The Investment Coordinating Board (BKPM) is encouraging investors to\nestablish data centres outside Java, with the Batam Special Economic\nZone (SEZ) being considered a strategic location for development.<\/p>\n
Deputy for Investment Information Technology at the Ministry of\nInvestment and Downstreaming\/BKPM, Ricky Kusmayadi, said Batam\u2019s\ngeographical proximity to Singapore makes the area highly promising for\nsupporting the regional digital ecosystem.<\/p>\n
\u201cThe government has prepared a focus for digital centres and data\ncentres in the Batam area, particularly in the SEZ. Because it is close\nto overseas areas such as Singapore, this has become our primary\nconcern,\u201d Ricky said, as quoted on Monday (19\/5).<\/p>\n
Ricky noted the government is also working to reduce the imbalance in\ndigital investment, which has historically been concentrated in Jakarta\nand Java. By designating Batam SEZ as a priority location, the\ngovernment hopes to achieve more equitable growth in national digital\ninvestment.<\/p>\n
According to Data Center Map, there were 141 data centres operating\nacross Indonesia as of early 2025, placing the country 13th out of 161\nnations worldwide. Jakarta has the highest concentration nationally with\n83 units as of 15 January 2025, followed by Batam with 9, Surabaya with\n8, Bandung with 7, Denpasar and Bogor with 4 each, and Makassar with 3.\nOther regions have between one and two data centres.<\/p>\n
Based on Knight Frank\u2019s Property Highlight 2024 data, the data centre\nsector was one of the most significant absorbers of space in industrial\nestates last year, accounting for approximately 33 per cent of land\nuptake in industrial areas along Jakarta\u2019s eastern corridor.<\/p>\n
To attract data centre investment, Ricky said the government has\nprepared a range of facilities and fiscal incentives for investors,\nincluding exemptions on import duties for machinery and equipment.<\/p>\n
\u201cImported machinery can be submitted to us for analysis. If it meets\nthe criteria, a reduction of up to zero per cent can be granted,\u201d he\nsaid.<\/p>\n
These incentives form part of the facilities embedded within the SEZ\nframework, which also includes simplified licensing and tax relief.<\/p>\n
Meanwhile, Director General of Digital Government Technology at the\nMinistry of Communications and Digital (Komdigi), Mira Tayyiba, stressed\nthe importance of basic infrastructure support such as connectivity,\nclean energy and water availability to sustain data centre\noperations.<\/p>\n
\u201cWe have begun coordinating with other ministries, as many data\ncentres are now requesting access to clean energy. The same applies to\nwater supply for cooling systems,\u201d Mira said.<\/p>\n
She added that equitable connectivity, including in areas outside\nJava such as Batam SEZ, is a government priority to create a competitive\nand sustainable digital investment climate.<\/p>\n
According to Mira, the government\u2019s approach to data centre\ninvestment is not solely fiscal but also encompasses the provision of\nessential requirements that are key considerations for both local and\nglobal investors.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bkpm-encourages-data-centre-investment-outside-java-eyes-batam-special-economic-zone-1771242333", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }