PT Indointernet Tbk (EDGE) – more popular as Indonet – is focusing on developing its second project EDGE 2 and finishing what is left of EDGE 1. Currently, the company is still selecting vendor related to the construction of EDGE 2. Indonet’s Capital Expenditure (Capex) in 2022 reached IDR2.8 trillion and the funds came from the company’s internal assets and loans from Bank Central Asia (BCA), the country’s biggest private lender.
CEO Stefanus Oscar said: “The company will accelerate its second project, namely EDGE 2. The construction project is located in Kuningan Center [South Jakarta] with a land area of 6,000 square meters (sqm) and with a capacity of 20 MegaWatt (MW) IT Load. Meanwhile, as of December, the company has booked a contract of 60% of the total capacity of EDGE 1. By 2022, it is projected that the contract capacity can reach at least 80% of the total capacity of EDGE 1.”
The use of Capex for 2022 is dominated by the completion of the two projects that require a large amount of Capex. It is hoped that some investments in the future will complete the company’s two projects.
Chief Financial Officer Donauly Situmorang explained that the Capex for the EDGE 1 project would be completed as soon as this year. Meanwhile, the EDGE 2 has just begun to be designed and construction will be carried out this year and next year.
While the Capex for the development outside the data center project was disbursed worth IDR180 billion, the funding was issued entirely from the company’s own assets and revenues and did not require a third party funding.
“From the other side, it does not require financing from external parties,” Situmorang said.
Oscar explained: “As the data center market continues to rise during the [COVID-19] pandemic, experiencing growth of US$336.6 million in 2022, it projects steady growth of 22.7% during the same year. The market size of data centers in Indonesia is still relatively low compared to neighboring countries. For example, Singapore has a 400MW capacity while Indonesia has a 100MW whereas the latter’s population is 274 million people. Therefore, it is a potential data center market.”
As a data center company with low latency, Vice President Commissioner Toto Sugiri stated, “the data center market in Indonesia still has a big need, not because of the country’s population does not use data centers but because most of Indonesian population uses data centers in Singapore. Therefore, [data center usage] per capita in Singapore is high, while in Indonesia is low. In the future, it is very important to provide a low latency data center. The current opportunity in the future has potential. Like it or not, the data must be in Indonesia.”
Indonet is a digital infrastructure provider company founded in 1994. The company is a pioneer of digital infrastructure services in Indonesia. The business bridges companies in achieving digital transformation and provides the essential infrastructure for businesses. The company was the first to receive a renewable energy supply from state-owned electricity company PLN and received a certificate from PLN as the first user of the company.
