He said the authorities had thus far found that the online application for sending messages was not used for terrorist activities or even for criminal use in the country.
Speaking during a visit to the Jakel shopping centre here, the home minister said his ministry and the police anti-terrorism unit had studied the matter but found there were no elements in Telegram to facilitate crimes such as those undertaken by the Islamic State (IS) terrorist group.
Indonesia has endured several terrorist attacks, with the latest occurring in May when three police officers were killed in a bomb attack at a bus station in Jakarta.
Its government has since heightened cooperation with Malaysia and the Philippines to counter terrorist activities in the region.
Zahid said the authorities had determined that three other applications in Malaysia were utilised by IS.
He said some features in YouTube, WhatsApp and Instagram were found used for terrorism.
However, the government did not intend to intercept private conversations on these platforms, he said.
Zahid said the home ministry would continue monitoring these platforms.
“We will not let go of our responsibility to monitor, even though we do not intend to interfere in the private conversations on Telegram. We respect the right to privacy.
“We have specific procedures, especially if there is any communication that involves terrorism and its financing, and the promotion and possession of negative extremist elements,” he said.