Telkom Proves Its Competence in the Global Data Center Business

PT Telkom Indonesia (Persero) Tbk has demonstrated its capability as a state-owned enterprise becoming a significant player in the global data center industry. This statement comes in response to research findings that suggest local data center companies are losing ground to foreign competitors.

Bogi Witjaksono, Director of Wholesale & International Service at Telkom, stated that the company has long been a player in the global-scale data center business. Telkom has even been operating data center infrastructure in Singapore for over a decade.

This BUMN (state-owned) telecommunications company also ranks among the top five data center companies in Singapore. "So, in our own country, Telkom is already quite strong," he said in an exclusive interview with Katadata during the Bali Annual Telkom International Conference 2023 on Tuesday, (5/9).

Bogi's statement was made in response to the findings of a report by Aftech and Katadata Insight Center on the adoption of data centers by fintech startups. The research discovered that 56 percent of respondents used third-party services for data payment management.

Among the preferred data center companies were Alibaba Cloud at 28.6 percent, Amazon Web Service at 14.3 percent, Indo Internet at 11.9 percent, Lintasarta at 7.1 percent, and Telkom Sigma at 7.1 percent.

The Aftech and KIC research involved 75 respondents, the majority of whom were companies participating in surveys in the Jabodetabek (greater Jakarta) area (92 percent), followed by Yogyakarta and Surabaya (1.3 percent).

According to Bogi, the data center business in Indonesia has grown significantly, driven by economic growth and increased internet penetration. Based on Telkom's data, Indonesia will require a minimum of 1.2 gigawatts of data center capacity by 2030.

Telkom is confident in its competitive advantage over rivals. For instance, the state-owned company has built a value proposition as a digital ecosystem hub. Moreover, Telkom's data center ecosystem is known for its low latency and seamless performance.

Telkom believes its data center business excels due to its commitment to sustainability principles. Strategies include the implementation of data centers that utilize clean energy sources.

On the other hand, Telkom is also exploring partnerships for the implementation of cooling technology, which is part of the decarbonization effort.

"Furthermore, this relates to how we can achieve energy efficiency. This is what we are working hard on," said Bogi.

In addition, Bogi noted that Telkom is aggressively working to expand its data center business in Indonesia. The company is also constructing a Hyperscale Data Center in Cikarang and Batam.

Telkom has successfully secured commitments from several global over-the-top (OTT) companies to fill the first campus of the Cikarang data center. Meanwhile, planning for the second campus of the data center has begun.

"This will continue, and we hope that by 2025, the third campus will be ready for take-up," said Bogi.

He added that the data center in Batam will primarily accommodate overflow demand from the fully capacity Singapore data centers. The data center's capacity in Batam will be equivalent to that of in Cikarang.

Simultaneously, Telkom is preparing an underwater fiber optic network in Batam. This infrastructure will also be connected to the company's data centers located in Singapore.

"We are also concurrently exploring engagement with the Philippines. So, this is all part of a rapid sequence, and the results cannot be achieved overnight. But what we see is progress in filling rate, expansion progress," said Bogi.

As part of its efforts to develop data centers, Telkom is hosting the Bali Annual Telkom International Conference (BATIC) in Nusa Dua, Bali, on 5 – 8 September 2023. This event serves as a platform for stakeholders to discuss ideas, insights, and visions to shape the future of the telecommunications industry.