Tycoon Salim escalates data center battle in Indonesia
JAKARTA – Anthoni Salim, CEO of Indonesian conglomerate Salim Group, has increased its stake in Data Center Indonesia by an additional 1.02 trillion rupees ($ 71 million) as competition intensifies in the space cloud in the country following recent announcements from Tencent and Microsoft.
With the increase in personal stake, Salim now directly controls 11.12% of the shares of the local cloud services operator, up from 3.03% before the transaction, DCI said on Thursday in a document filed with the Stock Exchange. ‘Indonesia. The company’s stock price rose 20% to 19,800 rupees in trading the same day after the announcement, and jumped 20% to 23,750 rupees on Friday morning.
Last week, DCI inaugurated its fourth data center in Bekasi, an industrial city east of Jakarta, bringing its total capacity to 37 megawatts. The company said it has recruited three “leading global cloud service providers” and the seven “largest e-commerce platforms in Indonesia. [and] Southeast Asia “among its customers, as well as more than 100 financial service providers and 30 telecommunications companies.
DCI, which opened its first data center in 2013, announced plans to build up to 15 such facilities in Southeast Asia’s largest economy, with a total power capacity of 200 MW.
Indonesia is one of the hottest battlegrounds for cloud services in Asia, increasing the demand for local data centers due to its expanding digital economy supported by the world’s fourth largest population, a vibrant democracy, a large population. young people familiar with the Internet and a welcoming regulatory environment. Online services such as e-commerce, video conferencing, streaming and games have received a new boost during the coronavirus pandemic.
A report released in January by Google, Temasek and Bain & Company predicted that Indonesia’s internet economy grew 11% to $ 44 billion last year and would grow another 23% annually to $ 124 billion in 2025.
Salim’s move follows Chinese internet conglomerate Tencent Holdings’ announcement in April of a plan to open two data centers in Indonesia by the end of the year. Earlier in February, US tech giant Microsoft reiterated plans to establish its first data center in the country.
Chinese internet giant Alibaba, through its cloud arm Alibaba Cloud, currently operates two data centers in Indonesia and said it plans to launch a third one this year. Amazon, through Amazon Web Services, also discussed plans to build a data center, while Google last year localized its cloud services for Indonesian customers by partnering with local data center operators after have previously used centers abroad.
DCI, founded and led by Otto Toto Sugiri, a former IT manager at a local bank, has seen its business grow strongly during the COVID crisis. It recorded 55% revenue growth to 759.4 billion rupees last year, while its net profit jumped 71% to 183 billion rupees. In the first three months of this year, turnover and net profit increased by 25% and 55% respectively, to 171.5 billion rupees and 48 billion rupees.
The company’s share price has risen 45-fold since it went public in January.
Salim’s increased stake in DCI marks a deeper foray of the Salim Group – best known for its Indofood instant noodle production unit – into the booming digital economy. He also personally owns a stake in Indonesian multimedia company Elang Mahkota Teknologi, which has invested in local e-commerce unicorn Bukalapak and digital wallet Dana.
His son, Axton Salim, is involved in the Block 71 startup incubator, which has offices in Jakarta and Singapore, as well as local esports development.