Telkom (TLKM) Seeks Strategic Partner for Data Centre, Targeted for Completion by End of 2026
JAKARTA - State-owned issuer PT Telkom Indonesia Tbk (TLKM) is currently searching for a strategic partner to develop its data centre business. The partnership process is targeted for completion by the end of 2026.
Budi Satria Dharma Purba, Director of Wholesale & International Service at Telkom, said that the substantial investment requirements of the data centre business mean Telkom cannot rely solely on organic investment to grow the business.
“We are looking for a strategic partner who can bring operational capabilities, access to markets — particularly global hyperscalers — as well as the ability to accelerate construction and capacity utilisation,” he explained during a public presentation on Monday (7/9).
“This structure is expected to allow the data centre business to grow more quickly without all expansion needs having to be funded by Telkom alone,” he said.
In terms of capital allocation, Budi said Telkom continues to apply investment discipline and remains focused on return on investment. The presence of a strategic partner would allow the capital requirements for growing the business to be shared, whilst also opening up opportunities to achieve a more optimal valuation.
Budi noted that the outcome of the transaction could also increase the flexibility of Telkom’s capital allocation. The funds could be used for investment in core businesses or potentially to enhance returns for shareholders.
“With the entry of a strategic partner, the capital needs for business development can be shared, while also opening up the opportunity to obtain a more optimal valuation,” Budi said.
Telkom’s data centre company, PT Telkom Data Ekosistem (NeutraDC), has announced a partnership with PLN to ensure energy readiness for the development of a hyperscale data centre facility in Cikarang by August 2026.
The expansion is targeted to raise NeutraDC’s data centre capacity to 200 megawatts (MW). The capacity development is aimed at anticipating the growth in demand for artificial intelligence (AI), cloud computing, and various digital services.