Indonesian Political, Business & Finance News

Data Centres Face Opposition Everywhere; AHY Describes the Situation in Indonesia

| Source: CNBC Translated from Indonesian | Infrastructure
Data Centres Face Opposition Everywhere; AHY Describes the Situation in Indonesia
Image: CNBC

Jakarta, CNBC Indonesia – Data centre construction is facing opposition in several areas, including Indonesia. One project, owned by BDX in Jatiluhur, has had to be temporarily halted because it has not yet met the required conditions.

Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono described the current situation. He acknowledged that data centres are needed as the adoption of digital technology increases.

“As we increasingly adopt digital technology, including e-commerce and various other services, we inevitably need data centres in different regions,” AHY said at the Digital Infrastructure Summit 2026 on Monday (12 October 2026).

At the same time, he said, data centres require extraordinary amounts of energy to operate. Their needs for electricity and clean water therefore have to be carefully assessed.

He said the government continues to encourage data centre development, while stressing that projects must not cause harm or disrupt the comfort of people living nearby.

“Nor should they disrupt the environmental balance of the area. Our communities have the right to live peacefully, comfortably and healthily, without their basic needs being affected. I believe that is the principle,” he said.

AHY added that water is needed not only by data centres but also for residents’ everyday needs. He also said measures were needed to prevent environmental pollution caused by improper water use. Energy security, he stressed, must be prepared for just as food security is.

Agus said the relevant parties must ensure compliance, including with regard to the environmental impact of the buildings.

“I leave it to the parties responsible for ensuring whether a particular data centre is compliant and meets the standards and requirements that have been set, including decisions concerning its environmental impact,” he added.

Data centre opposition, from Jatiluhur to the United States

The rapid expansion of data centres has been accompanied by widespread community opposition, with environmental concerns among residents’ main priorities.

At the end of September, BDX’s data centre attracted attention over environmental concerns. It later emerged that construction requirements, including an environmental impact assessment (AMDAL), were still being processed, even though the groundbreaking had taken place in the middle of the previous month.

West Java Governor Dedi Mulyadi and the provincial legislative council also voiced concern that the project could affect local water supplies.

Soon afterwards, residents in Nongsa, Batam, complained that their water had been cut off for months. They suspected the disruption was connected to data centre construction in the area.

Some residents said they could not access water for several hours a day; the situation then worsened until supplies stopped completely.

The issue has also arisen in several other countries. Many parts of the United States have seen waves of protests against data centre construction.

More than 100 proposals to suspend data centre construction are under discussion in various areas. One survey also found that 662% of US residents supported delaying construction, including 40% who said it was a priority for them.

In Europe, more than 70 data centre projects faced restrictions or rejection between January and April 2026. The objections similarly centred on concerns about electricity and water consumption, energy prices, substantial land requirements, and uncertainty over the economic benefits and job creation.

Residents of Seoul’s Geumcheon district in South Korea have also opposed a data centre planned near homes. The local government is planning to require approval from a majority of residents living within 200 metres of a project site.

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