. We tailor our sales strategy to each particular digital business. We offer customer care and channel management through various means, including contact centers, dedicated account management for large enterprises, websites, and social media. Our digital service program for consumers has focused on improving IndiHome services. For example, we promote digital touchpoints for IndiHome customers, which offer bundled packages that may include services such as Disney+ Hotstar, Indibox (a source of value-added services such as video content and games), GameQoo (a cloud gaming service), and IndiHome Smart (an Internet of Things, or IoT, home service). Distribution Channels Our primary distribution channels for products and services in 2025 included: ●Walk-in and Mobile Customer Service Points: These include Plasa Telkom Digital outlets and GraPARI centers, which offer comprehensive Telkom and Telkomsel services. As of December 31, 2025, these included 463 GraPARI centers across Indonesia; 86 Table of Contents · Authorized Dealers and Modern Retail Channels: These channels distribute Telkomsel products such as starter packs and prepaid top-up vouchers; · Partnership Stores: These extend our reach through various third-party marketing outlets, including electronics stores and bank ATMs; · Contact Centers: These facilities support customer access to our services; · Specialized Teams: Account management and sales teams provide tailored solutions to large enterprises, Government agencies, and wholesale customers; · Channel Partners: Third-party value-added resellers meet the needs of certain enterprise customers; · Digital Touchpoints: We provide customer service and account management through digital platforms such as, MyTelkomsel, MyTEnS for enterprise customers, MyIndibiz for SMEs, and MyCarrier for wholesale customers; · Websites: Our websites, including www.telkom.co.id, www.telkomsel.com, www.telin.net, and www.indihome.co.id offer e-services such as billing and support; · Social Media and Instant Messaging: We use platforms such as Facebook, Instagram, and WhatsApp for product interaction and support, including through our AI-powered chatbot, Veronika; and · LinkAja: Our e-money service allows customers to conduct transactions and service purchases digitally. For the avoidance of doubt, the information contained on our websites referred to above is not a part of this annual report on Form 20-F, nor is such content incorporated by reference herein. Licensing To provide national telecommunications services, we have product and service licenses that are consistent with applicable laws, regulations, and decrees. Cellular Telkomsel holds licenses to operate a nationwide mobile cellular telephone network using 15 MHz of spectrum allocation in the 800/900 MHz frequency bands, 22.5 MHz of spectrum allocation in the 1.8 GHz frequency band, 20 MHz of spectrum allocation in the 2.1 GHz frequency band, and up to (depending on the region) 50 MHz additional spectrum in the 2.3 GHz frequency band, together won at auctions in October 2017, May 2021, and November 2022 as well as gained from PT Berca Indonesia in November 2022. The licenses do not have set expiry dates, but they are evaluated every 10 years. The validity of Telkomsel’s spectrum licenses/permits is subject to the applicable regulatory regime, including periodic evaluation and/or renewal requirements. In particular, Telkomsel renewed its Radio Frequency Band Permit for the 2.1 GHz 1st carrier starting from March 2026, for a 20-year usage period. In addition, Telkomsel holds permits and licenses from, and registrations with certain local governments and/or Government agencies, primarily in connection with its operations in such regions, the properties it owns and/or the construction and use of its BTS. Fixed Network and Basic Telephony Services We have the following licenses to operate fixed local networks, fixed long-distance direct line networks, fixed international call networks and fixed closed networks: · MoCD Decree No. 073/TEL.01.02/2021 (on licenses to operate fixed long distance direct line); 87 Table of Contents · MoCD Decree No. 094/TEL.01.02/2021 (on licenses to operate fixed closed networks); · MoCD Decree No. 082/TEL.01.02/2021 (on licenses to operate fixed international networks); and · MoCD Decree No. 095/TEL.01.02/2021 (on licenses to operate circuit switched based local fixed-line networks). These licenses do not have set expiry dates, but they are evaluated every five years. International Calls We have a license to operate a fixed network to provide international call services pursuant to MoCD Decree No. 082/TEL.01.02/2021. We have a license to operate a fixed closed network pursuant to MoCD Decree No. 094/TEL.01.02/2021. This license allows us to lease installed fixed closed network to telecommunications network and service operators, among others, and to provide an international telecommunications transmission facility through a SCCS directly to Indonesia for overseas telecommunications operators. According to MoCD Regulation No. 5/2021, overseas telecommunications operators who wish to provide international telecommunications facilities through the SCCS directly to Indonesia are required to set up a partnership with a fixed network of international call services or closed fixed network provider. In line with MoCD Regulation No. 5/2021, the international telecommunications transmission facilities provided through SCCS are operated by us on the basis of landing rights we hold within Indonesia and that are attached to our license to operate fixed network of international call services. DGPIO Decree No. 93 of 2016 on Limited Fixed Network Licenses granted our subsidiary Telin a license to operate a fixed closed line network which enables Telin to provide international infrastructure services. Separately, Telin secured landing rights in Indonesia from the DGPIO to provide international telecommunications transmission facilities through the Submarine Cable System (“SCS”). The foregoing licenses do not have set expiry dates, but they are evaluated every five years. IDD Services We have a license to provide IDD services under MoCD Decree No. 082/TEL.01.02/2021. We offer IDD fixed-line services to customers using the “007” IDD access code. VoIP We are licensed to provide internet telephony services for public utilization for commercial use as provided under DGPIO Decree No. 127 of 2016 (on internet telephony services for public utilization). Telkomsel is also licensed to provide public VoIP services based on DGPIO Decree No. 65 of 2015 (internet telephony services for public utilization). These licenses do not have set expiry dates, but they are evaluated every five years. ISP We are licensed as an ISP under MoCD Decree No. 2176 of 2016 (on internet access services). Telkomsel is also licensed to provide multimedia internet access services with nationwide coverage under DGPIO Decree No. 19 of 2016 (on internet access services). These licenses do not have set expiry dates, but they are evaluated every five years. ​ 88 Table of Contents Internet Interconnection Service We hold a license to provide internet interconnection services pursuant to MoCD Decree No. 1004 of 2018 on Internet Interconnection Service (Network Access Points). This license does not have a set expiry date, but it is evaluated every five years. Data Communication System (“SISKOMDAT”) We have a license to provide data communication system services pursuant to MoCD Decree No.046/KEP/M.KOMINFO/02/2020 (on data communication system services). This license does not have a set expiry date, but it is evaluated every five years. Payment Method Using E-Money Following the implementation of BI’s regulations applicable to APMK and E-Money businesses since 2009, BI confirmed our status as an issuer of E-Money in 2018. We operate our E-Money business under the brand name “t-money.” We, through Telkomsel, also operate our E-Money business under the brand name “LinkAja” (formerly known as “T-Cash”). With the issuance of BI Circular Letter No. 9/9/DASP, Telkomsel is also permitted to conduct APMK activities and offers Tunai prepaid cards. These permits do not have set expiry dates so long as: (i) we and Telkomsel continue to conduct the relevant businesses in compliance with applicable regulations, and (ii) the Government does not amend or revoke such permits. In addition, BI regulations governing E-Money companies in Indonesia have multiple requirements for BI license holders such as Telkomsel, including certain restrictions on shareholding and corporate governance as well as risk management and information system capability requirements. In the midst of digital wallet business competition, LinkAja’s strategy is to serve consumers under the B2C business model and to