Hyperscale Data Center (HDC) Telkom

Jakarta, 4 September 2023 - As a leading digital telecommunications company, PT Telkom Indonesia continues to aggressively improve its competencies and capabilities in digital business. Telkom consistently focuses on developing three digital business domains: digital connectivity, platforms, and services. The company continuously augments its digital capabilities through three key strategies: build (strengthening internal capacity), borrow (forming strategic partnerships with tech giants and global partners), and buy (selective investments). Several of Telkom's digital business investments have yielded positive results, evident in both synergy value and capital gains, contributing significantly to the company's revenue growth.

Regarding strategic partnerships in the Southeast Asia region, state-owned enterprises are currently engaged in projects with neighboring countries totaling over one billion US dollars. Singapore stands out as an ASEAN nation with extensive cooperation initiatives across various sectors with Indonesia.

In the telecommunications sector, TelkomGroup remains open to partnership opportunities that enhance business sustainability. Notably, Telkomsel, where TelkomGroup and Singtel (Singapore's largest telecommunications company and a Telkomsel shareholder) collaborate, is pivotal in implementing the fixed mobile convergence initiative. This partnership has positively impacted digital inclusion by expanding IndiHome integration with Telkom, ensuring broader and more equitable connectivity across Indonesian society. Following the integration, Telkom effective ownership in Telkomsel increased to 69.9%, while Singtel stake became 30.1%.

This strategic move aligns with Telkom's roadmap to lead the business-to-business market by focusing on digitization services for niche market enterprises and institutions, while Telkomsel concentrates on business to customer operations.

Indonesia collaboration with Singapore, facilitated by Singtel, also includes the construction of a Hyperscale Data Center in Batam. This project addresses the exponential growth in demand for data center services until 2030 from enterprises, digital native businesses, and cloud service providers in both domestic and regional markets, driven by increased content access needs.

Projected to achieve 51 megawatts by 2031, this 581 million US dollars project involves Telkom subsidiary, NeutraDC, partnering with Singtel and Medco Power. Scheduled to commence operations in the first quarter of 2025, the data center aims to attract companies that previously housed data in Singapore to Batam, Indonesia, with Telkom holding a 60% stake in the venture.

Additionally, Telkom, through its subsidiary Telin, continues to forge strategic partnerships across various initiatives. Telin is collaborating with the Bifrost consortium, including Meta/Facebook and Keppel, to deploy a new sea cable communication system. The Bifrost sea cable communication system development is strategic as it strengthens the 2nd Manado international gateway. Furthermore, Telin has rejoined the Southeast Asia-Middle East-Western Europe 6 (SEA-ME-WE 6) international submarine cable communications system consortium, marking its second involvement after initially joining in 2014. This consortium involves constructing a 19,200 km submarine cable system linking Southeast Asia to Europe, enhancing international connectivity.

In September 2022, Telin announced a strategic partnership with Expereo as a global managed services provider specializing in intelligent internet connectivity services. This collaboration significantly enhances Telin software defined-wide area network (SD-WAN) solution, offering comprehensive global coverage to customers in over 195 countries. Leveraging Expereo extensive global network, Telin strengthens its position as a global telecommunications player while expanding its SD-WAN services globally.

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