BDx Data Centre Project Halted as Industry Ministry Speaks Out
Jakarta, CNBC Indonesia — The temporary suspension of BDx Data Centers’ data-centre project in Jatiluhur, Purwakarta, West Java, has highlighted problems with coordination between central and regional governments in managing investment. Deputy Industry Minister Faisol Riza said policy misalignment could obstruct investment, even when a project has been coordinated with the central government.
Faisol said Indonesia had significant potential to attract investment and strengthen its national industry. However, that potential would not be fully realised without good governance, policy certainty and ease of doing business.
The suspension of BDx’s Jatiluhur data-centre project is one example of the problem. Faisol said the second phase of the project had previously been included in investment coordination through the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM). Nevertheless, several requirements still had to be met before the project could proceed.
“BDx Data Center’s investment in Jatiluhur is actually the second phase, but the provincial government cancelled or halted the project. BDx, I believe, was already part of the investment recorded with and registered at BKPM,” Faisol said at the 2026 Indonesian Chamber of Commerce and Industry (Kadin) National Coordination Meeting on Investment, Downstreaming, Energy and the Environment in Jakarta on Tuesday (13 October 2026).
The issue demonstrates the need for stronger coordination between central and regional governments. Investment requirements should be resolved through communication and policy alignment, rather than resulting in the suspension of projects with the potential to contribute to the economy.
“This should make us collectively realise that the problem is far more complex. It is not only a technical or investment issue, but also a matter of governance that we need to improve and make more straightforward,” Faisol said.
He also highlighted continuing differences between central and regional policies that could create uncertainty for businesses. The government, he said, needed to ensure that policies aligned with the national development agenda, while still requiring investors to meet the conditions that applied to them.
“In many policies, both at the central level and in the regions, there are still significant gaps. Some say things are being made difficult, while others consider the policies inconsistent with national policy. I believe we need to work together to improve all of this,” he said.
Faisol said the coordination issue required serious attention because data-centre investment had substantial economic value. Demand for digital infrastructure is also increasing as artificial intelligence (AI) and the global digital industry develop.
“If we calculate it, investment in a single data centre is worth a great deal. Compared with its contribution to GDP, one data centre could significantly increase the value of investment,” he said.
Data-centre development is also becoming more strategically important amid changes in global industrial supply chains. Faisol said trade competition between the United States and China was creating opportunities for industries that underpin digital technology. However, the sector requires extensive infrastructure, particularly electricity and water supplies.
“The trade war between the United States and China is creating more room for industries of this kind, which require very large amounts of energy and electricity,” he said.