Jakarta, INTI – In an exclusive interview conducted by the INTI Media team on April 15, 2025, Hendra Suryakusuma, Chairman of the Indonesia Data Center Provider Organization (IDPRO), shared his insights on the evolving role of data centers in Indonesia's digital transformation. He highlighted the rapid growth of internet users, the adoption of cloud services, and evolving regulations as key factors driving the increasing demand for data center infrastructure, positioning them as a critical element in supporting Indonesia's digital acceleration.
Significant Development of the Data Center Industry
Since its establishment in 2016, IDPRO has witnessed exponential growth in the industry. From just 6 members and a capacity of 32 MW, the association now oversees more than 14 members with a total capacity of around 300 MW. Based on various global and local studies, the data center industry in Indonesia has grown at an average rate of 20% annually—figures that align with the expansion of cloud computing.
Hendra identified three main factors driving this growth: high internet penetration and demographics, stable macroeconomic growth, and a significant increase in internet traffic—from 1 Tbps to 14 Tbps in the last three years.
Vital Infrastructure Behind Digital Transformation
According to Hendra, many people are unaware that every digital interaction they have, from online transactions to mobile app usage, is supported by data center infrastructure. "Data centers have become the backbone of the digital economy," he explained.
The government, through the Ministry of Communication and Digital (Komdigi), together with IDPRO, has formulated the Indonesian National Standard (SNI) for data centers. This SNI is now a reference in Presidential Regulation No. 95 of 2018 on Electronic-Based Government Systems.
Challenges of Data Sovereignty and Regulations
One important issue is data sovereignty. Initially, Government Regulation (PP) 82/2012 required public data to be stored domestically. However, with the replacement of this regulation by PP 71/2019, the rules were relaxed, which, according to Hendra, contributed to an increase in cyberattacks. He noted that many digital industry players still rely on foreign services due to the lack of compelling incentives within the country.
Now, with the introduction of the Personal Data Protection Law (UU PDP), there is hope that regulations will become more stringent. Hendra emphasized the importance of technical implementation and the establishment of supervisory bodies with clear authority and expert human resources in cybersecurity.
Strategic Steps to Enhance Competitiveness
To accelerate the development of data centers in Indonesia, Hendra highlighted the need for investment-friendly policies. He cited Malaysia and Thailand, which offer fiscal incentives such as tax exemptions on AI-based hardware imports and relaxed construction permit regulations. In contrast, in Indonesia, permits such as the Building Construction Approval (PBG) can take up to 10 months.
"Johor Bahru has reached a data center capacity of 1.3 GW, while Indonesia’s total capacity is still under 510 MW," said Hendra.
Future Needs: AI and High Computing Power
The increasing use of artificial intelligence (AI) is also driving the need for much higher data center power. Chips like NVIDIA H100 and Blackwell GB200 require up to 130 kW per rack—more than the power needed for a stadium during a major concert.
Location selection is critical. Special economic zones such as Nongsa Digital Park in Batam, according to Hendra, could be a solution due to tax exemptions and other incentives. On the other hand, security is just as important, both physically and digitally, given the potential disruptions from organizations or irresponsible parties.
Conclusion
Indonesia's data center industry is at a critical phase. With a solid foundation, growing demand, and widespread digital transformation, Indonesia has a great opportunity to become a major player in the region. However, to realize this, synergy between regulations, investment incentives, and public awareness of the importance of digital data infrastructure is essential.
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