Indonesian Tycoon Anthoni Salim’s Dealmaking Spree Rakes In Billions

Indonesian Tycoon Anthoni Salim’s- The Amman Mineral Internasional, a copper and gold mining company, had its IPO in July. This event not only brought three new individuals onto the list, but also proved to be extremely profitable for Anthoni Salim. Anthoni Salim, who is the chairman of the Salim group, a conglomerate renowned for its Indomie instant noodles, experienced a significant increase in his wealth. His net worth rose by $2.8 billion to reach $10.3 billion, largely due to his valuable stake in Amman. Over the past few years, Salim has been actively involved in diversifying his empire from food to telecommunications through various deals, with Amman Miner playing a major role in this expansion strategy.

In 2017, he acquired an initial stake after Medco Energi Internasional, owned by his friend Hilmi Panigoro, purchased it. Salim’s association with Panigoro also includes a minority stake in Medco, which was acquired in 2019. Last year, Salim made a significant move to expand his mining assets by spearheading a consortium that invested $1.6 billion to acquire a majority stake in Bumi Resources, the largest coal miner in Indonesia and owned by the Bakrie family. In addition to his involvement in mining, Salim is capitalizing on the digital boom. In the same year, he acquired a minority interest in Elang Mahkota Teknologi (Emtek), a multimedia company owned by Eddy Kusnadi Sariaatmadja.

Indonesian Tycoon Anthoni Salim’s

The business magnate is also actively expanding his investment in infrastructure through Nusantara Infrastructure, a toll road operator listed on the stock exchange. In October, a group led by Salim’s Hong Kong-based company First Pacific acquired a 19% stake in the Philippine parent company of Nusantara Infrastructure, Metro Pacific Investments, for $500 million. Nusantara Infrastructure has faced financial difficulties as a result of its debt and incurred losses during the first nine months of this year. To alleviate this burden, the company recently sold its one-third share in a toll road to GIC, Singapore’s sovereign wealth fund, for $210 million. Salim intends to remove the company from the stock exchange, citing the long duration required for return on investment due to the capital-intensive nature of the business.

ICBP claimed that the cost of Pinehill was too high and therefore they were paying for it. Although Salim and his associates were not able to vote at the meeting on Friday due to Hong Kong’s related-party rules, they can still vote in ICBP’s extraordinary general meeting (EGM) as per Indonesian regulations. Some shareholders have expressed concerns regarding governance issues raised by this transaction. On the other hand, proponents of the takeover believe that it could significantly improve ICBP’s financial performance. The EGM of ICBP, initially scheduled for July 15, was postponed because Indonesia’s financial regulator stated that additional information needed to be provided to shareholders, as mentioned in local newspapers.

Indonesian Tycoon Anthoni Salim’s Overviews

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Tycoon Salim intensifies Indonesia data center battle

JAKARTA — Anthoni Salim, the CEO of Salim Group, a conglomerate in Indonesia, has acquired an additional stake worth 1.02 trillion rupiah ($71 million) in Data Center Indonesia. This move comes as competition intensifies in the country’s cloud industry following recent announcements by Tencent and Microsoft. According to DCI’s filing to the Indonesia Stock Exchange on Thursday, Salim now directly controls 11.12% of shares in the local cloud services provider, a significant increase from his previous stake of 3.03%. The company’s share price experienced a 20% surge to 19,800 rupiah on the day of the announcement and further rose by another 20% on Friday, closing at 23,750 rupiah.

DCI recently opened its fourth data center in Bekasi, a town located to the east of Jakarta. This new facility has increased the company’s total capacity to 37 megawatts. DCI has successfully secured the services of three leading global cloud service providers and seven major e-commerce platforms in Indonesia and Southeast Asia. Additionally, more than 100 financial services providers and 30 telecommunications companies have chosen DCI as their preferred partner.

