Communications Ministry seeks more even data centre growth, including in eastern Indonesia

Denpasar (ANTARA) – The Communications and Digital Ministry (Kemkomdigi) is directing the more even distribution of data centre development through regulation, so that digital infrastructure is not concentrated solely in already-developed areas.

“We are guiding this through regulation, just as we are building more evenly distributed connectivity,” Deputy Communications and Digital Minister Nezar Patria said at Bali Tech Week 2026 in Denpasar, Bali, on Thursday.

Nezar said the government was encouraging digital infrastructure development in various regions, including eastern Indonesia, where further development is needed.

One mechanism for distributing connectivity more evenly is through spectrum auctions. Auction winners are required to build networks in two areas: one that is already developed and another that still needs development.

Nezar said this requirement could, for example, combine network development in areas such as Java and Papua, preventing infrastructure development from being concentrated in more advanced regions.

He said data centre construction, particularly to support artificial intelligence (AI), was being steered away from concentration in Central Java and Batam. The development of these facilities would also be aligned with industry needs.

He explained that permits for data centre construction do not fall under Kemkomdigi’s authority, but involve ministries responsible for investment and industry.

Meanwhile, a proposal to designate data centre development as a National Strategic Project (PSN) is still under discussion.

Previously, Kemkomdigi Director General of Digital Infrastructure Wayan Toni Supriyanto said that distributing data centre development more evenly required planning that took into account market readiness, resource availability, energy supplies, and national and international connectivity.

“We need to prioritise particular areas based on the needs of the government, industry, education and public services. Energy supplies and the suitability of locations are also important,” Wayan said.

He said the government was also preparing regulations on submarine cables and data centres. Draft presidential regulations covering both areas have been prepared and are now at the public consultation stage.

Wayan added that the government needed input from industry players, government agencies and private companies to refine the regulations.