The Indonesian government is preparing to receive a surge of new\ninvestment in the digital infrastructure sector through the construction\nof data centres with a capacity of 1.3 gigawatts (GW). This massive\nexpansion plan is projected to be worth between US$15 billion and US$20\nbillion, equivalent to Rp 270 trillion to Rp 360 trillion.<\/p>\n
Coordinating Minister for Economic Affairs, Airlangga Hartarto,\nconfirmed that the current built data centre capacity in the country has\nonly reached 580 megawatts (MW). The additional new capacity of 1.3 GW\nis now in an advanced planning stage and will largely be concentrated in\nthe Batam area.<\/p>\n
\u201cThe existing 580 MW is perhaps equivalent to US$1 million per MW.\nThen, the additional roughly 1.3 GW, which is now in Batam, also\ninvolves an investment of around US$15-20 billion that is already in the\npipeline,\u201d Airlangga said in Central Jakarta on Friday.<\/p>\n
This strategic project has attracted interest from several global\ntechnology giants, including Nvidia, which is confirmed to be partnering\nwith an Australian company to invest. In addition, domestic corporations\nsuch as state-owned PT Telkom Indonesia (Persero) Tbk, along with other\nmajor technology companies, are also preparing to expand their data\ncentres in the Karawang area to support artificial intelligence\n(AI)-based quantum computing.<\/p>\n
\u201cOne of the companies is Nvidia working with Australia, then there is\na direct investment by Telkom itself. Then in Karawang, almost all big\ntech companies will develop their data centre expansion. Because this is\nnow very key for AI that relies on quantum computing,\u201d Airlangga\nexplained.<\/p>\n
To balance this technological leap in the upstream digital sector,\nthe government is also forming a strategic partnership with British\nsemiconductor company Arm Ltd to strengthen local human resource\ncapacity. The primary target of this collaboration is to produce tens of\nthousands of domestic experts who can be directly absorbed into the\nglobal technology ecosystem network.<\/p>\n
\u201cIt is hoped that from this upstream, we can then move downstream,\nbut the key to all of this is human resources. So the President\u2019s\ndirective is a target of 15,000 Indonesian engineers and workers to\nenter the Arm ecosystem,\u201d Airlangga stated.<\/p>\n
In addition to data centre construction, Indonesia\u2019s international\nconnectivity will also be strengthened through a global internet network\ninterconnection linking Batam with neighbouring countries and the United\nStates. The government has scheduled the inauguration of this new\nsubmarine fibre optic cable infrastructure for the end of July.<\/p>\n
\u201cLater, on the 20th, we will also inaugurate the additional landing\nof the fibre optic cable from Batam to Singapore. We have two landing\ncables, one to Singapore and then to the global network. Then the second\none goes to America via Bitung, via North Sulawesi,\u201d Airlangga\nconcluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-targets-new-data-centre-investments-worth-us-15-20-billion-1783687822", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }