Salim Group eyes a $500 million Data Centre Push

Indonesia’s Salim Group is looking to raise $500 million to finance its data centre plans- which include building and operating at its indsutrial parks.

According to a report in Bloomberg, the Jakarta-based group, controlled by Indonesian billionaire Anthoni Salim, is in talks with banks to seek about $500 million worth of loans to fund the digital infrastructure, according to sources in the know, who asked not to be named as the process is private.

The billionaire Salim, head of Salim Group, which has diverse investments in banking, food and telecommunications. He is the controlling shareholder in Hong Kong-listed First Pacific Co., which in turn holds stakes in PLDT Inc., a telecommunications and digital services provider in the Philippines.

The plan would see Salim Group invest about $100 million per industrial park, one of the people said, adding that discussions are ongoing and there is no guarantee there will be a deal. The Salim Group currently owns and operates data centres in Indonesia serving financial institutions and enterprise customers.

Indonesia’s digital economy with its market value expected to reach USD 130 billion by 2025 and its data centre services market is one of the fastest growing in the region with a CAGR (compound annual growth rate) of 35 per cent. Positive growth drivers such as data onshoring regulations, increased smartphone adoption and the growing popularity of e-commerce are expected to generate healthy demand for quality data centres with high resiliency.

Salim has invested in data centres in the past. In June, Salim increased his stake in PT DCI to 11.12 per cent. Established in 2011, DCI Indonesia (DCI) is the leading data center provider in Indonesia and the first Tier-IV data centre in Southeast Asia.

Similarly, in 2018, the Salim Group and the Keppel Group, through the Alpha Data Centre Fund (Alpha DC Fund), managed by Alpha Investment Partners Limited (Alpha), and Keppel Data Centres Holding Pte Ltd (Keppel Data Centres), have said that they will jointly develop and operate a high-availability data centre in Bogor, about 35km distance from Jakarta, Indonesia.

The data centre, IndoKeppel Data Centre 1 (IKDC 1), will be developed and operated by a 60:40 joint venture between the Salim Group and Keppel Data Centres.

“The Salim Group is one of Indonesia’s biggest conglomerates with many diversified assets ranging from food, banking and telecommunications. For the past decade, the group has been keen on preparing and expanding its Salim Digital Ecosystem to support the nation’s transformation to Industry 4.0. It’s here,” Sugiharto Darmakusuma, Director of Salim Group had said.

Venkatesh Ganesh

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