TLKM and ISAT Collaborate to Strengthen Digital Infrastructure

STOCK TO WATCH - JAKARTA. PT Telkom Indonesia (Persero) Tbk (TLKM) and PT Indosat Tbk (ISAT) have announced a strategic partnership to strengthen digital infrastructure through the Internet Exchange (IX) ecosystem. 

This collaboration is marked by the signing of a Memorandum of Understanding (MoU) between the companies under both issuers. TLKM through Telkom Data Ecosystem (NeutraDC). Meanwhile, ISAT through a joint venture from BDx Data Centers (BDx), Indosat, and Lintasarta, namely BDx Indonesia.

Quoting the official Telkom website, Monday (22/1), the cooperation was signed at the Pacific Telecommunications Council (PTC) 2024, in Honolulu, Hawaii, USA, on Sunday (21/1).

The Memorandum of Understanding was signed by NeutraDC CEO, Andreuw Th A F, and BDx CEO, Mayank Srivastava, witnessed by Telkom's President Director, Ririek Adriansyah, and Indosat Ooredoo Hutchison's President Director and CEO, Vikram Sinha.

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Through this strategic partnership, both parties agree to empower each other's data center businesses. Currently, the wave of digital transformation is running massively and the demand continues to increase for data centers in Southeast Asia, including in Indonesia.

The rapid expansion in the e-commerce sector and the adoption of technology in business processes also provide a major boost to the need for reliable data center infrastructure. 

This has created strategic collaboration opportunities for players in the information technology field.

This collaboration is considered to increase colocation capabilities and capacity. With a connected IX ecosystem, users are guaranteed to experience the flexibility of using various services through a one-door security architecture.  

As part of this cooperation, all parties have identified key focus points of the IX ecosystem, focusing on carrier-neutral locations that meet tier 3 standards and are spread across major cities in Indonesia. 

NeutraDC and BDx Indonesia will manage several independent IXs, together providing assistance and technical support to create a robust IX ecosystem interconnection, increase internet infrastructure resilience and create a more efficient national internet framework.

Currently, NeutraDC has a hyperscale data center in Cikarang and Batam. Not only on a hyperscale, NeutraDC also has enterprise data centers scattered at several points throughout Indonesia. 

Meanwhile, BDx Indonesia, has facilities across the major islands, operating a portfolio of enterprise and hyperscale data centers in Jakarta and West Java, developing a dedicated hyperscale campus in Suryacipta, East Jakarta, along with greenfield development that supports Artificial Intelligence (AI) workloads.

CSA Institute Capital Market Observer David Sutyanto sees, the collaboration of TLKM and ISAT could have a positive impact on the performance of each issuer.

Because, with this collaboration, both issuers can mutually benefit through the unification of their two digital ecosystems.

”In addition, this cooperation is also related to their data center infrastructure,” he said to Kontan, Monday (22/1).

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According to David, this cooperation will certainly improve the data security system of both issuers through collaboration.

“(This cooperation) is more about the collaboration, because now it is indeed the era of collaboration. Thus, usually (data security handling) will also be more efficient,” he explained.

David also recommends buying for TLKM and ISAT with target prices of Rp 4,400 per share and Rp 11,000 per share respectively.

Head of Investment Reswara Gian Investa Kiswoyo Adi Joe recommends buying for TLKM with a target price of Rp 5,000 per share.