DE-CIX, the world’s leading operator of Internet Exchanges (IXs), has exciting plans to establish a joint venture company called PT DE-CIX Indonesia in partnership with PT IDMarco Digital Solusi, a subsidiary of the Salim Group.
The first step of this endeavor involves setting up a distributed IX across multiple data centers in Jakarta, utilizing the award-winning DE-CIX Apollon platform. By doing so, DE-CIX Jakarta will become part of the existing DE-CIX ecosystem in Southeast Asia, which already covers six metro markets, including Jakarta, Singapore, Kuala Lumpur, Johor Bahru, Brunei, and Manila. The integration of these exchanges enables customers to access networks seamlessly across the region, offering top-quality interconnection services for both wholesale and enterprise requirements, making it the most cost-effective way to peer across Southeast Asia.
Ivo Ivanov, CEO of DE-CIX, emphasizes the significance of Indonesia as the next logical step for the company in the region. With its vast population and rapidly growing economy, Indonesia holds immense potential for content and traffic localization in the ASEAN region. While Mega Hubs like Singapore and Hong Kong will remain crucial, the main growth is expected to occur in markets like Jakarta. With DE-CIX Apollon’s arrival in Jakarta, all networks in Indonesia can benefit from DE-CIX’s best-in-class platform.
The integration with DE-CIX Singapore will further enhance the Southeast Asian interconnection ecosystem, providing exceptional interconnection services for network providers, cloud service providers, and enterprises. The comprehensive offering includes both local and regional interconnection, as well as Cloud Exchange capabilities, leading to an improved user experience for Indonesian end-users and a wide range of tailored cloud interconnection services for enterprises.
DE-CIX Jakarta’s platform boasts advanced security features, such as blackholing services, and provides participants with in-depth statistical data to better understand their traffic patterns. Additionally, the platform offers a self-service portal and API for easy management and automation of interconnection services.
Thomas Dragono, Director of IDMarco Digital, emphasizes the positive impact of this world-class Internet Exchange on Indonesia’s digital infrastructure. With substantial investments made over the last decade, the country’s Internet penetration has significantly increased, and there is a growing awareness of the importance of high-quality Internet connectivity beyond just fiber optic cables or the latest VSAT technology. The presence of DE-CIX’s Internet Exchange aims to accelerate the realization of better Internet quality for Indonesia, marking a significant milestone in the country’s technological progress.
Indonesia’s impressive statistics further highlight its potential as a thriving market. With a population of nearly 280 million, 70% of whom are of working age, Indonesia boasts the largest economy in Southeast Asia and is ranked 17th in the world. The country has registered 2,492 start-ups as of 10 May 2023, with nine of them classified as unicorns, making it the 6th largest start-up hub globally. Internet penetration has grown by more than 50% between 2017 and 2022, reaching close to 220 million people, approximately 78% of the population. Notably, Indonesia hosts close to 1,000 independent networks, almost doubling the number in the past five years. Furthermore, more than 40 international and national sub-sea cables land on the shores of the archipelago, with plans for six more in the next two years. The information and communication technology (ICT) sector in Indonesia has seen impressive growth, with revenues growing by over 10% in the past year. As per McKinsey analysts’ projections, Indonesia is expected to lead Asia-Pacific in overall IT spending, reaching up to US $6 billion by 2024.
In conclusion, DE-CIX’s joint venture in Indonesia represents a significant milestone for the country’s digital landscape. With its advanced interconnection platform and strategic position within Southeast Asia’s growing ecosystem, DE-CIX Jakarta is poised to play a vital role in enhancing internet connectivity, fostering innovation, and supporting Indonesia’s continuous technological growth.