According to DBS and UOB, the loan’s proceeds will be used to develop and operate three data centres in Batam’s Nongsa Digital Park (NDP). The NDP aims to be a “digital bridge” between Singapore and Batam where Singapore companies can tap on Indonesia’s infrastructure and digital talent pool. At the same time, Indonesia will also be able to leverage Singapore’s technological advancement and investment flows.
DBS Bank and United Overseas Bank (SGX:U11
) (UOB) have jointly provided a landmark IDR6.7 trillion loan facility to finance the development of a new data centre campus in Batam, Indonesia, according to a joint statement released by both banks on June 5. Based on the exchange rate as of June 4, the loan facility, which is the largest IDR-denominated financing agreement secured for such a development, amounts to about $530 million.
The data centre project is jointly developed by Singapore-based data centre developer and operator DayOne and the Indonesia Investment Authority (INA), the country’s sovereign wealth fund. The new campus marks the expansion of DayOne’s presence in Indonesia and is INA’s first investment in the sector. Both parties have established a joint venture (JV) to drive growth and advancement of the data landscape in Indonesia.
