Deputy Minister of State-Owned Enterprises, Rosan Perkasa Roeslani (center) with Telkom's Director of Strategic Portfolio, Budi Setyawan Wijaya (far left); Director of Wholesale and International Service Telkom, Bogi Witjaksono (second from left); Telkom Group Business Development Director, Honesti Basyir (second from right); and CEO of NeutraDC, Andreuw ThAF (far right) during a visit to the hyperscale data center of Telkom Data Ecosystem (NeutraDC), a subsidiary of TelkomGroup in Cikarang, Monday (16/10).

Deputy Minister of State-Owned Enterprises, Rosan Perkasa Roeslani, during a visit to the hyperscale data center of Telkom Data Ecosystem (NeutraDC), a subsidiary of TelkomGroup in Cikarang, Monday (16/10).

TelkomGroup builds a hyperscale data center using renewable and environmentally friendly energy

Cikarang, 16 October 2023 – Deputy Minister of State-Owned Enterprises, Rosan Perkasa Roeslani, visited the Cikarang Hyperscale Data Center owned by Telkom Data Ecosystem (NeutraDC), a subsidiary of TelkomGroup, on Monday (16/10). Accompanying the Deputy Minister were the Secretary of the Ministry of State-Owned Enterprises, Rabin Hattari; Deputy for Law and Legislation, Robertus Billitea; Deputy for Human Resources, Technology and Information, Tedi Bharata; Assistant Deputy for Telecommunications and Media Services, YB Priyatmo Hadi; and Assistant Deputy for Corporate Law, Rini Widyastuti.

Apart from hearing a presentation from TelkomGroup regarding the company's focus on becoming a major player in the data center business in the region, the Deputy Minister of State-Owned Enterprises also saw firsthand the Cikarang Hyperscale Data Center facilities. The visit was hosted by Telkom's Strategic Portfolio Director, Budi Setyawan Wijaya; Telkom's Wholesale and International Service Director, Bogi Witjaksono; Telkom's Group Business Development Director, Honesti Basyir; and NeutraDC CEO, Andreuw ThAF.

Indonesia has enormous potential for digital economic growth. Indonesia's Digital Economy is projected to grow eightfold from 2020, amounting from IDR 632 trillion to IDR 4,531 trillion by 2030, with the percentage contribution to GDP increasing from 4% to 18%. Thus, Indonesia will become the largest digital economy in Southeast Asia. The use and consumption of digital services continue to grow rapidly, requiring the support of a robust digital ecosystem, including data centers, which are projected to grow significantly over the next few years. Even outside Singapore, Indonesia holds enormous potential to lead the regional data center market.

"The growth in demand for data center services until 2030 from the Enterprise, Digital Native Business, and Cloud Service Provider segments is predicted to be exponential in both domestic and regional markets, in line with the increasing need for content access. This presents a significant opportunity for Indonesia to lead the data center market in the region by developing its own data center ecosystem. Telkom, as a state-owned telecommunications company, can achieve this by becoming a major player in data centers and unlocking value through various strategies to optimize its data center business," Deputy Minister of State-Owned Enterprises, Rosan Roeslani said.

"TelkomGroup has a mission to build a digital ecosystem, one of which can be realized with the support of a data center. Through NeutraDC, TelkomGroup is capturing huge data center opportunities by positioning itself as a Sustainable Digital Ecosystem Hub and providing end-to-end integration services to expand the Indonesian data center market to regional and global players,"Telkom Group Business Development Director, Honesti Basyir said.

Director of Wholesale and International Service Telkom, Bogi Witjaksono, said that TelkomGroup currently has 30 data center facilities (25 domestic and five overseas) spread across four countries (Indonesia, Singapore, Hong Kong, and Timor Leste). TelkomGroup also supports the construction of a data center in the Capital Nusantara in Sepaku, North Penajam Paser Regency, East Kalimantan Province. TelkomGroup is currently reviewing several options for unlocking the value of the data center business in the future.

There are three important aspects that companies have in the data center business: seamlessness, connectivity, and eyeballs. Seamlessness refers to being connected to all TelkomGroup data centers, including the edge data center. Connectivity means the Hyperscale Data Center is connected to TelkomGroup's broadband backbone infrastructure. Lastly, eyeballs refer to access to TelkomGroup customers who are digital business users.

For the Cikarang hyperscale data center, TelkomGroup has completed campus 1, which is committed to decarbonization by focusing on green energy. TelkomGroup also engages in strategic collaborations with partners, including tech giants, to develop its data center business in regional markets. Together with Singtel, TelkomGroup is building a hyperscale data center in Batam with an investment of USD 581 million. The Batam hyperscale data center uses renewable energy, is environmentally friendly, and adopts a multi-tier system.

"By focusing on strong business fundamentals, strategic collaborations with reliable partners, as well as strengthening capacity and enriching the digital ecosystem, we will solidify our steps to make Telkom's data center a Sustainable Digital Ecosystem Hub in regional and even global markets in the future," Bogi said.

Data center business development is part of the company's main strategy, Five Bold Moves, which is aimed at value creation, increasing competitiveness, and providing optimal value for all stakeholders. Telkom's five main strategies consist of the Fixed Mobile Convergence (FMC), InfraCo, Data Center Co, B2B Digital IT Service Co, and DigiCo initiatives.

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