The Vice Minister of State-Owned Enterprises Supports TelkomGroup's Optimistic Move to Become the Largest Data Center Player in the Region through NeutraDC

Vice Minister of State-Owned Enterprises of the Republic of Indonesia, Mr. Rosan Perkasa Roeslani during his speech conveyed support and direction for the data center business as an effort to encourage Indonesia's digital economy, at Hyperscale Data Center NeutraDC Cikarang, Monday, 16 October 2023.

Cikarang, October 2023 -  Telkom Data Ekosistem (NeutraDC) proudly welcome The Vice Minister of State-Owned Enterprises of the Republic of Indonesia, Mr. Rosan Perkasa Roeslani, on a visit to the Hyperscale Data Center (HDC) in Cikarang, Monday, 16 October 2023. This advanced data center is owned and operated by Telkom Data Ekosistem (NeutraDC), a subsidiary of TelkomGroup. Joining the Vice Minister were several high-ranking officials from the Ministry of State-Owned Enterprises, including the Secretary of the Ministry, Rabin Hattari, along with various Deputies responsible for legal matters, human resources, technology, and telecommunications.

During the visit, the Vice Minister received a comprehensive presentation from TelkomGroup, outlining their aspirations to become a significant player in the regional data center industry. Additionally, Vice Minister Rosan Roeslani had the privilege of touring the HDC Cikarang facilities. The visit was warmly received with great enthusiasm by Telkom executives, including Budi Setyawan Wijaya, Director of Strategic Portfolio at Telkom, and Andreuw ThAF, CEO of NeutraDC.

Indonesia is poised for significant digital economic growth. The country's digital economy is forecasted to grow eightfold, surging from Rp632 trillion in 2020 to an estimated Rp4,531 trillion in 2030. This remarkable growth is set to increase the digital economy's contribution to the GDP from 4% to 18%. As a result, Indonesia is on track to become the largest digital economy in Southeast Asia. The escalating demand for digital services and consumption underscores the need for robust digital ecosystems, with data centers playing a pivotal role in facilitating this expansion. Indonesia, potentially surpassing Singapore, holds significant promise in leading the regional data center market.

Vice Minister Rosan Roeslani emphasized, "The expected exponential growth in demand for data center services by 2030, particularly from sectors like Enterprise, Digital Native Business, and Cloud Service Providers, creates a remarkable opportunity for Indonesia to take the lead in the regional data center market by establishing a robust data center ecosystem. As a state-owned telecommunications company, Telkom should actively position itself as a key player in the data center industry and explore various avenues to optimize its data center business."

Honesti Basyir, Director of Group Business Development at Telkom, underscored TelkomGroup's mission to build a comprehensive digital ecosystem, with data centers serving as a crucial component. Through NeutraDC, TelkomGroup aims to harness the significant potential within the data center industry. They envision it as a Sustainable Digital Ecosystem Hub, offering end-to-end integration services to expand the Indonesian data center market to encompass regional and global players.

TelkomGroup already owns 30 data center facilities, with 25 located in Indonesia and an additional 5 abroad, spanning four countries: Indonesia, Singapore, Hong Kong, and Timor Leste. NeutraDC is also in the process of constructing a Hyperscale Data Center (HDC) in Batam, covering a vast 5 Ha. This data center will not only cater to diverse business needs within Indonesia but also position itself to maximize the potential overflow from neighboring countries, including Singapore. Furthermore, they are actively participating in the construction of a data center in the National Capital (IKN) Nusantara, situated in Sepaku, North Penajam Paser Regency, East Kalimantan.  TelkomGroup is diligently exploring various strategies to maximize the value of its data center business.

Success in the data center business hinges on three critical factors: seamless connectivity, robust infrastructure support, and access to digital business clients. Seamless connectivity ensures that all TelkomGroup data centers, including edge data centers, are interconnected. TelkomGroup's robust broadband backbone infrastructure guarantees impeccable connectivity.

HDC Cikarang is eagerly committed to decarbonization, with a focus on harnessing green energy. TelkomGroup is also forging strategic partnerships with technology giants to expand its data center operations regionally. Collaborating with Singtel, TelkomGroup is in the process of constructing a Hyperscale Data Center in Batam, with a substantial total investment of USD 581 million. HDC Batam is designed to be environmentally conscious, utilizing renewable energy sources and adopting a multi-tier system.

Bogi Witjaksono, Director of Wholesale & International Service at Telkom, concluded that by focusing on a robust business foundation, cultivating strategic alliances, and enhancing the capacity and enrichment of the digital ecosystem, Telkom aims to establish itself as a Sustainable Digital Ecosystem Hub within the regional and even global landscape in the foreseeable future.

The journey undertaken by TelkomGroup and NeutraDC represents a remarkable endeavor towards a digital future that promises prosperity and innovation for Indonesia and beyond. With the country's digital potential on the rise, their vision and dedication to creating a robust data center ecosystem may very well pave the way for Indonesia to lead the way in the regional data center market. As the digital landscape continues to evolve, TelkomGroup is poised to play a pivotal role in shaping its trajectory.