Government prepares equitable distribution of data centres to Eastern Indonesia

Jakarta (ANTARA) - The government, through the Directorate General of Digital Infrastructure of the Ministry of Communication and Digital (Kemkomdigi), is preparing a plan for the equitable distribution of data centres, not only focusing on major cities in western Indonesia but also extending to eastern regions. Equitable distribution of data centres is important to avoid concentration in a single area, and this will naturally be coordinated across relevant ministries. “We are preparing a master plan for data centres for private sector (industry players). We will try to ensure that data centres are available not only in the west but also in eastern regions,” said Wayan in Jakarta on Wednesday. According to a report by market research firm Mordor Intelligence, Indonesia’s data centre industry could grow to $1.83 billion by 2026 and generate revenue of up to $3.48 billion by 2031. Regarding coverage, Jakarta is the most preferred location for industry players to operate their data centres due to its extensive fibre network and as a landing point for submarine cable networks. However, equitable distribution of data centres in Indonesia is highly feasible given the country’s vast territory, encompassing more than 17,000 islands according to data from the Geospatial Information Agency (BIG). Therefore, if the equitable distribution of data centres to eastern Indonesia is successfully implemented, this could become another advantage for Indonesia in the data centre industry landscape. “Indonesia has great potential to become a data centre hub in the region, and this must be pursued more seriously as part of the national strategic positioning,” said Wayan. Meanwhile, Denny Setiawan, Director of Strategy and Digital Infrastructure Policy at Kemkomdigi, mentioned that coordination across ministries or state institutions is underway to prepare data centres as digital infrastructure supporting AI, including ongoing coordination with the Ministry of Energy and Mineral Resources (ESDM) and PLN. In coordination with these two institutions, Kemkomdigi is seeking locations that can be offered to data centre industry players with alternative power sources to supply energy for the data centres. “We are also coordinating with ESDM colleagues to find locations (with power potential supporting data centres), preferably in eastern regions. So not just Jakarta or Surabaya again, perhaps even to Merauke,” said Denny. Kemkomdigi stated that mapping the national data centre industry roadmap is necessary to maintain national data sovereignty while still opening opportunities for investment. In addition to these two institutions, important coordination needs to be established with the Ministry of Industry, which is currently responsible for granting operational permits to data centre industry players in Indonesia.