Indonesia’s utility PLN collaborates with Greenland International Industrial Centre (GIIC) Kota Deltamas Industrial Area for country’s First National DC
Published 14 September 2021
Indoensia’s State-owned electricity company PLN is collaborating with the Greenland International Industrial Centre (GIIC) Kota Deltamas industrial area for Indonesia’s first national data centre.
Located in Cikarang, West Java, the project is part of the government’s vision of becoming a hub for international data centres, according to a report in the JakartaPost.
The agreement between PLN and GIIC was signed on Tuesday by PLN regional business – Java, Madura, Bali director Haryanto WS, PLN enterprise and customer management Bob Saril, PT Puradelta Lestari and PT Pembangunan Deltamas president director Hongky Jeffry Nantung, as well as PT Pembangunan Deltamas director Naritsugu Tomita.
As a part of the deal, PLN is committed to supply Indonesia’s first data centre with international standards with the required 993 MVA of 24-hour electricity.
Indonesia set to be the fastest growing market for data centres in SEA, with a growth rate of 22 per cent per annum over the next five years, according to a report by Cushman & Wakefield.
During the agreement signing, PLN president director Zulkifli Zaini said that the project requires a green and reliable electricity supply in line with the global community. “In line with the Indonesian President’s mandate of transforming Indonesia into an international data centre hub, PLN is ready to fully support their plans to the best of our ability,” he said.
In his opening remarks, Communications and Informations Minister Johnny G. Plate said that electricity infrastructure readiness is vital to the readiness of data centre infrastructure, as data centers businesses are effectively power supply businesses which require a constant supply of electricity.
Currently, Indonesia’s data centre consumption is very low at 1 Watt per capita, which translates to approximately 270 Mega Watt (MW). In comparison, Singapore has an average data centre capacity consumption of 100 watt per capita. Japan has an average data centre capacity consumption of 10 watt per capita.
To reach Japan’s level, Indonesia will require at least 2.7 Giga Watt (GW) of electricity just for its data centers. Further, the Indonesia data centre market size is expected to grow at a CAGR of 6 per cent from 2020−2026, on the back of increasing usage of tech adoption and government regulations, according to research from Arizton Advisory and Intelligence.
“This is an important collaboration as the Indonesian President hoped, which is a coordinated and cooperative effort. Synergies like this will result in a large-scale national efficiency, promoting high rates of national productivity,” Johnny said.
Through the collaboration, PLN will also supply electricity for 12 national and international data centre developers in the GIIC area. To maintain reliability, the electricity will be supplied from two main sources that are adjusted with customer needs. Currently, the electricity reserve for Java and Bali is more than 50 per cent capacity.
PT Puradelta Lestari and PT Pembangunan Deltamas president director Hongky Jeffry Nantung expressed his hopes that data centre companies in GIIC and Indonesia will be able to receive a reliable supply of electricity and renewable energy.
“Two, three years ago we were not yet able to answer those demands, but with this collaboration, renewable green energy certified with international standards will be a huge help,” he said.
According to Zulkifli, PLN’s collaboration with GIIC is evidence that the company is able to supply high-quality electricity with competitive prices, allowing its customers to focus more on managing their businesses. PLN customers will also have the option of renewable energy through their products and services, such as Renewable Energy Certificate, Premium Green, Carbon Credit, or other products as required by developers or investors.
“For us, this collaboration is a mandate to supply and fulfill the electricity needs of various industries in Indonesia,” he said, adding that PLN is ready to collaborate with data centre developers and investors in Indonesia’s efforts to accelerate digital transformation through national and international data centres. “As we all know, data centre development in Indonesia will serve to boost the national digital business and startup development, along with other multiplier effects.”
These developments also needs to be seen in the context of a renewed push from the genco to up its play. In December 2016, PLN formally signed an investment credit worth Rp 12 trillion to six creditors consisting of Mandiri Bank, BRI, BCA, Maybank, Sarana Multi Infrastruktur (SMI) and the Indonesia Eximbank.
The syndicated loan which tenor up to 10 years will be used to accelerate the completion of the mega project of 35,000 MW.