Indonesian Political, Business & Finance News

Dedi Mulyadi Reveals Reason Behind Halt of Rp3.5 Trillion AI Data Centre Project in Jatiluhur

| Source: VIVA Translated from Indonesian | Infrastructure
Dedi Mulyadi Reveals Reason Behind Halt of Rp3.5 Trillion AI Data Centre Project in Jatiluhur
Image: VIVA

Bandung, VIVA – West Java Governor Dedi Mulyadi has spoken out regarding the temporary suspension of the construction of an artificial intelligence (AI) based data centre valued at Rp3.5 trillion in the Jatiluhur area, Purwakarta.

Dedi asserted that the halt of the BDX Data Centres project was not caused by bureaucratic obstacles from the Purwakarta Regency Government or the West Java Provincial Government. According to him, the project was paused because the consultants have not yet completed the necessary licensing data.

This statement was made by Dedi to clarify the controversy arising from the suspension of the data centre’s construction.

“When I asked yesterday, the Building Permit (IMB) had not been issued. Has the Environmental Impact Assessment (Amdal) been released? Not yet. So I said, do not proceed with construction yet. Since the permits are not out. Where is the fault? With the Purwakata Local Government? No. The fault lies with the consultants, as even when I arrived, they had not submitted the data,” said Dedi Mulyadi, as quoted on Saturday (3/10/26).

The suspension was implemented following Dedi’s unannounced visit to the project site on Tuesday (28/7/26). He described the move as part of law enforcement and a measure to ensure that construction does not disregard environmental conditions or the interests of local residents.

To ensure an objective assessment of the project, the West Java Provincial Government has also involved academics from the University of Indonesia (UI). They have been requested to provide independent studies and input regarding the environmental impact of the AI data centre construction.

Dedi stated that he does not oppose the continuation of the project provided that all environmental requirements are met.

“Personally, if objectively the Amdal passes, I have no problem with it proceeding. If the Amdal says it is not permitted, I also have no problem with it being halted. But one note: the residents of Purwakarta who sacrifice for the interests of Jatiluhur must have access to water. It must not be disrupted,” he said.

In addition to licensing and environmental issues, water availability is a key concern in the development of the AI data centre.

However, Dedi explained that the water supply capacity from the Jatiluhur Reservoir is actually still quite large. He noted that the requirements for the BDX project will not interfere with the water allocation for the community.

Dedi detailed that the Purwakarta Regency Water Utility Company (PDAM) has an official allocation of 3,000 litres per second from the Jatiluhur Reservoir. However, for decades, the utilisation has only been around 380 litres per second, or approximately 11 per cent of that quota.

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