Jakarta, INTI - Indonesia Data Center Provider Organization (IDPRO) viewed that several regions outside Java, such as Batam and Makassar, have the potential to be developed into a new data center hub in Indonesia.
IDPRO Chairman Hendra Suryakusuma stated that these regions offer strategic advantages, ranging from connectivity and geographic location to opportunities for future digital economic development. Batam also has a strategic advantage in bringing investment, as it is located near Singapore.
“We see Batam as having advantages in terms of international connectivity and its strategic position to become a regional digital hub,” said Hendra.
In addition to Batam, Kalimantan also has significant potential due to the development of Nusantara Capital City (IKN) and the increasing need for digital government infrastructure in the future. Makassar is seen as having the potential to become a data center hub in Eastern Indonesia due to its strategic location for traffic distribution and connectivity to the region.
Hendra stated that the industry welcomes the Ministry of Communication and Digital Affairs’ push to expand data center development outside Java. He believes that equitable digital infrastructure is a national strategic need to support digital transformation, public services, data-driven industries, and the rapidly growing development of artificial intelligence (AI) and cloud technology.
Challenges in Data Center Development
However, he noted that data center development is determined not only by strategic location, but also by the readiness of the supporting ecosystem in each region. Investors and operators consider aspects of reliability, connectivity, power availability, and business certainty before making long-term investments.
Hendra explained that there are four main challenges in data center development outside Java, particularly in Eastern Indonesia:
- Availability of stable, scalable, and reliable electricity is still limited and is still not enough for the needs of the hyperscale industry.
- Fiber optic connectivity still faces challenges in terms of network quality and redundancy.
- Specialized expertise in data center areas, such as facility engineering, cloud, and operations management, is still concentrated in major cities in Java.
- Business and regulatory certainty are also concerns for investors, including licensing, land security, investment incentives, and support from regional governments.
IDPRO believes that data center development outside Java needs to be carried out in stages with comprehensive ecosystem development, not just building physical facilities. Hendra added that collaboration between the central government, regional governments, PT PLN (Persero), telecommunications operators, and industry players is crucial for ensuring optimal and sustainable distribution of digital infrastructure.
Conclusion
IDPRO believes that regions outside Java, such as Batam, Kalimantan, and Makassar, have the potential to become new data center hubs in Indonesia. IDPRO Chairman Hendra Suryakusuma stated that Batam has the potential due to its proximity to Singapore, while Kalimantan is supported by the development of IKN, and Makassar is strategic for connectivity in Eastern Indonesia. However, data center development outside Java still faces challenges such as limited electricity, fiber optic connectivity, human resource availability, and regulatory and investment certainty.
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