Jakarta, INTI - Energy demand to support the growing digital industry continues to rise. In response to this trend, Minister of Energy and Mineral Resources Bahlil Lahadalia has encouraged investors to consider Indonesia as a destination for data center development, supported by the country’s substantial energy resources.
Among the opportunities highlighted are the hydropower potential of the Mamberamo River in Papua, estimated at around 23 gigawatts (GW), and the Kayan River in Kalimantan, with potential of approximately 12 GW.
Bahlil made the remarks while opening Electricity Connect 2026 in Partnership with Enlit Asia at ICE BSD, Tangerang, on Tuesday, September 22, 2026. The event brought together thousands of delegates, investors, business representatives, and academics from Indonesia and abroad.
Bahlil said energy demand in several countries is coming under increasing pressure, particularly as the need for renewable energy grows alongside the expansion of digital industries. He said this situation creates an opportunity for Indonesia to offer its domestic energy resources to support new investment.
“Energy demand in several countries is already facing pressure, particularly for renewable energy. With data centers expanding rapidly, investors should not hesitate to consider Indonesia for data center development,” Bahlil said.
Renewable Energy Potential Spans Solar, Hydropower, and More
As an archipelagic nation comprising more than 17,000 islands, Indonesia has diverse energy resources, ranging from solar and hydropower to geothermal and wind energy.
Bahlil highlighted the significant hydropower potential available in different regions.
“There are developments in Kalimantan and Sumatra. For those looking for hydropower, the Mamberamo River in Papua has potential of around 23 GW, while Kayan in Kalimantan has approximately 12 GW. There are many opportunities,” he said.
Green Power Supply to Support Digital Industries
According to Bahlil, access to clean energy is becoming increasingly important for the data center industry as operators face growing demand for renewable and low-carbon electricity.
The government has also reiterated its commitment to pursuing the country’s net-zero emissions target by 2050–2060.
Bahlil said this commitment is being supported through several programs, including the 2025–2034 Electricity Supply Business Plan (RUPTL), which targets an additional 69.5 GW of power generation capacity, with 70 percent expected to come from new and renewable energy sources.
The government is also implementing a 100 GW solar power program targeted for completion within three years.
“This is not merely a theme; it has been translated into concrete programs,” Bahlil said.
Stable Economy Supports Investment Opportunities
In addition to its energy potential, the government highlighted Indonesia’s economic conditions as another factor supporting investment.
Bahlil noted that Indonesia’s economy continued to grow by more than 5 percent in the second quarter, while inflation remained around 3 percent despite geopolitical uncertainty.
With a population of nearly 300 million, demand for energy and digital services is expected to continue expanding.
Through renewable energy development and increased investment, the government aims to ensure that data center opportunities progress alongside efforts to strengthen the national power system.
Bahlil concluded his remarks by encouraging investors to explore opportunities in Indonesia.
“If you are considering investing, this is the right moment. The timing is right. The question is not simply about our natural resources, but whether you are serious about investing in Indonesia,” he said.
Electricity Connect 2026 carries the theme “Powering Regional Sovereignty, Securing Energy Systems Resilience.” The forum serves as a platform to strengthen the reliability, affordability, and sustainability of Indonesia’s electricity system amid continued industrialization, downstream development, and digitalization.
Conclusion
Indonesia is positioning its abundant renewable energy resources as a foundation for the continued expansion of the digital economy, particularly the data center sector. With significant hydropower potential, solar power development, and government investment programs, the country is seeking to align digital infrastructure growth with a more sustainable and resilient energy system.
Read more: TelkomGroup and Danantara Prepare Data Center Infrastructure to Support Indonesia’s Sovereign AI Ambitions