provide business solution services under the B2B business model. LinkAja has extended its ecosystem into its shareholders’ and strategic partners’ digital platforms, such as MyTelkomsel and MyPertamina, acting as a digital financial enabler through services including account linking and the provision of digital products. In parallel, LinkAja has strengthened its presence in the advertising business by developing advertising solutions that support its shareholders’ ecosystem initiatives, including in-app campaigns and the optimization of its shareholders’ assets and inventory for advertising purposes. For the B2C LinkAja application segment, LinkAja continues to target the unbanked population with technology literacy in the productive-age segment nationwide, while also emphasizing its role in supporting the broader BUMN ecosystem, including employees. LinkAja’s B2B business solution services provide various features such as fund disbursement, cash collection, digital payments through QRIS, merchant applications and other digital ecosystems, as well as advertising services. LinkAja targets MSMEs and corporations in various industries. Key B2B collaborations include: (i) Digipos Telkomsel, where LinkAja functions as the payment balance for merchants and supplies digital products such as prepaid electricity and e-wallet top-ups; (ii) Pertamina Single Settlement, where LinkAja serves as an intermediary connecting users, Pertamina, and other payment methods within the MyPertamina application; (iii) MyTelkomsel Linkage, a comprehensive integration between LinkAja and MyTelkomsel, enabling users to access LinkAja accounts and services directly within MyTelkomsel; and (iv) advertising solutions, connecting advertisers with businesses seeking advertising opportunities, thereby establishing a broader advertising network. LinkAja also develops Sharia-related initiatives, including: (i) digitalization of partnerships with Islamic organizations, communities, and MSMEs; (ii) strategic collaboration with philanthropic institutions to support digital donation initiatives; (iii) partnerships with Muslim-focused digital applications; and (iv) development of Sharia-compliant digital features to support subscription payments across Muslim-focused digital platforms (e.g., Muslim Pro and Qaara). ​ 89 Table of Contents Administration of Source of Fund and Remittance Services We and Telkomsel have licenses to operate as money transfer service providers pursuant to BI License No. 23/587/DKSP/Srt/B. These permits do not have set expiry dates so long as: (i) we and Telkomsel continue to conduct the relevant businesses in compliance with applicable regulations, and (ii) the Government does not amend or revoke such permits. BI re-evaluates the license every three years from the date the license is issued, and BI also retains the authority to initiate an additional evaluation at any time if necessary, allowing for more frequent oversight to designed to establish our compliance with regulatory requirements. IPTV Since March 5, 2024, after effecting the transfer of the IndiHome business segment into Telkomsel, Telkom no longer holds an IPTV telecommunications service operation license as it is no longer listed in Telkom’s NIB. However, we are able to continue to provide IPTV services by reselling Telkomsel’s IPTV products, which Telkomsel offers through its IPTV telecommunications service operation license, obtained on May 27, 2023. Construction Services Business Certain of our subsidiaries possess SBUJKs, thereby permitting us to provide national telecommunications-related construction services, which primarily consist of installing telecommunications equipment and wiring buildings. On February 15, 2023, we obtained an SBUJK for the construction of central telecommunications infrastructure, such as stations for voice connection. While this license has no expiry date, Construction Services Development Institute (Lembaga Pengembangan Jasa Konstruksi) re-evaluates all such licenses every three years. Content Service Provider We obtained a content service provider license in 2017 pursuant to MoCD Decree No. 1040 of 2017 on Content Service Providers dated May 16, 2017. While such license has no set expiry date, MoCD re-evaluates all content service provider licenses every five years. Trademarks, Copyrights and Patents We seek to develop product and service innovations in line with a dynamic business portfolio. To provide both protection for and recognition of creativity and innovation, we have registered several intellectual property rights, including trademarks, copyrights, and patents with the Directorate General of Intellectual Property Rights at the MoL. The intellectual property rights we have registered include: (i) trademarks for our products and services, corporate logo and name, (ii) copyrights for our corporate name and logo, product and service logos, computer programs, research, books and songs, and (iii) single patents (generally valid for 10 years from the date of receipt of the single patent submission) and patents (generally valid for 20 years from the date of receipt of the patent submission) on technological inventions in the form of telecommunications products, systems and methods. Corporate and Social Responsibility and Human Capital Management We are dedicated to fostering a sustainable business and contributing to a sustainable society. Our efforts encompass enabling connections, generating employment, and driving digital innovation. Our sustainability strategy is grounded in our five pillars of ethics, growth, human capital, societal contribution, and environmental stewardship and is regularly reviewed to mitigate risks and capture new opportunities. 90 Table of Contents Our governance framework demonstrates our ambition to become a partner of choice for customers, suppliers, and communities, backed by a firm commitment to ethical practices. All employees are required to uphold our ethical standards in their daily work, and we provide regular training and information to foster a culture of integrity. We are also committed to upholding fair competition, data privacy, and transparent, inclusive procurement practices. We believe that our recognition for excellence in corporate governance and security reflects our progress in these areas. In 2025, we received numerous awards and acknowledgments in human capital management, including in the areas of employer branding, corporate social responsibility, women's empowerment, and diversity, equity, and inclusion. The following is a list of our awards in human capital: • Forbes World's Best Employers 2025 for the fifth consecutive year, ranking 345th globally and first in Indonesia; • LinkedIn Top Companies Indonesia for four consecutive years; • Best Practices of Sustainable Development Goal 14 in the United Nations Sustainable Development Goals (“SDGs”) National Voluntary Review by the United Nations, through the Indonesia National SDGs Secretariat, Ministry of National Development Planning (“BAPPENAS”); • Silver Winner in ESG Asia Positive Impact by Asia Positive Impact ASEAN and EY SEA Region, recognizing our commitment to local community relations through the DigiUp Program; • International certification as a Great Place to Work for three consecutive years by the Great Place to Work Institute; • Bronze Medal in the SDGs Impact Award by BAPPENAS, recognizing excellence in SDGs practices among large companies; • Gold Winner for Community Involvement Development and Best Social and Environmental Responsibility (“TJSL”) Agent of the Year in the Indonesia Corporate Communication and Sustainability Summit 2025 by the State-Owned Enterprise Communication Forum (BP BUMN); • Best Practices for Community Development – Health Category in the IDX Channel Award by the IDX through our Stunting Action Hub program; • Silver Medal for CSR Strategy in the Indonesia Corporate Sustainability Award 2025 by Olahkarsa in collaboration with the Association of Carbon Emission Experts Indonesia (ACEXI); • Gold Winner in the Lestari Awards by KG Media, recognizing our commitment to local community relations through the DigiUp Program; • Best Practices for Digital Inclusion Pioneer in the Republika Awards by Republika through our Stunting Action Hub Program; and • Top 10 Most Compliant State-Owned Enterprises in the Satya JKN Award 2025 by the Government and the Social Health Insurance Administration Body (BPJS Kesehatan). We rely on our growth pillar to enhance and modernize our business through innovation and digitalization. By digitizing and streamlining our operations, we intend to maintain and improve our operational and financial health. We believe that high-quality products and services are central to achieving this goal, as they underpin customer satisfaction and business continuity. In our telecommunications business, we prioritize connectivity, platforms, and services, constantly improving our network and IT systems to mitigate cybersecurity risks and maintain our infrastructure's integrity. 