Jakarta, INTI - Nvidia is among the global technology companies participating in the development of Indonesia's AI data center ecosystem. The Indonesian government estimates that investments in AI data center projects could reach US$15–20 billion (approximately Rp270–360 trillion), while large-scale solar power generation is being prepared to provide the sustainable energy required to support future facilities.
Speaking at the Indonesian Chamber of Commerce and Industry (Kadin) Monthly Economic Diplomatic Breakfast, themed "Beyond Uncertainty: Building Indonesia's Next Economy," Coordinating Minister for Economic Affairs Airlangga Hartarto said the government continues to encourage global technology companies to invest in AI data center development across the country.
According to Airlangga, Indonesia offers several competitive advantages for AI data center investment, including abundant mineral resources, a growing technology-literate workforce, and ongoing efforts to develop semiconductor manufacturing, technology testing capabilities, and digital infrastructure.
He also noted that Indonesia is the fourth-largest AI market in Asia, following China, India, and Japan, with an estimated market value of US$70 billion, representing approximately 6.4% of the region's total AI market potential, based on data from KORIKA.
Solar Energy to Power AI Data Centers
Airlangga emphasized that the rapid expansion of AI data centers will significantly increase electricity demand. To address this, the government is accelerating the deployment of renewable energy projects, particularly solar power plants (PLTS), to ensure a reliable and sustainable energy supply.
"Indonesia is prepared to meet this demand by expanding its renewable energy infrastructure, with a long-term target of deploying up to 100 GW of solar power capacity as part of the country's clean energy mix," Airlangga said.
Indonesia currently operates 182 data centers, with 94 facilities located in Jakarta and 16 in Batam, making the two cities the country's primary data center hubs.
Nvidia and Partners Support Indonesia's AI Ecosystem
Airlangga explained that increasing investment in AI data centers will also drive demand for highly skilled technology professionals. He revealed that Arm Ltd, in collaboration with Nvidia and Danantara, is preparing to train and recruit approximately 15,000 engineers to support the development of semiconductor technologies, AI chips, and advanced data center infrastructure.
"The key factor is human capital. Under the President's directive, our goal is for 15,000 Indonesian engineers and professionals to become part of the Arm ecosystem," he said.
He added that strengthening digital talent is essential for enabling Indonesia to fully capitalize on opportunities emerging from AI and digital technology investments.
AI Data Center Investments Could Reach Rp360 Trillion
According to Airlangga, AI data center projects currently in the investment pipeline are expected to reach US$15–20 billion, equivalent to approximately Rp270–360 trillion, as operators continue expanding the country's computing capacity.
He noted that Indonesia already has around 580 MW of operational data center capacity, while an additional 1.3 GW of projects, primarily in Batam, is currently under development.
Airlangga also highlighted growing interest from leading technology companies in expanding Indonesia's data center industry. These include Firmus Technologies of Australia, which partners with Nvidia, as well as PT Telkom. He added that several major global technology companies are also planning new data center developments in Karawang.
Government Strengthens Digital Infrastructure
Beyond renewable energy and workforce development, the Indonesian government is continuing to enhance the country's digital infrastructure to support long-term AI growth.
Key initiatives include expanding renewable energy capacity, extending the national fiber-optic network, and increasing international submarine cable connectivity. Airlangga noted that Indonesia will soon inaugurate an additional fiber-optic cable landing station connecting Batam and Singapore, strengthening the country's integration with regional and global digital networks.
He explained that improved international connectivity is critical for supporting semiconductor development, cloud services, AI workloads, and the broader digital economy.
Conclusion
Indonesia is positioning itself as a strategic destination for AI data center investment by strengthening its digital infrastructure, expanding renewable energy capacity, and developing a skilled technology workforce. With growing interest from global companies such as Nvidia and continued government support, the country aims to become a key hub in Southeast Asia's rapidly expanding AI and digital economy.
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