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Indonesia's Telkom & Indosat enhance internet infrastructure
Tue, 23rd Jan 2024

Two telecommunications companies in Indonesia, Telkom Indonesia and Indosat Ooredoo Hutchison, have announced a strategic partnership that aims to boost the country's internet infrastructure.

A Memorandum of Understanding (MoU) was signed between NeutraDC, a subsidiary of Telkom Indonesia, and BDx Indonesia, a joint venture of BDx Data Centers, Indosat, and Lintasarta. This marks the formal initiation of the partnership, which was announced at the Pacific Telecommunications Council (PTC) 2024 conference in Honolulu, Hawaii.

The partnership seeks to establish an Interconnected Internet Exchange (IX) ecosystem, which in turn will strengthen digital infrastructure and enhance the quality of Internet services throughout Indonesia. Vikram Sinha, President, Director and CEO of Indosat Ooredoo Hutchison, confirmed that this initiative aligns with their overarching goal "to connect and empower every Indonesian."

Sinha continued, "In partnering with BDx Indonesia, this transformative collaboration is poised to significantly fortify Indonesia's internet network infrastructure and expedite inclusive digitalisation across the nation. Guided by the spirit of gotong royong, this partnership underscores Indosat's enduring commitment to unlocking the full potential of Indonesia's digital economy for the greater good of society."

Both companies have agreed to bolster their respective data centre businesses. The partnership comes amidst a massive wave of digital transformation, with Southeast Asia, including Indonesia, witnessing increasing demand for data centres. This rising demand creates opportunities for strategic collaboration, with the recent surge in the e-commerce sector and the adoption of technology in business processes further increasing the need for reliable data centre infrastructure.

NeutraDC and BDx Indonesia have identified key focus areas in the IX ecosystem, with a special emphasis on Tier 3 compliant, carrier-neutral locations distributed across major cities in Indonesia. The agreement will see multiple independent IXs being hosted, with both firms providing technical support to ensure a robust IX ecosystem, thereby enhancing the resilience of the country's internet infrastructure and creating a more efficient national internet framework.

Ririek Adriansyah, President Director of Telkom Indonesia, suggested the endeavour will significantly enhance the quality of internet services, thereby accelerating the democratisation of information access and having an overwhelmingly positive societal impact. Adriansyah also emphasised TelkomGroup's 'unwavering commitment' to delivering unparalleled service to customers and driving digital economic growth in the region.

Adriansyah declared, "Through strategic collaboration and leveraging our group assets, we aim to set new standards. With the combined expertise of NeutraDC and BDx Indonesia, we are confident in our ability to craft innovative and efficient information access solutions, meeting evolving needs and propelling the nation toward a dynamic future in the digital economy."

The partnership is set to have a far-reaching impact. Alongside developing Indonesia's digital infrastructure and facilitating economic progress through improved connectivity, the collaboration contributes towards bolstering Indonesia's position in the data centre arena on a global scale.