91 Table of Contents Collaborative initiatives with law enforcement agencies enhance security, and we incorporate customer feedback to refine our offerings. We prioritize managing human capital because we believe that our employees, managers, and skilled personnel are key to becoming and remaining a leading digital telecommunications company. Our human capital management practices focus on equitable recruitment, diversity, positive labor relations, and personal growth. We foster an inclusive culture, offering equal training and advancement opportunities to attract and retain top talent. This approach is informed by international norms on human rights and gender equality. As of December 31, 2025, women held approximately 35.05% of managerial roles, comprised 45.44% of our workforce and represented 64.7% of our 2025 new hires. Our efforts to support gender equality include flexible work schedules, harassment-free policies, and adjustments for working mothers, such as remote work options and on-site childcare. We also support the Indonesian Ministry of Manpower's and the International Labor Organization's initiatives toward a child-labor-free Indonesia. We aim to enhance productivity by ensuring a modern, digital, and secure workspace that accommodates flexible work arrangements and health, safety, and environmental standards. We believe that our recognition as a Great Place to Work for three consecutive years by the Great Place to Work Institute aligns with these values. For more details on our human capital strategy, please see “Item 6. Directors, Senior Management and Employees — D. Employees.” In 2025, we implemented our Social and Environmental Responsibility (“TJSL”) programs as an integral component of our sustainability strategy and long-term value creation framework. The TJSL framework is designed to deliver measurable outcomes across environmental stewardship, inclusive social empowerment, MSME digital capacity building, and effective governance, while remaining aligned with internationally recognized ESG standards. The TJSL framework has been integrated with the Indonesia SDGs Action Plan, coordinated by the Ministry of National Development Planning. During 2025, we allocated approximately Rp169.3 billion to TJSL initiatives across Indonesia. Funding priorities focused on programs that strengthen digital inclusion, enhance social resilience, and support sustainable economic growth. Under the social pillar, we expanded inclusive digital education through our Digital Learning School, teacher certification programs, vocational digital skills development, and digital literacy programs targeting women and persons with disabilities. These initiatives were complemented by community-based programs addressing food security, stunting prevention, and the development of digitally enabled assisted villages (desa binaan), supporting more equitable access to essential services and socioeconomic opportunities. To support inclusive economic growth, we strengthened MSME digital capacity through structured entrepreneurship training, digital onboarding, and market access facilitation aligned with the MSME growth journey—from initial capability development to scaling and international market exposure. These programs are designed to integrate MSMEs into our digital ecosystem, enhancing productivity, competitiveness, and long-term business sustainability. Environmental initiatives in 2025 focused on supporting our decarbonization objectives through carbon offset and climate action programs, including green and blue carbon conservation, waste management, water provision, and community-based climate adaptation initiatives supported by green applications. In parallel, we continued to invest in sustainable infrastructure, including renewable energy-powered public street lighting and biogas projects, rural connectivity expansion, elderly housing development, and suspension bridge construction to improve accessibility in underserved areas. Certain environmental initiatives also contribute to operational risk mitigation, including mangrove restoration activities that support the resilience of coastal areas surrounding our subsea cable landing points. See “Business Overview — Strategy — Environmental, Social and Governance (“ESG”) matters” above for more information on our ESG strategies. The Telecommunications Industry in Indonesia In 2025, Indonesia’s GDP grew by 5.11%, with further expansion expected in 2026, according to Government data. In its January World Economic Outlook Update, the IMF forecasts a 5.1% growth for the Indonesian economy in 92 Table of Contents 2026. The Indonesian telecommunications industry has seen significant advancements, with rising mobile and broadband subscriptions primarily as a result of greater affordability, service improvements, and higher smartphone penetration. The shift from traditional voice and SMS to data services is still ongoing, fueled by the affordability of smartphones and a sizeable youth demographic. OTT applications have supplanted legacy services, causing a notable decline in traditional telecommunications revenues. The industry has also faced intense competition, with operators initiating promotional deals to attract customers sensitive to data pricing, leading to lower operator margins and intense price competition. The industry, however, saw a return to pricing and competition stability in late 2021, which continued through 2025, particularly following the price increases implemented by all major operators in late 2024, which have since been sustained into 2025. Operators have sustained healthier market conduct amidst rising demand for high-quality data services. As of December 31, 2025, according to our internal estimates, Indonesia had approximately 322.8 million cellular subscribers, a 3.2% increase from 312.9 million in 2024, with Telkomsel holding a market share of approximately 48.0%. Following the IOH merger and the announcement of the XLSmart merger in 2024 has contributed to a more rational competitive environment and Telkomsel focused on initiatives to foster sustainable growth and profitability. Rising data consumption has required substantial investments in network improvements. In response, we have prioritized expanding coverage and enhancing network quality. This includes completing the 3G shutdown and migrating to 4G in 2023, which extended network coverage, supported the growth of digital businesses, and improved customer experience. With the analogue TV bandwidth now available, mobile operators have the opportunity to strengthen their 4G LTE service offerings and explore 5G service offerings, providing enhanced coverage and speed. As data traffic remains a key revenue stream, telecommunications companies face the challenge of expanding their infrastructure to cater to the increasing data traffic, influenced by HD video streaming, gaming, and a surge in network-connected devices. Fixed broadband penetration in Indonesia remains relatively low at less than 20%. However, demand for quality internet connectivity continues to increase, with the fixed broadband market still led by a few key players, including us and IconNet. However, high barriers to entry persist due to licensing and infrastructure requirements and limitations. Despite increasing competition and a slightly reduced market share, we continued to lead with approximately 10.3 million IndiHome B2C subscribers as of December 31, 2025. Competition Our cellular services business, which we operate through our majority-owned subsidiary Telkomsel, faces competition primarily from IOH and XLSmart. The competitive environment in Indonesia continues to evolve as these competitors expand their service coverage into regions where Telkomsel has an established presence. In 2025, supply and demand conditions in the cellular services market began to stabilize, which we believe indicates a healthier competitive landscape. Industry competition has shown meaningful improvement compared with 2024, with signs of greater pricing discipline across operators and a shift toward healthier market conduct. In particular, starter pack oversupply has normalized, and operators have increasingly aligned supported by unified starter pack pricing, alongside broader product rationalization and simplification. As execution has progressed, the focus has increasingly shifted toward renewal package simplification. Following the initial announcement in late 2024, the merger between XL Axiata and Smartfren, which is part of the Sinar Mas Group, was completed in December 