Domestic data center providers built synergy

JAKARTA. Domestic data center providers are optimistic that the business of data center has a bright prospect. Let alone, the government has issued regulation, which stipulates over the top (OTT) companies to establish data center in Indonesia.

But so far, most of global OTTs have not placed their data centers in Indonesia. Chairman of Indonesia Data Center Provider Organization (Idpro) Kalamullah Ramli said that the data management is related to the country’s sovereignty.

Recently, a number of major data center businesses, such as DCI, Elitery, GTN, Nestcenter, XL Axiata, Telkomsigma, as well as Lintasarta have built synergy under the name of Idpro. Those companies are working together to attract customers and investors.

As information, minus Lintasarta, the six data center provides control about 60% of domestic data center market shares with the market capitalization as much as US $ 400 million.

The tariff of a domestic data center is higher than abroad. The high tariff is considered as the main obstacle of this business. "But now, some foreign finance companies have used the local data center," said Hendra Suryakusuma, CEO of PT Data Sinergitama Jaya or Elitery.

Hendra estimated that the presence of foreign companies, which placed their data centers in Indonesia, reflects that the business has a bright prospect. Citing some data from Frost and Sullivan, last year the market of data center in Indonesia amounted to about US $ 58.1 million. With the average of 39% growth per year, the business is projected to reach US$ 482.1 million by 2022. “This will be supported with e-commerce and the internet users,” he said.

(Muhammad Farid/Translator)