Indonesian telco PT Indointernet Tbk has purchased land in South Jakarta for a data center.
Indonet, through its subsidiary PT Ekagrata Data Gemilang (EDG), purchased two plots of land in Kuningan, South Jakarta. The company acquired the 6,000 square meters (64,500 sq ft) from PT Sentragraha Sentosa for Rp. 241.72 billion ($16.6 million). The land will be used to build a data center in the capital.
“After more than one year of the pandemic hitting Indonesia and globally, this has resulted in a decline in the property market which has resulted in a lot of land being sold at prices below market value,” said the company. “EDG views that this period is the right time to acquire land in the best location at the best price for the construction and development of Edge Data Centers.”
Indonet launched on the Indonesian Stock Exchange in February, and the company said the proceeds would be used to build a new data center in the capital.
"To support the development of the digital economy in Indonesia, which is currently growing rapidly, the company will use the proceeds from the IPO to invest in infrastructure and data center equipment and connectivity," said Indonet president and director Djarot Subiantoro.
Indonet started in 1994 as the first commercial private Internet service provider (ISP) in Indonesia. The company already has two data centers in Jakarta and South Tangerang.
Indonesia has seen a growing interest from data center firms of late. Both Tencent and Microsoft recently announced plans to develop facilities in Jakarta, while Alibaba is developing its third data center in the country.