Singapore’s Digital Edge invests $165m in Indonet

Digital Edge (Singapore) Holdings Pte. Ltd. announced in a press release that its wholly owned subsidiary, Digital Edge (Hong Kong) Ltd., has acquired a controlling interest in Indonesian digital infrastructure service providers PT Indointernet Tbk. Digital Edge aims to transform the enterprise technology landscape by building and operating data centers. By virtue of its USD 165 million investment, Digital Edge will be the single largest shareholder in Indonet.   

Indonet is a fully licensed facilities-based carrier that owns significant self-built fiber assets in the Jakarta metro area and offers a full suite of Internet connectivity, local loop, cloud access, and co-location services. Indonet, through one of its subsidiaries, recently commissioned the EDGE1 data center with 1,500 cabs at Jalan Kuningan Barat, the most carrier dense area in Jakarta.

“This strategic partnership marks our initial entry into South East Asia. It enables Digital Edge to meet the pressing needs of new customers wanting to deploy into Indonesia, and also to offer Indonesian firms a strong regional platform to expand outside of the country,” said Samuel Lee, Chief Executive Officer of Digital Edge.

“The Digital Edge team understands the culture and complexities of operating in Indonesia. I am excited about this partnership given Digital Edge’s unique combination of technical knowledge on data center design, relationship with regional and global customers, and access to capital. Together with Digital Edge, Indonet is best placed to capitalize on the market growth of Indonesia. In fact, we are already looking at the next round of expansion projects,” said Toto Sugiri, Founder and Chairman of Indonet.

According to Structure Research, Jakarta’s colocation market is expected to reach USD 625 million by 2025, growing at a CAGR of 23.7% between 2021 and 2025. The combination of Indonesia’s rapidly growing digital economy, accelerating enterprise cloud adoption and the proliferation of start-up companies, is driving this demand for colocation and new data centres.

“The Digital Edge team has personally witnessed the tremendous growth and transformation of Indonesia’s telecom, Internet and data center industries for well over a decade. With its full suite of telecom licenses, extensive dark fiber assets, network services and central location of its EDGE1 data center, Indonet will enable Digital Edge to develop sophisticated solutions for its interconnect-focused customers, such as network, cloud, and financial service customers. Moreover, with the recent opening-up of the foreign ownership restrictions in telecommunications industry, Indonet is well positioned to become the service provider of choice for foreign telcos looking to expand their regional and global footprints into Indonesia,” said Andy Rigoli, Chief Operations Officer of Digital Edge.

Headquartered in Singapore, Digital Edge is a trusted and forward-looking data center platform company, established to transform digital infrastructure in Asia. Through building and operating state-of-the-art, energy-efficient data centers rich with connectivity options, Digital Edge aims to bring new colocation and interconnect options to the Asian market, making infrastructure deployment in the region easy, efficient and economical. 

Backed by Stonepeak Infrastructure Partners, Digital Edge reports that it has in excess of US$1 billion in committed capital to establish and drive its data center platform in Asia. Established in 1994, Indonet is Indonesia’s first commercial Internet Service Provider and today focuses on building an ecosystem for corporate clients through the provision of multi-connectivity solution, data center, and cloud services.