Thank you, Desmond. Good afternoon, everyone.

Thanks for joining us today. With us on the call today, we have Pak Vikram Sinha, our Chief Executive Officer; Pak Nicky Lee, our Chief Financial Officer; and Pak Bilal Kazmi, our Chief Operating Officer.

I will now hand over the call to Pak Vikram for his opening remarks. Over to you, sir.

Thanks, Indar. Good afternoon, everyone.

I am proud to report a strong start to 2026 with a solid set of results in the first quarter. I would like to share with you some of the key highlights where we are seeing strong performance across our financial metrics, where we recorded strong growth in revenue, EBITDA, and net profit.

Our operational metrics are also moving in the right direction, and we are seeing momentum across our business lines. If you go to the next slide, we have carried the strong momentum that we saw in the second half of last year into 2026 with strong double-digit growth in the Q1 of 2026.

Thus across revenue, EBITDA, and net profit, we saw an increase of 12% year-on-year, 13% year-on-year, and 26% year-on-year, respectively. This quarter we also achieved a customer ARPU of 45,000, which is 15% year-on-year increase, with the highest quarter ARPU since our merger.

We remain committed to realizing Indonesia potential on ARPU, and there is still upside on ARPU from here. Next slide.

We have launched a first-in-its-kind partnership in Indonesia with collaboration with Google Gemini. Under this partnership, we will offer bundled Google Gemini subscription to our customer along with the data packages.

Not only will this be customer ARPU enhancing, but it will also position IOH as the AI leader on the front end as well as bringing real-world application to our customers. This will further strengthen our AI portfolio along with anti-spam and scam offering and our own LLM, Sahabat-AI.

We continue to look for ways to expand our portfolio with more planned partnership for the future. IOH is committed to build the digital economy in Indonesia.

With the spectrum auction underway and scheduled to be completed this quarter, Komdigi, which is the Ministry of Communication and Digital, has designed the spectrum auction very well, with a good forward-looking framework, ensuring that every operator will get enough spectrum for their 5G investment. It is good to be late on the 5G investment cycle, as we have the benefit of learning from rollouts in other countries, as well as equipment price for 5G is significantly down.

We have also seen improved handset penetration on 5G. We will utilize our AI and data-driven modeling to give us the most optimal rollout on 5G, on focusing on giving our customer a great 5G experience.

Our FiberCo asset monetization, we will unlock value for IOH and all our stakeholders, is remain on track. We are currently in the process of the operational company being set up in compliance with regulatory requirement, and we remain on schedule for closing it in Q3 2026.

Our AI neo-cloud business is also performing very well. After recording $28 million US dollar revenue in 2025, we have recorded $16 million revenue in the first quarter of 2026, putting us well on track to achieve the full-year revenue guidance which we have given earlier of around $60 million US dollar for 2026.

Our firm contracted revenue for AI neo-cloud amount to USD 170 million, which will be recognized over a period of 3 years. Importantly, this business is EPS accretive from day one, while also being FCF positive.

Having set the foundation in 2025, we are ready to scale in 2026, and getting a lot of demand in this business, which we will share more updates on the coming months. Finally, our guidance for 2026, we are seeing very strong growth so far in the first quarter of the year, and we are tracking ahead of our guidance.

We will be reviewing our guidance, and if necessary, will update it again in the next quarter. I will now hand over to Nicky for more detailed financial presentation.

Thank you, Pak Vikram. I am delighted to report a solid set of the first quarter results as we start 2026 on an encouraging note.

Our first quarter revenue rose by 12.1% year-on-year to 15.2 trillion, supported by strong performance across all segments. The primary driver was cellular revenue, where our ARPU improvement journey continues its steady upward trajectory quarter-on-quarter, as we execute our strategy to accelerate growth through AI and an enhanced network experience.

This was further complemented by our MIDI segment, underpinned by GPU revenue. Below the revenue line, we delivered a 12.9% year-on-year improvement in EBITDA, which outpaced revenue growth, reflecting our strict focus on cost leadership to growth.