2025. Historically, mergers between larger and smaller operators in our market have contributed to a more balanced competitive landscape by reducing aggressive pricing practices. We expect that this consolidation will result in more rational pricing across the industry and support a more sustainable market structure. For further information, see “Item 3. Key Information—D. Risk Factors—Risks Related to Our Business— The telecommunications industry is characterized by intense competition and rapid technological change, and our ability to 93 Table of Contents compete effectively depends on significant capital investment, access to sufficient spectrum, and successful adaptation to new technologies and market entrants.” Business Competition Law The Indonesian telecommunications sector is regulated by the Telecommunications Law, which took effect on September 8, 2000. The Telecommunications Law provides guidelines for industry reforms, including industry liberalization, to facilitate the entry of new operators as well as to increase transparency and competition. The Telecommunications Law eliminated the concept of “organizing entities” in the industry, which terminated the special status of Telkom and Indosat as the organizing bodies responsible for coordinating telecommunications services domestically and internationally. To increase competition, the Telecommunications Law prohibits monopolistic practices and unfair competition among telecommunications operators. The Telecommunications Law, as amended by the Job Creation Law 2023, is implemented through various Government Regulations and Ministerial Regulations, including: (i) GR No. 52/2000, as amended, (ii) Government Regulation No. 46/2021, (iii) MoCD Regulation No. 01/PER/M.KOMINFO/01/2010 on Telecommunications Network Operations as last amended by MoCD Regulation No. 5/2021, (iv) MoCD Regulation No. 7 of 2018 on Electronic Integrated Business Licensing Services in the Sector of Communications and Informatics as last amended by MoCD Regulation No. 6 of 2021 on Broadcasting Operations (“MoCD Regulation No. 7/2018, as amended”), (v) Decree of the Ministry of Transportation No. KM33 of 2004 on Monitoring of Fair Competition of The Fixed Network and Basic Telephone Service Operations, and (vi) MoCD Regulation No. 14 of 2018 on Fundamental Technical Plan of National Telecommunications Plan. The Government encourages healthy competition and transparency in the telecommunications sector, although the Government does not prevent operators from obtaining a dominant position or increasing their dominance in the market through specific regulations. Nevertheless, the Government prohibits market leading operators from abusing their dominant position. Competition in the telecommunications sector, as with all Indonesian business sectors, is also governed more generally by the Business Competition Law, as amended by the Job Creation Law 2023. The Business Competition Law prohibits agreements and activities which constitute unfair business competition and an abuse of a dominant market position. Pursuant to the Business Competition Law, the KPPU was established as Indonesia’s antitrust regulator with the authority to enforce the provisions of the Business Competition Law. The Business Competition Law is implemented by various regulations, including Government Regulation No. 57 of 2010 on Merger or Consolidation of Business Entities and Acquisition of Company Shares Which May Result In Monopolistic Practices and Unfair Business Competition (“GR No. 57/2010”). GR No. 57/2010 permits voluntary consultation with the KPPU prior to a merger or acquisition, which will result in the KPPU issuing a non-binding opinion. GR No. 57/2010 also requires that a mandatory report be made to the KPPU after a merger or acquisition is completed if the transaction exceeds certain asset or sales value thresholds. Further, on March 30, 2023, the KPPU issued Regulation No. 3 of 2023 on Assessment of Mergers, Acquisitions, or Stock Takeovers and/or Asset Acquisitions That May Result in Monopoly Practices and/or Unfair Business Competition (“KPPU Regulation No. 3/2023”). Under KPPU Regulation No. 3/2023, asset acquisitions which meet the set regulatory threshold must be reported to the KPPU. In addition, a new implementing regulation relating to the Business Competition Law, namely Government Regulation No. 44 of 2021 on The Implementation of Monopolistic Practices Prohibition and Unfair Business Competition (“GR No. 44/2021”) has been issued following the adoption of the Job Creation Law 2023. The Job Creation Law 2023 amended the Business Competition Law in the following ways: · Assignment of the authority to examine objections to the KPPU’s decisions from the District Court to the Commercial Court; 94 Table of Contents · Elimination of the deadline for examining objections at the Commercial Court and cassation at the Supreme Court; · Additional provisions on administrative actions and the elimination of maximum fines of Rp25 billion; and · Elimination of principal and additional criminal provisions. The Job Creation Law 2023, as implemented by GR No. 44/2021, regulates the authority of the KPPU, criteria for the imposition of sanctions and types of sanctions for violations of competition law, and the amount of fines as well as procedures for the evaluation of objections and appeals against KPPU decisions. Furthermore, on May 31, 2021, the KPPU issued KPPU Regulation No. 2 of 2021 on the Guidelines for the Imposition of Fines for the Violation of Monopolistic Practices and Unfair Business Competition (“KPPU Regulation No. 2/2021”) which provides provisions on the calculation of fines, bank guarantees, payment of fines and concessions for payment of fines. According to KPPU Regulation No. 2/2021, the KPPU may impose a fine of between a minimum of Rp1 billion and a maximum of either 50% of the net profit earned by the business in the relevant market or 10% of the total sales of the business in the relevant market during the period when the violation occurred. The fine amount is Rp1 billion plus a calculation based on: (a) the negative impact caused by the violation, (b) the duration of time the violation occurred, (c) mitigating factors, (d) aggravating factors, and/or (e) the ability of business actors to pay the fine. Additionally, in 2022, the KPPU issued KPPU Regulation No. 1 of 2022 on the Business Competition Compliance Programs which aims to provide a general understanding of compliance for business actors in preventing violations of laws and encouraging the implementation of business activities in accordance with the principle of fair business competition. As an incentive for business actors to register their compliance programs, the KPPU will impose a lower fine if the business actors are later proven to have violated the Business Competition Law. To comply with the Business Competition Law, we obtained certification of our compliance program from the KPPU, as evidenced by the Statement of Compliance Program No. 04/KPPU-PKP/2023 issued by the KPPU. Cellular We operate our cellular service business through Telkomsel. Market Position and Competition As of December 31, 2025, Telkomsel was the largest cellular provider in Indonesia, with approximately 156.1 million cellular subscribers, which represented an estimated market share of approximately 48.0%. Based on publicly available information, we believe the next largest providers as of such date were IOH and XL Smart, based on their respective number of subscribers. The penetration of SIM cards in Indonesia is high, which makes continued growth in the total number of subscribers increasingly difficult. As of December 31, 2025, there were approximately 322.8 million cellular subscribers in Indonesia, as compared to approximately 312.9 million as of December 31, 2024. Despite a penetration rate that indicates market saturation, the total number of cellular subscribers has remained relatively stable, which suggests that a significant portion of the population continues to use multiple SIM cards. Regulatory Environment The Government’s enforcement of its prepaid SIM card registration policy, which began in 2018, has resulted in a higher proportion of active subscribers and has contributed to a healthier competitive environment. We believe that this policy, assuming its continued implementation, will continue to have a positive long-term impact on the industry. Changes in regulations regarding SIM card registration, usage, or distribution could, however, impact the number of subscribers in the future. 