Jakarta, September [9], 2024 - Korea Investment Real Asset Management Co., Ltd. (“KIRA”) and PT SMPlus Digital Investama (“SM+”), the digital infrastructure platform backed by Sinar Mas, are pleased to announce the establishment of a joint venture to develop an advanced data center in the central business district of Jakarta to serve enterprises and hyperscalers. The project, with an investment value of over USD 300 million, is scheduled to be operational by mid-2026.

 

KIRA's investment reaffirms their confidence in the potential of the data center business in Indonesia. KIRA's proven expertise in the data center business in Korea and other countries, combined with SM+’s ability to develop and manage data center businesses in Indonesia, will provide a strong foundation for this partnership to seize opportunities in Indonesia's data center market. 

 

Franky Oesman Widjaja, Board Member of Sinar Mas stated, “This new data center will deliver top-tier facility and services that are essential for advancing digital transformation across various sectors in Indonesia, including finance, industrial, government, public services, and education. We are delighted to partner with KIRA on this marquee initiative.” 

“We are confident that our partnership with SM+ and Sinar Mas will significantly advance Indonesia’s digital transformation. This partnership is a pivotal step towards achieving our common vision of becoming the leader in Indonesia’s data center market,” added Chief Executive Officer of KIRA, Kim Yong Sik.

 

Key attributes of the project include:

 

 

• * Collaboration with Best-in-Class DC Technology Partner:  PT. LG Sinarmas Technology Solutions (“LG Sinar Mas”), a joint venture between SM+ and LG CNS, South Korea’s leading data center solutions provider and operator, has been appointed as the lead technical consultant for the design of the new data center and will be the operator of this new facility once operational. With the support of LG Sinar Mas, this new data center project will offer proven and reliable data center design, operations and managed services that will result in optimized solutions and values to its customers.

 

• * Future-Proofed Design: To accommodate advanced computing technologies such as AI, the data center will incorporate liquid cooling technology. This design positions the facility as one of the most technologically advanced in Indonesia and the region.

 

* Enhanced Connectivity: Strategically located in Jakarta's city center, the data center will offer carrier-neutral connectivity to major internet exchanges and a nationwide network of 24 Edge data centers.

 

*Scalability: The project includes the potential for future expansion, allowing it to support growing customer needs by potentially tripling its current capacity.

 

According to Structure Research, the Indonesian data center market is projected to grow at an average annual rate of 22%, reaching KR？1.4 trillion (US$ 1.1 billion) by 2028 from an estimated KR？524.5 billion (US$395.0 million) in 2023. With a population of approximately 280 million, Indonesia is poised for significant domestic market growth, high economic growth rates, and strong future momentum. KIRA and SM+ are confidence that their partnership is well positioned to capture and capitalize on this opportunity. 

 

About Sinar Mas: Since Eka Tjipta Widjaja chose entrepreneurship as his path in Makassar, South Sulawesi at the age of 15 in 1938, Sinar Mas has grown into a brand comprising numerous companies that uphold shared corporate values. Each of these companies operates independently with its own management. These companies are engaged in various sectors, including pulp and paper, agribusiness and food, real estate development, financial services, telecommunications and technology, energy and infrastructure, healthcare, and various other industries. 

 

About KIRA: Starting with the acquisition of Hanshin Securities in 1982 and rebranding as Dongwon Securities, Dongwon Group first made appearance in the financial service industry in Korea. Much later in 2005, Dongwon Securities merged into Korea Investment Securities and officially became Korea Investment Holdings. As of today, Korea Investment Holdings is listed on the Korean Stock Exchange and has 11 affiliated companies including savings bank, asset management, private equity, investment bank, and hedge fund. Korea Investment Real Asset Management, a direct subsidiary of Korea Investment Holdings, is an asset management company which specializes in making investment and managing funds in alternative assets such as real estate and infrastructure.

 

 

For more information, please contact: 

 

KIRA:

r_webmaster@koreainvestment.com 

+82-2-6112-5999 

SM+:

info@smplus.com

+62-21-3190-9111