Jakarta, INTI - Coordinating Minister for Economic Affairs Airlangga Hartarto said artificial intelligence (AI) will serve as a major game changer while also driving the emergence of new industries, including data centers. He noted that countries around the world are currently competing to expand their data center industries.
“The key factors are land availability, electricity supply, and water availability. Indonesia is considered to meet these requirements, which is why the fully occupied digital special economic zone in Bintan is now expanding,” Airlangga said at the BIG Downstream Insights 2026 event in Jakarta on Tuesday, October 6, 2026.
Indonesia Expands Data Center Development Across Key Regions
Beyond Bintan, he said data center development is also planned for Bekasi and Karawang in West Java. These areas offer strategic advantages due to their proximity to the domestic market.
With a targeted capacity of around 600–700 megawatts, data centers in these areas are expected to contribute an additional 500 megawatts to national capacity over the next two to three years.
AI and Data Quality Create New Opportunities for Indonesia
Airlangga also emphasized that digitalization requires access to reliable and credible data. Without high-quality data, AI cannot effectively process and generate useful insights.
“For Indonesia, it is therefore important to develop high-quality datasets. One area with significant future potential is healthcare. We already have relatively strong data from the COVID-19 period,” Airlangga said.
He added that AI could potentially help accelerate clinical trials in Indonesia compared with other countries.
“This is an opportunity to strengthen our capabilities across various sectors. With a population of around 280 million, Indonesia has the potential to become a valuable source for machine learning and faster clinical trials, while also supporting the development of a pharmaceutical industry in which we currently lag behind,” Airlangga said.
The government, he added, continues to strengthen cross-sector coordination and encourage businesses to work together in developing these opportunities.
He also pointed to the planned ASEAN Digital Economy Framework Agreement, which is expected to further support the region’s digital economy. The agreement aims to help expand ASEAN’s digital economy from an estimated US1trilliontoUS2 trillion.
“With Indonesia accounting for around 40% of ASEAN’s economy, this represents a significant opportunity for Indonesia,” Airlangga concluded.
Conclusion
Indonesia is positioning data center development as an important part of its digital economy, supported by growing demand for AI and digital services. With strategic locations, infrastructure expansion, and access to large datasets, the country has significant opportunities to strengthen its digital ecosystem. Continued collaboration between government and industry will be essential to maximize these opportunities and support Indonesia’s role in the growing ASEAN digital economy.
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