Telkom Indonesia eyes global partner to expand data centers

Telkom Indonesia plans to collaborate with a global partner to expand its data center business, aiming to introduce new technology and attract larger clients.

The company sees data centers as a strategic part of its digital infrastructure portfolio, especially amid rising demand driven by AI growth.

Telkom’s CEO, Dian Siswarini, said that such partnerships could help accelerate expansion and bring in investment.

She acknowledged that the data center industry requires significant upfront investment and has a long payback period, with high levels of uncertainty as customers typically commit after infrastructure is built.

Despite these challenges, Dian emphasized that data centers remain a key focus for Telkom’s digital ecosystem.

She added that the company might not be able to meet all demand alone and sees partnerships as essential for significant growth.

🔗 Source: Bisnis Tekno

🧠 Food for thought

Implications, context, and why it matters.

Telkom’s partnership push also fits a planned majority stake sale

Telkom Indonesia is also weighing a majority stake sale in its data center unit NeutraDC. Bloomberg said the firm is working with financial advisers and seeking a $1 billion to $1.5 billion valuation 1.
Interest in a deal goes back to 2022, when the company began sounding out investors 2.
Telkom CEO Dian Siswarini said AI is lifting demand for data centers. Financial strain may matter too, since Telkom Indonesia’s cloud and data center segment posted a 6.6% year-on-year revenue drop in Q3 2025 3.
That slide came even with high facility use. It suggests tighter pricing, tougher bids for big contracts, or a shift in what customers buy in Indonesia’s more crowded data center market 3.

State-owned telcos are shifting into infrastructure owners and sellers

Across the sector, operators are carving out capital-heavy networks from day-to-day services to bring in cash and limit exposure.
Telkom already took this route. In October 2025 it finished the spin-off of its wholesale fiber connectivity unit, Telekom Infrastruktur Indonesia, at IDR 35.8 trillion, or about $2.1 billion 4.
Separate vehicles can draw infrastructure-focused backers. KKR (a global investment firm) and Singtel (Singapore Telecommunications, a major telecom operator) took full control of ST Telemedia Global Data Centres (a large data center operator) in a SGD 6.6 billion deal, or about $5.2 billion 4.
Partial sales can finance buildouts as Indonesia’s data center market grows. It is expected to more than double to $6.08 billion by 2031, while spreading the funding load 5.