Andianto Haryoko, Coordinator for the Ecosystem and Utilization of Information and Communication Technology (ICT) at the Directorate of Electricity, Telecommunications, and Informatics of Bappenas, sees the construction of 10 data centers in the Nongsa Digital Park Special Economic Zone (SEZ) in Batam, Riau Islands, as a significant economic opportunity. According to him, data center investments can stimulate the local economy and create job opportunities. He mentioned that many foreign investors are interested in building data centers in Batam due to several factors. Firstly, Batam's status as a Free Trade Zone (FTZ) and the presence of the KEK Nongsa Digital Park offer advantages for foreign investors. Secondly, Batam's location is safe from natural disasters and outside the ring of fire. Thirdly, Batam's geographical proximity to Singapore enhances its attractiveness. On July 18, Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso revealed that six new investors from China, Japan, and the United States are lined up to invest in building data centers in Nongsa Digital Park. As of now, 10 data centers are under construction, with nine in progress and one in the project commitment stage.
Susiwijono emphasized that the construction of data centers is now a critical need for many countries and companies due to the substantial land, electricity, and water resources required for digital data storage systems. He noted that almost all countries, including China and the United States, are investing heavily in data centers. For example, GDS, a Shanghai-based IT company, has investments only in Indonesia and Japan. In Japan, the government has even shared in the investment, highlighting the high demand for data centers. In Batam, the Nongsa Digital Park is actively developing infrastructure for GDS. However, to build more data centers in Nongsa Digital Park, substantial land, electricity, and water resources are required. The government is currently focused on expanding land to accommodate these investments, with an additional 20-30 hectares needed to support 16 data centers in Batam.
