Farmsent Explores IDR 16.3 Trillion Data Centre Investment in Batam
Investor interest in establishing data centres in Batam continues to strengthen. The Batam Free Trade Zone Authority (BP Batam) has received an investment exploration proposal from PT Farmsent Indonesia and its international partners, with an initial investment value reaching US$1 billion, or approximately Rp16.3 trillion.
This plan signals the growing attraction of Batam as a digital industrial development zone. However, BP Batam stated that the project is still in its early stages, meaning it has not yet reached the stage of investment commitment or the determination of construction sites.
The investment exploration was discussed during a meeting between BP Batam and PT Farmsent Indonesia, along with international partners, which was held via a hybrid format at the Bida Utama Building meeting room, Batam Centre, on Thursday (25/6).
“Batam is currently experiencing an increase in data centre investments. We welcome the interest of companies and are ready to facilitate these data centre investment plans,” said Fary.
Despite the proposed investment value of Rp16.3 trillion, BP Batam ensured that the project has not yet entered the realisation phase. The Deputy for Public Services at BP Batam, Ariastuty Sirait, stated that the discussions held currently are limited to initial exploration.
“It is still in the exploration stage,” Ariastuty told Batam Pos on Sunday (28/6).
Because it remains in the early stages, BP Batam is not yet able to confirm when the investment will be realised. Similarly, the construction location for the data centre remains unconfirmed. Currently, the investors and BP Batam are still identifying several areas deemed suitable for the project’s requirements.
“We are still looking at locations,” she added.
This means that land requirements, area size, and the final determination of the location are still part of the study process. BP Batam has also not yet disclosed the identity of the international partners working with PT Farmsent Indonesia.
Furthermore, requirements regarding electricity supply, clean water, data centre capacity, and targets for labour absorption will be discussed further once the project enters the next phase.
Nevertheless, BP Batam is optimistic that the momentum of data centre investment will strengthen Batam’s position as one of the nation’s digital industry hubs. Batam’s advantages are seen to lie not only in its strategic location on international trade routes but also in its support from the Free Trade Zone, industrial infrastructure, and its proximity to Singapore, which has long been one of the largest data hubs in Southeast Asia.
The arrival of this new investment interest also extends the list of companies exploring data centre construction in Batam. The government hopes that this development will not only bring physical investment in the form of data centre buildings but also attract other parts of the digital industry ecosystem, such as cloud computing services, artificial intelligence, and global technology companies.
For now, however, BP Batam emphasised that all plans are still in the initial discussion phase. Several technical and administrative aspects will still be reviewed before the investment can proceed to the commitment and construction stages.
“We are open to every investment opportunity that provides added value to Batam. The entire process will, of course, proceed according to the applicable stages and regulations,” said Ariastuty.