Jakarta, INTI - Digital transformation is expected to be one of the primary drivers of Indonesia’s future economic growth. As the global digital economy continues to expand rapidly, strengthening digital talent, developing data center infrastructure, and advancing semiconductor capabilities have become critical priorities for enhancing national competitiveness and supporting higher economic growth targets.
“Indonesia aims to achieve growth of more than 8%, and one of the main drivers is the digital economy. The key enabler is AI, and AI can only thrive when supported by strong data center infrastructure,” Coordinating Minister for Economic Affairs Airlangga Hartarto said during his keynote speech at the 1st Decade of IDPRO 2026: Indonesia’s Future through the Development and Strengthening of Digital Talent in Indonesia’s Data-Centre Sector as an ASEAN Hub Centre of Excellence event in Jakarta on Wednesday, June 24, 2026.
Airlangga commended IDPRO for its contributions over the past decade in advancing Indonesia’s data center industry. He noted that the sector has emerged as a game changer for the national economy, driven by growing demand for digital infrastructure to support economic activities and technological transformation.
The government is also strengthening regional digital cooperation through the ASEAN Digital Economic Framework Agreement (DEFA), which is expected to be signed at an upcoming ASEAN Summit. The implementation of DEFA is projected to significantly expand ASEAN’s digital economy while creating greater opportunities for Indonesia to reinforce its position as one of the region’s leading digital economy hubs.
Indonesia’s Competitive Advantage in Data Centers
Airlangga highlighted several factors that make Indonesia well-positioned to develop its data center industry, including abundant land availability, competitive energy costs, and access to diverse domestic energy sources such as geothermal, solar, and hydropower.
To support continued industry growth, the government is investing in supporting infrastructure to ensure reliable energy supply for data center operations across the country.
Beyond data center development, the government is also accelerating efforts to strengthen the national semiconductor industry through collaboration with UK-based technology company Arm Holdings on chip design initiatives.
The partnership is expected to lay the groundwork for emerging technologies, including artificial intelligence (AI), the Internet of Things (IoT), autonomous vehicles, and quantum computing.
Building the Next Generation of Digital Talent
To support the broader digital ecosystem, the government aims to train 15,000 young professionals in semiconductor-related fields over the next three years.
The initiative is expected to strengthen Indonesia’s human capital while fostering a new generation of digital engineers capable of competing on the global stage.
Airlangga emphasized the importance of maintaining the current momentum, noting that Indonesia is well-positioned compared with many of its ASEAN peers.
“We must continue advancing digital talent development, data center expansion, and the semiconductor industry to ensure Indonesia remains competitive in the global digital economy,” he said.
The event was attended by various government officials, industry leaders, academics, development partners, digital business representatives, and stakeholders from across Indonesia’s data center and digital ecosystem sectors.
Conclusion
Indonesia is positioning itself to become a leading digital economy in the ASEAN region by accelerating the development of data centers, digital talent, and semiconductor capabilities. Supported by strong infrastructure, regional digital cooperation, and investments in future technologies, these initiatives are expected to strengthen national competitiveness and help drive the country toward its long-term economic growth ambitions.
Read more: Airlangga Says Data Centers Are Key to Achieving 8% Economic Growth