STT GDC Indonesia Highlights Rapid Licensing for Indonesian Data Centres

The Indonesian government has been deemed successful in attracting the attention of the data centre industry in Southeast Asia through regulatory acceleration and the size of its domestic market. This certainty of the investment climate was confirmed by digital infrastructure sector business players on Tuesday (10/6/2026), as reported by Bloomberg Technoz. Country Head of STT GDC Indonesia Hendrikus Hendra Gozali stated that the ease of bureaucratic processes in the country is a highly significant comparative advantage compared to neighbouring nations. The massive domestic market potential also encourages the company to continue its expansion. “If I may say, Indonesia is sexy and fast [in its licensing process]. In many other countries, the licensing process to build a facility like this can be very lengthy. But in Indonesia it is very fast, and that is acknowledged by STT GDC,” said Hendrikus on Tuesday (10/6/2026). This digital sector growth is supported by Indonesia’s population of around 280 million people. This demographic structure is dominated by productive age groups under 40 who have a high adaptation rate to cloud computing and artificial intelligence. “Therefore, we believe Indonesia will continue to be a very important market [for data centres],” Hendrikus mentioned. Responding to these market dynamics, the Ministry of Investment and Downstreaming/BKPM has designated two main strategic areas that are most ready to accommodate this digital infrastructure investment corridor. “West Java and Batam are locations ready to accommodate the needs of investors,” said Saribua Siahaan, Director of Investment Promotion for Southeast Asia, Australia, New Zealand and the Pacific at the Ministry of Investment and Downstreaming/BKPM. The government has established strict regulations by directing all capital investment into integrated industrial estates. This preventive measure was taken to eliminate potential agrarian conflicts and provide full legality guarantees for business players. “One of the biggest factors for making it easy for investors to come to Indonesia is firstly the issue of licensing and land. If these two issues can be handled and are clear and clean, it will be much easier for investors,” said Saribua Siahaan. The implementation of digitalisation in the bureaucratic system is also claimed to be a crucial factor that eliminates illicit levy practices. This system makes it easier for business players to project the timeline for their investment realisation. “For companies like this, we direct them to industrial estates so they are not disturbed by land issues. We have guaranteed that the land is clear and clean. This kind of certainty is what investors need,” said Saribua Siahaan. Through the integration of online services, all administrative stages can now be monitored transparently by capital holders. “Now permits are no longer done manually, but online. Online not only makes the process faster, but also provides certainty because all requirements and stages can be tracked,” concluded Saribua Siahaan.