I will elaborate further our costs in the opex section. As a result, our EBITDA margin rose by 0.4 percentage point to 47.6%.

Normalized NPAT increased by 26.2% year-on-year, mainly driven by higher EBITDA, partially offset by higher D&A from investment in network, GPU infrastructure, and other one-offs, mostly in quarter four of last year. Our net debt to EBITDA ratio continued to come down, as it improved by 0.05x to 0.31 times, underscoring our commitment to maintaining a healthy balance sheet.

Moving on to the next slide, on a quarter-on-quarter basis, revenue declined slightly by 0.9%, reflecting normal seasonality, as Q1 typically as Q1 has fewer calendar days than Q4. If we would adjust for the number of days, the underlying revenue trend remains positive.

Supported by continued cost leadership initiatives, absolute EBITDA remained flat quarter-on-quarter, resulting in EBITDA margin expansion of 0.4 percentage points. At the bottom line level, net profit decrease quarter-on-quarter on both reported and normalized basis by 22% and 27%, respectively.

Again, this is mostly due to one-off benefit we have booked in previous year, and also in Q4 last year. We move on to look at our cost analysis.

During first quarter 2026, operating expenses increased on a on a year-on-year basis, driven mainly by higher cost of services to provide to support ongoing revenue growth. Personnel costs also rose, reflecting higher variable performance-based compensation for bonuses and incentives.

On a year-on-year basis, cost of services rose 7%, primarily driven by installation and partnership costs, supporting higher MIDI and VAS revenue. Quarter-on-quarter basis, cost of services shrink by 2%, also due to changes in installation and partnership costs.

Due to the reason I mentioned earlier, partnership costs sorry, personnel costs grew by 52% year-on-year and 8% quarter-on-quarter. There was some one-off adjustment in prior year first quarter amounting to 93 billion relating to bonus reversal, and we didn't have that this year.

Marketing expenses dropped by 2% year-on-year and 12% quarter-on-quarter, reflecting a strategic shift towards more targeted and cost-efficient digital marketing initiatives. G&A expenses also dropped by 2% year-on-year and 24% quarter-on-quarter, again underscoring our continued effort to control spending.

Overall, for first quarter 2026, cost of sales and opex increased by 1.4% year-on-year, and on a quarter-on-quarter basis, a reduction 1.6%. Depreciation and amortization expenses up by 5% year-on-year and 4% quarter-on-quarter, respectively, primarily due to acceleration of FTTH customer contract amortization and finance lease charges additions.

In Q1 2026, other operating expense recorded a net expense of 112 billion, compared to a net income of 300 billion in first quarter 2025. This variance was primarily attributable to one-off project provision, lower prior-year tax provision reversal, and operational one-off gains.

Most all of the movement is to do with one-offs. On a quarter-on-quarter basis, there was a one-off gain on investment and and reversal of other provisions in Q4 of last year, accounting for the difference.

We move on to take a look at our capex spending. We have spent more capex in the first quarter, 59.6% year-on-year and 64.6% quarter-on-quarter.

This underscored our commitment to strategic capex investments for medium and long term. As of the first quarter, the capex constitute 32% of our full-year guidance of 13 trillion.

Let's move on to our net debt. We continued to strengthen our capital structure, with net debt reducing 9.2% year-on-year and 17.9% quarter-on-quarter.

Solid EBITDA further enhanced our leverage profile, driving an improvement of 0.05x year-on-year and 0.08 times quarter-on-quarter in our net debt to EBITDA ratio. That's all I have prepared to summarize for this quarter.

Thank you very much, and I will hand over the time to Pak Bilal for the operational performance update.

Thank you, Pak Nicky, and hello, everyone. On the operational metrics is happy to reinforce the message from Pak Vikram as the key highlight of performance is the ARPU growth of 15% on a steady customer base, and this is also backed by healthy traffic growth.

Equally important to report is the growth of fiber-to-the-home customers, whereby we added approximately 80,000 customers through the course of the year. Coming back to ARPU growth, it stands on two key pillars.

One is our 5G investment, and then it is reinforced by AI-based services. We have our flagship set spam service, which covers one of Indonesia's biggest problems, scamming as well as spamming.

