Equinix and PT Astra International has established a joint venture – with a 75% and 25% equity stake respectively – to develop the digital infrastructure in Indonesia that multinationals and local businesses need to accelerate their digital transformation.
This joint venture will initially develop and operate an International Business Exchange (IBX) data centre in the heart of Jakarta, named JK1, with further expansion afterward in Indonesia.
The eight-story JK1 IBX data centre is set to open by the second half of 2024 and is expected to provide more than 1,600 cabinets and more than 5,300 square meters of colocation space when fully built.
Located in Jakarta's Central Business District and in close proximity to major internet exchanges, JK1 will provide local and foreign businesses operating in Indonesia with the digital infrastructure and vibrant ecosystems required for optimal performance.
“The Indonesian government is strongly committed to accelerating digital transformation across the nation,” said Jeremy Deutsch, president, Asia-Pacific at Equinix.
“This joint venture with Astra taps into the rising potential of digitalisation and illustrates Equinix’s ongoing commitment to serving the Indonesian community with capacity at scale to match computational, storage and edge requirements.”
Jeremy Deutsch, Equinix
Equinix currently runs 51 data centers in Asia Pacific, all located in key metros across Australia, China, Hong Kong, India, Japan, Korea, and Singapore.
With Astra’s deep local know-how and vast experience in various sectors in Indonesia, Equinix believes the joint venture is well-placed to unlock the potential of the Indonesian data centre market.
On the path of rapid digitisation
Indonesia’s national digital transformation program creates a framework for economic development and demand for digital infrastructure as the government targets 30 million micro, small, and medium-sized enterprises (MSMEs) to go digital by 2024.
The country is poised to become the largest ASEAN colocation market by 2027 as the region continues to witness significant retail demand for colocation coupled with growing hyperscale activity. Its colocation market is forecast with a valuation of US$1.2 billion by 2027.
In addition, major cloud service providers like Google Cloud, Amazon Web Services, Microsoft Azure and Alibaba Cloud have announced that they are launching cloud regions in Indonesia. The country is forecast to become the second largest public cloud market in Southeast Asia.
The joint venture of Equinix and Astra is well-positioned to capture the untapped growth of this high-potential market.
Forging a strong partnership
Astra is one of Indonesia’s largest public companies, with a diversified business across industry sectors, including automotive, financial services, heavy equipment, mining, construction and energy, agribusiness, infrastructure and logistics, information technology and property.
Combining Equinix’s expertise in global digital infrastructure and Astra’s deep roots in operating in Indonesia, the joint venture will help local businesses and multinationals develop their digital capabilities and capitalise on new and emerging technologies, such as hybrid multicloud, 5G, IoT, AI, and more.
“We hope this joint venture will strengthen Indonesia’s data centre infrastructure and help businesses by providing a comprehensive data centre that is more integrated, modern, easily accessible, and operated with the spirit and principles of sustainability."
Djony Bunarto Tjondro, president director of Astra
JK1 will incorporate sustainability into its design, leveraging innovative technologies such as Equinix’s cooling array to support economic and environmental goals for organisations in Indonesia. Equinix was the first in the data centre industry to set a 100% renewable energy goal and commit to reaching climate neutral by 2030 backed by an approved short-term science-based targets. These goals are in alignment with the Astra 2030 Sustainability Aspirations.
