Jakarta, INTI - Coordinating Minister for Economic Affairs Airlangga Hartarto said technology company Nvidia has explored plans to invest US$4.5 billion in a data center project in Indonesia.
The planned investment, equivalent to approximately Rp80.1 trillion based on an exchange rate of Rp17,818 per US dollar, is expected to be located within a Special Economic Zone (SEZ) in Batam, Riau Islands.
“Nvidia recently held discussions in Batam, at the Special Economic Zone that we have prepared. They are planning to invest US$4.5 billion,” Airlangga said at the Antara Business Forum 2026 in Jakarta on Wednesday, September 23, 2026.
According to Airlangga, Indonesia currently has approximately 800 megawatts (MW) of installed data center capacity. Meanwhile, projects currently in the pipeline could add another 1.3 gigawatts (GW) of capacity.
Indonesia’s Data Center Investment Potential
Airlangga said Indonesia has significant potential to attract further data center investment. He highlighted the country’s competitive advantages within ASEAN, including greater land availability, electricity supply, green energy resources, and water availability.
At the regional level, Indonesia is also promoting digital cooperation with other ASEAN countries. Under a proposed digital economic framework agreement, Indonesia’s digital market potential could increase from approximately US180billiontoUS400 billion.
“If the digital economic framework agreement is signed in Manila, ASEAN’s projected market potential, which was previously estimated at US1trillionby2030,couldincreasetoUS2 trillion. Indonesia would account for around 40% of that, representing approximately US600billiontoUS800 billion,” Airlangga said.
Indonesia Expands Global Digital and AI Cooperation
Beyond ASEAN, Indonesia has also been invited to participate in digital and AI cooperation forums established by China and the United States.
Indonesia was previously invited as a founding member of the World AI Cooperation Organization (WAICO), an initiative established by China.
Airlangga said that if the agreement is signed and ratified, cooperation between Indonesia and China in the AI sector could become stronger.
Indonesia is also considering joining Pax Silica, an international coalition initiated by the United States focusing on cooperation in AI, semiconductors, and critical minerals.
“As a result, Indonesia is effectively involved with both sides,” Airlangga concluded.
Conclusion
Indonesia continues to strengthen its position as a potential regional hub for data center investment, supported by available land, electricity, green energy, and water resources. Nvidia’s planned US$4.5 billion investment in Batam also highlights the growing interest in Indonesia’s digital infrastructure, alongside expanding regional and international cooperation in AI and digital technology.
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