Indonesian conglomerate Sinar Mas Group and South Korea’s LG CNS have formed a JV, which will focus on data centre and cloud businesses. In an unrelated development, Grab and Singtel’s GXS Bank plan to introduce a simple, low-risk investment product.
Sinar Mas, South Korea’s LG CNS form data centre JV in Indonesia
The Sinar Mas Group has entered into a strategic partnership with South Korean data centre, IT, and digital transformation firm LG CNS to create a new IT services joint venture that will serve the Indonesian market.
The Sinar Mas Group is represented by PT SMPlus Digital Investama (SM+), a unit that focuses on digital infrastructure and services investments, in the JV.
The joint venture between SM+ and LG CNS will focus on the data centre and cloud business and look to tap into Indonesia’s other IT services markets, including smart city and financial sector IT services. By leveraging LG CNS’ expertise in cloud and IT solutions and Sinar Mas’ knowledge of the Indonesian market, the joint venture aims to provide tailored services and solutions for the local market, Sinar Mas stated.
According to global market research firm Gartner, Indonesia’s IT services market is expected to grow at a CAGR of 23% from about $3.2 billion in 2023 to reach about $7.1 billion by 2027.
Sinar Mas telco firm Smartfren Telecom had sold its data centre assets to SM+ for 544.2 billion rupiah ($34m) in January. Smartfren stated that data centres are not its main focus, therefore the gain from the sale will be used to expand in telcom, including adding more BTS (base transceiver stations).
Besides SM+, Sinar Mas has been actively involved in several VCs including SMDV, Latitude Ventures, STAR Capital, PT Sinar Mas Ventura, and Living Lab Ventures.
GXS Bank to launch an investment product
Grab and Singtel’s GXS Bank are planning to introduce a simple, low-risk investment product, following the cessation of similar services by Grab.
According to a Straits Times report earlier this week, GXS retail head Jenn Ong said that this initiative allows the bank to gain a new revenue stream while serving one of its target markets—the financially underserved and new workforce entrants. “These people will need some form of an investment product. We want to put it in their hands,” she said.
GXS Bank was launched in August 2022 as Singapore’s first digital bank. It currently offers savings accounts, debit cards, and personal loan services.
This development comes several months after Grab discontinued its micro-investment offerings, AutoInvest and Earn+, and began winding down GrabInvest, citing a lack of commercial viability.