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18 Apr 2022

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Telkom Indonesia forms partnership with Singtel to strengthen digital business

Telkom Indonesia (Persero) and Singtel of Singapore have formed a strategic partnership to strengthen the digital business of the state-owned Indonesian telecom group. Two Memorandums of Understanding were signed for the accomplishment of this initiative, one for the development of regional data centers and one for the integration of fixed and mobile broadband services (Fixed Mobile Convergence, FMC).

It is predicted that the Indonesian data center market will grow from USD 1.67 billion in 2021 to USD 3.43 billion by 2027. This is a CAGR of 13.15 percent from 2022 to 2027, according to Mordor Intelligence. The country's growing internet economy is a critical source of growth in the region.

The Indonesian telecom company now operates 27 data centers, both domestic and overseas. Furthermore, the company is building a 75 MW hyperscale data center (HDC) that can accommodate ten thousand racks. The first phase is expected to begin operations in the second quarter of 2022 with a capacity of 22 MW. Indonesian companies as well as foreign companies will be able to use this data center.

In addition to developing data centers, Telkom Indonesia and Singtel are exploring the possibility of integrating fixed and mobile broadband. The two companies are looking at the integration of Indihome that provides internet acess to consumers and Telkomsel, Indonesia's largest mobile communication provider that jointly owned by Telkom and Singtel. Following the government's directive, the integration of the companies will provide customers with better digital experiences in using the internet.

Photo credit: Arwan Sutanto

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