Jakarta, INTI - Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) has called for data center development that safeguards environmental sustainability and maintains a balance with the needs of local communities.
“The principle is to encourage data center development without harming, let alone disrupting, the environmental balance in the surrounding area. Our communities also have the right to live peacefully, comfortably, and healthily, without having their basic needs compromised. That is the principle we must uphold,” AHY said during the Digital Infrastructure Summit organized by Biru Muda Project on Monday, October 12, 2026.
AHY Stresses Environmental Standards for AI Data Centers
He noted that the growing adoption of the digital economy, including e-commerce and other digital services, has made data centers increasingly necessary across Indonesia.
However, data centers require substantial energy resources, particularly electricity and clean water. AHY stressed that these requirements must be carefully assessed to ensure responsible development.
“I leave it to the relevant authorities to determine whether a particular data center complies with established standards and requirements, including those concerning its environmental impact,” he said.
AHY added that data center development must be integrated into regional spatial planning through coordination between the central and local governments. In industrial zones, data centers should form part of an interconnected ecosystem in which infrastructure and supporting industries complement one another.
He also highlighted Indonesia’s potential to become a data center hub for Southeast Asia, rather than merely serving domestic demand. Industrial estates could play an important role in supporting this ambition.
Indonesia Eyes Southeast Asian Data Center Hub Status Through Digital Infrastructure Expansion
Beyond infrastructure development, AHY emphasized the importance of equitable access to digital infrastructure to prevent widening economic disparities between regions and social groups.
He explained that technological advancements, including artificial intelligence (AI), can create significant economic opportunities for people who have access to the technology and the skills to use it. Conversely, those who lack digital access and capabilities risk being left further behind.
The government therefore needs to ensure that digital infrastructure and supporting ecosystems reach communities across Indonesia. AHY stressed, however, that this effort cannot rely on the government alone.
Collaboration among academia, industry, businesses, communities, and domestic and international partners is essential to accelerating digital infrastructure development.
He also identified public-private partnerships (PPPs) as a potential financing mechanism for sustainable digital infrastructure projects, given the substantial investment required for both physical and digital infrastructure.
Conclusion
Indonesia’s growing demand for AI and digital services is driving the need for data center expansion, but development must remain environmentally responsible. Coordinating Minister AHY emphasized the importance of protecting local communities, managing energy and water consumption, and integrating data centers into regional planning. Through equitable digital infrastructure development, cross-sector collaboration, and public-private partnerships, Indonesia aims to strengthen its position as a potential Southeast Asian data center hub while ensuring sustainable and inclusive economic growth.
Read more: Indonesia Aims to Become ASEAN’s Data Center Hub as AHY Warns of Water Scarcity Risks