In recent times, we have further strengthened it by Sahabat-AI, which is a unique large language model in five local languages. Of course, very recently, our global AI partnership with Google.

Thank you.

Thanks. [clears throat] Desmond, can we go to the question-and-answer queue?

We'll take the first question now.

Hi. Congrats for a good set of numbers.

Just two questions. Now that the ARPU has gone to 45, which is 45,000, which is similar to what Telkomsel has, essentially there's no difference.

Almost the gap has been narrowed and almost zero gap. How do we think about the ARPU given the macro conditions, that is there a lot of reliance on rest of the players raising the tariff so that, again, the trend can move, or we should expect a stable ARPU at least for the next one to two quarters, given that there's a very good progress made in 1Q?

That's question number one. Question number two is the guidance is for a stable margins for this year.

Now with actually scaling up of your AI services with a very good revenue growth, just trying to understand what are the levers here that you are worried about and not guiding for any expansion in the margins at the EBITDA level? Thank you.

Hi Sachin, this is Vikram. Your first question, ARPU, I think I spoke on my opening remarks, we believe there is a lot more upside opportunity on ARPU, and the reason why I say, look at still, cellular spend to GDP and all, this is lowest in the world.

Yes, I think there is a convergence now, we have come a long way on ARPU. I think the important thing I want to highlight is two.

One, all these AI and especially digital services which we are bringing and lot of new AI services, we see a lot more opportunity on ARPU as upside, and you would have seen on our data traffic growth also. Not only price up, there will be more opportunity on customer using more data.

We used to be in the connectivity business for decade. Now we have the opportunity to democratize intelligence and also monetize that.

That journey has started. Our partnerships with Gemini Pro has given some good early number, and that will help us on ARPU growth in the coming quarter.

There are more AI product, on the pipeline, which gives us lot of confidence that the ARPU growth journey will continue. In terms of price upside, I think there is an opportunity there, but again, we will want to make sure that we also ensure and drive the market in the right direction.

Got it. Got it.

Nicky, you want to take the

second? Hi Sachin.

Thank you for your question. This is Nicky here.

On the guidance, yes, we have started a year on a very strong note and are on track to beat our guidance based on the Q1 performance. We will continuously review our performance, knowing the market could be volatile, there could be unknown for the rest of the year.

We will review and share our view in the coming quarter. Yeah.

Just to understand, what are the risks that you are seeing, yeah.

Just to build on what Nicky said, there is no concern. It is just that we want to stay little conservative.

For sure, today we are looking at 13% EBITDA growth, 12% revenue growth. This was the first quarter where full Lebaran and everything was there.

After Q2, if needed, we'll review the guidance.

Got it, great. Okay.

Thank you. Thank you.

Hi, good evening. Can you hear me?

Hi Ranjan, yes.

Hi. Good afternoon.

Thank you so much for taking the time and for the presentation. Just a couple of questions from my side.

Sorry to harp on this again, but on the guidance, if I just annualize your first quarter performance, we get to a 9% growth. Are there any earnings headwinds that you are anticipating or trying to safeguard against so that you're not raising the guidance?

Because everything that you've said indicates that the earnings should keep growing. The second question is on the personnel cost.

It's a pretty sharp jump, and it's a seasonality we have not really seen in the previous years. How should we think about the personnel cost trending in the coming periods?

The last question is as you grow your earnings base while your capex is stable, and you're going to monetize your fiber assets, will you be looking to pay down the debt or is that something that you could use to upstream to shareholders? Thank you.

Hi Ranjan, this is Vikram. On guidance, your observation is very correct.

We are, as we speak today, we are on 12% year-on-year revenue growth, 13% EBITDA growth. We are seeing a very healthy April number also.

It is just that we took a call that we will revisit at end of H1. You will hear more.

There is nothing else other than that. It looks very confident and healthy that we are heading towards a very strong double-digit growth for full year.

On the personnel cost, last year was a tough year, and last year was the first time where we had to revise the guidance. That is why we have been more cautious on guiding the market.

