Jakarta, INTI - Indonesia's Ministry of Communication and Digital Affairs (Komdigi) has raised concerns over the rapid expansion of data center infrastructure across the country, emphasizing the need to ensure that the growing industry generates greater economic value for Indonesia.
While the sector presents significant business opportunities, the ministry has questioned how much of the country's expanding data center capacity is actually being utilized to serve domestic needs and support local industries.
Komdigi Secretary-General Ismail warned that Indonesia should not become merely a provider of data center infrastructure while the data and information processed within these facilities primarily benefit other countries.
He delivered the remarks during the CNBC Indonesia Coffee Morning event in Jakarta on Tuesday, November 3, 2026.
"If I may briefly address the current hype surrounding data centers in Indonesia, it is certainly a positive development, as it represents an extraordinary business opportunity," Ismail said.
Indonesia Questions Domestic Utilization of Growing Data Center Capacity
He also highlighted projections indicating that Indonesia's data center capacity could increase from 500 MW to 3 GW by 2030. However, he stressed that this expansion must be accompanied by greater utilization among domestic businesses and the local digital ecosystem.
"If capacity grows from 500 MW today to 3 GW by 2030, how much of it will actually be used and utilized by Indonesia itself?" he asked.
Ismail expressed concern that large-scale data center development could primarily create opportunities for foreign countries to benefit from infrastructure built using Indonesia's resources. Meanwhile, the economic benefits retained domestically may not be proportional to the scale of investment and resources involved.
"Are we potentially laying out a red carpet for other countries to benefit from all the data center capacity that Indonesia is preparing?" he said.
Komdigi Emphasizes Greater Economic Value from Data Center Investments
According to Ismail, the benefits of the data center industry should not be measured solely by the construction of facilities or the operational activities of infrastructure providers. Greater economic value can be generated when data and information are processed and transformed into productive activities.
"The real value comes when we can utilize data and information and turn them into something productive. So, what percentage of the data center capacity being developed in Indonesia can actually generate and increase added value?" he said.
"This is a follow-up question that we all need to reflect on. We must not allow our resources, including electricity, water, and others, to be fully consumed only to roll out the red carpet for other countries," Ismail added.
Conclusion
Indonesia's growing data center industry presents significant opportunities, but its long-term success will depend on how effectively the infrastructure supports domestic industries and generates economic value. Komdigi's call highlights the importance of maximizing local data utilization, strengthening the digital ecosystem, and ensuring that investments in data centers deliver meaningful benefits to Indonesia while maintaining sustainable resource management.
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