Antara News · সাধারণ

Govt pushes equitable distribution of data centers in Indonesia

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Denpasar, Bali (ANTARA) - The Indonesian Ministry of Communication and Digital Affairs is pushing for equitable distribution of data centers through regulation, aiming to prevent digital infrastructure from concentrating solely in already developed regions.

“We’re driving this through regulation, just as we did with expanding connectivity,” Deputy Minister of Communication and Digital Affairs Nezar Patria said at the Bali Tech Week (BTW) 2026 in Denpasar, Bali, on Thursday.

Nezar added that the government is encouraging digital infrastructure development across various regions, including eastern Indonesia, which still requires further expansion.

He said data center development, particularly for supporting artificial intelligence (AI), is being directed away from concentrating solely in Java and Batam. The expansion of these facilities will also be aligned with industry demand.

Regarding Indonesia's data center capacity, Nezar noted that upcoming projects are targeted to reach a total capacity of up to 1.3 gigawatts (GW).

He explained that licensing for data center construction falls outside his ministry's authority, but instead involves the ministries responsible for investment and industrial affairs.

Meanwhile, the proposal to designate data center development as a National Strategic Project (PSN) remains under discussion.

Regarding connectivity expansion, one mechanism used is frequency auctions, where the winners are required to build networks in two types of areas: those that are already developed and those that still require development push.

Nezar cited an example where such obligations could combine network deployment in regions like Java and Papua, ensuring infrastructure growth is not concentrated solely in developed areas.

Previously, Director General of Digital Infrastructure at the Ministry of Communication and Digital Affairs, Wayan Toni Supriyanto, stated that achieving an even distribution of data centers requires planning that accounts for market readiness, resource availability, energy supply, as well as national and international connectivity support.

He noted that the government must ensure each selected location has an adequate supporting ecosystem to ensure the data center can operate reliably and meet user needs.

Wayan affirmed that the government is also preparing regulations regarding underwater cables and data centers. A draft Presidential Regulation covering both aspects has been prepared and is currently entering the public consultation phase.

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