Jakarta, INTI – Indonesia is increasingly gaining trust from global tech giants, particularly from the United States, as a strategic hub for data center investments. At least 12 American companies have built or are planning to build data centers in Indonesia, demonstrating their compliance with Indonesia’s data protection regulations.
Proof of Compliance and Strategic Collaboration
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the presence of these 12 companies is a sign of commitment by the U.S. to adhere to Indonesian regulations especially concerning the transfer of Indonesian citizens’ personal data. This issue has been a key topic within the framework of the bilateral cooperation agreement between Indonesia and the U.S.
"These 12 U.S. companies have already built data centers in Indonesia. That means they are complying with our regulatory requirements," Airlangga said during a press conference on the Indonesia U.S. Joint Statement at the Coordinating Ministry for Economic Affairs, Central Jakarta, on Thursday, 24, July.
On Cross-Border Data Transfer Concerns
Airlangga addressed the controversy surrounding data transfers in the trade deal with the U.S., emphasizing that the Indonesian government does not exchange personal data on a government-to-government basis.
"The data in question is filled in voluntarily by individuals themselves when they access services. There is no G2G data exchange. The process is about how companies can obtain consent from each user," he clarified.
Data Shared with User Consent
He elaborated that the data being transferred is basic information willingly submitted by users for instance, when subscribing to online services.
"Much of our personal data is shared through common practices when registering with Google, Bing, shopping on e-commerce platforms, or creating emails and accounts. Those data are uploaded by users themselves," he explained.
Airlangga mentioned that Indonesia and the U.S. have agreed to establish protocols to manage these data transfers. He added that the finalization of this agreement provides a legitimate, safe, and measurable legal framework for managing the international flow of personal data.
He also cited examples of how foreign parties might access Indonesians’ data such as during financial transactions involving Mastercard or Visa.
Reinforcing Data Security through Regulation
According to Airlangga, data sharing aligns with the “Know Your Customer” (KYC) principle, which is common in financial systems. However, he assured that such data cannot be arbitrarily misused.
"There are mechanisms in place. Even in payment systems, data can't just be used freely. Security layers like OTP (one-time password) and others are involved. This highlights the importance of strong protocols to protect data in transactions whether through cloud computing or, increasingly, AI," he said.
List of U.S. Companies Operating Data Centers in Indonesia:
- AWS – Physical infrastructure in West Java
- Microsoft – Physical infrastructure in West Java
- Equinix – Physical infrastructure and colocation in Jakarta
- EdgeConneX – Physical infrastructure in West Java
- Oracle – Planned project in Batam, including colocation with DayOne
- Digital Realty – Colocation services in Jakarta via BDIA
- Google Cloud – Colocation with DCI in Jakarta
- WowRack – Physical infrastructure in Jakarta and Surabaya
- Akamai – Physical infrastructure in Jakarta
- CloudFlare – Physical infrastructure in Jakarta, Denpasar, and Yogyakarta
- Braze – Physical infrastructure in Jakarta, in collaboration with AWS
- Anaplan Unlimited – Physical infrastructure in Jakarta, also in partnership with AWS
Conclusion:
The entry of 12 American technology companies establishing data centers in Indonesia reflects growing global confidence in the country’s digital regulations and ecosystem. This move not only strengthens Indonesia’s national digital infrastructure but also demonstrates the willingness of foreign companies to comply with local data protection laws. The Indonesian government ensures that cross-border data flows are conducted securely and based on user consent not through government-to-government data exchange. This commitment reinforces the strategic digital economic partnership between Indonesia and the United States, while laying a strong foundation for the future development of technologies such as cloud computing and artificial intelligence.
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