Jakarta. State-controlled telecommunications giant Telkom Indonesia (IDX: TLKM) plans to buy back up to Rp 4 trillion ($221.8 million) worth of its shares, a move aimed at reinforcing investor confidence in the company's long-term value and growth prospects.

The proposed buyback will be submitted for shareholder approval at the company's annual general meeting on Monday. If approved, the program will run from June 9, 2026, to June 8, 2027.

"Through this share buyback, the company aims to strengthen confidence in its long-term value and future prospects," management said in a disclosure to the Indonesia Stock Exchange on Friday.

Telkom said the buyback is intended to maintain alignment between market conditions and the company's underlying fundamentals, while preserving stakeholder confidence as it pursues sustainable growth.

The company also emphasized that the buyback will not have a material impact on its business operations. Telkom said its working capital and cash flow remain sufficient to fund the share repurchase program while continuing to support day-to-day operations and business expansion.

"This corporate action will not affect the company's revenue," management said.

The buyback will be financed through the optimization of the company's cash reserves. Telkom stressed that the funding will not come from proceeds of any public offering, nor from loans or other forms of debt financing.

As of 11:39 a.m. Jakarta time, Telkom Indonesia's shares traded 1.38% lower, shedding 40 points and bringing the company's market capitalization to Rp 283.32 trillion.