95 Table of Contents Industry Trends The trend of customers shifting from legacy services, such as voice and SMS, to data services continues, driven by the increased availability of lower-priced smartphones and a growing youth customer segment. Data traffic has grown significantly, while voice and SMS service traffic has decreased over the past five fiscal years. This trend is attributable to the substitution of traditional voice and SMS services with over-the-top, or OTT, based calling and messaging services as smartphone penetration in Indonesia has risen. We expect this trend to continue for the foreseeable future. Despite these challenges, our Digital Business segment continues to grow. We remain focused on encouraging customers to adopt more productive digital habits as internet connectivity becomes increasingly essential. The following table sets out information as of December 31, 2025, for Telkomsel: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unit ​ Telkomsel ​ ​ ​ Launch date year ​ 1995 Neutral - 2G, 3G and/or 4G spectrum allocation (GSM 900 MHz) MHz ​ 15 Neutral - 2G, 3G and/or 4G spectrum allocation (GSM 1.8 GHz) MHz ​ 22.5 Neutral - 2G, 3G and/or 4G spectrum allocation (2.1 GHz) MHz ​ 20 Time Division Duplex (TDD) technology (2.3 GHz) ​ MHz ​ 50 1)​ Subscribers million ​ 156.1 Note: (1) Comprises additional spectrum in the 2.3 GHz frequency band that Telkomsel won following an auction process in 2021. Fixed Broadband Services We face competition in the fixed broadband market from major providers such as IconNet, MyRepublic, XL Home, and Biznet, with IconNet in second place behind us in terms of customer base. The industry is witnessing strategic acquisitions targeting subscriber growth, including IOH’s acquisition of MNC Play and XL Axiata’s purchase of PT Link Net Tbk, as operators strive for service convergence and new growth engines. Despite increased competition since 2019 and the market entry of PT Perusahaan Listrik Negara’s subsidiary, IconNet, which leverages wide coverage beyond Java, Telkomsel aims to accelerate fixed broadband penetration by targeting various market segments with targeted pricing strategies. This includes offering competitive pricing to address affordability concerns in the mass-market segment while encouraging higher-end IndiHome customers to upgrade to premium packages and bundled content, all while maintaining high-quality broadband services. In addition, our fixed broadband strategy focuses on sustainable, quality-led growth, including retention, disciplined acquisition, and initiatives to enhance customer value and experience through segmented offers and value-added services, while leveraging FMC to deepen household engagement. Data Centers Companies such as Equinix/NTT Communication, EDGE Connex, Biznet, DCI Indonesia, Elitery, Nex-center/CBN Nusantara, Pure DC, BDx/IOH provide data center solutions in Indonesia and compete with us. In the Asia Pacific region, our subsidiary, Telin, competes with other major data center providers in Hong Kong and Timor Leste. We are dedicated to providing the highest quality of data center solutions to our customers in Indonesia and Asia Pacific. Supported by our proprietary self-owned submarine cable network, our comprehensive co-location services are designed to be flexible, modular, seamless, and scalable in order to meet our customers’ business needs. International Direct Dialing (IDD) We compete in traditional IDD services (non-VoIP) in Indonesia, primarily with IOH. However, due to the development of digital technology, our IDD services also face competition from VoIP and other OTT voice services such as Telegram, FaceTime (iPhone), and WhatsApp. The presence of these OTT services has affected the use of legacy services, which has resulted in decreasing traffic in recent years. 96 Table of Contents Voice over Internet Protocol (VoIP) We have operated our voice service through VoIP technology since 2002. VoIP uses data communications to transfer voice traffic over the internet, which usually provides substantial cost savings to subscribers. Several other companies, including XL Axiata, IOH, PT Atlasat Solusindo, PT Gaharu Sejahtera, PT Telindo Nusantara, PT Quiros Networks, PT Aktif Tengah Malam, PT Jasnita Telkomindo, and PT IP Telecom Multimedia Indonesia also provide licensed VoIP services in Indonesia. Satellite The Asia Pacific region, particularly Southeast Asia, requires satellites on an ongoing basis for telecommunications and broadcasting infrastructure due to the region’s archipelagic nature. The technological capabilities provided by satellites include cellular backhaul, broadband backhaul, enterprise network, military network, Government network, video distribution, video contribution, DTH TV, communication on aviation, maritime, mining, plantation, and for disaster recovery scenario, as well as other satellite-based services. We compete with several other satellite operators with satellites covering Southeast Asia and South Asia, and several operators are in the process of developing satellites with coverage over these regions. Tower Within Indonesia’s tower industry, we operate in a competitive landscape alongside PT Tower Bersama Infrastructure Tbk, PT Profesional Telekomunikasi Indonesia Tbk., PT Centratama Telekomunikasi Indonesia Tbk. and PT Solusi Tunas Pratama Tbk. From 2018 to 2023, industry demand moderated following mobile sector consolidation and spectrum reallocation. While this period limited near-term growth, it also encouraged greater capital discipline, network optimization, and more sustainable industry structures. In 2024, industry activity began to stabilize, supported by continued mergers and acquisitions and selective tower divestments by mobile network operators. These transactions were primarily driven by operators’ need to optimize capital allocation while maintaining network quality and preparing for incremental 5G deployment. During 2023–2025, MNO mergers and strategic alliances further reshaped the competitive landscape, prompting continued divestment of tower assets as operators rebalanced capital toward core network expansion and service quality enhancements. In 2025, despite the ongoing effects of MNO consolidation, the tower sector has demonstrated resilience. Stable long-term contracts, predictable recurring revenues, and continued demand for broader coverage and fiber backhaul have underpinned occupancy levels. Growth remains measured, driven by selective densification in urban and peri-urban areas, fiber-to-the-tower integration, and demand for reliable infrastructure to support evolving data traffic and service quality expectations. The sector continues to benefit from long-term contracts, predictable cash flows, and its role as essential infrastructure underpinning Indonesia’s digital connectivity agenda. The requirement for new tower infrastructure persists, underpinned by continued profitability among mobile operators and the need to extend coverage, particularly outside of Java where market opportunity is substantial. Additionally, investments in complementary services such as fiber connectivity for improved mobile services have spurred tower market growth. In addition to our 5G deployment and the adoption of newer network technologies in anticipation of future demand for services, we are transitioning our tower business towards fiber optic solutions, aligning with global shifts of tower companies evolving into comprehensive infrastructure providers. We have already initiated this transformation and aim to reinforce our tower operations to support Indonesia’s 5G infrastructure development. 97 Table of Contents As of December 31, 2025, we had approximately 44,702 towers, including approximately 40,230 towers owned by Mitratel and approximately 4,472 towers owned by Telkomsel. Legal Basis and Regulation The regulatory framework for the Indonesian telecommunications industry comprises specific laws, Government Regulations, Ministerial Regulations, and Ministerial Decrees enacted and issued from time to time. Telecommunications Law The Indonesian telecommunications sector is primarily governed by the Telecommunications Law, which became effective on September 8, 2000. This law established guidelines for industry reforms, encompassing industry liberalization, the facilitation of new entrants, and enhanced transparency and competition across various business activities. The Telecommunications Law eliminated the concept of “organizing entities” thereby ending our and Indosat’s responsibility for coordinating domestic and international telecommunications services, respectively. To enhance competition, the Telecommunications Law prohibits monopolistic practices and unfair competition among telecommunications operators, aiming to pave the way for market liberalization. The Telecommunications Law was implemented through several Government Regulations, Ministerial Regulations, and Ministerial Decrees. Key regulations include: · Law No. 36 of 1999 on