Indonesian Political, Business & Finance News

Danantara Plans to Develop AI Chips and a Massive 1 GW Data Centre

| Source: CNBC Translated from Indonesian | Technology
Danantara Plans to Develop AI Chips and a Massive 1 GW Data Centre
Image: CNBC

Jakarta, CNBC Indonesia – The Daya Anagata Nusantara Investment Management Agency (Danantara) is stepping up efforts to strengthen Indonesia’s technological foundations. The agency plans to undertake more than 40 strategic projects across six priority industrial clusters, ranging from artificial intelligence (AI) chip development to the construction of a large-scale data centre.

Danantara chief technology officer Sigit Puji Santosa presented the technology roadmap at the Danantara Technology Innovation Investment Forum 2026 in Jakarta on Monday (26 October 2026).

“Danantara has more than 40 projects across six industries,” Sigit said.

One of Danantara’s main priorities is to transform Indonesia’s data centre industry and give it significantly greater added value. Sigit said data centres in the country have so far largely been limited to land-leasing businesses and the provision of basic infrastructure.

“Going forward, through Danantara, we will not only have infrastructure and equipment, but will also bring the manufacturing of that equipment into the country,” Sigit said.

Developing six semiconductor sectors and partnering with chip giant Arm

To support an independent data centre and advanced technology ecosystem, Danantara is targeting the development of a domestic semiconductor industry. Sigit said six semiconductor sectors are being developed, including controllers and chips designed for data centres.

The effort is being reinforced by a strategic partnership with global chip-design giant Arm, announced in May. The collaboration focuses on developing AI chips and training 15,000 Indonesian digital professionals to design chips using the Arm ecosystem.

“We have six sectors in semiconductors that we will develop in Indonesia together with Danantara. One includes controllers and chips for data centres,” he said.

Beyond chips and data centres, Danantara is also preparing future projects under its Others cluster, including computing devices, electric heavy machinery, optical sensors and instruments, and industrial robots.

Danantara’s six priority industrial clusters

Danantara’s strategic projects are grouped into six main industrial clusters: Energy; Food, Health and Agriculture; Defence, Maritime and Aerospace; Advanced Materials; Telecoms and Mobility; and Others.

In the Telecoms and Mobility cluster, major priority projects include a 1 gigawatt (GW) data centre, national AI sovereignty, national e-commerce, sovereign cloud, national blockchain, the Garuda Command Centre, national car and motorcycle projects, and a traceability and trust system.

The cluster is also expected to pursue future technologies, including next-generation batteries, charging equipment, scanning systems, electric motor traction systems and private industrial 5G networks.

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