Government Focuses Data Centre Development in Batam
Jakarta (ANTARA) - Deputy for Investment Information Technology at the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), Ricky Kusmayadi, stated that the government is focusing data centre development in Batam City, Riau Islands Province.
Ricky said Batam has been chosen as the focus for data centre development due in part to its strategically advantageous geographical position. "The government has prepared a focus for data centres in the Batam area because it is close to overseas markets, in this case Singapore," he said in Jakarta on Thursday.
He explained that the selection of Batam as the focal location for data centre development is part of efforts to distribute investment more evenly. "The hope is that investment is not solely concentrated in Java or Jakarta, and that this can spread investment growth beyond Java," he said.
Ricky explained that data centre infrastructure growth in Southeast Asia is projected to reach 200 per cent, faster than the global average. According to him, this is driven by digital economic growth through the adoption of technologies such as artificial intelligence, cloud computing, social media, and e-commerce.
Indonesia is considered capable of becoming a key driver of data centre growth, with data centre capacity projected to reach 936 megawatts by 2028, representing growth of more than 210 per cent from the current 430 megawatts. "High demand levels, connectivity, strong AI readiness, energy costs, and affordable land support data centre growth in Indonesia," said Ricky.
Director General of Digital Government Technology at the Ministry of Communication and Digital, Mira Tayyiba, said Indonesia has strategic potential to become an investment destination for digital infrastructure, including data centres. The large domestic digital economy market and high internet penetration rates in Indonesia could yield returns on data centre investment.
Furthermore, Indonesia possesses resource potential to generate 207 gigawatts of electricity from solar power and 29 gigawatts from geothermal energy to support sustainable data centre development.
Ricky said Batam has been chosen as the focus for data centre development due in part to its strategically advantageous geographical position. "The government has prepared a focus for data centres in the Batam area because it is close to overseas markets, in this case Singapore," he said in Jakarta on Thursday.
He explained that the selection of Batam as the focal location for data centre development is part of efforts to distribute investment more evenly. "The hope is that investment is not solely concentrated in Java or Jakarta, and that this can spread investment growth beyond Java," he said.
Ricky explained that data centre infrastructure growth in Southeast Asia is projected to reach 200 per cent, faster than the global average. According to him, this is driven by digital economic growth through the adoption of technologies such as artificial intelligence, cloud computing, social media, and e-commerce.
Indonesia is considered capable of becoming a key driver of data centre growth, with data centre capacity projected to reach 936 megawatts by 2028, representing growth of more than 210 per cent from the current 430 megawatts. "High demand levels, connectivity, strong AI readiness, energy costs, and affordable land support data centre growth in Indonesia," said Ricky.
Director General of Digital Government Technology at the Ministry of Communication and Digital, Mira Tayyiba, said Indonesia has strategic potential to become an investment destination for digital infrastructure, including data centres. The large domestic digital economy market and high internet penetration rates in Indonesia could yield returns on data centre investment.
Furthermore, Indonesia possesses resource potential to generate 207 gigawatts of electricity from solar power and 29 gigawatts from geothermal energy to support sustainable data centre development.