Telecommunications, as partially amended by the Job Creation Law 2023; · Law No. 27 of 2022 on Personal Data Protection; · Government Regulation No. 52 of 2000 on Telecommunication Operations, as partially revoked by Government Regulation No. 46 of 2021 on Post, Telecommunications and Broadcasting; ● Government Regulation No. 53 of 2000 on the Use of Radio Frequency Spectrum and Satellite Orbit, as partially revoked by Government Regulation No. 46 of 2021 on Post, Telecommunications and Broadcasting; ●Government Regulation No. 46 of 2021 on Post, Telecommunications and Broadcasting; ●Government Regulation No. 43 of 2023 on Types and Tariffs for Non-tax Revenue Implemented by MoCD; · MoCD Regulation No. 01/PER/M.KOMINFO/01/2010 on Telecommunications Network Operations as partially revoked by MoCD Regulation No. 5 of 2021 on Telecommunications Operation; · MoCD Regulation No. 20 of 2016 on Data Protection on Electronic System; · MoCD Regulation No. 13 of 2019 on Telecommunications Services Operation, as last amended by MoCD Regulation No. 14 of 2021 on the Third Amendment to MoCD Regulation No. 13 of 2019 on Telecommunications Services Operation; ●MoCD Regulation No. 5 of 2021 on Telecommunications Operation; ​ · MoCD Regulation No. 14 of 2018 on the Fundamental Technical Plan of National Telecommunications; ● MoCD Regulation No. 2 of 2025 on the Amendment to Regulation of the MoCD Regulation No. 2 of 2023 on the Use of Radio Frequency Spectrum Based on Class Permit; 98 Table of Contents · MoCD Regulation No. 11 of 2022 on Governance of Implementation of Electronic Certification; and · MoCD Regulation No. 3 of 2024 on Certification of Telecommunication Equipment and/or Telecommunication Devices. Telecommunications Industry Regulators The authority to regulate the telecommunications industry is vested in MoCD. Pursuant to authorities assigned to it under the Telecommunications Law, MoCD establishes policies, regulates, supervises, and controls the telecommunications industry in Indonesia. MoCD comprises several directorate generals, each authorized to set policies, supervise, evaluate, and report on various derivative aspects of telecommunications industry in Indonesia. Specifically, the DGPIO oversees the postal and telecommunications sectors in Indonesia, including with respect to licensing, numbering, interconnection, USO, and business competition. Additionally, the Directorate General of Post and Informatics Resources and Equipment of MoCD is responsible for regulating matters related to radio frequency spectrum and standardization of telecommunications equipment in Indonesia. Classification and Licensing of Telecommunications Providers The Telecommunications Law organized telecommunications services into following three categories: (i) provision of telecommunications networks, (ii) provision of telecommunications services, and (iii) provision of special telecommunications services. Licenses issued by MoCD are required for each category of telecommunications services. MoCD Regulation No. 13 of 2019 on Telecommunications Services Operation, as last amended by MoCD Regulation No. 14 of 2021 on the Third Amendment to MoCD Regulation No. 13 of 2019 on Telecommunication Services Operations (“MoCD Regulation No. 13/2019, as amended”) regulates all telecommunications services and requires a permit issued by MoCD for the provision of such services by any person. Since 2018, MoCD has transferred a significant portion of its licensing responsibilities to the Online Single Submission (“OSS”) through the enactment of Government Regulation No. 24 of 2018 on Electronic Integrated Business Licensing Services (“GR No. 24/2018”). Consequently, the OSS oversees the administration and issuance processes for the majority of telecommunications business licenses. Designed as an online platform, OSS aims to expedite and simplify the acquisition of business licenses, making it accessible at any time, from any location, for businesses across Indonesia. GR No. 24/2018 also introduces a mandate for any existing or newly established business in Indonesia to obtain an NIB through OSS registration. This NIB serves as a substitute for various other licenses and permits, including customs duties access rights. The NIB is obligatory for businesses seeking to (i) apply for new business licenses and/or commercial or operational licenses, or (ii) extend or modify existing business licenses and/or commercial or operational licenses. To support OSS registration, the Government established The Indonesian Standard Industrial Classification (KBLI) as the official standard for classifying economic activities in Indonesia into specific groups based on shared characteristics through the Central Statistics Agency (BPS) Regulation No. 7 of 2025 on The Indonesian Standard Industrial Classification (revoked BPS Regulation No. 2/2020). BPS Regulation No. 7/2025 has been adjusted to the International Standard Industrial Classification. MoCD requested that all telecommunication providers change their KBLI codes by the latest on June 17, 2026. Cellular Cellular telephone service is provided in Indonesia on radio frequency spectrum in the 1.8 GHz (neutral technology), 2.1 GHz (neutral technology), 900 MHz (neutral technology), and 2.3 GHz (neutral technology). The MoCD regulates the use and allocation of radio frequency spectrum for mobile cellular networks. Telkomsel has obtained 99 Table of Contents frequency allocation for cellular services in the 800 MHz, 900 MHz, 1.8 GHz, 2.1 GHz, and 2.3 GHz frequency bands. The allocation of frequency is regulated by: ● MoCD Decree No. 620 of 2020 (on the Extension of the Stipulation on the 800 MHz, 900 MHz, and 1800 MHz Radio Frequency Bands by PT Telekomunikasi Selular); ● MoCD Decree No. 480 of 2022 (on the Rearrangement of License Holders for the Use of Radio Frequency Spectrum in the 2.1 GHz Radio Frequency Band); ● MoCD Decree No. 356 of 2018 (on the Stipulation of Radio Frequency Bands Resulting from the Refarming of 2.1 GHz Radio Frequency Bands for the Implementation of Cellular Mobile Networks); ● MoCD Decree No. 1896 of 2017 (on the Establishment of PT Telekomunikasi Selular as the Winner of 2.3 GHz Radio Frequency Band User Selection in 2017 for the Implementation of Cellular Mobile Networks); and ● MoCD Decree No. 188 of 2023 (on the Stipulation of the Radio Frequency Band Resulting from the Rearrangement and Approval of the Transfer of the Right to Use the Radio Frequency Spectrum in the 2.3 GHz Radio Frequency Band from PT Telekomunikasi Selular to PT Smart Telecom). Interconnection The Telecommunications Law expressly prohibits monopolistic practices and mandates network providers to facilitate user access across networks on the basis of mutual interconnection agreements. In accordance with GR No. 52/2000, as amended, interconnection fees must be transparent, equitable, and based on mutual consent. On March 31, 2021, MoCD released MoCD Regulation No. 5/2021 which requires that basic telephony service network operators provide interconnection transparently and without discrimination. This regulation enforces that agreements regarding service levels must uphold the quality standards for operation of telecommunications services established by the Director General of Telecommunications to promote healthy business competition, maintain service performance, and protect consumer interests. Such operators must also be ready to implement such IP-based interconnections following pursuant to mutual agreements without altering the existing fee determination process. Such implementation under mutual agreements may continue until the MoCD determines the technical provisions for full IP-based interconnections. Under this regulation, any adjustments to the Reference Interconnection Offer (“RIO”) must be submitted to MoCD. Further, MoCD Regulation No. 5/2021 empowers the DGPIO to evaluate RIOs from operators with a dominant market position, defined as telecommunications network operators that control 50% or more of the total revenue of all telecommunications network operators of basic telephony services. MoCD Regulation No. 5/2021 also sets a transition timeline for interconnection services to move from TDM-based to IP-based interconnection services, between July 1, 2021, and December 31, 2024, with the expectation that all interconnection services will utilize IP technology by January 1, 2025. VoIP In January 2007, the Government implemented interconnection regulations and a five-digit access code system for VoIP services pursuant to MoCD Decree No. 06/P/M.KOMINFO/5/2005 (“MoCD Decree No. 6/2005”). Under MoCD Decree No. 6/2005, the prefix for VoIP, which was originally 01X, was changed to 010XY. On April 27, 2011, MoCD issued Regulation No. 14/PER/M.KOMINFO/04/2011, as partially revoked by MoCD Regulation No. 11/2014 and MoCD Regulation No. 7/2018, as amended, which imposed quality control standards in relation to VoIP services on VoIP providers and this became effective three months thereafter, to which we and other operators must adhere. 