Last year was a very unique year where, because of last two quarter of good performance, we had to provision some bonuses and more than what we were expecting. Otherwise, you will see all these things getting better.

Overall, our people cost to revenues and all, all these metrics are only improving. This Q4 number for last year, because we had two good back-to-back quarter last year, and then we had to provision for some budget on bonuses which we had not thought earlier.

Yes, Sachin, this is Nicky here. If I may build on what Vikram share, particularly on personnel expense, it just follow our pay-for-culture performance.

If you look at Q1 last year, it was around 800 billion, and it also went up to 1.1 billion in Q4, 1.1 trillion in Q4, right? Then this year a little bit more, because our performance continue to improve.

There was a bit of a overprovision made in Q1 2025, and we reverse it because the performance was not good. Now we're actually in a good problem in Q1 this year, performance was better than expected, we paid more incentives and bonus following that.

We're happy with this problem. Got it.

Yes, on the fiber transaction, we're still focusing on working on the process to complete the transaction. We have not made any decision on the use of proceeds.

Got it. Thank you.

Thank you.

Hi, good afternoon, management. Thank you so much for the call, and congratulations on the good set of results.

First question on data traffic growth. Data traffic continued to grow very strongly this quarter, actually even stronger than the growth that we saw in 4Q last year.

How should we think about growth from here? Understand that you mentioned that with AI, etc., there could be slightly faster growth.

Also, in addition to that, how should we think about data yields? I think they've largely remained stable, marginal increase this quarter.

Any color you can share on that. Secondly, on capex, can we see some upside to full-year numbers given that this quarter we did around 32% of the full-year guidance?

Hi Sukriti, this is Vikram. I think yes, we have been seeing very healthy data traffic growth, and the good news is, growth of data traffic and revenue growth is quite good mix.

We all need to understand we are getting into a AI super cycle, and telco is in a very unique position, and we want to be ahead of the curve on making sure that we are monetizing this AI super cycle. We are doing a lot of things around AI grid, getting applications.

You have seen some example, and there are many more which is planned. That is why we're very confident of keep increasing the ARPU from here onwards also.

I think the right metric to look at is ARPU, and there has to be a good balance between revenue and data traffic growth. Yield is not a relevant metric at this scale for us, because the cost of incremental yield production is negligible, and what metric we are tracking is ARPU number one, number two, traffic.

If traffic is growing 25%, revenue growing 12, 13% is a very healthy mix. There used to be a time where traffic is growing 60% and revenue is growing 5%.

That's not a good place to be in. Yield is not what we look at nowadays.

Sukriti, on your capex question, if I can take it, I think there are two parts to it. One is the 32% of our full-year guidance, I think that's a combined effect of one, the consumption has gone up, we need to bring in more capex to cater for it.

The more important point is we made a conscious decision to spend the capex in the early part of the year so that we will be able to get the full-year benefit of the capex spending. In terms of our guidance, we are comfortable with the guidance for what we are doing today.

Given 5G spectrum allocation will happen, we will monitor and we will review what will be our capex spending going forward, and we will update, if needed, in the coming quarters.

Understood. Thank you for that.

If I could just quickly follow up also on the personnel cost question earlier, just wanted to understand if we continue performing well, understand that the first three quarters last year were subdued in terms of performance, but personnel cost was probably lower as a percentage of sales? Should we go back to where 2024 levels were in terms of percentage of sales figure?

I think with the expectation will continue to do well in the rest of the year, we will be happy to pay more bonuses and incentives. What we're booking in Q1 would be more representative of our cost base going forward, assuming we will continue to deliver double-digit revenue growth.

Understood. Very clear.

Thank you so much, Pak Vikram and Pak Nicky.

Hi. Good afternoon, and congrats for the good set of numbers.

Three questions. Firstly, we saw ARPU improving sequentially, but if I look at the mobile revenues, it's almost flat if I exclude the interconnection revenue, implying average subs is down.

Could you elaborate what is leading to average subs down, and how are the trends in the month of April, and how's the trend for the churn rate? Second question is what's the 5G handset penetration in our customer base?

