10 July 2013, Multipolar Technology Puts US$100 Million into Datacenter

Multipolar Technology, an information-technology company, has announced plans to spend up to US$100 million to build a datacenter in Cikarang, West Java. Harijono Suwarno, president director at Multipolar Technology, said the company has begun the construction of the datacentre facility that will cover 12,000 sq m. The construction work is expected to finish by 2014.

“For the first phase, we will invest up to US$20 million but to complete the work will need a further US$80 million” Harijono told reporters at the Indonesia Stock Exchange (IDX). He said the company will use the bulk of the company’s internal cash to finance the datacentre. He declined to say whether the company will seek a bank loan to help finance the project.

Harijono said the company saw a bright future in the datacenter business in Indonesia. Government regulations say datacenters or disaster recovery centers for companies that cater to public services must be located in Indonesia.

The regulation has caused some concern among foreign companies, including BlackBerry, that say it will slow their capacity to offer improved services to Indonesian customers.

Indonesia is also experiencing a rapid growth in the numbers of Internet users. Content providers, which rely on datacenters, are racing to tap into the myriad growing information streams, including social media and mobile applications.

Multipolar Technology provides IT hardware, solutions and services. It has partnered with international technological companies Microsoft, Oracle, Cisco and IBM and for more than 35 years has served clients in the financial services, telecommunications, health care and government sectors.

Halim D. Mangunjodo a director for consulting enterprise delivery at Multipolar Technology, said the company intends for 60% of the datacenter capacity to go to clients in the banking sector, 20% to go to telecoms and the remaining 20% for government agencies as well as small and medium enterprises.

Multipolar Technology is a wholly owned subsidiary of Multipolar, an investment company controlled by the Lippo Group that has been a traded company since 1986.