Jakarta, INTI - Indonesia is targeting economic growth of up to 8%. However, to achieve this target, there are challenges to overcome. One of the challenges is the significant need for energy, especially amid the development of artificial intelligence (AI) technology.
M. Danny Buldansyah, Director & Chief Business Officer of PT. Indosat Tbk, stated that Indonesia's energy needs will increase.
"Especially now that we are witnessing the era of AI computing data centers that are extremely energy-intensive," said Danny at the Energy Management Launch in Jakarta on Thursday, July 23, 2026.
Based on his discussions with several global AI players and data center providers, Danny stated that Indonesia needs at least 1,500 megawatts of additional energy capacity to support AI development in the next two years. This is even though Indonesia’s several advantages to become a hub for AI development, ranging from land availability, digital talent, and more competitive costs compared to neighboring countries.
Indonesia Still Depends on Coal
Indosat’s Senior VP Head of IoT & Big Data, Melvin Jeffrey Chan, added that Indonesia's energy sector still faces several challenges. One of these is the high dependence on coal, which currently accounts for around 68% of Indonesia's electricity supply.
There's also the threat of fires due to ongoing power outages, blackouts that cause financial losses, and efficiency issues.
"Imagine if there was no real-time feasibility and energy management became reactive, it would result in increased costs, wasted money, and time simply due to facility failures and downtime," said Melvin.
AI and IoT-Based Solutions
To address energy management challenges, Indosat offers solutions based on AI and IoT that are implemented with a full-stack approach. This multi-layer solution consists of a sensing layer for smart sensors and meters, a data layer for IoT gateways connected to Indosat's network, and a processing layer for AI-based analytics platforms for dashboards and predictive maintenance.
"So, in one stack, there's one platform connecting devices, connectivity, platforms, and applications. Connecting all these meters, sensors, and assets transforms real-time data into AI-based insights, predictive alerts, and remote control reporting," explained Melvin.
Some use cases that have utilized Indosat's solutions include smart street lighting power monitoring, utility monitoring to reduce energy costs by up to 30%, generator and transformer monitoring, and battery monitoring.
Conclusion
Indonesia is targeting economic growth of up to 8%, but achieving this target requires significant energy support, especially due to the development of data centers and AI computing. M. Danny Buldansyah said that Indonesia is estimated to need at least 1,500 megawatts to support AI development in the next two years. Indosat addresses energy management challenges with AI and IoT-based energy management solution with a full-stack approach that integrates sensors, smart meters, connectivity, analytics platforms, dashboards, and predictive maintenance.
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