Jakarta, INTI – In an exclusive interview conducted by the INTI Media team on April 15, 2025, Hendra Suryakusuma, Chairman of the Indonesia Data Center Provider Organization (IDPRO), discussed the vast potential of Indonesia’s data center and cloud computing industry. He highlighted key growth drivers such as the rise of Artificial Intelligence (AI), the strategic importance of the financial and OTT sectors, and the increasing demand for GPU-based services. Hendra also addressed the investment landscape, regulatory barriers, and the need for Indonesia to position data centers as a national strategic industry to stay competitive in the Asia-Pacific digital economy.
Key Users: Finance, OTT, and AI
According to Hendra, the financial sector will remain the primary user of data center services in Indonesia, driven by increasingly strict regulations, including crypto asset supervision now overseen by the Financial Services Authority (OJK). In addition, major technology companies such as Over-the-Top (OTT) platforms and global cloud providers are also key target markets for industry players.
Hendra noted that the next wave of digital transformation will be driven by advancements in Artificial Intelligence (AI). Demand for services like GPU as a Service has surged in Indonesia since the third quarter of last year. Companies such as BDX, Lintas Arta, and Indosat are already involved in AI infrastructure projects.
Investment Potential: High but Promising
Investing in the data center industry is far from inexpensive. Constructing a 20 MW capacity data center requires more than USD 220 million. However, Indonesia’s large digital market presents a highly attractive opportunity for both local and international investors.
Hendra emphasized the importance of regulations that simplify licensing processes, provide fiscal incentives, and ensure legal certainty and personal data protection. These are all essential to attracting more investment and safeguarding Indonesia’s digital sovereignty.
Indonesia’s Appeal to Foreign Investors
Despite existing regulatory challenges, Indonesia continues to appeal to global players such as Microsoft, Google, and Alicloud, which have either established or are currently developing their infrastructure in the country. Hendra highlighted the need for the government to improve the ease of doing business, particularly in licensing and energy cost efficiency—two critical factors in data center development, especially for AI and training large language models (LLMs).
The Role of Special Economic Zones
One strategy to boost investment is the development of digital Special Economic Zones (SEZs). A prime example is Nongsa Digital Park in Batam. Although it covers just 42 hectares, it now hosts over 10 major data center players collectively building up to 172 MW of capacity. According to Hendra, this model can be replicated in other regions of Indonesia to attract even greater investment.
Tangible Contributions to the Economy
Investment in the data center industry not only boosts the tech sector but also creates numerous job opportunities. For instance, the BW Digital project in Batam, with a planned capacity of 120 MW, is expected to attract up to USD 1.8 billion in investment. This will generate high demand for construction firms, electrical and cooling equipment providers, security systems, and skilled labor such as engineers, network specialists, and certified cloud engineers.
Hendra affirmed that the growth of this industry will strengthen Indonesia’s overall digital ecosystem and improve the availability and reliability of digital services in the future.
Driving a National Strategic Industry
Despite its clear strategic importance, Hendra expressed concern that the data center industry has yet to be officially recognized as a national strategic industry. With increasing reliance on digital services, he urged the government to begin treating this sector as a vital part of the nation’s digital infrastructure that deserves serious facilitation.
Conclusion
The development of Indonesia's data center industry goes beyond just technology—it also involves regulatory readiness, a supportive business ecosystem, and long-term development strategies. If these elements can be harmonized, Indonesia has the potential to become a leading hub for data centers and cloud computing in the Asia-Pacific region in the near future.
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