100 Table of Contents IPTV In Indonesia, the IPTV business is regulated by MoCD Regulation No. 13/2019, as amended. GR No. 46/2021, as amended, provides that subscription-based broadcasting can be conducted using satellites, cables, and terrestrial transmitters. Broadcasting using satellite can have a nationwide range, while cables and terrestrial transmitters can only cover a particular region. As stipulated by MoCD Regulation No. 13/2019, IPTV services entail the delivery of television, video, audio, text, and data via an IP network, ensuring quality, security, and reliability in facilitating interactive communication between the provider and users. Satellite In Indonesia, the use of radio spectrum frequency for satellites is governed by MoCD Regulation No. 3 of 2025 on the use of Radio Frequency Spectrum for Satellite Service and Satellite Orbit (“MoCD Regulation No. 3/2025”). MoCD Regulation No. 3/2025 requires foreign satellite operators to obtain a landing right license to operate in Indonesia and coordinate with domestic satellite operators, including us, to prevent the operational disruption of Indonesian satellite and terrestrial systems. Additionally, as per GR No. 46/2021, subject to MoCD’s approval, spectrum allocations can be re-assigned to different telecommunications operators, outside of the occurrence of a merger or acquisition. Consumer Protection Under the Telecommunications Law, each network provider is required to protect consumer rights in relation to, among other things, quality of services, tariffs, and compensation. Customers injured or damaged by negligent operations may file claims against negligent providers. Telecommunications consumer protection regulations provide service standards for telecommunications operators. USO All telecommunications operators, whether network or service providers, are required by USO regulation to provide a financial contribution which is used to provide facilities and infrastructure for telecommunications access to certain underserved and undeveloped regions and citizens in Indonesia. MoCD regulations require, among other things, that when selecting a provider of telecommunications access and services in rural areas (as part of the Government’s USO program), the selection process is conducted by the Rural Telecommunications and Informatics Center (Balai Telekomunikasi dan Informatika Pedesaan or “BTIP”). Subsequent regulations renamed BTIP as the Telecommunications and Information Accessibility Agency (Badan Aksesibilitas Telekomunikasi dan Informasi or “BAKTI”). USO payment requirements are calculated as a percentage of our and Telkomsel’s unconsolidated gross revenues, net of bad debts, interconnection charges, and/or connection charges. The USO tariff rate as of the date hereof is 1.25% of gross revenues (excluding certain revenues), net of bad debts and/or interconnection charges and/or connection charges. Regulatory Charges The Government collects several non-tax state revenues from telecommunications providers. For Government spectrum auctions, the Government collects both an upfront fee (equal to twice the offering price submitted by each of the winning bidders) as well as an annual license fee for telecommunications operations (equal to the lowest offering price submitted by all winning bidders). MoCD also collects regular payments from telecommunications operators, calculated based on gross revenues, while deducting both certain receivables that have been written off as well as interconnection fees. Further, telecommunications equipment and devices are subject to a certification fee. Telecommunications equipment and devices that are used for research, development, and disaster response are exempted for an initial period and subsequently only subject to half the commercial certification fee. Telecommunications equipment and devices with local content in excess of 50% are also charged half the certification fee plus a testing fee. 101 Table of Contents Telecommunications Towers Operating telecommunications towers involves a number of relevant Government bodies. On March 30, 2009, the Ministry of Home Affairs Regulation No. 18/2009, Ministry of Public Works Regulation No. 07/PRT/M/2009, MoCD Regulation No. 19/PER.M.KOMINFO/03/2009 and Head of the Investment Coordinating Board Regulation No. 3/P/2009 (on Guidelines For The Construction And Shared Use Of Telecommunications Towers) together, the (“Tower Construction Joint Decree”) were promulgated with the intention of creating a joint system of regulation of telecommunications towers to be implemented by various Government bodies. Based on the Tower Construction Joint Decree, the construction of telecommunications towers requires construction permits from the relevant Governmental authorities. The Tower Construction Joint Decree also stipulates that the construction of telecommunications towers must observe the zoning and spatial planning applicable in the relevant regions of Indonesia. The Tower Construction Joint Decree states that the license for telecommunications tower construction is to be issued by regents or mayors, and for Jakarta Province, its Governor. The Tower Construction Joint Decree also provides tower construction standards and requires that telecommunications towers be made generally available for shared use by telecommunications service providers. The owner of a telecommunications tower is allowed to collect a fee, which is determined by reference to investment and operational costs, return on investment and profits earned. Monopolistic practices in the ownership and management of telecommunications towers are prohibited. The Tower Construction Joint Decree stipulates that telecommunications providers that own telecommunications towers and other tower owners are obligated to allow other telecommunications operators to utilize their telecommunications towers without discrimination, with due regards to the technical capacity of the respective tower. Under GR No. 46/2021, a telecommunications service provider who owns passive telecommunications infrastructure (including telecommunications towers) has to grant access to such infrastructure to other telecommunications providers. GR No. 46/2021 states that such use of passive telecommunications infrastructure must be based on cooperation and mutual agreement between the parties involved in a fair, reasonable, and non-discriminative manner. The terms and conditions of any such cooperation agreement to be entered into by telecommunications operators still remain to be seen, pending the issuance of further guidelines by MoCD (if any). The Ministry of Internal Affairs Regulation No. 19 of 2016 on the Guidelines for the Management of Regional Assets, as last amended by the Ministry of Internal Affairs Regulation No. 7 of 2024 (“MoIA 19/2016”), outlines the factors to be considered when adjusting lease rates for Regional Assets (Barang Milik Daerah or “BMD”) in the form of land used for various types of infrastructure, including telecommunications and informatics infrastructure. Specifically, for the lease of land for telecommunications infrastructure, if the leased land does not include integrated utility network facilities or pathways, the lease rate is set at 0% of the base lease rate. As a result, the BMD lease rate is determined solely by the base lease rate, without any additional adjustment factors applied for telecommunications and informatics infrastructure. Content Provider Services Content provider service is regulated by MoCD in accordance with MoCD Regulation No. 13/2019, as amended. C. ORGANIZATIONAL STRUCTURE We employ a strategic control framework for the management of our Group, which we believe provides our subsidiaries with operational flexibility tailored to their business needs and characteristics. Our corporate office outlines the overall corporate strategy and then delegates its implementation to each Directorate and Regional Business Unit accordingly. This structure, centered around customer segmentation and geography, allows us to manage emerging business challenges while aligning our operations with our diverse business portfolios. We have eight directorates: 102 Table of Contents ● The Enterprise and Business Service Directorate (“EBIS”) is responsible for business strategy and architecture for our enterprise segment, with the objective of growing our enterprise business portfolio within our Group in accordance with applicable Company policies and regulations. ● The Wholesale and International Service Directorate (“WINS”) is