Bakrie & Brothers Eyes Strategic Entry into Indonesia's Booming Data Center Market

The landscape of Indonesia's digital infrastructure is witnessing a significant shift as one of the country's most established conglomerates, PT Bakrie & Brothers Tbk (BNBR), signals its intention to enter the data center business. This move is not merely a diversification play but a strategic evolution of their existing technological capabilities, aimed at capturing the massive wave of digital transformation sweeping across Southeast Asia.

Anindya N. Bakrie, the President Director & CEO of BNBR, recently shared his vision following the company's Annual General Meeting of Shareholders in Jakarta. He emphasized that the group is actively exploring opportunities to expand into the data center sector as a core part of its future business development strategy. This ambition is deeply rooted in the existing expertise of their subsidiary, PT Multi Kontrol Nusantara (MKN), which has long been a player in the IT ecosystem.

Leveraging the Strength of MKN

The pivot toward data centers is a natural progression for BNBR, thanks to the groundwork laid by MKN. For years, PT Multi Kontrol Nusantara has focused on systems integration, network services, and strategic IT solutions. MKN's portfolio includes extensive experience in building and managing fiber optic infrastructure, which serves as the backbone for any modern digital facility.

Anindya pointed out that while the company's historical focus was on traditional IT infrastructure—such as telecommunication towers and fiber optic cabling—the market demands have changed. The rise of cloud computing, AI, and big data has shifted the definition of essential infrastructure toward the centralized hubs that store and process this information: data centers.

From Towers to High-Tech Hubs

In his discussion with the media, Anindya explained the fundamental shift in how the group perceives digital assets. The days of simply building poles and laying cables are evolving into a more integrated approach. He noted that MKN, alongside other members of the Bakrie Group, has already begun scouting for opportunities in this space. The transition from physical connectivity to high-capacity data storage and processing is seen as a logical leap for a group that already manages vast infrastructure networks.

Currently, the company is in the preliminary stages of identifying strategic locations for these potential data centers. Jakarta remains the primary focus due to its high demand and proximity to major business hubs. However, building a data center is a capital-intensive and technically demanding endeavor that requires more than just a good location.

The Three Pillars of Data Center Success

According to Anindya, there are three critical factors that will determine the success of their expansion into this sector. First is the availability of strategic land, particularly in urban areas where latency is low. Second, and perhaps most importantly, is a stable and massive supply of electricity. This is where BNBR holds a competitive edge, as the group’s expertise in power generation can be leveraged to ensure the high energy demands of a data center are met efficiently.

Thirdly, the group is looking for the right collaborators. Anindya stated that BNBR is only willing to pull the trigger on this expansion if they find strategic partners who possess deep technical expertise in the data center industry. By combining Bakrie’s local land and power assets with the specialized knowledge of global or local tech experts, the company aims to build world-class facilities.

Financial Performance and Growth Trajectory

Despite the ambitious plans for the future, the company's current financial health remains robust. Throughout the 2025 fiscal year, PT Bakrie & Brothers Tbk reported a net revenue of Rp3.74 trillion. While this represents a slight dip of 3.28 percent year-on-year, the company's profitability tells a much more impressive story. Net profit surged by a remarkable 49.6 percent (yoy), reaching Rp502.74 billion, up from Rp336.04 billion in the previous year.

This strong bottom-line growth is supported by various business units within the conglomerate. PT Bakrie Metal Industries (BMI) Group remains a heavy hitter, contributing Rp2.18 trillion to the total revenue. Meanwhile, the electric vehicle-focused PT VKTR Teknologi Mobilitas Tbk (VKTR) Group contributed Rp1.08 trillion, and PT Bakrie Indo Infrastructure (BIIN) Group added another Rp464.21 billion. This diversified revenue stream provides the necessary financial stability for BNBR to aggressively pursue its new digital infrastructure goals.