Bahlil Offers Indonesian Islands as Locations for Data Centre Development

The Minister of Energy and Mineral Resources, Bahlil Lahadalia, has offered the use of Indonesia’s islands to investors as potential sites for data centre development during the Electricity Connect 2026 event in Tangerang, Banten, on Tuesday (22/9/2026).

The government believes that Indonesia’s vast territory, being the largest in Southeast Asia, possesses numerous potential islands that can be offered to support the growing demand for technological investment.

“Ladies and gentlemen, investors should not hesitate to build data centres in Indonesia. Our territory is the largest in the Southeast Asian region, and we have many islands available,” said Bahlil Lahadalia, Minister of Energy and Mineral Resources.

The operation of these computing facilities would be supported by Indonesia’s abundant national renewable energy potential, including solar, hydro, geothermal, and wind power, with electricity production costs claimed to be more competitive.

“We will provide various facilities and ease of process for all of you,” added Bahlil Lahadalia.

Regarding the guarantee of power availability, Bahlil emphasised that PT PLN (Persero) is prepared to meet whatever power capacity is required by data centre investors.

“As soon as they express their interest and specify the required electricity capacity, PLN will certainly prepare it,” stated Bahlil Lahadalia.

This offer aligns with previous efforts by the Deputy for Investment Services at the Ministry of Investment and Downstreaming/BKPM, Andi Maulana, who presented data centre investment opportunities to Chinese investors during a business forum in Jakarta on Thursday (23/7).

According to BKPM data, citing Mordor Intelligence, the Indonesian data centre market value is projected to grow from US$1.44 billion in 2025 to US$1.83 billion in 2026, and is expected to reach US$3.48 billion by 2031.