responsible for business strategy and architecture for our wholesale and international segment, with the objective of growing our wholesale and international business portfolio within our Group in accordance with applicable Company policies and regulations. ● The Strategic Business Development and Portfolio Directorate (“SBDP”) is responsible for value creation and business development through end-to-end corporate strategy management, investments, partnerships, and the optimization of value in our subsidiaries and affiliates to meet our corporate strategic objectives. ● The Information Technology Directorate (“IT Directorate”) is responsible for the end-to-end development and management of our IT and digital products, leveraging our core digital IT capabilities to generate value and ensure consistent management of IT and digital functions across our Group. ● The Network Directorate is responsible for network strategy, technology, architecture, cybersecurity, and our digital connectivity and cybersecurity service roadmap. Its mandate is to enhance our capabilities, improve operational efficiency through the provision of infrastructure and services, and prioritize investment in future network infrastructure. ● The Finance and Risk Management Directorate (“KMR”) is responsible for financial strategy, policies, and operations, as well as asset management, risk management, investor relations, and inorganic business development, in each case in accordance with applicable Company policies and regulations. ● The Human Capital Management Directorate (“HCM”) serves as a strategic business partner to our business lines and oversees our human capital management functions. HCM supports our business units and subsidiaries through centers of excellence, provides guidance on human capital strategy and policy, and oversees talent management systems across our Group. ● The Legal and Compliance Directorate (“L&C”) is responsible for the comprehensive management of our legal, governance, and compliance matters, providing strategic and operational legal support for our businesses within our Governance, Risk, and Compliance (“GRC”) framework. For a list of our subsidiaries and their countries of incorporation, see Exhibit 8.1 to this Form 20-F. A complete list of our subsidiaries and investments in associated companies, and our ownership percentage of each entity, as of December 31, 2025, is disclosed in Notes 1d and 11 to our Consolidated Financial Statements. 103 Table of Contents The following diagram illustrates our corporate structure of our principal operating entities as of the date of this report: ​ D. PROPERTY, EQUIPMENT AND RIGHT OF USE ASSETS Our property and equipment are primarily used for telecommunications operations, which mainly consist of transmission and installation equipment, cable network and in turn consist of (i) switching equipment, (ii) telegraph, telex, and data communication equipment, (iii) transmission installation and equipment, (iv) satellite, earth station, and equipment, (v) cable network, (vi) power supply, (vii) data processing equipment, (viii) drop cable, and (ix) other telecommunication peripherals collectively grouped as ‘telecommunication infrastructure’. A description of these is contained in Note 12 to our Consolidated Financial Statements and “— Business Overview — Network Infrastructure and Development.” See also “Item 5B — Liquidity and Capital Resources — Capital Expenditures” for material plans to construct, expand or improve our property and equipment. Except for ownership rights granted to individuals in Indonesia, reversionary rights to land rests with the Government, pursuant to Agrarian Law No. 5 of 1960. Land title is designated through land rights, including Right to Build (Hak Guna Bangunan or “HGB”) and Right of Use (Hak Guna). Both rights stipulate that title holders enjoy full use of the land for a specified period, subject to renewal and extensions. In most instances, land rights are part of right-of-use assets, freely tradable and may be placed as security under loan agreements. We lease several parcels of land located throughout Indonesia together with rights to build and use such land for periods varying from 1-50 years, which will expire between 2026 and 2071. In 2025, there were deductions in Group leases, including expired leases and reclassifications related to land rights, buildings, transmission, installations, equipment, vehicles, and other assets used in operations, amounting to Rp910 billion. We hold registered rights to build and right to use for most of our properties. Pursuant to Government Regulation No. 18 of 2021 on Right to Manage, Land Right, Apartment Unit, and Land Registration, the maximum initial period for the right to build is 30 years and is extendable for up to an additional 20 years plus up to another additional period of 30 years. 104 Table of Contents The right to build can be further renewed for an additional period of 30 years. We are not aware of any environmental issues that could affect the utilization of our property and equipment and right-of-use assets. Please refer to Notes 12 and 13 to our Consolidated Financial Statements. All assets owned by our Company have been pledged as collateral for bonds. Please refer to Note 12b to our Consolidated Financial Statements. Certain property and equipment of our subsidiaries with an aggregate gross carrying value amounting to Rp2,205 billion (US$137 million) as of December 31, 2025, have been placed as collateral for loan agreements. Please refer to Notes 12b(vii) to our Consolidated Financial Statements. In 2025, we implemented a voluntary change in accounting policy concerning the componentization and determination of the unit of account for certain assets, namely drop cable assets. See “Item 5. Operating and Financial Review and Prospects – Principal Factors Affecting our Financial Condition and Results of Operations – Voluntary Change in Accounting Policy” for further information on this voluntary change of accounting policy. Following the identification of drop cable assets as a separate component, we determined that the useful life of these assets should be five years, reflecting their specific characteristics and pattern of economic benefits consumption. Insurance As of December 31, 2025, our property and equipment (excluding land rights), with a net carrying amount of Rp160,374 billion was insured against fire, theft, earthquake and other specified risks, under blanket policies totaling Rp44,267 billion, HK$35 million, SG$197 million, and MYR46 million, and first loss basis amounted to Rp2,750 billion. We believe that the insurance coverage is adequate to cover potential losses from the insured risks. Disclosure of Iranian Activities under Section 13(r) of the Exchange Act Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 added Section 13(r) to the Exchange Act. Section 13(r) requires an issuer to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with designated natural persons or entities involved in terrorism or the proliferation of weapons of mass destruction. Disclosure is required even where the activities, transactions or dealings are conducted outside the United States by non-United States affiliates in compliance with applicable law, and whether or not the activities are sanctionable under U.S. law. As of the date of this report, we are not aware of any activity, transaction or dealing by us or any of our affiliates in 2025 that requires disclosure in this report under Section 13(r) of the Exchange Act, except as set forth below. Telkomsel, our subsidiary, is party to international roaming agreements with Mobile Telecommunication Company of Iran and Irancell Telecommunications Services Company, which are or may be Government-controlled entities. In 2025, we recorded gross revenues of US$4,304 from transactions under these agreements. The amount of our net profits earned under these agreements is not determinable, but it does not exceed our gross revenues from these agreements. The purpose of these agreements is to provide Telkomsel’s customers with coverage in areas where Telkomsel does not own networks, and for this reason Telkomsel intends to continue the activities covered by these agreements. We also provide telecommunication services in the ordinary course of business to the Embassy of Iran in Jakarta, Indonesia. We recorded gross revenues of approximately Rp16.7 million from these services in 2025. The amount of our net profits earned under these services is not determinable, but it does not exceed our gross revenues from these services. As one of the primary providers of telecommunication services in Indonesia, we intend to continue providing such services, as we provide to the embassies of many other nations. ​ 105 Table of Contents