Indonesia Offers Data Centre Investment Opportunities to China
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) offered data centre investment opportunities in Indonesia to Chinese investors during the Indonesia-China Partnership Forum in Jakarta on Thursday (23/7/2026).
Andi Maulana, Deputy for Investment Services at the Ministry of Investment and Downstreaming/BKPM, stated that the development of data centres represents a highly promising investment opportunity, supported by Indonesia’s digital economic growth, which is among the fastest in Southeast Asia. “The development of data centres is a very promising investment opportunity,” Andi said at the business forum attended by representatives from 27 Chinese companies.
According to a BKPM presentation citing Mordor Intelligence, the value of Indonesia’s data centre market reached approximately $1.44 billion in 2025 and is estimated to rise to $1.83 billion in 2026. This value is projected to continue growing to $3.48 billion by 2031, with a compound annual growth rate (CAGR) of 13.71 per cent. Meanwhile, the global data centre market value is estimated to increase from $386.71 billion in 2025 to $684.39 billion by 2031.
Andi noted that these prospects align with the growth of Indonesia’s digital economy, which is projected to have a gross merchandise value (GMV) of $180 billion to $340 billion by 2030. According to him, the digital economy is no longer merely a supporting sector but has evolved into one of the main pillars of national economic growth, driving transformation across various sectors. “As one of the fastest-growing digital economies in Southeast Asia, Indonesia is supported by a young, mobile-first oriented population, increasingly widespread internet access, and pro-innovation government policies,” he said.
Beyond the digital sector, Andi stated that the government is also offering various investment opportunities in downstreaming, new and renewable energy (NRE), and healthcare. To support incoming investment, he conveyed that the government continues to implement regulatory reforms through the application of risk-based licensing, the strengthening of the Online Single Submission (OSS) system which is now integrated with 28 ministries and agencies, and the implementation of service level agreements to guarantee certainty in licensing service timelines.
He added that the government also provides various investment incentives, including 25 Special Economic Zones (SEZs), 181 industrial estates, direct construction investment facilitation (KLIK), as well as fiscal incentives such as tax holidays, tax allowances, import duty exemptions on machinery and raw materials, and super tax deductions for vocational activities and research and development.
China has become one of Indonesia’s key investment partners. Based on data from the Ministry of Investment and Downstreaming/BKPM, realised Chinese investment from 2021 to the first half of 2026 reached $38.34 billion, creating more than 500,000 jobs in Indonesia.