Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) Down 10.7% — Time to Throw in the Towel?
Key Points
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) came under heavy pressure in the latest session, sliding 10.71% and losing $2.51 to close at $20.92. The stock retreated sharply from its previous close of $23.43, marking one of its more aggressive single-day pullbacks in recent months. Trading activity was subdued relative to normal conditions, with roughly 195,700 shares changing hands versus a 90-day average closer to 475,000, suggesting this steep move unfolded on lighter-than-usual participation. Even so, the price action leaves the stock visibly on the back foot, with sellers firmly in control by the closing bell.
The latest decline also pushes TLK further away from its recent 52-week peak of $23.52, reached on Jan. 27, 2026. From that high-water mark, the stock is now down more than 11%, underscoring how quickly momentum has reversed and how the shares are losing ground after testing their upper range. Within the broader telecommunications space, peers such as AST SpaceMobile (ASTS), Lumen Technologies (LUMN), and Telephone and Data Systems (TDS) have also experienced bouts of weakness in recent months, highlighting a sector that has generally been struggling to sustain rallies. Against this backdrop, TLK’s sharp retreat stands out as a particularly notable bout of downside price action, reinforcing the impression that the stock is currently facing headwinds rather than building a durable base of support.
Why Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk Price is Moving Lower
Despite the recent short-term bounce, TLK’s advance is occurring against a backdrop of fundamental and sentiment headwinds that can justify renewed downside pressure. The stock has delivered a strong one-year gain of about 45%, yet this outperformance has come without fresh company-specific catalysts or major strategic developments in the past week, raising concerns that recent buyers may be chasing momentum rather than sustainable earnings power. Quarterly revenue contraction of roughly 4.5% points to a business that is shrinking at the top line, a troubling signal in a capital-intensive industry where scale and network investment are critical. With earnings per share of just $0.01, the current valuation embeds expectations that may be difficult to meet if revenue and profit trends do not improve meaningfully.
At the same time, the exceptionally high dividend yield north of 11% can be interpreted as a sign of market skepticism rather than strength, suggesting investors are demanding a sizable cash return to compensate for perceived risk. Trading volume has also come in below its 90-day average, hinting that the latest move lacks broad institutional conviction and may be vulnerable to reversal. Sector peers in Telecommunication Services have struggled with sluggish growth, heavy capital requirements, and competitive pricing pressure, and TLK is unlikely to be fully insulated from those structural challenges. In this context, the recent price strength looks fragile, and any disappointment on earnings, cash flows, or capital allocation could quickly put renewed downside pressure on the shares.
What is the Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk Rating - Should I Sell?
Weiss Ratings assigns TLK a D rating. Current recommendation is Sell. This weak overall risk/reward profile signals that, despite some operational strengths, shareholders have not been adequately compensated for the risks taken. For investors, a D means TLK has underperformed vs. safer alternatives and does not meet the standards we look for in a core long-term holding.
The D rating is heavily influenced by the Weak Growth Index and Weak Total Return Index. Revenue is contracting, with a -4.54% decline, raising concerns about the company’s ability to sustain future earnings. At the same time, the stock’s performance has failed to reward investors, indicating that the market has already been discounting these issues. The Weak Volatility Index further suggests unfavorable risk dynamics, where downside pressure has outweighed any meaningful upside.
Operationally, TLK does have notable positives. The Excellent Efficiency Index, supported by a 17.91% return on equity and a 14.77% profit margin, shows management is extracting strong profitability from the capital employed. The Good Solvency Index also points to a balance sheet that, on its own, does not appear distressed. However, these strengths are overshadowed by a highly stretched forward P/E ratio of 1,722.79, which leaves little room for error and magnifies valuation risk if fundamentals deteriorate further.
Within Communication Services, TLK’s D rating places it marginally above other challenged names such as AST SpaceMobile, Inc. (ASTS, D-) and Lumen Technologies, Inc. (LUMN, D-), and slightly below Telephone and Data Systems, Inc. (TDS, D+). In this context, TLK does not stand out as a relatively safer choice in a risky corner of the market.
About Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk is a state-controlled telecommunications operator based in Indonesia. Operating within the Communication Services sector and the Telecommunication Services industry, the company provides fixed-line, mobile, and broadband connectivity across a large, geographically fragmented market. Beyond basic voice and data, it delivers internet access, digital platforms, and enterprise connectivity solutions that are critical for both consumer and business communications in Indonesia. Its operations span urban centers and more remote regions, requiring extensive network infrastructure and ongoing investment simply to maintain service quality and coverage.
The company also offers information and communications technology (ICT) solutions, data center and cloud services, and various digital applications targeted at corporate, government, and wholesale customers. Although TLK benefits from its entrenched position and broad network footprint, it operates in an environment marked by intense price competition, ongoing regulatory oversight, and technological disruption. The need to continuously upgrade networks to newer technologies, support rising data traffic, and defend market share against alternative platforms puts sustained pressure on its traditional telecommunication services model. As the industry shifts from legacy voice toward data-heavy services and over-the-top applications, the company’s ability to adapt its product mix and service offerings remains a central challenge in maintaining relevance in the Communication Services landscape.
Investor Outlook
With Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (TLK) holding a D (Sell) Weiss Rating, investors may want to exercise caution and closely monitor how company-specific risks interact with broader Communication Services sector trends. Watch for any meaningful improvement in operating performance, risk profile, and relative sector strength that could justify a rating change, and track how the stock behaves around key technical and sentiment levels. See full rankings of all D-rated Communication Services stocks inside the Weiss Stock Screener.
--