TLKM - To consolidate data center assets

TLKM - To consolidate data center assets Telkom Indonesia (TLKM) expects to see continuous growth on its data center business whom the company plans to consolidate in near future. This is part of its five bold moves strategy that centers around its asset consolidation in order to optimize potential value. For data center business, TLKM is planning to consolidate under NeutraDC or Telkom Data Ekosistem (TDE). (Source : Kontan) Comment : We view that data center asset consolidation is important to spur growth amid strong potential demand in the future. Currently, data center remains nascent in the country reflected by very low penetration of c. 12% or at 0.6w/ capita, far cry behind Singapore at 183 w/capita, while internet penetration has reached above 70% of total population, indicating huge untapped potential market. Meanwhile, TLKM is currently holding c. 40% of market share. With strong partnership and infrastructure support, we believe TLKM will be able to expand its market share as it aims to build more DCs that oning projects include Hyperscale DCs in Batam and as well as capacity expansion in its exisiting locations.