"Data centers are part of the backbone of Indonesia's digital transformation. The presence of EDGNEX is viewed as a positive signal of growing global investor confidence in the digital ecosystem here," Minister of Communications and Digital Meutya Hafid, who accompanied President Prabowo Subianto on his visit to Russia, stated on Thursday.
"We encourage investments like EDGNEX to be not only large in scale but also to provide added value to society. This includes supporting the digitalization of MSMEs and utilizing artificial intelligence in the food, fisheries, and health sectors," she added, as quoted in the government’s press release.
The EDGNEX investment will be used to build modern data center infrastructure on a 12-hectare site in the Cikarang industrial area, West Java.
The first phase of the data center project is targeted for completion by 2026, with construction continuing through 2028.
According to Kemkomdigi, Indonesia's national data center capacity at the start of President Prabowo Subianto's term in October 2024 was 180 megawatts (MW), and it has now increased to 290 MW.
In comparison, Malaysia's data center capacity is around 400 MW.
Based on available land for data center development, Indonesia's national data center capacity is projected to reach 900 MW by the end of 2025.
"The rapid increase in capacity indicates that Indonesia is striving to secure a strategic position in the region," Meutya emphasized, highlighting the need for continued acceleration.
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The government is opening opportunities for new investments in data center development, as Indonesia is expected to require data centers with a capacity of 1.5 to 2 gigawatts (GW) in the next two years.
Should Indonesia achieve this target, it holds significant potential to emerge as a prominent digital data center hub in Southeast Asia.
"We hope that investor confidence, both from domestic and foreign sources, will continue to increase to support a robust and inclusive national digital infrastructure ecosystem," Meutya remarked.
"Komdigi is open to dialogue and cooperation that strengthens national interests in building inclusive and sustainable digital infrastructure," she affirmed.
In addition to foreign investors, domestic investors are contributing to the development of data centers in Indonesia.
The communications and digital minister also inaugurated Southeast Asia's most advanced AI-based data center, built by DCI Indonesia, located in Cibitung, Bekasi District, West Java.
Related news: Komdigi Ministry still testing feasibility of National Data Center 1
Translator: Sinta, Azis Kurmala
Editor: Rahmad Nasution
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