Internet Initiative Japan (IIJ) has reached an agreement with Biznet Networks (Biznet) to establish a joint venture in Indonesia.
IIJ aims to enhance its existing cloud services in the ASEAN region. Biznet Networks, headquartered in Jakarta, is a major communications services company in Indonesia.
IIJ and Biznet plan to establish the joint venture and to begin its operations in mid-December 2014 after completing the procedures required by the relevant authorities. The new company will promote the use of cloud services.
The joint venture is expected to launch with $6 million in capital (60% from Biznet and 40% from IIJ). It will build new cloud service infrastructure in Indonesia and will offer public and private cloud services to local companies.
IIJ will provide cloud technologies, operational support, and other contributions. Biznet's contribution will include lending the prestige it holds in the Indonesian market, conducting day-to-day operations, and handling the venture's domestic business.
IIJ and Biznet forecast that the venture will create annual revenue equivalent to around $10 million after three years of the launch of the services. The joint venture's trade name, headquarters, managing director, and other details will be decided by its two parent companies at a later date.
Since 2011, IIJ Group has been strengthening its overseas cloud businesses. The group already offers cloud services in the US, China, Europe, and Singapore.