Telstra signs off on Indonesian joint venture

Telstra and Telekom Indonesia have signed an agreement that will see the Australian telecommunications giant provide cloud services in Indonesia in 2015 as part of a joint venture.

After approximately 18 months of negotiations, Telstra and Telekom Indonesia have ticked off an agreement that will see Telstra provide network applications and services (NAS) to Indonesia as part of a joint venture.

In January, Telstra announced that it had signed a memorandum of understanding to establish a joint venture with local telecoms company Telekom Indonesia to expand its network applications and services division into South-East Asia, leveraging Indonesia's existing customer base.

Today, the two companies announced that the deal had been signed off after another seven months of negotiations.

"The JV is an important step in Telstra's Asia strategy, and aligns with our aim to build new growth businesses that leverage the strengths of our unique NAS capabilities," Telstra's global enterprise and services group executive Brendon Riley said in a statement.

"By partnering with Telekom Indonesia in the fastest-growing NAS market, we leverage local expertise, a respected brand, and service capabilities."

The joint venture will offer managed data network and security services, cloud, and unified communications services all supported in Indonesia.

"The JV will offer an integrated, end-to-end service, unique in the Indonesian market, by enabling NAS to be bundled with Telekom's connectivity and sold through Telekom Indonesia and Telstra's enterprise sales teams," Riley said.

The CEO of the joint-venture company will be Telstra's former executive director of customer service delivery Phill Sporton, and Riley said that Telstra and Telekom are aiming to be selling services to customers in Indonesia in 2015.

Telstra CEO David Thodey has said that Telstra's expansion into Asia is crucial for its growth, particularly as the company moves from being an incumbent telecommunications company to being a global technology company.

"Our vision is to become more of a global technology company. It doesn't mean our roots will not always be in Australia, but we need to go and tap into new markets and new opportunities," he said.