Indonesian Political, Business & Finance News

Tension Surrounding the Jatiluhur Data Centre Project

| | Source: INDOPOLITIKA.COM Translated from Indonesian | Investment
Tension Surrounding the Jatiluhur Data Centre Project
Image: INDOPOLITIKA.COM

The BDx data centre project in Jatiluhur, Purwakarta, is currently caught in a tug-of-war between the ambition to attract investment and the obligation to meet environmental regulations. Construction commenced on 22 September 2026, but was subsequently halted by the Governor of West Java, Dedi Mulyadi, during an inspection on 28 September 2026. The West Java Provincial Government stated that the Environmental Impact Assessment (AMDAL) and Building Approval (PBG) have not yet been finalised. As the project is valued at approximately Rp3.5 trillion, the suspension has immediately drawn the attention of the central government.

The stance of the West Java Provincial Government does not necessarily imply a rejection of investment. On 29 September, the local government confirmed the temporary suspension of construction. A day later, on 30 September, the Minister of Investment and Downstreaming/Head of BKPM, Rosan Roeslani, stated that he would communicate directly with the West Java Provincial Government after receiving a more complete report. Having recently returned from a working visit to Japan, Rosan noted the need to understand the situation on the ground before taking further steps. Meanwhile, Dedi Mulyadi emphasised that the project can proceed once all requirements are met.

The issue has grown more significant because large-scale data centre projects involve not only capital and technology but also energy usage, water consumption, spatial planning, construction, and environmental impacts. The West Java Provincial Government has requested that studies regarding the project’s impact be made open to the public, including concerns regarding the use of water from the Jatiluhur Reservoir and potential noise pollution. Therefore, this debate should not be reduced to a conflict between a pro-investment central government and a regional government hindering investment. Both parties share the same obligation: to ensure that investment enters with legal certainty, without sacrificing public interest and the environment.

The Rp3.5 trillion investment value must not serve as a reason to ignore the AMDAL and PBG. Conversely, licensing obligations must not become an instrument to create uncertainty for investors. The temporary suspension since late September must be followed by a process that is transparent, rapid, and measurable. The central government and the West Java Provincial Government need to sit down together, open data and studies to the public, and ensure all requirements are met before the project continues. The tension in Jatiluhur should end not with a victory for either the centre or the region, but with investment certainty that operates alongside legal certainty and environmental protection.

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