Indonesia is preparing a roadmap to expand private data center development into eastern regions through improved connectivity, reliable energy supplies, suitable locations, and simpler licensing procedures, aiming to distribute digital infrastructure investment more evenly across the country.

The plan was outlined by Wayan Toni Supriyanto, Director General of Digital Infrastructure at the Ministry of Communication and Digital Affairs, during a panel discussion at Bali Tech Week 2026 in Denpasar, Bali, on Tuesday (20/10).

Indonesia Data Center Development Targets Eastern Regions

The government plans to identify priority locations based on market demand, resource availability, energy supply, and national and international connectivity. The initiative aims to open investment opportunities in regions where data center development has remained less concentrated than in western Indonesia.

“We need to prioritize certain areas by considering the needs of the government, industry, education sector, and public services. In addition, energy supply and location suitability are also important factors,” Wayan said during the discussion.

He emphasized that data center development requires more than investment and physical construction. Each location must have adequate supporting infrastructure and resources to ensure reliable operations and meet users' needs.

Regions outside Java and Batam are being considered for development, including potential locations in Sulawesi and Kupang. Their suitability will depend on market potential and regional needs.

Government Prepares Data Center and Subsea Cable Regulations

The government has prepared draft presidential regulations covering subsea cables and data centers, which have entered the public consultation stage. Wayan said the government needs input from industry participants, government institutions, and private companies to refine the proposed policies.

Coordination among central and regional governments, state-owned electricity company PLN, network operators, land authorities, and investors is also necessary to support development. According to Wayan, collaboration among these stakeholders is important to provide certainty regarding land availability and costs.

The government is also seeking to simplify licensing procedures to make digital infrastructure development more efficient. Wayan stressed that investment should proceed gradually, taking into account market developments and the readiness of supporting infrastructure in each region.

Reliable Energy and Connectivity for AI Data Centers

Reliable electricity, sufficient power capacity, water availability, and high-capacity connectivity are essential for data centers supporting artificial intelligence (AI). These facilities must be prepared to handle energy-intensive AI workloads while maintaining reliable operations.

The government is coordinating the availability of electricity supplies, substations, water for cooling systems, and measures to mitigate natural disaster risks. These factors form part of the infrastructure requirements that must be considered when selecting data center locations.

Backup connectivity is another priority. Wayan said the government is providing alternative connections to national and international connectivity hubs to prevent data centers outside Java and Batam from becoming isolated.

“To encourage data center development in eastern Indonesia, we are also providing backup connectivity to national and international connectivity hubs. This means that data centers outside Java and Batam will not become isolated facilities,” he explained.

Alternative network routes are intended to strengthen connectivity resilience and reduce dependence on a single network connection. This approach is expected to help maintain reliable digital services across different regions.

AI Infrastructure Requires Cross-Sector Coordination

The development of AI factories and other digital infrastructure requires coordination among government institutions, industry, and educational institutions. The government also needs to assess network readiness, electricity supply, and the capabilities of domestic contractors.

Wayan emphasized the importance of high-capacity connectivity throughout the network, including backbone infrastructure, connecting networks, and access networks. Adequate capacity is necessary to support AI development and prevent delays or connection shortages.

“We need high-capacity connectivity to support AI. We must also ensure that there are no further delays or capacity shortages in connections, whether in backbone networks, connecting networks, or access networks,” Wayan said.

The government's roadmap combines location planning, reliable energy supplies, stronger connectivity, and coordination among relevant stakeholders to expand data center development across Indonesia. The initiative is intended to support more evenly distributed digital infrastructure investment and prepare the country for the needs of the digital economy and AI development through 2030.

PHOTO: MINISTRY OF COMMUNICATION AND DIGITAL AFFAIRS

This article was created with AI assistance.

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