Jakarta, INTI - Telkom Indonesia is accelerating the development of its digital infrastructure to meet rapidly growing demand for Artificial Intelligence (AI) computing, particularly in Jakarta and Batam, according to Detik iNET.
Telkom Indonesia Director of Wholesale & International Service Budi Satria Dharma Purba said connectivity requirements to support AI computing have increased by more than 10 to 20 times compared with previous levels.
“For computing, the connectivity requirement is more than 10 times higher, or even 10–20 times higher. This is the reality we are seeing,” Budi said.
He highlighted Jakarta and Batam as two key locations for data center development in Indonesia. Jakarta has seen rapid expansion, while Batam is emerging as another important data center hub.
“If we look at the current development of data centers in Indonesia to support AI, there are at least two locations. One is Jakarta, where data center development is clearly expanding rapidly. The second is Batam,” Budi said.
The surge in demand presents a challenge, as network infrastructure requires considerable time to build. Budi cited the Bifrost subsea cable system connecting Singapore and the United States as an example. The project took approximately five years to complete, but its capacity was fully utilized less than a year after it became operational.
“That is why I mentioned that it takes five years to build a cable, but its capacity was already fully utilized in less than a year,” he said.
Telkom Allocates 18–20% of Revenue to Capex
Telkom Indonesia President Director Dian Siswarini said the company allocates capital expenditure (capex) equivalent to around 18–20% of its revenue to support various digital infrastructure projects.
“Our capex-to-revenue ratio is between 18% and 20%,” Dian said.
She explained that the investment is being directed toward mobile networks, domestic fiber networks, international fiber connectivity through subsea cables, as well as power infrastructure and data centers.
“Some of it is used to build fiber networks, both domestically and internationally through international subsea cables. Other portions are used to build power infrastructure and data centers,” she said.
Budi added that if Indonesia aims to develop into a major data center hub supporting AI, the expansion of computing facilities must be accompanied by adequate global connectivity.
“If Indonesia is to become a center for data center growth to support AI, global connectivity must be available,” Budi concluded.
Conclusion
Telkom Indonesia’s infrastructure expansion reflects the growing demand for AI computing in Indonesia. As data center development accelerates in Jakarta and Batam, stronger fiber networks, subsea cables, power infrastructure, and global connectivity will be essential to support the country’s growing AI ecosystem.
Read more: AI Boom Drives Data Center Demand in Indonesia, Prompting Telkom to Increase Capex