Jakarta, INTI - Indonesia’s Deputy Coordinating Minister for Economic Affairs, Dradjad Hari Wibowo, has been tasked by Coordinating Minister for Economic Affairs Airlangga Hartarto with finding solutions to the water requirements associated with developing artificial intelligence (AI) data centers in the country.
Dradjad said water availability is one of the key challenges in developing emerging technologies, including AI and data centers. In addition to water, AI development requires substantial energy resources and public readiness.
“I am helping him (Airlangga) find solutions to the water issue, particularly water, energy, and public readiness,” Dradjad said.
According to Dradjad, water and energy requirements must receive greater government attention as AI development accelerates.
He stressed that Indonesia cannot afford to overlook these technological advances, as AI could become a major determinant of future economic and technological strength.
“As I mentioned earlier, new technologies always come with challenges and have two sides. One of those challenges is water and energy. They require large amounts of both,” he said.
Dradjad believes Indonesia needs to participate actively in AI development because, over the next five to 10 years, AI will become increasingly linked to a country’s economic, technological, military, and geopolitical power.
“That is the future. In the next five to 10 years, economic strength, technological strength, military power, and geopolitical influence will depend significantly on AI,” he said.
However, Dradjad has not yet detailed the specific solutions the government is considering to address water and energy demands. He said further discussions would take place after he officially begins carrying out the assignment.
“I will discuss this in greater detail once I have started working on it,” he said.
Indonesia Sets Three Key Requirements for Data Center Development
Airlangga previously outlined three essential requirements for Indonesia to become a regional hub for the data center industry amid the rapid expansion of AI: land availability, electricity supply, and water resources.
“The key is the availability of land, electricity, and water,” Airlangga said during his keynote address at BIG Downstream Insights 2026 in Jakarta on Tuesday, October 6.
Airlangga noted that demand for data centers continues to rise as countries around the world compete to develop their AI industries. He believes Indonesia has several advantages that could help it capitalize on this opportunity.
“We see AI becoming a game changer and driving the emergence of a new industry: data centers. Countries around the world are now racing to develop this industry,” he said.
He explained that land, electricity, and water are essential because data center development requires large-scale supporting infrastructure.
One location Indonesia has prepared for digital industry development is the digital special economic zone (SEZ) in Bintan, Riau Islands.
According to Airlangga, the zone has already reached full capacity, prompting the government to prepare an expansion to accommodate growing demand for data center facilities.
“Indonesia has met these requirements, and the digital special economic zone in Bintan is, so to speak, sold out,” he explained.
In addition to Bintan, the government is preparing to develop a data center hub in Karawang, West Java. The location is considered strategic because of its proximity to the domestic market.
Airlangga added that the government continues to strengthen electricity capacity to support the digital industry and data center operations.
He said additional national electricity capacity could reach approximately 500 megawatts over the next two to three years.
“Are we asking about the multiplier effect of AI? The answer is not just about the multiplier effect; this is the future of digital development,” he said.
According to Airlangga, AI development also requires access to high-quality data. Without credible data, AI systems cannot operate effectively.
“Digitalization requires credible data. Without credible data, AI cannot properly crawl and process information,” he concluded.
Conclusion
Indonesia’s ambition to become a regional data center hub depends on more than investment and computing capacity. Reliable water supplies, sufficient electricity, and public readiness will be essential to supporting sustainable AI development. As the government explores solutions to these challenges, balancing digital infrastructure growth with responsible resource management will be critical to strengthening Indonesia’s position in the global AI economy.
Read more: Billions in Data Center Investments Flow into Indonesia: What Are the Implications?