Jakarta, INTI - Dian Agustina, a researcher from Neptun (NP Intelligence), has urged the Indonesian government to adopt a more assertive negotiating stance and implement strict water and power efficiency standards for data centers operating in the country. Dian raised serious concerns regarding the chronic groundwater deficits currently plaguing critical regions such as the Bandung Basin, Jabodetabek (greater Jakarta), and the northern coast of Central Java.
She emphasized that without stringent regulations, the establishment of new data centers will drastically accelerate water consumption, heavily compounding the existing environmental strain in these vulnerable areas.
The Reality of Carbon-Heavy Operations and Missing Transparency
In addition to water resource management, Dian highlighted the urgent need for legally binding renewable energy commitments that can be independently audited. She reminded stakeholders that while Indonesia is publicly committed to a clean energy transition, over 60 percent of the national electricity grid is still powered by coal.
Consequently, data centers operating in the country are de facto running on high-carbon emissions. Dian also criticized the lack of transparency from global tech giants regarding their actual power consumption capacities, noting that this secrecy will ultimately prevent the Indonesian government from realizing its net-zero emission pledges.
Balancing Regulatory Oversight with Fast-Paced Industrial Growth
To prevent the country from becoming a mere ecological casualty, Dian stressed that the government must urgently build regulatory capacity that matches the rapid velocity of the data center industry. She warned that if the market's expansion is not met with balanced and robust legal frameworks, Indonesia will find itself bearing the heavy ecological fallout while missing out on the actual long-term economic benefits that the digital economy promises to bring.
Conclusion
The rapid growth of Indonesia’s data center sector presents a critical crossroads for national policy. As highlighted by NP Intelligence, the current combination of chronic water scarcity, coal-dependent power grids, and a lack of corporate transparency poses a significant threat to the country’s net-zero targets. To avoid bearing the brunt of the ecological degradation while losing out on economic gains, the government must swiftly implement strict, auditable efficiency standards. Aligning regulatory speed with industrial expansion is no longer optional, it is essential to ensure that Indonesia's digital future remains sustainable.
Read more: China Operates a Wind-Powered Underwater Data Center in Shanghai