Jakarta, INTI - The Indonesia Data Center Provider Organization (IDPRO), a data center industry association, has proposed four measures to strengthen investment certainty for data center projects in Indonesia. The recommendations follow the temporary suspension of BDx’s AI data center project in Jatiluhur, Purwakarta, after the project had yet to obtain its Building Approval (PBG) and Environmental Impact Assessment (AMDAL).
IDPRO Chairman Hendra Suryakusuma said stronger coordination and greater certainty around licensing requirements are needed from the early stages of a project to prevent administrative issues from disrupting investments already underway.
“First, there needs to be a single point of coordination for large-scale data center investments,” Hendra told Investortrust.id on Friday, October 2, 2026.
According to IDPRO, the government should also establish a clear licensing roadmap and dedicated guidelines for hyperscale and AI data center projects. These facilities have different requirements for electricity, water, cooling systems, technology, and capital investment compared with conventional commercial buildings.
Hendra explained that the second recommendation is to establish a licensing roadmap and specific guidelines for hyperscale and AI data center projects.
“The third point is the need for a pre-consultation mechanism before groundbreaking or construction begins. The central and local governments, PLN, water resource authorities, and investors need to ensure that all requirements and licensing timelines are clearly understood by all parties,” he said.
The fourth recommendation is to establish clear service levels and licensing timelines. While investors must fulfill all applicable requirements, the government should ensure that the required documents, authorities involved, and expected processing times are clearly communicated from the outset.
“Our message is simple: Indonesia must remain firm on compliance while also becoming a country that is easy for investors to understand and predictable in terms of processes,” Hendra said.
Sustainability Remains a Key Priority
Beyond licensing certainty, IDPRO emphasized the importance of sustainability in data center development. The association is encouraging greater energy and water efficiency, along with economic benefits for communities surrounding data center projects.
Hendra expressed hope that the issues surrounding the BDx project can be resolved through swift dialogue between the company, local government, and central government. He said the case should serve as an opportunity to improve Indonesia’s data center investment ecosystem, making it more mature, coordinated, and competitive within the region.
IDPRO previously published its Green Data Center White Paper in 2022. This year, the association plans to launch the Indonesia Sustainable Data Center Index, which it hopes can evolve into an industry standard within the next two to three years.
“This year, the association plans to publish the Indonesia Sustainable Data Center Index, with the goal of developing it into a standard within the next two to three years,” Hendra concluded.
Conclusion
IDPRO’s recommendations highlight the need for clearer licensing, stronger coordination, and sustainable practices to support Indonesia’s growing data center industry. By creating a more predictable investment environment while maintaining compliance and environmental standards, Indonesia can strengthen its position as a competitive regional data center hub.
Read more: Data Center Developers Eye Indonesia’s Islands and Coastal Regions