Indonesia’s Ministry of Industry has revealed plans to set up a national team, including government institutions and the Indonesian Chamber of Commerce and Industry, to support data center development.
The initiative was announced by Deputy Industry Minister Faisol Riza in Jakarta on Tuesday as reported by Antara News. The team will be established after receiving feedback from other ministries, government agencies, and state-owned enterprises about the substantial water and electricity demands of data centers.
The Deputy Minister highlighted the importance of data center facilities and said, “Data centers are important for industries; they serve as catalysts for economic growth.”
The pronouncement follows the suspension of work on an AI data center project by BDx Data Centers in Jatiluhur, West Java. As w.media reported earlier this month, West Java Governor Dedi Mulyadi ordered that work on the project be stopped as neither an Environmental Impact Assessment nor Building Approval Documents had been obtained. BDx representatives informed the governor that the permits were expected to be obtained in early October.
Construction on the 640 MW data center began in September with Building 1, which will deliver 120 MW of IT capacity in phases. The first contracted phase was expected to be ready for service in early 2027 but that timeline could shift given the stoppage order.
Riza has said that he will coordinate with relevant stakeholders to address the matter.
“In the near term, we will invite the West Java government and several ministries and agencies to discuss not only the Jatiluhur data center but also similar projects at other locations,” said the Deputy Minister.
On Monday, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono emphasized that data center projects must comply with environmental regulations and requirements.
According to Arizton Advisory & Intelligence, the Indonesian data center market was valued at US$ 2.82 billion in 2025 and is projected to more than double to US$ 6.09 billion by 2031. The firm says the country is positioning itself as a major data center hub, offering a viable alternative to Singapore, which faces land and power constraints. Jakarta, Batam, and Surabaya have become important locations for hyperscale, cloud, and colocation developments, with Jakarta being the leading destination for data center developments.