Electricity Prices in Indonesia Remain Competitive for Data Centre Development

Jakarta, CNBC Indonesia — Digital Edge Indonesia chief executive Stephanus Oscar said Indonesia remains an attractive place to invest in data centres, particularly because electricity prices are still relatively competitive.

“Electricity prices in Indonesia, with the adjustment tariff for data centres, have gone up, but even with that, they remain competitive,” Stephanus said at a Coffee Morning event titled “Beyond AI Adoption: What Is Indonesia’s Role in the AI Economy?” on Tuesday (3 November 2026).

As a result, electricity requirements are not a barrier to data centre investment in Indonesia. However, Oscar said the government still needs to prepare policies governing electricity use.

“Large off-takers and customers will want certainty about electricity prices when considering entering Indonesia. They will also look at how stable the country is,” he said.

Oscar said that increases in electricity prices every mid-year or annually could be a factor companies consider before investing in data centres.

“I think the government and PLN need to communicate this—for example, the government and the Energy and Mineral Resources Ministry could explain that electricity tariffs will rise by no more than a certain amount, and set out the stages. I think that would still be acceptable to off-takers,” he said.

Data centres are estimated to require an additional 20 gigawatts (GW) of electricity, equivalent to 20% of current total capacity. Demand continues to rise as artificial intelligence (AI) develops.

While cloud-computing data centres require around 10–30 megawatts (MW), AI-based data centres can need between 100 MW and 1 GW. The availability of electricity and water, fibre-optic networks and site readiness are key factors in whether investments go ahead.

On the supply side, PLN’s 2025–2034 Electricity Supply Business Plan (RUPTL) targets an additional 69.5 GW of generation capacity. Of this, 42.6 GW is to come from renewable energy, 10.3 GW from energy storage systems and 16.6 GW from fossil-fuel power plants, with potential investment of Rp2,967.4 trillion. The development of 100 GWp of solar power also covers large-scale, floating and rooftop installations, as well as industrial zones.