Jakarta, INTI - Danantara Indonesia is encouraging investment in Indonesia’s data center sector as the country works to strengthen regulatory certainty and create a more supportive investment environment.
Danantara Managing Director for Global Relations and Communications Pahala Nugraha Mansury said Danantara Investment Management (DIM) is prioritizing projects with strong commercial return potential, including digital infrastructure, which he described as one of the fastest-growing sectors.
“One sector currently showing very strong momentum is investment in data centers and digital infrastructure,” Pahala said in a written statement on Wednesday, October 7, 2026.
According to Pahala, data center development involves more than building digital infrastructure. The industry also depends on support from other sectors, particularly reliable electricity and water supplies.
Streamlining Regulations for Data Center Growth
To address these requirements, Danantara and the Ministry of Investment are working to simplify and align regulations covering the broader data center ecosystem. The initiative is expected to create a more integrated and efficient investment process.
“We hope to work with the Ministry of Investment, for example, to streamline regulations related to the development of the data center sector,” Pahala said.
The initiative is also intended to position Danantara as a potential partner for global technology companies and hyperscalers seeking investment opportunities in Indonesia. One mechanism being prepared is a co-investment scheme.
Under the scheme, Danantara would not only manage investments but also participate directly in projects developed alongside global investors. Such involvement is expected to contribute to a more conducive investment environment.
Pahala said Danantara’s direct participation as an investor, or having “skin in the game,” would also be important in ensuring that projects generate sustainable economic benefits.
“We hope that regulatory certainty can be further strengthened through our involvement, as we also have skin in the game,” Pahala concluded.
Conclusion
Danantara is seeking to accelerate Indonesia’s data center development by encouraging global investment, streamlining regulations, and strengthening support for essential infrastructure such as electricity and water. Through co-investment with global technology companies and hyperscalers, the initiative could help create a more attractive and sustainable environment for digital infrastructure investment in Indonesia.
Read more: AI Emerges as a Game Changer as Indonesia Accelerates Data Center Development