Telkom Indonesia and Indosat Ooredoo Hutchison form strategic partnership

PT Telkom Indonesia (Persero) Tbk (Telkom) and PT Indosat Tbk (Indosat Ooredoo Hutchison or Indosat or IOH), two prominent telecommunications firms in Indonesia, disclosed a strategic alliance aimed at fortifying digital infrastructure through the establishment of an interconnected Internet Exchange (IX) ecosystem. This collaborative effort was formally initiated with the signing of a Memorandum of Understanding (MoU) between NeutraDC, a subsidiary of Telkom Indonesia, and BDx Indonesia, a joint venture of BDx Data Centers (BDx), Indosat, and Lintasarta, during the Pacific Telecommunications Council (PTC) 2024 event. The signing ceremony occurred in Honolulu, Hawaii, USA, on Sunday, January 21st.

The Memorandum of Understanding (MoU) was officially signed by Andreuw Th A F, CEO of NeutraDC (right), and Mayank Srivastava, CEO of BDx (left). The signing ceremony was witnessed by Ririek Adriansyah, President Director of Telkom Indonesia, and Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison. In attendance at the signing ceremony were Honesti Basyir, Director of Group Business Development of Telkom Indonesia; Bogi Witjaksono, Director of Wholesale & International Service of Telkom Indonesia; Gautam Bhandari, Managing Partner and Chief Investment Officer of I Squared Capital; and Sujit Panda, Chief Operating Officer (COO) of BDx.

Andreuw Th A F, CEO of NeutraDC, enthusiastically declared: “NeutraDC is thrilled to forge a powerful collaboration with BDx Indonesia, aimed at elevating Indonesia’s digital infrastructure. As the foremost provider in the largest neutral ecosystem encompassing AI, CDN, connectivity, and cloud services, NeutraDC is poised to catalyze the democratization of internet access across Indonesia’s expansive population. This bold initiative is a catalyst for unleashing the boundless potential of Indonesia’s digital economy, paving the way for a transformative takeoff in the regional digital landscape.”

Mayank Srivastava, CEO of BDx, stated: “With an expanded portfolio, BDx Indonesia is now the largest carrier-neutral data center provider in the country. This collaboration is a very big step towards creating the most interconnected Digital Infrastructure Mesh for Indonesia – a vision shared by both BDx Indonesia and NeutraDC.”

Through this strategic partnership, both major telecommunications players agreed to empower their respective data center businesses, with NeutraDC being the data center unit of Telkom Indonesia and BDx Indonesia is the data center partner of Indosat. Currently, a massive wave of digital transformation is underway and the increasing demand for data centers in Southeast Asia, including Indonesia, is creating strategic collaboration opportunities. The rapid expansion in the e-commerce sector and the adoption of technology in business processes have also significantly boosted the need for reliable data center infrastructure. The joint forces will enhance capabilities and colocation capacities, ensuring the interconnected IX ecosystem provides end-users with the flexibility of consuming multiple services over a single port and deploy a distributed security architecture.

As part of this collaboration, all parties have identified key focal points of the IX ecosystem, focusing on Tier 3 compliant, carrier-neutral locations distributed across key cities in Indonesia. NeutraDC and BDx Indonesia will host multiple, independent IXs, providing mutual assistance and technical support to create a robust interconnected IX ecosystem, enhancing the resilience of the Internet infrastructure and creating a more streamlined and efficient national internet framework.

Telkom, through NeutraDC, has played a vital role in supporting this transformation. NeutraDC currently operates hyperscale data centers in Cikarang and Batam. Beyond hyperscale, NeutraDC also has enterprise data centers scattered at various locations across Indonesia. Meanwhile, BDx Indonesia has an extensive portfolio of facilities across all the main islands, operating multiple enterprise and hyperscale data centers in Jakarta and West Java, and developing a dedicated hyperscale campus at Suryacipta, East Jakarta, along with a greenfield development supporting Artificial Intelligence (AI) workloads.

Ririek Adriansyah, President Director of Telkom Indonesia, asserted a robust mandate, stating that with Telkom Indonesia’s established presence in the Asia Pacific, the company anticipates a significant enhancement in the quality of internet services. This, in turn, is expected to expedite the democratization of information access, exerting a positive impact on society at large. Emphasizing TelkomGroup’s unwavering commitment to delivering unparalleled services to customers and propelling digital economy growth in the region, Ririek 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.”

Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison, expressed a positive outlook on the collaborative venture, affirming, “Indosat Ooredoo Hutchison’s overarching goal is to connect and empower every Indonesian. In partnering with BDx Indonesia, this transformative collaboration is poised to significantly fortify Indonesia’s internet network infrastructure and expedite inclusive digitalization 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.”

Highlighting the broader impact of this collaboration, Vikram emphasized that both Telkom and Indosat are not only reaffirming their dedication to advancing Indonesia’s digital infrastructure, fostering innovation, and driving regional economic growth through enhanced connectivity, but are also contributing to bolstering Indonesia’s standing as a formidable global player in the data center arena.