Jakarta, INTI - The Indonesian government is considering Bitung, North Sulawesi, as a new destination for data center investment, citing its strategic digital connectivity, renewable energy potential, and favorable geographic location to support the country's expanding digital economy.
Coordinating Minister for Economic Affairs Airlangga Hartarto said Bitung is home to an underutilized submarine cable landing point, presenting a significant opportunity to strengthen Indonesia's digital infrastructure. The government has proposed directing the city's existing industrial zone toward future data center development.
"One submarine cable landing point that remains largely untapped is located in Bitung, North Sulawesi. This represents a major opportunity because it provides connectivity toward Hawaii and other northern routes," Airlangga said during the IDPRO Seminar in Jakarta.
According to Airlangga, Bitung could become a strategic alternative for data center investment beyond the country's current primary hubs in Java, Batam, and Bintan.
Its geographic position offers direct digital connectivity to major Asia-Pacific markets, including Hong Kong, China, Los Angeles, and other global economic centers, making the city well-positioned to serve international demand.
Renewable Energy and Rising Digital Demand Drive Expansion
Beyond connectivity, Airlangga highlighted Bitung's strong renewable energy potential, including geothermal, solar, and other sustainable power sources that are increasingly essential for modern data center operations.
Reliable and sustainable electricity remains one of the most important considerations for investors when selecting locations for large-scale digital infrastructure projects.
"We want to accelerate development by maximizing the potential of this region," he said.
Nationally, Indonesia's installed data center capacity is approaching 640 megawatts (MW) and is expected to grow rapidly in the coming years. More than 1.6 gigawatts (GW) of additional capacity is currently under development, with most projects concentrated on Java Island.
Airlangga added that expansion projects are also underway in Batam and Bintan, while the government is looking to diversify future investments into new regions such as Bitung.
The minister believes demand for data center services will continue rising alongside the rapid growth of the digital economy and the increasing adoption of artificial intelligence (AI) technologies.
Indonesia also holds several competitive advantages over neighboring ASEAN countries, including abundant land availability, lower energy costs than Singapore, and sufficient water resources to support large-scale data center cooling systems.
These factors, he said, position Indonesia as an increasingly attractive destination for global data center investment.
"Many major players are already looking at Indonesia. Compared with other ASEAN countries, Indonesia is well prepared. We must seize this momentum and ensure we do not fall behind our regional competitors," Airlangga concluded.
Conclusion
As demand for AI and digital services continues to accelerate, the Indonesian government is positioning Bitung as a future data center hub beyond the country's existing digital infrastructure clusters. With its strategic submarine cable connectivity, renewable energy resources, and investment-friendly environment, Bitung has the potential to become a key gateway for Indonesia's next phase of digital infrastructure growth.
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