Having launched its inaugural data center in 2013, DCI has expressed its intention to construct up to 15 similar facilities within Southeast Asia’s largest economy. This ambitious plan is aimed at achieving a total power capacity of 200 MW. Indonesia, a thriving democracy, has emerged as a highly competitive arena for cloud services in Asia. Consequently, the demand for local data centers has skyrocketed due to the country’s expanding digital economy, which is driven by its fourth-largest population globally and a tech-savvy younger demographic. Additionally, local regulations pertaining to data storage have further necessitated the need for these facilities. The coronavirus pandemic has also provided an extra boost to online services such as e-commerce, video conferencing, streaming, and gaming.

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According to a report published in January by Google, Temasek, and Bain & Company, Indonesia’s internet economy experienced an 11% growth to reach $44 billion in the previous year. The report also predicts that this sector will continue to expand at a rate of 23% per year, reaching $124 billion by 2025. In line with this trend, Salim has recently made a move following Tencent Holdings’ announcement in April about their plan to establish two data centers in Indonesia before the year ends. Additionally, Microsoft has also reiterated its earlier plan to establish its first data center in the country during February.

Alibaba, the prominent Chinese internet company, operates two data centers in Indonesia through its cloud division, Alibaba Cloud. It has announced its intention to establish a third data center later this year. Similarly, Amazon has expressed plans to construct a data center using Amazon Web Services. Google, on the other hand, localized its cloud services for Indonesian customers last year by collaborating with local data center operators instead of relying on overseas centers.

During the COVID crisis, DCI, which was established and is led by Otto Toto Sugiri, a former IT manager at a local bank, has experienced significant growth in its business. Last year, it achieved a remarkable 55% increase in revenue, amounting to 759.4 billion rupiah. Additionally, its net profit soared by 71% to reach 183 billion rupiah. In the first quarter of this year, revenue and net profit also showed positive growth rates of 25% and 55%, respectively, reaching 171.5 billion rupiah and 48 billion rupiah. Since becoming a publicly traded company in January, its share price has multiplied by a staggering factor of 45.

DCI recently released its annual report for 2020, which stated that the number of internet users in Indonesia surged from 92 million in 2015 to approximately 152 million in 2019, representing nearly 60% of the country’s population. Furthermore, based on the Google and Temasek study, it was revealed that last year in Indonesia, around 37% of all digital service consumers were new customers.

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Indonesian tycoon Salim wins close shareholder vote on controversial $3 billion deal

According to the report from DCI, despite the population’s increasing adoption of Internet services and the growth of the digital economy, local data centers still have a low capacity per capita. As a result, there is an increased demand for high-quality data center services that meet international standards. DCI also stated that Indonesia’s market for co-location data centers, which are available for rent to retail customers, had a total capacity of 72.5 megawatts at the end of last year, with DCI controlling half of that capacity. The company projected an annual growth rate of 22.3% over the next five years.

According to Heru Sutadi, the executive director of ICT Institute, a think tank in Jakarta that focuses on information and communication technology, the flourishing digital economy and a government policy mandating local data storage have both attracted major internet companies to establish a presence in Indonesia. Sutadi explained to Nikkei Asia that while public entities are required to store their data locally, there are certain exceptions for private sector organizations. However, these exceptions can only be granted if a committee appointed by the government determines that the necessary technologies for their data centers are not available within the country.

According to him, Google and Facebook are constructing international fiber optic networks that pass through Indonesia, which gives Indonesia a strategic position. The intention is for Indonesia to become a digital hub for Southeast Asia. Salim’s increased ownership in DCI represents a deeper entry into the growing digital economy by the Salim Group, which is most famous for its Indofood instant noodle producing unit. Additionally, Salim personally holds a stake in Indonesian multimedia company Elang Mahkota Teknologi, which has made investments in local e-commerce giant Bukalapak and digital wallet platform Dana. Furthermore, his son, Axton Salim, is involved in the startup incubator Block 71, which has offices in Jakarta and Singapore and also participates in local e-sport development.

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Indonesian Tycoon Anthoni Salim’s FAQ’S

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