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DXN Signs MOU to Expand into Indonesian Market

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Strategic partnership with Super Sistem Indonesia aims to capture growing digital infrastructure opportunities

DXN Limited (DXN), a prefabricated modular data centre specialist, has announced the signing of a Memorandum of Understanding (MOU) with Super Sistem Indonesia (SSI) to capitalise on the expanding digital infrastructure sector in Indonesia. DXN is a vertically integrated manufacturer and operator of modular data centres across Asia Pacific. The company designs, engineers, manufactures, and operates high-quality, prefabricated facilities for government and blue-chip enterprise customers.

The MOU outlines a plan for SSI to place future modular data centre purchase orders through a Joint Venture (JV) holding company based in Singapore, equally owned by DXN and SSI. This strategic move aims to navigate Indonesia’s regulatory landscape, including import tariffs on data centre products, which can range from 20-40%. The partnership enables DXN to localise operations, leverage domestic advantages, and comply with regulations while delivering tailored solutions to the Indonesian market.

According to the announcement, the JV presents an opportunity to establish a manufacturing facility in Jakarta and secure external customer orders. DXN anticipates a projected revenue opportunity of approximately US$7 million over the next three years through the JV, with a focus on years two and three. The collaboration with SSI, a key digital infrastructure operator specialising in subsea fibre optic cable systems, positions DXN to benefit from Indonesia’s growing digital economy, driven by e-commerce, fintech, cloud computing, and AI.

Shalini Lagrutta, Managing Director of DXN, stated that the MOU strongly positions the company to participate in South-East Asia’s infrastructure development, avoiding high import charges. The initial focus will be on securing modular orders for SSI from the Jakarta facility, with plans to expand the Indonesian pipeline and cater to additional customers seeking cost-effective manufacturing solutions in Southeast Asia.

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