PT Telkom Indonesia Tbk. (TLKM) has successfully completed a transaction transferring its data center business, owned by Telin SG to NeutraDC Singapore Pte. Ltd. (NDSG) for $219 million, equivalent to SGD 292.4 million, as part of its strategic consolidation efforts. This move aims to bolster the position of Telkom Data Ekosistem (TDE) as a regional market leader in the data center business, including in Indonesia.
The transaction, completed on February 29, 2024, signifies a significant step in Telkom Indonesia’s strategy to strengthen its data center business under PT Telkom Data Ekosistem (TDE), which now fully owns NDSG. This consolidation is expected to enhance TDE’s competitiveness and support Telkom’s plans for unlocking the data center business’s future value.
The consolidation of Telkom’s data center operations in Singapore under a single entity, TDE, aligns with the company’s vision to become a leading market player in the data center industry across the region.
With the transaction valued at $219 million, Telkom Indonesia reaffirms its commitment to enhancing its data center capabilities, aiming for optimal value creation in its future business unlocking plans.
The demand for data center services is projected to surge by 2030 due to the rise of new companies, digital business transformation, and broader adoption of cloud computing services, positioning Telkom’s strategic move as timely and forward-thinking.
The transaction is carried out among Telkom’s subsidiary entities, ensuring no direct impact on the company’s financial condition while strengthening its business ecosystem.
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Following the news of the transaction, Telkom Indonesia’s shares saw a slight increase, reflecting the market’s positive reception to the strategic consolidation effort.
Telkom Indonesia’s strategic consolidation of its data center business in Singapore showcases the company’s ambition to lead in the rapidly evolving digital infrastructure sector. This move not only enhances Telkom’s regional presence but also indicates the growing importance of Singapore as a hub for data center operations in Southeast Asia, promising enhanced services and innovations in the technology landscape.
Telkom Indonesia has finalized a $219 million deal to consolidate its data center business in Singapore, signaling a strategic effort to strengthen its position in the data center market. This consolidation under PT Telkom Data Ekosistem aims to position Telkom as a market leader in Indonesia and the region, aligning with the increasing demand for digital and cloud services. The move reflects Telkom’s commitment to innovation and growth in the technology sector, highlighting Singapore’s role as a key player in the regional digital economy.
Source: Bisnis, IDX Channel (2024)
