The Indonesian government is making a strategic move to position the country as a leading data center hub in Southeast Asia. Through a series of regulatory reforms, the government aims to attract significant investments and foster a thriving data center ecosystem.
Key to this strategy is the strengthening of existing regulations, particularly Government Regulation 71 of 2019, which governs electronic systems and transactions. A new Draft Regulation concerning the Implementation of Electronic Systems for the Public Scope is also under development. These regulatory enhancements are expected to provide a clearer legal framework for data center operators, enhancing business certainty and encouraging competition.
“With these two provisions, we are confident that we can offer reliable services, protect national interests, and enhance the market potential for data centre providers,” stated Minister of Communication and Information, Budi Arie Setiadi, at the recent Data Center Industry Dialogue.
The government’s focus extends beyond just attracting foreign investment. The regulatory review aims to optimize the economic value of the data center industry for Indonesia, ensuring that it contributes significantly to national development. Key areas under review include data classification, access to electronic systems for supervision, and facilitating investment in areas like land acquisition and sustainable energy solutions.
The move comes as Indonesia strives to accelerate its digital transformation journey. A thriving data center industry is crucial for supporting this ambition, powering everything from e-commerce and fintech to cloud computing and artificial intelligence.
Indonesia aims to not only modernize its own digital infrastructure but also become a key player in the global data center market by attracting global players and fostering a competitive environment.
