Government Offers Batam SEZ as Strategic Location for Data Centre Investment
JAKARTA - The Indonesian government, through the Ministry of Investment and Downstreaming/BKPM, is offering investors the opportunity to consider the Batam Special Economic Zone (SEZ) as a strategic location for data centre development.
BKPM Deputy for Investment Information Technology Ricky Kusmayadi noted that Batam's geographical proximity to Singapore makes it strategically positioned to support the regional digital ecosystem. The initiative is expected to strengthen Indonesia's competitiveness in the digital industry.
"The government has prepared a focus for digital centres and data centres in the Batam area, particularly in the SEZ. Because it is close to overseas areas such as Singapore, this has become our primary concern," said Ricky at the launch of the Equnix JK1 data centre in Jakarta on Thursday (15/5).
He also highlighted the importance of spreading digital investment beyond Jakarta and Java. The government, he said, is focused on the distribution of national digital infrastructure. To that end, Batam, particularly the SEZ area, has been designated as a focus for national data centre development outside Java.
"To anticipate this, Batam has become the SEZ focus for data centres there. The hope is that it won't be solely concentrated in Java or Jakarta," he added.
The government, he continued, is working to create investment appeal in areas outside Java through incentives and facilities offered under the SEZ scheme, including various benefits ranging from tax incentives to simplified licensing procedures.
"The government, with the special economic zones, also provides many facilities. The hope is that with SEZs outside Java, one of which is in Batam, this can help spread investment growth beyond Java," he said.
According to Knight Frank data, in the second half of 2024, land absorption by occupiers for data centre development remained the most active in recent years. The data centre sector has been continuously absorbing industrial land in Greater Jakarta since 2021, although overall land absorption for data centres in the area is no longer as high as two years prior.
The data centre sector has been the most active land occupier over the past three years in the Greater Jakarta industrial area. At least approximately 33 per cent of land in industrial estates along Jakarta's eastern corridor has been absorbed by the data centre sector.
"The performance of the industrial sub-sector has recorded its best results since the pandemic struck. It is therefore unsurprising that several industrial estates in Greater Jakarta are planning to open additional land supply to meet demand from industrialists," Knight Frank wrote in its report on Friday (6/3).
BKPM Deputy for Investment Information Technology Ricky Kusmayadi noted that Batam's geographical proximity to Singapore makes it strategically positioned to support the regional digital ecosystem. The initiative is expected to strengthen Indonesia's competitiveness in the digital industry.
"The government has prepared a focus for digital centres and data centres in the Batam area, particularly in the SEZ. Because it is close to overseas areas such as Singapore, this has become our primary concern," said Ricky at the launch of the Equnix JK1 data centre in Jakarta on Thursday (15/5).
He also highlighted the importance of spreading digital investment beyond Jakarta and Java. The government, he said, is focused on the distribution of national digital infrastructure. To that end, Batam, particularly the SEZ area, has been designated as a focus for national data centre development outside Java.
"To anticipate this, Batam has become the SEZ focus for data centres there. The hope is that it won't be solely concentrated in Java or Jakarta," he added.
The government, he continued, is working to create investment appeal in areas outside Java through incentives and facilities offered under the SEZ scheme, including various benefits ranging from tax incentives to simplified licensing procedures.
"The government, with the special economic zones, also provides many facilities. The hope is that with SEZs outside Java, one of which is in Batam, this can help spread investment growth beyond Java," he said.
According to Knight Frank data, in the second half of 2024, land absorption by occupiers for data centre development remained the most active in recent years. The data centre sector has been continuously absorbing industrial land in Greater Jakarta since 2021, although overall land absorption for data centres in the area is no longer as high as two years prior.
The data centre sector has been the most active land occupier over the past three years in the Greater Jakarta industrial area. At least approximately 33 per cent of land in industrial estates along Jakarta's eastern corridor has been absorbed by the data centre sector.
"The performance of the industrial sub-sector has recorded its best results since the pandemic struck. It is therefore unsurprising that several industrial estates in Greater Jakarta are planning to open additional land supply to meet demand from industrialists," Knight Frank wrote in its report on Friday (6/3).