February 24, 2024

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Accelerating Indonesia’s Data Centre Market to Boost Infrastructure

Since Indonesia is home to many start-up enterprises, the increased adoption of cloud-based services is driving data centre demand. As they establish their foundation and cater to their major local customers, such as financial institutions and other businesses, this powerful ecosystem attracts global cloud players.

To address this, a real estate developer in Indonesia has inked an agreement to establish a data centre in a new resort city south of Jakarta, Indonesia, with the country’s leading telecommunications operator. Located to the south of Bogor city, West Java, Lido City is the real estate company’s project to create a large tourist and resort destination in Indonesia that will include hotels, theme parks, a golf course, and other attractions.

We believe that our initiative will further encourage mote infrastructure investment that will support the exponentially growing local digital economy. 

– Senior Executive Director, Nongsa Digital Park

Both the company seek to develop an integrated infrastructure and high-tech ecosystem, as well as establish a technology hub in the country. within Lido City’s Tourism Special Economic Zone (SEZ).

“Our telecom firm’s experience in the digital business infrastructure and ICT solutions combined with the strategic location and development ambitions of the SEZ Lido City will highlight Techno Park to be one of the largest high-tech ecosystems in Indonesia,” said the President of the real estate company.

In addition, a Singapore-based company announced today that it would expand its first data centre on the Indonesian island of Batam to bolster connectivity and digital links between Singapore and the region. The data centre operator announced that the 30MW data centre would be in Batam’s Nongsa Digital Park.

Data Centre First will be the first international data centre operator to develop a presence on the island because of this agreement. Nongsa One, as the new data centre is known, is scheduled to open by the end of 2023. It will be designed and built following Uptime Tier III standards, which refer to the data centre’s ability to maintain cooling efficiency. A Tier III data centre requires no shutdowns when equipment needs maintenance or replacement.

According to a press release from the company, the growing demand for Indonesian Internet users, fuelled by a more open and competitive telecommunications industry in Indonesia, continues to attract foreign investment into the country.

“The US$40 million (S$54 million) Phase 1 investment in Nongsa One DC campus from Data Centre First will help to strengthen the connectivity and ‘digital bridge’ between Nongsa and Singapore.” Singapore’s Minister for Trade and Industry Gan Kim Yong said: “Nongsa One will bolster Nongsa’s status as a growing hub for tech and information technology services, as well as data centres.

Data Centre First’s investment demonstrates the potential of a near-shoring model for Singapore-based data centre operators to expand capacity and meet Southeast Asia’s increasing demands for data centre services. He added Singapore looks forward to continuing its close collaboration with Indonesia to support the development of the data centre industry in Nongsa.

This single project is expected to catalyse up to $300 million in foreign direct investment into Nongsa Digital Park. It has the potential to stimulate the local economy by creating a large multiplier effect, thereby accelerating Indonesia’s digital transformation.

The park’s Chief executive also mentioned that as the first data centre development in the Nongsa special economic zone, this cutting-edge infrastructure demonstrates the digital park’s commitment to attracting both best-in-class talent and key global infrastructure partners, while affirming our role as a “digital bridge” to Indonesia’s digitisation road map.

More data centre facilities, both inside and outside of the Greater Jakarta area, are expected as the digital economy grows. Other regions will benefit from government assistance in improving infrastructure through reliable power sources and fibre optics for better network connectivity and internet penetration. Ultimately, Indonesia’s data centre business is here to stay, and it will see a considerably greater development phase in the years ahead as the population transitions to a new digital environment.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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