Jakarta, INTI - Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the data center industry in Batam has recorded an annual growth rate of 22%, exceeding the national average growth of 19%.
The strong expansion is reinforcing Batam's position as an emerging digital economy hub in Indonesia, with continued inflows of global investment into the region.
According to Airlangga, this growth represents an important foundation for achieving Indonesia's 8% economic growth target, as the data center sector is expected to become one of the key drivers of the country's digital economy.
Batam Strengthens Its Role as Indonesia's Digital Gateway
Airlangga made the statement following the inauguration of the Nongsa Changi Cable (NCC) in Batam, a subsea cable system connecting Batam with Singapore.
"The data center industry in Batam is expanding by 22% annually, higher than the national average of around 19%. This sector is well positioned to support Indonesia's economic growth target of 8%," Airlangga said.
He highlighted Batam's rapid development as Indonesia's new digital gateway, with Nongsa Digital Park continuing to attract international-scale data center investments.
Airlangga pointed to several major developments, including BW Digital's data center facility with a capacity of up to 120 MW and Singapore-based DayOne's hyperscale data center project with a planned capacity of 450 MW.
In addition, Oracle has selected Batam as the location for its Cloud Region development, further strengthening the city's role in the regional digital ecosystem.
"Batam is rapidly emerging as Indonesia's new gateway. The investments coming into the region demonstrate its growing importance in the regional digital ecosystem," he said.
Digital Transformation Requires Strong Infrastructure and Energy Support
Airlangga emphasized that the growth of the digital industry aligns with the government's digital transformation agenda under President Prabowo Subianto, focusing on strengthening both digital and physical infrastructure.
He noted that the rise of artificial intelligence (AI) requires fast and reliable digital connectivity, along with expanded data center capacity.
"In the AI era, humans, machines, and machine-to-machine systems require fast digital connections. Therefore, digital transformation must be supported by adequate infrastructure," Airlangga explained.
Indonesia has significant potential in the digital economy, with approximately 235.26 million internet users and around 99.5 million broadband subscribers. The country is also recognized as the fourth-largest AI market in Asia, following China, India, and Japan.
Reliable Energy Becomes Key to Digital Infrastructure Growth
Airlangga highlighted that data center development requires a stable and reliable electricity supply. To support this growth, the government continues to strengthen Indonesia's national energy mix.
"Digital infrastructure requires reliable energy and electricity. Indonesia is developing various energy sources, including geothermal energy in Sumatra and solar power in Batam, to meet future demand," he said.
The government is also targeting an additional 100 gigawatts of power generation capacity in the coming years as part of Indonesia's broader energy development agenda and cooperation with Singapore.
With stronger infrastructure and energy support, Airlangga expressed optimism that Batam will continue attracting digital investments and accelerate Indonesia's digital economy growth.
Conclusion
Batam's rapid data center industry growth highlights its emerging role as a strategic digital gateway for Indonesia and the region. Supported by global investments, advanced connectivity infrastructure, and reliable energy development, Batam is strengthening its position as a key driver of Indonesia's digital economy transformation.
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