Digital Edge (Singapore) Holdings Pte. Ltd. (“Digital Edge”) today announced that its wholly owned subsidiary, Digital Edge (Hong Kong) Ltd., has acquired a controlling interest in one of the leading digital infrastructure service providers in Indonesia, PT Indointernet Tbk (“Indonet”). Digital Edge, which is backed by Stonepeak Infrastructure Partners, aims to transform the enterprise technology landscape by building and operating state-of-the-art, energy-efficient, connectivity-rich data centers. By virtue of its USD 165 million investment, Digital Edge will be the single largest shareholder in Indonet.
Indonet is a fully licensed facilities-based carrier that owns significant self-built fiber assets in the Jakarta metro area and offers a full suite of Internet connectivity, local loop, cloud access, and co-location services. Indonet, through one of its subsidiaries, recently commissioned the EDGE1 data center with 1,500 cabs at Jalan Kuningan Barat, the most carrier dense area in Jakarta, bringing much needed capacity to this strategic location. EDGE1 is designed and built with the latest technology and can fully support customer High Power Density deployment.
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“This strategic partnership marks our initial entry into South East Asia. It enables Digital Edge to meet the pressing needs of new customers wanting to deploy into Indonesia, and also to offer Indonesian firms a strong regional platform to expand outside of the country,” said Samuel Lee, Chief Executive Officer of Digital Edge, “Pak Toto and the Indonet team have done a fantastic job in building a diverse and innovative business. With our good standing relationship with Pak Toto and his team, Indonet is a natural fit for Digital Edge and we are extremely pleased with this partnership.”
“The Digital Edge team understands the culture and complexities of operating in Indonesia. I am excited about this partnership given Digital Edge’s unique combination of technical knowledge on data center design, relationship with regional and global customers, and access to capital. Together with Digital Edge, Indonet is best placed to capitalize on the market growth of Indonesia. In fact, we are already looking at the next round of expansion projects,” said Toto Sugiri, Founder and Chairman of Indonet.
According to Structure Research, Jakarta’s colocation market is expected to reach USD 625 million by 2025, growing at a CAGR of 23.7% between 2021 and 2025. The combination of Indonesia’s rapidly growing digital economy, accelerating enterprise cloud adoption and the proliferation of start-up companies, is driving this demand for colocation and new data centres.
“The Digital Edge team has personally witnessed the tremendous growth and transformation of Indonesia’s telecom, Internet and data center industries for well over a decade. With its full suite of telecom licenses, extensive dark fiber assets, network services and central location of its EDGE1 data center, Indonet will enable Digital Edge to develop sophisticated solutions for its interconnect-focused customers, such as network, cloud, and financial service customers. Moreover, with the recent opening-up of the foreign ownership restrictions in telecommunications industry, Indonet is well positioned to become the service provider of choice for foreign telcos looking to expand their regional and global footprints into Indonesia,” said Andy Rigoli, Chief Operations Officer of Digital Edge.