Jakarta, September 9, 2024 – PT SMPlus Digital Investama (“SM+”), a digital infrastructure investment platform backed by Sinar Mas, has announced a strategic partnership with Korea Investment Real Asset Management Co., Ltd. (“KIRA”) to develop a state-of-the-art data center in Jakarta’s central business district, designed to serve businesses and hyperscalers. The project, with an investment exceeding USD 300 million, is expected to be operational by mid-2026.
KIRA’s investment in Indonesia is driven by its strong belief in the growth potential of the country’s data center industry. KIRA’s extensive experience in data center operations across Korea and other countries, combined with SM+’s expertise in developing and managing data centers in Indonesia, will form a solid foundation for this partnership to capitalize on opportunities in Indonesia’s data center market.
Franky Oesman Widjaja, Board Member of Sinar Mas, stated, “This new data center will offer top-tier facilities and services essential for advancing digital transformation across various sectors in Indonesia, including finance, industry, government, public services, and education. We deeply value our partnership with KIRA in this significant initiative.”
“We are confident that our collaboration with SM+ and Sinar Mas will significantly boost Indonesia’s digital transformation. This partnership marks a crucial step toward achieving our shared vision of becoming the market leader in data centers in Indonesia,” added Kim Yong Sik, Chief Executive Officer of KIRA.
Key features of this data center project include:
- Collaboration with Best-in-Class Data Center Technology Partners: PT LG Sinarmas Technology Solutions (“LG Sinar Mas”), a joint venture between SM+ and LG CNS, a leading data center services provider in South Korea, has been appointed as the lead technical consultant for the design and will serve as the facility operator once the data center becomes operational. With LG Sinar Mas’ support, this project will deliver reliable data center design, operational, and management services, providing optimal solutions and value to its customers.
- Future-Proof Design: To accommodate advanced computing technologies such as AI, the data center will utilize liquid cooling technology. This design positions the facility as one of the most cutting-edge in Indonesia and the surrounding region.
- Robust Connectivity: Strategically located in central Jakarta, the data center will offer carrier-neutral connectivity to major internet exchanges and national networks linked to 24 Edge data centers.
- Scalability: Designed with future expansion in mind, the data center can triple its current capacity, enabling it to adapt to growing customer demands.
Structure Research forecasts Indonesia’s data center market to grow rapidly, with an average annual growth rate of 22%, reaching IDR 16.6 trillion (USD 1.1 billion) by 2028, up from an estimated IDR 6.1 trillion (USD 395.0 million) in 2023. With a population of nearly 280 million, Indonesia is poised for significant domestic market growth, robust economic expansion, and continued strong momentum. SM+ and KIRA are confident that this partnership will capture and capitalize on these opportunities.
