Jakarta (ANTARA) - The Managing Director of the Energy Shift\nInstitute (ESI), Putra Adhigumenta, believes Indonesia holds great\npromise as a destination for data centre investment through competitive\nincentives, reliable electricity, and a gradual energy transition.<\/p>\n
According to Putra, the government can strengthen the attractiveness\nof data centre investments by designing incentives that prioritise\ndomestic value addition, ensuring that the economic benefits are more\nwidely felt within Indonesia.<\/p>\n
\u201cIndonesia is a promising country for the DC (data centre) market,\nbut incentives must be based on the elements of fairness regarding\ndomestic value addition and a greener transition, including in terms of\nenergy sources,\u201d Putra said when contacted by ANTARA in Jakarta on\nTuesday.<\/p>\n
He made these remarks in response to statements by the Minister of\nEnergy and Mineral Resources, Bahlil Lahadalia, who invited investors to\nutilise Indonesia\u2019s various islands to build data centres.<\/p>\n
Putra urged that the provision of incentives should not be based\nsolely on the total value of the investment, but must instead be linked\nto the contribution towards creating domestic value addition.<\/p>\n
In his view, the data centre industry creates relatively limited\npermanent employment, approximately 15 employees for every investment\nworth 100 million US dollars, meaning the economic benefits need to be\nmeasured more comprehensively.<\/p>\n
Therefore, Putra believes the government needs to ensure that every\nincentive provided is truly based on evidence of contribution to the\nnational economy so that such policies remain fair and effective.<\/p>\n
On the other hand, he noted that data centre investors have diverse\nneeds, ranging from competitive electricity prices to the availability\nof clean energy to support long-term operations.<\/p>\n
Nevertheless, Putra considers the reliability of the electricity\nsupply to remain the primary consideration for investors; thus, PT PLN\nmust ensure that the electrical system is capable of meeting the growing\ndemand of data centres without disrupting services to the public or\nother industries.<\/p>\n
He also encouraged the government to direct data centre development\ntowards the gradual use of green energy, for example, through a target\nof 30 per cent clean energy utilisation, increasing to 50 per cent and\nthen 70 per cent.<\/p>\n
According to Putra, such a phased approach is more realistic than\nimmediately mandating 100 per cent clean energy, while simultaneously\nproviding certainty for businesses to invest.<\/p>\n
\u201cIn this way, businesses are given a more measurable incentive, and\ndata centres do not become a reason for the expansion of coal-fired\npower plants (PLTU) or an obstacle to the clean transition,\u201d he\nstated.<\/p>\n
He added that a combination of incentives linked to domestic value\naddition, a reliable electricity supply, and an increase in the use of\nclean energy will strengthen Indonesia\u2019s position as a competitive and\nsustainable data centre investment destination.<\/p>\n
Previously, the Minister of Energy and Mineral Resources, Bahlil\nLahadalia, offered investors the opportunity to utilise Indonesia\u2019s\nislands to build data centres.<\/p>\n
\u201cLadies and gentlemen, investors should not hesitate to build data\ncentres in Indonesia. Our territory is the largest in the Southeast\nAsian region, and we have many islands,\u201d said Bahlil at the Electricity\nConnect 2026 event held in Tangerang, Banten, on Tuesday (22\/9).<\/p>\n
Furthermore, Bahlil noted that Indonesia possesses significant energy\npotential to support data centre operations, citing potential energy\nfrom solar, hydro, geothermal, wind, and other sources.<\/p>\n
In addition to the advantages of a vast territory and abundant energy\nresources, Bahlith stated that electricity production costs in Indonesia\nare certainly much more competitive compared to other countries.<\/p>\n
\u201cWe will provide various facilities and ease for all of you,\u201d Bahlil\ntold the audience at Electricity Connect 2026.<\/p>\n
As one of the key aspects of building data centres is the certainty\nof electricity supply to meet their requirements, Bahlil assured that\nthere would be no issues in fulfilling the electricity needs of data\ncentres.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/observer-indonesia-holds-promising-value-for-data-centre-investment-1790683315", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }