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Indonesia's state-owned communication company, PT Telkom Indonesia (TLKM.JK), is considering selling a portion of its data center business. The selling process is expected to be completed in the second half of this year.

Telkom Indonesia is currently in the process of selecting a financial adviser and determining the amount of stake to sell, according to Ahmad Reza, Telkom's Senior Vice President of Corporate Communication and Investor Relations. Sources familiar with the plan suggest that the sale of a minority stake will begin in March and value Telkom Indonesia's data center business at over USD 1 billion.

Reza did not provide specific details regarding the stake size, sale commencement, or valuation, but mentioned that the monetization of the data center business is still under discussion and Telkom does not have a specific target in mind. The involvement of a global strategic partner or strong financial investors is expected to support Telkom Indonesia in expanding its data center business both locally and globally.

Telkom Indonesia, Indonesia's largest telecommunication group, currently operates 28 data centers, with 23 located domestically and five overseas, as stated in its 2022 annual report. The company faces competition from other data center providers such as DCI Indonesia, Princeton DG, and NTT Communications.

Reza highlighted the growing importance of the data center business due to the rapid increase in internet penetration worldwide, including in Indonesia.

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