Data Centers: Future Market Needs in Indonesia

JAKARTA, KOMPAS.com – Both local and foreign companies spend big money on improving their data centers in Indonesia in a bid to create efficient digital infrastructure.

Proper digital infrastructure is now more important than ever before as businesses are heavily relying on the use of digital technology in order to survive.

As the Covid-19 pandemic hit the world, including Indonesia, data centers – buildings that house information technology (IT) equipment and servers – are also needed more than ever before. The data center market is expected to grow significantly driven by a surge in the use of the internet and digital commerce, among others.

The Indonesian Employers Association (Apindo)’s property and economic zone head Sanny Iskandar said that the data center market is a “new normal” that is expected to boom after the Covid-19 pandemic. This is also supported by the development of digitalization in all fields. If a few years ago, a transformation occurred in the transportation sector, food business, and online trade, now is the time for the property sector to see this “new normal” as a promising opportunity.

Sanny said that the need for data centers in Indonesia's industrial areas continues to increase. The transactions are related to data centers for logistics, automotive, and manufacturing needs.

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This is because the domestic market has enormous potential. The Indonesian society quickly adapts to changes. They are tech-savvy, always want to be at the forefront of change, active internet users.

Therefore, he said, it is not surprising that the US e-commerce giant Amazon invested 35 trillion rupiahs ($2.4 billion) to develop Amazon Web Services (AWS) in three industrial estates in Karawang West Java near Jakarta at once.

“The three areas are close together. However, this is a phenomenon and will become a trend in the future. Data centers are future market needs,” he said.

Telkom to build Indonesia’s largest data center

Indonesia’s state-owned telecoms firm PT Telkom is soon to provide a hyperscale data center (HDC) in the country.

PT Telkom president director Ririek Adriansyah said that the presence of a data center will make the company focus on opportunities to find local, regional, and international tenants.

“The development of Telkom HDC must speed up the digital platform business as an enabler of various ICT [information communication technology] services and solutions for global players and corporations from various sectors,” Ririek said.

The sectors comprise finance and banking, public and private sector, manufacturing, content provider, and global cloud provider.

The company’s director for Network Information Technology Solution Herlan Wijanarko said that the Telkom HDC will complement the existing data center facility and maintain its position as a market leader.

DOK HUMAS TELKOM Telkom Indonesia President Director Ririek Adriansyah (center), Network & IT Director Solution Telkom Herlan Wijanarko (right), and Telkom Wholesale & International Service Director Dian Rachmawan during Telkom HyperScale Data Center groundbreaking ceremony in the Bekasi Area on Thursday (7/9/2020).