DXN signs agreement with Indonesian critical digital infrastructure operator

ASX-listed modular and prefabricated data centre provider DXN has signed a strategic, non-binding Memorandum of Understanding (MOU) with Super Sistem Indonesia (SSI), a critical digital infrastructure operator in Indonesia, which primarily deals with subsea fiber optic cable systems.

Following the 2018 establishment of the Indonesian government’s ‘Making Indonesia 4.0’ strategy - which aims to accelerate the country's digitisation by building a self-reliant digital economy - the signing of the MOU aims to position DXN to capitalise on this market.

The objective of the MOU is for SSI to place future modular data centre purchase orders through a joint venture (JV) holding company, which is equally owned by DXN and SSI.

Any future purchase orders placed by SSI will be made through the JV entity, in a factory jointly owned and operated in Jakarta.

A key driver for the MOU and establishment of a JV is due to the Indonesia’s regulatory environment with notable barriers to entry for foreign companies, which includes import tariffs on data centre products and equipment often in the range of 20–40 per cent.

The strategic MOU enables DXN to localise operations, leverage domestic advantages, comply with regulations, and deliver solutions tailored to the Indonesian market. The implementation of Indonesian data sovereignty regulations, require certain types of data, particularly in the public, financial, and strategic sectors to be stored and processed domestically. 

This has significantly increased the need for local data storage facilities, creating sustained and growing requirements for reliable, in-country infrastructure and both hyperscale and edge data centers are being developed.

Market forecasts project the Indonesian data center capacity to grow from approximately 970 MW currently, rising to 1,800 MW by 2028.

Shalini Lagrutta, MD of DXN, said in FY25 at least 80% of DXN’s modular revenue was for the export market.

"The MOU and establishment of a JV, strongly positions us to participate in the next wave of South-East Asia’s infrastructure development, without incurring significantly high import charges," she said.

"Initially the focus will be on securing modular orders for SSI out of the Jakarta facility; over time we believe we can grow the Indonesian pipeline, securing work for a list of additional customers who require a cost-effective manufacturing solution based in Southeast Asia."

Lagrutta said recent large-scale data center projects across Indonesia have signalled strong confidence in the country’s digital future.

"To effectively navigate these dynamics and capture the growing opportunity, DXN has taken decisive action by partnering with a regional leader in SSI," she explained.

"We are enthusiastic about the high-growth prospects in this region and strongly believe an acceleration in investments, supported by rapid e-commerce expansion, widespread cloud adoption, and proactive government policies promoting digital transformation means this is an area DXN must direct its attention, to scale.”

2025 saw DXN awarded contracts by an unnamed global comms and IT services provider; APTelecom; Ventia; Globalstar; and DP World.