NCC Submarine Cable Strengthens Batam's Position as Indonesia's Digital Hub

Batam has long been known as an industrial and trade zone located on the strategic Malacca Strait route. However, in recent years, its role has expanded far beyond the manufacturing sector.

The city is now being positioned as one of Indonesia’s digital infrastructure hubs, expected to support the growth of data centres, cloud services, Artificial Intelligence (AI), and the digital economy of the Southeast Asian region.

This transformation has not happened by chance. In addition to its proximity to Singapore, Batam has been continuously strengthened through the development of various digital infrastructure, including submarine fibre-optic cable networks connecting Indonesia to the world.

One of the latest projects is the Nongsa-Changi Cable System (NCC), developed by PT Telekomunikasi Indonesia International (Telin) together with BW Digital and supported by Nongsa Digital Park (NDP).

TelkomGroup stated that this submarine cable system is part of a strategy to strengthen Indonesia’s digital gateway while supporting the growth of the national digital ecosystem.

Becoming a digital hub is not just about having fast internet connections. A region also requires international telecommunications infrastructure, data centres, adequate power supply, investment-friendly regulations, and connectivity with various digital economic centres. Batam possesses nearly all of these factors.

One of Batam’s main advantages is its location, only about 20 kilometres from Singapore, one of Asia’s largest digital connectivity hubs.

This geographical proximity allows data exchange to occur with low latency. This condition is a crucial factor for companies running cloud-based services, AI, digital transactions, and applications requiring rapid response.

According to TelkomGroup, this strategic position is the reason Batam was chosen as a landing point for various international submarine cable systems.

In addition to geographical factors, Batam also has Nongsa Digital Park (NDP), developed as a digital economic zone. NDP is home to various technology companies, digital innovation centres, and digital talent development. The area is also being directed to become a location for developing data centres and digital services serving both the Indonesian and regional markets.

With the availability of such a dedicated zone, companies gain an ecosystem that is more ready for developing technology-based businesses.

The growth of data centres and digital services will not be optimal without adequate international connectivity. Therefore, the construction of the Nongsa-Changi Cable System (NCC) is one of the strategic projects.

According to TelkomGroup, the NCC connects Nongsa Digital Park in Batam with Changi in Singapore via a high-capacity submarine fibre-optic cable network.

The presence of this new route not only increases data exchange capacity but also provides an alternative route, thereby strengthening network resilience in the event of disruptions to other submarine cables.

The NCC is also part of the Indonesia Cable Express (ICE) ecosystem, together with the Indonesia Singapore Cable System (INSICA) developed by TelkomGroup to expand Indonesia’s international connectivity.

A company’s decision to build a data centre or develop digital services is not solely influenced by geographical location. Reliable telecommunications infrastructure is one of the main factors in determining the viability of an area as an investment destination.

According to the Ministry of Communication and Digital (Komdigi), digital infrastructure development is one of the foundations of national digital transformation. This infrastructure includes fibre-optic networks, data centres, international connectivity, and integrated cloud services.

In this context, the presence of the NCC strengthens Batam’s appeal as a location for developing various digital infrastructure. High-capacity communication routes allow companies to obtain faster and more stable connectivity to serve customers, both in Indonesia and in the Southeast Asian region.

The development of digital technology has led to a continuous increase in the need for data centres. Organisations are increasingly utilising cloud computing, data analytics, Artificial Intelligence (AI), and business applications that require large computing capacity and high-speed connectivity.

According to TelkomGroup, the construction of the NCC is designed to support the growth of the data centre ecosystem in Batam. With a direct connection to Singapore, data exchange processes can occur more efficiently, supporting the operations of digital services serving regional and global markets.

For data centre providers, strong international connectivity is a crucial factor as it affects service quality, latency, and network availability for customers.

In addition to data centres, international connectivity is also a primary requirement for cloud services and Artificial Intelligence (AI). Training AI models, processing large amounts of data, and synchronising data across regions require networks with high capacity and low latency. This condition makes submarine cable systems play an important role in supporting the development of digital technology.

The e-Conomy SEA 2024 report published by Google, Temasek, and Bain & Company shows that Indonesia’s digital economy continues to grow and remains the largest in Southeast Asia. As the adoption of AI, cloud services, and digital applications increases, the need for international connectivity infrastructure is expected to continue to grow.

In this context, the NCC not only strengthens the digital relationship between Indonesia and Singapore but also supports the readiness of Indonesia’s infrastructure to accommodate the growth of digital services in the future.

Large-scale digital infrastructure development cannot be carried out by a single party. Collaboration between telecommunications operators, digital zone managers, infrastructure providers, and the government is needed to build an interconnected ecosystem.

The construction of the NCC is one example of such collaboration. This project involves Telin as part of TelkomGroup, BW Digital as a digital infrastructure provider, and Nongsa Digital Park as a technology zone that is a strategic point for digital economic development in Batam.

According to TelkomGroup, this synergy is part of efforts to strengthen Indonesia’s position as a regional digital gateway while enhancing national competitiveness in facing regional digital economic growth.

With increasingly better international connectivity, technology companies, cloud service providers, hyperscalers, and digital industry players have greater opportunities to develop their services from Indonesia to the global market.

The transformation of Batam into Indonesia’s digital hub is determined not only by its strategic geographical location but also by the readiness of its continuously developing digital infrastructure. The presence of the Nongsa-Changi Cable System (NCC) strengthens international connectivity between Indonesia and Singapore, while complementing the digital ecosystem that includes data centres, cloud services, and Artificial Intelligence (AI) technology.

According to TelkomGroup, the construction of the NCC is part of efforts to strengthen Indonesia’s digital gateway to support the increasing data traffic needs amid rapid digital transformation. Infrastructure like this is expected to enhance Indonesia’s competitiveness as a technology investment destination while strengthening its position in the Southeast Asian digital ecosystem.

For businesses, strengthening international connectivity is an important foundation for building reliable digital services, from data centre management, cloud-based services, cross-border communication, to various business applications requiring high-capacity and low-latency networks.

As part of TelkomGroup, Telkom Enterprise continues to provide various connectivity and digital infrastructure solutions to support the digital transformation of companies across various sectors. From international connectivity services, data centres, cloud, to other digital solutions, Telkom Enterprise helps organisations build a technology foundation ready to face current and future business needs.