Thirdly, as AI neo-cloud is scaling up, could you now share what is the return on invested capital for this segment? Thank you.

Hi Piyush, this is Vikram. I think if you look at quarter-on-quarter revenue also, this is historically, generally quarter one is below quarter two, but our B2C revenue when you look at quarter-on-quarter, this is also I think close to 1% up.

Overall, if I have understood your question right, we see a clear strong momentum, stable base, ARPU growing, and we see that trend continuing. What need to keep in mind is this quarter was a full quarter of Lebaran, and we need to make sure that how we can build on quarter two both revenue and ARPU better than quarter one, and that is what our intent is.

You should wait for one more quarter, you will get a more clearer trend once we announce our H1 result. On handset penetration, we don't give the number exact, but I highlighted in my opening remarks, sometime it is good to be late, and 5G is a cycle where Indonesia as a country, today the spectrum detail has also been announced.

I must share it has been a very progressive thing which the Ministry and Komdigi has done, the way they have structured it. The prices for spectrum, on reference case to what has happened earlier, first time I see coming down significantly, which is very good for the industry.

It will help us on the overall digital economy and the digital ecosystem which the country need. It will help us on the 5G investment cycle.

The penetration level is quite healthy. There were countries who were launching 5G without having 5G handset, I think we are in a good place, but we don't disclose the exact percentage.

Hi Piyush, this is Nicky here. On the ROIC, on unleveraged basis is around mid-teens.

All these contracts, whether in respect of the one we have or the ones we are discussing, they come in with different terms and condition. Like the GP200 we have, actually we don't need to make any investment.

We receive all of our investment upfront, there's no investment. If I assume that I have to make investment on day one, then it would be the mid-teen number I'm talking about.

Hi Piyush, this is Bilal. On your question on ARPU trending, we stated here the average ARPU.

However, one interesting data point for you would be that our Q1 exit ARPU is actually 48.6k, it continues to trend positively.

You mentioned exit ARPU is 48.6k? Is that right?

That's right.

Okay. That's very strong.

All right. Thanks a lot.

Thanks, Pak Vikram, Pak Nicky, and Pak Bilal.

Hi, thank you for the opportunity again. On the upcoming spectrum auctions, is there any details that you can share, like on the reserve price, what are the frequencies that might seem interesting to you?

I know there are some commercial sensitivities in place, so that you might not be able to say a lot. Is there anything that we can help us understand how the spectrum is going to be allocated?

Thank you.

Ranjan, this is Vikram. Today only, I think we got the detailed paper, we are analyzing.

Two key messages. One, the way blocking has been done, all the operator will be in a good position to get it.

There is not too much of if you go at a reserve price, you get one block, there is no need of too much of competing on paying higher price. It has been extremely well designed.

First time I have seen so much forward-looking to support the whole digital economy. On the reserve price, we are still analyzing the number, but directionally the prices, if you look at the reference 700 if you put it to the reference of 900 or 2600 if you put it to the reference of 2100, I think the reserve price have come down by 60 to 70%.

First time we have seen that the Ministry is focusing more on developing the whole digital ecosystem instead of just focusing on spectrum. Spectrum always used to be one of the highest price in the world, I think it is very impressive the way they have done this time.

Okay. That is quite startling.

Good to hear. Can I request if it's possible to share the document so we can analyze as well?

It will be available in public domain by tomorrow, you just wait till tomorrow. I'm sure you will have access to such document.

Okay. Thank you very much, and good luck.

Desmond, can we have the next question?

thank you. Just a question on your AI neo-cloud service, because you're consolidating into a separate segment.

Just want to get some color. There is a talk about basically the whole data center there's a big supply shortage.

How do you stand? Now that you already have a contracted revenue, are you seeing the benefits in any form that can spill over to you, whether it's through revision in the pricing for those contracts or for the new contracts, or any color that you can share where there seems to be complete shortage of AI-ready data center space?

The high demand and supply shortage, how can Indosat benefit from it?

Sachin, thank you for asking this question. You are absolutely right.

