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Indonesia Bets on Data Center and AI Investments to Achieve 8% Economic Growth in 2026

17 hours ago | Data Center


Jakarta, INTI - The Indonesian government is intensifying the development of data center infrastructure, artificial intelligence (AI), and cybersecurity capabilities as part of a broader strategy to achieve its ambitious 8% economic growth target under the leadership of President Prabowo Subianto and Vice President Gibran Rakabuming Raka.

The initiative aims to position Indonesia not only as a consumer of global technologies but also as a key player in the digital economy. The effort aligns with the implementation of Presidential Regulation No. 4 of 2026 on the Task Force for Accelerating Economic Growth, which emphasizes the role of digital transformation in driving national development.

Digital Transformation Toward Indonesia Emas 2045

Ali Murtopo Simbolon, Deputy for Trade and Digital Economy Coordination at the Coordinating Ministry for Economic Affairs, emphasized that digital transformation is a critical component of the Indonesia Emas 2045 vision. According to him, strong digital infrastructure will provide the foundation for sustainable economic growth and improve the nation’s competitiveness in the future.

The Ministry of Communication and Digital Affairs (Komdigi) has likewise stressed that accelerating the development of data centers and the AI ecosystem is no longer a matter of choice but a strategic necessity. The government views globally competitive data center infrastructure, broader AI adoption across industries, stronger cybersecurity measures, and closer cooperation among government agencies, businesses, and academic institutions as essential elements of a thriving digital economy.

Through these efforts, Indonesia seeks to play a more active role in developing and controlling technology domestically while creating greater value from the digital economy. Strong collaboration across sectors is expected to help the country respond effectively to the rapid pace of technological change.

Strengthening Cybersecurity Amid Rising Digital Threats

As digitalization expands, cybersecurity has become an increasingly important priority. Rahmad Wibowo, Deputy Head of the National Cyber and Crypto Agency (BSSN), noted that cyber threats are growing more sophisticated, with attacks ranging from ransomware incidents to attempts targeting critical digital infrastructure.

To address these challenges, Indonesia is enhancing its cyber defense capabilities through investments in advanced security technologies and human capital development. Efforts include modernizing Security Operations Center (SOC) capabilities, improving threat intelligence-sharing mechanisms, and developing a larger pool of local cybersecurity professionals with expertise in data protection and digital security.

These initiatives are expected to strengthen national data sovereignty while increasing confidence among investors and the public in Indonesia’s digital ecosystem. A more secure digital environment is considered essential for sustaining long-term economic growth and supporting the expansion of digital services.

Growing Opportunities for the Digital Infrastructure Industry

The rapid expansion of Indonesia’s digital economy is creating substantial opportunities for the data center and cloud computing industries. As AI adoption accelerates, demand for data processing, storage capacity, and computing power is expected to increase significantly over the coming years.

Several organizations, including Telkom Indonesia, KORIKA, IDPRO, and the Indonesian Cloud & Hosting Association, have actively participated in discussions on strengthening the country’s digital ecosystem. These stakeholders have expressed their commitment to supporting digital transformation across industrial sectors and public services.

With strong collaboration among government, industry, and academia, Indonesia aims to achieve greater technological sovereignty while accelerating economic growth. By prioritizing digital infrastructure, artificial intelligence, and cybersecurity, the country hopes to establish a solid foundation for future innovation and position itself as a leading force in the regional digital economy.

Conclusion 

Indonesia’s push to expand data center infrastructure, artificial intelligence, and cybersecurity capabilities reflects its broader ambition to become a leading digital economy. Through stronger collaboration between government, industry, and academia, the country aims to build a resilient digital ecosystem that supports innovation, technological sovereignty, and sustainable economic growth toward its 8% growth target and the Indonesia Emas 2045 vision.

Read more: Massive Data Center Investments Worth Hundreds of Trillions Flow into Batam

Indonesia Technology & Innovation
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