TLKM - Gears up to establish new DC in IKN

TLKM - Gears up to establish new DC in IKN Telkom Indonesia (TLKM) is gearing up to establish a data center complex in new capital of Nusantara (IKN). The company's data center will be built exclusively in the capital. Meanwhile, TLKM has operated a hyperscale data center in industrial area of Cikarang, West Java, while also exploring opportunity to tap into cyber security service for its B2B business. The company eyes to accelerate data center revenue growth through asset consolidation under 5 bold-move strategy. (Source: IDX Channel) Comment: An establishment of data center in the new capital (IKN) will be a new opportunity for TLKM's data center business, given potential economic size in the area and higher demand potential. While data center business is still an infant stage in the country, we have been witnessing rising trend of demands, boosted by digitalization in enterprise, cutting edge IT technology such as cloud computing and AI, as well as improving IT infrastructure, including growing deployment of submarine cables. On the other hand, Indonesia’s data center still lags behind other ASEAN counterparts (0.6w/capita VS Singapore at 183w/capita) despite enhanced internet penetration and its position as one of the world’s biggest social media users.