There is a significant demand and shortage of the whole supply chain ecosystem. One data point I can tell you, the first lot of H100, which we had got, there were few customer which came for renewal.

It was an annual contract. The prices have gone up by 25%.

We are renewing customer of H100. First time this has happened.

Earlier the prices was coming down, because after H100 the B series came, the Blackwell, and now we have Vera Rubin also. When we are renewing some of the H100 also, the prices have gone up.

That shows how much shortage it is, and it will help us. Second, I think what we are showing here is only the contracted customer where the revenues are all contracted.

Nicky also highlighted, because it has been very positive to our P&L from day zero, the way we have constructed this. We are seeing lot more demand, and we are also considering how do we scale up this.

With the scale going to next level, there are few options which we are looking at. I think within one quarter, we will be in a position to give you more clarity.

We have been able to get support on the whole supply chain. We have been able to close few more contracts, but we are not factoring all those things now.

At the right time, we will come back to you on the update on that.

How So, does it mean that almost 100% of your ready capacity is on lease now or no, it is less than 100%? How do we think about, let's say, in the over the next few months if not years, because over the years we know a lot of new capacity will come on stream.

Over the few months, next few months?

I think for next few months, everything is all sold out and leased out,

there is very

small portion which is coming for renewal. What came for renewal, I told you, there was a upside of 15, 20%.

I think the other good news is the useful life. We always thought that it is 5 year, and we worked on 5-year depreciation.

I think it is getting more clearer, the useful life is much more than 5 year. One of the customer we have contracted on H100 now is 5.

When I look at the useful life of my H100, it's very clear it will be 6 year for sure. That is another thing which we are seeing.

Exactly, because GPUs are being used for inferencing, H100 should be good enough for inferencing, in fact. I think there's a chance of even longer life, right?

100%. What I'm telling you is confirmed, people have contracted.

Got it. Got it.

This extension of useful life, that's also I think is very positive for the whole industry.

Yes.

Okay. Thank you.

Thank you, Pak Vikram, yeah.

Thank you for taking my follow-up. Just wanted to quickly understand on the Gemini partnership that you have with Google.

This is right now a value-added service that you're offering, how should we think about any ARPU upside from this? Are you seeing any shift of customers from lower to higher-value packs as a result of such a value-add service?

Assuming this is not exclusive, do you expect other players also start launching something similar? What could be the potential impact of that?

Hi Sukriti. In terms of our approach, this is one of the product.

We had spam scam, then we have Sahabat-AI. The point which is important to note is things which was not possible specially on AI products which we are seeing now is helping us on ARPU and also churn reduction.

My request will be, let's see one more quarter. You will see more color on how it is shaping up.

For last three quarter, this is just one of the product. If you look at our trend, every quarter there are AI application or product which is helping our customers.

We are very focused that whatever we launch, we are able to scale up, and it should be useful to our customer. That is helping us continuously on our ARPU journey and also churn reduction, and also on increasing our high-value customers.

Noted. Thank you, Vikram, that's very helpful and very encouraging to see the exit ARPUs also for 1Q.

Just wanted to understand most of the shift that we'll see and growth in ARPU that we are likely to see and are seeing will be more customer shift to higher-value products, or are we actually likely to also see any headline price increase given the current macro environment?

Look, overall, what customer pay for our product is a friction of a cost. It is more than consumption, it is more primary.

Last year we saw a lot of low-value customer optimizing. I'll say that has not fully recovered, but especially high-value customer and also mid-value, they continue to use more.

This is what we are seeing in our network. That is why you see our data traffic growth also.

Understood. Thank you.

No, absolutely, I think yeah, it's both, but let me emphasize that it's early days, but through new services like Gemini, we see clear upside on ARPU. We plan to have such significant launches on an ongoing basis, and that would be one of our drivers of ARPU growth.

Understood. Thank you.

Thank you so much.

Okay. [clears throat] Thank you, Desmond.

Thank you, everyone, for joining us in the call today. As always, if you have any further questions, please do feel free to reach out to myself.

Otherwise, we'll speak to you again next quarter. Thank you, everyone.