Sinar Mas together with LG CNS Co. Ltd. (LG CNS) officially formed a joint venture, namely LG Sinar Mas to build a data center in the middle of Jakarta worth IDR 4.6 trillion. The first joint project between Sinar Mas and LG CNS will build an AI-based data center in Indonesia.
The joint venture was formed from a partnership agreement signed on March 27, 2024 in Seoul, South Korea, as the basis for strategic collaboration in the technology sector.
LG CNS is a South Korea-based data center, IT services, cloud solutions, and digital transformation specialist. They are a leader in digital transformation from South Korea.
LG CNS's experience in digital technology, combined with Sinar Mas' knowledge in various Indonesian business sectors, is expected to meet the needs of the ever-growing IT market.
The new collaborative company will build an AI (artificial intelligence) based data center in the Central Business District in Kuningan, South Jakarta with a total development area of 8,516 square meters (m2). The data center is scheduled for completion in mid-2026, with the main target being domestic and multinational companies, especially those in the banking industry sector.
"Through this partnership, we believe we can contribute to building a future where technology is seamlessly integrated into the daily lives of millions of Indonesians, helping us to be more connected, prosperous, and intelligent. We believe the power of collaboration can take us further, to go far and beyond ," said Board Member of Sinar Mas, Franky Oesman Widjaja at the event held in Jakarta, and attended by SM+ CEO Herson Suindah, LG CNS CEO Hyun Shin Gyoon, and LG Sinar Mas CEO Han Donghyup.
Hyun Shin Gyoon, CEO of LG CNS, stated that this collaboration will position LG Sinar Mas as a major player in Indonesia's technology landscape and contribute to more inclusive economic growth.
"We are confident that with complementary visions and expertise, we can exceed expectations and bring a positive impact to Indonesian society," he said.
Overall, there are six pillars of focus of the joint venture between Sinar Mas and LG. First, data center and cloud services. Second, finance services. Third, public and smart 3. Fourth, smart factory. Fifth, telecommunications, and sixth, global delivery center .
“We hope that in the future, we will work together to develop a series of small, growing infrastructure, such as data centers and clouds, financial IT services, and IT ecosystems that can benefit businesses and society,” said LG CNS CEO Hyun Shin Gyoon.
For the development timeline itself, this project will begin the groundbreaking ceremony in the first quarter of 2025. Overall, this project is expected to be completed in 2027, while operations are expected to begin in the second semester of 2026.
“The project is expected to be completed in 2027. The targets of this project are large companies, especially in the banking sector, and Sinar Mas companies and Korean companies,” said LG Sinar Mas CEO Han Donghyup.
Franky hopes that this collaboration will have a positive impact, both for the two companies and the national economy.
“We hope to build a leading technology platform in Indonesia to drive the country’s economic development, while creating a sustainable business for both partners,” Franky said.
