Jakarta, INTI - The government has revealed that several global technology companies, including Nvidia, have plans to invest in building data centers in Indonesia as part of strengthening the national digital infrastructure.
Investment and Collaboration with Global Companies
Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that investment in the industry is expected to increase rapidly. Currently, data center capacity in Indonesia has reached 580 megawatts (MW), with an estimated investment of around USD 1 million per MW. The government has also secured a pipeline of up to 1.3 gigawatts (GW) of additional capacity.
Airlangga stated that the data center project in Batam alone is estimated to be worth between USD 15 billion and USD 20 billion. In addition to Nvidia, which will collaborate with an Australian company, PT Telkom Indonesia (Persero) Tbk. has also confirmed its investment. According to him, almost all big technology companies are also preparing data center expansions in Karawang to support AI needs.
Furthermore, the government is also strengthening the upstream digital sector through human resource development. In collaboration with Arm Holdings, a British semiconductor company and Nvidia partner, the government is targeting 15,000 Indonesian engineers and technologists to join the Arm ecosystem.
Fiber Optic Connection
To strengthen digital connectivity, the government will inaugurate an undersea fiber optic cable from Batam to Singapore on July 20, 2026.
"We have two landing cables. One goes to Singapore and then connects globally. The second goes to the United States via Bitung, North Sulawesi. We will push these two things," Airlangga explained.
Airlangga believes AI will be a new source of economic growth for Indonesia. Therefore, the government is preparing a Government Regulation (PP) that will regulate the development of the digital economy and AI.
Conclusion
The government revealed that several global technology companies, including Nvidia, are looking to invest in building data centers in Indonesia. Currently, the national data center capacity reaches 580 MW, and the government has secured an additional pipeline of up to 1.3 GW. In addition to expanding digital infrastructure, the government is also partnering with Arm Holdings to develop 15,000 Indonesian tech talents.
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