Telkom has 29 data center units, 24 of which are in Indonesia and the remaining five are in Singapore, Hong Kong, and Timor Leste.
Heaptalk, Jakarta — The demand for data centers in Indonesia is large and continues to grow. According to VP Investor Relations of PT Telkom Indonesia Edwin Sebayang, demand for IT load demand has reached 183 megawatts and is projected to increase to 500 megawatts in 2027.
As a state-owned enterprise engaged in ICT services and telecommunications networks in Indonesia, Telkom plans to expand its data center business to meet existing demand. “Telkom until the end of this year has 44 megawatts. How can we catch up to meet the needs of the data center in the future,” said Edwin in the Indonesia Investment Education webinar (07/15).
Currently, Telkom has 29 data centers, 24 of which are spread throughout Indonesia with a capacity of 1-3 megawatts, and the remaining five are in Singapore, Hong Kong, and Timor Leste. Edwin voiced, “We want to take part in the tender later in Singapore for the 4th data center.”
In addition, Telkom is building two hyperscale data centers with a capacity of approximately 75 megawatts and 51 megawatts in Cikarang and Batam. Further, the company will develop several data centers in Jakarta.
Applying the Five Bold Moves strategy
The development of this data center is one part of Telkom’s strategy which is summarized in Five Bold Moves, consisting of Fixed Mobile Convergence (FMC), InfraCo, Data Center Co, B2B Digital IT Service Co, and DigiCo initiatives. The strategy aims to maximize opportunities, increase competitiveness, and value creation in facing current challenges.
The Fixed Mobile Convergence (FMC) initiative is carried out through the integration of Indihome into Telkomsel. According to Edwin, this step is expected to increase efficiency both in terms of operational expenditure (Opex) and capital expenditure (Capex).
From the B2B side, Telkom will focus on working on this business line as the opportunity is predicted to reach IDR 146 trillion in 2023-2024. Previously, in 2021 the B2B market size reached Rp91 trillion. Edwin added, “We are moving IndiHome into Telkomsel to allow them to focus on working on the commercial market while Telkom can manage the B2B.”
Telkom’s next strategy is to develop InfraCo to strengthen its business in the corporate segment. The entity will combine a number of telecommunications infrastructures owned to share with the industry. This step will be carried out simultaneously with working on digital platforms and data centers.
