November 5, 2025 | 10:24 pm
TEMPO.CO, Jakarta - The Centre for Strategic and International Studies (CSIS), together with the Indonesian Solar Energy Association (AESI), Southeast Asia Strategics, UMBRA, and researchers from Prasetiya Mulya University, have highlighted that Indonesia's need for data centers and the potential for clean energy absorption present a golden opportunity for the country to become a data center hub in the Southeast Asian region. Until now, Indonesia has relied on data centers in Singapore and Malaysia to meet its population's digital needs.
The Director-General of Digital Technology for the Ministry of Communication and Information Technology (Komdigi), Mira Tayyiba, stated that according to projections from the World Bank, the demand for data centers in Indonesia could increase by up to 16.8 percent annually. Currently, data center owners are advocating for the use of clean energy in their operations. Mira made these remarks at the "Advancing Green Data Centers in Indonesia" event held in Jakarta on Wednesday, November 5, 2025.
"According to the World Bank projections, the growth in demand for data centers in Indonesia could reach up to 16.8 percent annually. This means that the utilization of data centers has become a crucial issue. However, as the demand for data centers increases, there is certainly a desire from data center owners to use cleaner energy," said Mira.
Based on the presentation by researchers, there are five regions with the potential to become locations for the development of clean energy-based data centers in Indonesia, including North Sumatra, Batam, Jakarta, the National Capital City (IKN), and North Sulawesi. These five locations are considered promising due to their strategic positions and significant potential for absorbing clean energy, including solar, water, geothermal, wind, and biomass.
Senior economic researcher of Southeast Asia Strategics, Intan Salsabila, stated that four key digital policy areas need to be the focus to create a conducive investment climate for investors. These areas include digital infrastructure development, highly skilled digital human resources, digital innovation, and the digitalization of institutions and government services.
Intan also added that the concept of a Data Embassy is crucial if Indonesia aims to become a data center hub. A Data Embassy is a physical or virtual data center managed by a country's government but located in another country, similar to an embassy. Intan emphasized the importance of Indonesia establishing an institution to protect personal data in the digital era.
Indonesia is one of the countries with the highest digital population and consumption in Southeast Asia. However, this does not align with the capacity of Indonesia's digital infrastructure to meet current digital demands and growth. The total data center capacity in Indonesia is still below 500 MW. For comparison, Indonesia currently has a population of approximately 283 million with a data center capacity of only 456 MW. In contrast, Malaysia, with a population of around 35 million, has a data center capacity of 1,218 MW, and Singapore, with a much smaller population (6 million), has a data center capacity of 1,022 MW.
Editor's Choice: Indonesia Targets Full EV Battery Downstreaming Within Two Years
Click here to get the latest news updates from Tempo on Google News
Indonesia Ready to Deploy Peacekeeping Forces to Gaza
1 jam lalu
Minister of Foreign Affairs Sugiono stated that Indonesia is ready to participate in a peacekeeping mission for Gaza after attending a meeting in Istanbul
Indonesia's Economy Grows 5.04 Percent in the Third Quarter of 2025
2 jam lalu
Statistics Indonesia (BPS) states that economic growth is supported by domestic economic activities and foreign demand.
Golden Supermoon to Light Up the Sky Tonight
3 jam lalu
As the supermoon occurs tonight, the moon is still in the process of approaching its closest distance from Earth. The closest point will only happen tomorrow.
Today's Top 3 News: Jonatan Christie Emerges Victorious at Hylo Open 2025 in Germany
4 jam lalu
Here is the list of the top 3 news on Tempo English today.
Indonesia's Jobless Remains High at 7.46 Million Despite Rate Drop to 4.85%
7 jam lalu
The Central Statistics Agency (BPS) recorded Indonesia's total number of unemployed individuals in August 2025 at 7.46 million people.
5 Destinations to Celebrate Indonesia's National Flora and Fauna Day 2025
12 jam lalu
The following destinations to raise awareness of the conservation of Indonesian flora and fauna on National Flora and Fauna Day every 5th of November
Indonesian Language Becomes UNESCO's 10th Official Language
12 jam lalu
Indonesian has become the 10th official language used at United Nations Educational, Scientific, and Cultural Organization (UNESCO) General Assembly.
Mount Merapi National Park Restores Illegal Sand Mining Areas
12 jam lalu
Officials from the Mount Merapi National Park in Indonesia are intensively replanting in 36 remaining points of illegal sand mines.
Indonesia's Bapanas Ensures Rice Supply and Price Stabilization Throughout 2025
12 jam lalu
Head of Bapanas, Amran Sulaiman, ensures that the rice supply and price stabilization program in Indonesia will continue throughout the year.
Perindo Supports Prabowo's Initiatives-Free Nutritious Meals to People's Schools
13 jam lalu
Angela Tanoesoedibjo, the Chair of Perindo Party, expressed her support for Indonesian President Prabowo Subianto's programs like free nutritious meal
