Digital Edge now the single largest shareholder in Indonet through $165 million investment

Digital Edge has acquired the major stake in Indonesian telco PT Indointernet for $165 million. The acquisition of the major stake was backed by the Stonepeak Infrastructure Partners private firm. This move is Digital Edge’s first in Indonesia. After completing the deal, the CEO of Digital Edge, Samuel Lee, commented that the deal allows Digital Edge to meet the needs of its new customers that want to deploy to Indonesia.

He also added that the partnership would give Indonesian enterprises a solid regional platform to expand outside the country. Indonetwork offers connectivity, colocation services, and cloud access. It also owns self-built fiber assets in Jakarta. Toto Sugiri, the founder of Indonetwork, also added that with Digital Edge, Indonetwork is now well-positioned to take advantage of the market growth of Indonesia.

Digital Edge Press Release on June 15, 2021:

Digital Edge Expands into Indonesia with Strategic Investment in PT IndoInternet Tbk

The partnership takes Digital Edge’s regional footprint to seven data centers across three countries

Singapore – June 15, 2021 – Digital Edge (Singapore) Holdings Pte. Ltd. (“Digital Edge”) today announced that its wholly owned subsidiary, Digital Edge (Hong Kong) Ltd., has acquired a controlling interest in one of the leading digital infrastructure service providers in Indonesia, PT Indointernet Tbk (“Indonet”). Digital Edge, which is backed by Stonepeak Infrastructure Partners, aims to transform the enterprise technology landscape by building and operating state-of-the-art, energy-efficient, connectivity-rich data centers. By virtue of its USD 165 million investment, Digital Edge will be the single largest shareholder in Indonet.

Indonet is a fully licensed facilities-based carrier that owns significant self-built fiber assets in the Jakarta metro area and offers a full suite of Internet connectivity, local loop, cloud access, and co-location services. Indonet, through one of its subsidiaries, recently commissioned the EDGE1 data center with 1,500 cabs at Jalan Kuningan Barat, the most carrier dense area in Jakarta, bringing much needed capacity to this strategic location. EDGE1 is designed and built with the latest technology and can fully support customer High Power Density deployment.

“This strategic partnership marks our initial entry into South East Asia. It enables Digital Edge to meet the pressing needs of new customers wanting to deploy into Indonesia, and also to offer Indonesian firms a strong regional platform to expand outside of the country,” said Samuel Lee, Chief Executive Officer of Digital Edge, “Pak Toto and the Indonet team have done a fantastic job in building a diverse and innovative business. With our good standing relationship with Pak Toto and his team, Indonet is a natural fit for Digital Edge and we are extremely pleased with this partnership.”

“The Digital Edge team understands the culture and complexities of operating in Indonesia. I am excited about this partnership given Digital Edge’s unique combination of technical knowledge on data center design, relationship with regional and global customers, and access to capital. Together with Digital Edge, Indonet is best placed to capitalize on the market growth of Indonesia. In fact, we are already looking at the next round of expansion projects,” said Toto Sugiri, Founder and Chairman of Indonet.

According to Structure Research, Jakarta’s colocation market is expected to reach USD625 million by 2025, growing at a CAGR of 23.7% between 2021 and 2025. The combination of Indonesia’s rapidly growing digital economy, accelerating enterprise cloud adoption and the proliferation of start-up companies, is driving this demand for colocation and new data centres.

“The Digital Edge team has personally witnessed the tremendous growth and transformation of Indonesia’s telecom, Internet and data center industries for well over a decade. With its full suite of telecom licenses, extensive dark fiber assets, network services and central location of its EDGE1 data center, Indonet will enable Digital Edge to develop sophisticated solutions for its interconnect-focused customers, such as network, cloud, and financial service customers. Moreover, with the recent opening-up of the foreign ownership restrictions in telecommunications industry, Indonet is well positioned to become the service provider of choice for foreign telcos looking to expand their regional and global footprints into Indonesia,” said Andy Rigoli, Chief Operations Officer of Digital Edge.

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About Digital Edge
Headquartered in Singapore, Digital Edge is a trusted and forward-looking data center platform company, established to transform digital infrastructure in Asia. Through building and operating state-of-the-art, energy-efficient data centers rich with connectivity options, Digital Edge aims to bring new colocation and interconnect options to the Asian market, making infrastructure deployment in the region easy, efficient and economical.

Digital Edge was founded by a seasoned senior management team with decades of industry experience and an established track record of value creation in the data center, cloud and telecommunications industries in the Asia-Pacific region. Backed by Stonepeak Infrastructure Partners, Digital Edge has in excess of US$1 billion in committed capital to establish and drive its data center platform in Asia.

About Stonepeak Infrastructure Partners
Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately $37 billion of assets under management. Through its investment in defensive, hard-asset businesses globally, Stonepeak aims to create value for its investors and portfolio companies, and to have a positive impact on the communities in which it operates. Stonepeak sponsors investment vehicles focused on private equity and credit. The firm provides capital, operational support, and committed partnership to sustainably grow investments in its target sectors, which include transport and logistics, communications, water, energy transition, and power and renewable energy. Stonepeak is headquartered in New York with offices in Houston, Austin and Hong Kong. For more information, please visit www.stonepeakpartners.com.

About PT Indointernet Tbk
Established in 1994, PT Indointernet Tbk (Indonet) is the pioneer in providing information and communication technology (ICT) total solution and has succeeded in becoming a leading role model in Indonesia’s ICT sector. Throughout its journey, Indonet, the country’s first commercial Internet Service Provider, has transformed into a digital infrastructure provider. Today, Indonet focuses on building a complete ecosystem for corporate clients through the provision of multi-connectivity solution, data center, and cloud services.