Jakarta, INTI - The rapid growth of Artificial Intelligence (AI) is fueling demand for digital infrastructure in Indonesia. Telkom Indonesia views the development of data centers in Jakarta and Batam as a strong indicator of increasing demand for high-performance computing and high-capacity connectivity.
Telkom Indonesia’s Director of Wholesale & International Service, Budi Satria Dharma Purba, said connectivity requirements to support AI computing activities are growing significantly faster than before.
“For computing, the connectivity requirement is more than 10 times higher, even 10–20 times higher. This is the reality we are seeing,” Budi said at a press conference during the Bali Annual Telkom International Conference (BATIC) 2026 in Nusa Dua, Bali.
According to Budi, data center development is currently particularly concentrated in two major locations: Jakarta and Batam. The availability of reliable connectivity is one of the key factors enabling this expansion.
“Looking at the current development of data centers in Indonesia to support AI, there are at least two key locations. Jakarta, where data center development is clearly expanding rapidly, and Batam,” he explained.
The surge in demand presents a challenge, as network infrastructure cannot be built overnight.
Budi cited the Bifrost subsea cable system connecting Singapore to the United States as an example. The cable system took approximately five years to build, yet its capacity was reportedly fully utilized less than a year after completion.
“That is why I mentioned that it takes five years to build a cable, but its capacity was already fully utilized in less than a year,” he said.
Telkom Allocates Capex to Digital Infrastructure
At the same event, Telkom Indonesia President Director Dian Siswarini said the company’s capital expenditure (capex) is being directed toward various forms of digital infrastructure.
Telkom maintains a capex-to-revenue ratio of around 18–20%. Investment decisions take into account potential revenue generation and the time required to achieve a return on investment.
“Our capex or investment-to-revenue ratio is around 18–20%,” Dian said.
The funds are allocated across multiple infrastructure areas rather than a single segment. According to Dian, Telkom’s capex includes investments in mobile networks, domestic fiber networks, international fiber connectivity through subsea cables, as well as power infrastructure and data centers.
“Some of it is used to build fiber networks, both domestically and internationally through subsea cables. Other portions are allocated to power infrastructure and data centers,” she explained.
Telkom views these infrastructure investments as an important part of its corporate transformation agenda, particularly as digital demand continues to rise alongside the growth of cloud computing and AI.
Budi added that if Indonesia aims to become a major data center hub supporting AI development, computing facilities must be developed alongside robust global connectivity.
“If Indonesia is to become a center of data center growth to support AI, global connectivity must also be available,” he concluded.
Conclusion
The rapid adoption of AI is driving Indonesia’s demand for data centers, high-capacity connectivity, and supporting digital infrastructure. Telkom’s continued investment in fiber networks, subsea cables, power infrastructure, and data centers highlights the importance of building a strong digital ecosystem to support Indonesia’s ambitions as a regional AI and data center hub.
Read more: Indonesia’s Data Center Market Poised for Strong Growth, TLKM and ISAT in Focus