• Telkom is evaluating binding offers for a NeutraDC partnership and is targeting completion of the process by the end of 2026
  • Cikarang is 96% occupied, while NeutraDC plans to open an initial 6MW of hyperscale capacity in Batam during the second half

The fact

Telkom Indonesia said on 7 September that its search for a NeutraDC partner had reached the evaluation of binding offers. Wholesale and International Service Director Budi Satria Dharma Purba said Telkom was targeting completion of the process by the end of 2026.

Telkom wants a partner that can help operate the business, bring access to more customers and support further capacity development. Budi said the structure should allow NeutraDC to expand without Telkom funding all of that growth itself. Katadata described the process as a planned majority-stake sale, although Telkom has not confirmed the percentage being offered or the transaction value.

Telkom separately reported first-half NeutraDC revenue of Rp867 billion, up 11% year on year, with 49.9MW of effective capacity. Its Cikarang hyperscale facility was 96% occupied, while the Batam facility is targeted to begin operations in the second half of 2026 with an initial 6MW.

The assessment

Cikarang's 96% occupancy leaves limited room for more customers, so NeutraDC needs additional capacity if demand continues. Telkom is looking for a partner that can contribute more than the price paid for a stake: it also wants help running the business, building capacity and reaching customers.

How the deal is structured will matter. If most of the transaction is simply a purchase of existing Telkom shares, that payment does not automatically become money for new NeutraDC construction. New equity, committed capital expenditure or other funding obligations would have a more direct effect on expansion.

For BTW readers, the final agreement should show what NeutraDC receives as well as what Telkom receives. The partner's funding commitments, operating role and responsibility for future capacity will show whether the transaction changes how quickly NeutraDC can expand beyond its existing facilities.

What to watch

Watch for Telkom to name the selected partner and disclose the ownership structure, new funding commitments and responsibilities for future NeutraDC expansion. Batam's planned initial 6MW opening should be tracked separately, since that capacity is already under development while the partnership process continues towards its year-end target.