Observer: Data Centre Construction Licensing Must Be Fast and Certain
Jakarta (ANTARA) - Telecommunications observer and Executive Director of the Indonesia ICT Institute, Heru Sutadi, stated that the construction of digital infrastructure or data centres must be fast, simple, and certain, as investors require certainty before committing large-scale capital.
“Ease of licensing does not mean all regulations should be relaxed,” said Heru when confirmed in Jakarta on Wednesday.
Heru noted that investors planning to build digital infrastructure or data centres, particularly those involving Foreign Direct Investment (FDI), require rapid, simple, and predictable licensing processes. According to him, data centre investors need certainty before deploying the massive investments required to build all supporting infrastructure.
Nevertheless, Heru emphasised that the government must still ensure that aspects such as regional spatial planning, environmental impact assessments, socio-cultural impacts, electricity, water, data security, and infrastructure resilience are met.
“In my view, what is needed is a one-stop service mechanism with coordination between central and regional governments, so that investors do not face repetitive licensing procedures,” he said.
He added that when Indonesia can provide certainty regarding timelines and clear regulations, investment attractiveness will increase, while the interests of the public and local regions remain protected.
Previously, 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).
Andi Maulana, Deputy for Investment Services at the Ministry of Investment and Downstreaming/BKPM, stated that the development of data centres represents a promising investment opportunity, supported by Indonesia’s digital economic growth, which is among the fastest in Southeast Asia.
“The development of data centres is one of the very promising investment opportunities,” said Andi during the business forum, which was attended by representatives from 27 Chinese companies.
Based on a presentation by BKPM citing Mordor Intelligence, the Indonesian data centre market value is expected to reach approximately US$1.44 billion in 2025 and is projected to increase to US$1.83 billion in 2026.
This value is projected to continue growing to US$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 expected to increase from US$386.71 billion in 2025 to US$684.39 billion by 2031.