Indonesia is set to build Southeast Asia’s largest AI Factory through Zankore by Indosat, a collaboration between Indosat Ooredoo Hutchison, Ooredoo Group, Nokia, and NVIDIA, with capacity projected to reach 1 gigawatt (GW) within three years (07/08).

The AI computing infrastructure will serve as a foundation for developing AI services in Indonesia and the region.

The initial development is targeted to begin in the first half of 2027 in Batang, Central Java, with an initial capacity of around 200 megawatts (MW).

The infrastructure will then be developed gradually until it reaches the 1 GW target.

Minister of Communication and Digital Meutya Hafid welcomed the launch and the investment commitment announced by Indosat Ooredoo Hutchison President Director and Chief Executive Officer Vikram Sinha, Ooredoo Group Group Chief Executive Officer Aziz Aluthman Fakhroo, Nokia President and CEO Justin Hotard, and NVIDIA Senior Vice President of Telecom Ronnie Vasishta.

“This investment shows the increasing global confidence in the future of Indonesia’s digital economy, while also strengthening Indonesia’s position as a destination for high-value technology investment,” Meutya said in Jakarta on Friday (07/08/2026).

Zankore AI Factory to Start With 200 MW Capacity

An AI Factory is large-scale computing infrastructure that provides processing power to develop and operate various artificial intelligence services.

Unlike conventional data centers, an AI Factory integrates the entire AI value chain within one ecosystem.

This includes data center infrastructure that supports AI computing, high-performance GPUs, networks and data storage systems, GPU-as-a-Service, orchestration, workload management, and end-to-end AI operations.

Based on global practices, building a full-scale AI Factory requires significant investment.

Several international studies estimate that end-to-end AI computing capacity requires around USD50 million for every 1 MW.

With a target capacity of 1 GW, or 1,000 MW, the AI Factory in Indonesia is one of the largest AI infrastructure investments announced in Southeast Asia.

Meutya said the development plan had gone through a long process and received government support from the beginning.

“This plan was initiated from the beginning and was presented two years ago to President Prabowo Subianto. Now the entire process has reached the final stage, so it can be announced to the public,” she said.

Zankore to Host 70 Billion-Parameter Sahabat-AI

In addition to developing computing infrastructure, Zankore will develop and host Sahabat-AI, an open-source Indonesian large language model (LLM) with 70 billion parameters.

The model supports several regional languages, including Indonesian, Javanese, Sundanese, Balinese, and Batak.

Zankore will also provide Token-as-a-Service, which is designed to make AI computing more accessible to the public, micro, small and medium enterprises (MSMEs), ministries and government agencies, and application developers.

Meutya said the investment is an important milestone for strengthening Indonesia’s digital competitiveness.

“What is being built is not merely a data center or computing infrastructure. This is the foundation of a complete national AI ecosystem, from computing capacity and AI services to the development of Indonesian language models that can be used by various sectors. The presence of this AI Factory will strengthen Indonesia’s position as a regional AI Hub because it can serve both national and regional needs,” she said.

Indonesia Develops First GPU Manufacturing Facility

Alongside the AI Factory, Meutya said the development of Indonesia’s first GPU manufacturing facility is also underway in Cikarang.

The facility is targeted to be inaugurated in December and is expected to strengthen the national AI industry supply chain, from computing infrastructure to supporting industries.

According to Meutya, Indonesia has strong resources to develop as a regional AI infrastructure center.

Indonesia has large-scale infrastructure development capacity supported by growing energy resources, a domestic market of more than 280 million people, and government policies supporting digital transformation and the development of national digital talent.

“When infrastructure, markets, talent, and policies move together, Indonesia has a strong foundation to become one of the AI development centers in the region. The government will continue to ensure a conducive investment climate so that AI innovation can grow while providing tangible benefits to society,” Meutya said.

The government will continue to support strategic investments that strengthen Indonesia’s digital competitiveness and ensure that AI is used responsibly, inclusively, and provides added value to the national economy.

PHOTO: MINISTRY OF INDUSTRY

This article was created with AI assistance.

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