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Telkom Plans on Establishing Joint Venture with SingTel

Prayogo Ryza - 24 June 2015

PT Telekomunikasi Indonesia Tbk (Telkom) is back with a new breakthrough. After plannning on establishing a data center in Singapore, the company’s now preparing to form a joint venture with SingTel Singapore’s subsidiary in order to manage their app procurement business.

As The Jakarta Post reported, the plan gets supported by Telkom’s Director of Innovation & Strategic Portfolio Indra Utoyo. He stated that Telkom, through one of its subsidiaries, PT Sigma Cipta Caraka (Telkomsigma), is going to establish a joint venture with one of Singtel’s subsidiaries, National Computer Systems Pte. Ltd. (NCIS).

“The agreement level is still macro. It’s only reached the iniviative and structure so far. We’re following up for more binding one, both for the MoU and the process to get into the JV. It still takes time,” he stated as cited from Bisnis.com.

He also explained that his team are still in the midst of discussion with SingTel upon the detail of the plan. He stated that Telkom attempts to hold the majority of the shares. It’s also stated that one of the sharing options would be Telkom conquering 60% of the total shares.

This joint venture will later focus on providing IT system in various sectors like transportation, health and education by riding on each company’s features such as SingTel’s experience in IT business and data center as well as NCS’ skills in providing communication solution.

As known that Telkomsigma has operated three data centers located in Serpong, Surabaya and Sentul with a total of 12.300 square meters of room so far. Meanwhile, NCS is one of best professional service providers for Singaporean market. Each company’s skills set and experience are expected to add more quality to the planned venture.

FYI, Telkom’s plan on establishing this joint venture differs from its plan on building a data center in Jurong, Singapore, which lately becomes the theme of discussion for numerous security issue like data leak it presents.

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