The Indonesian Ministry of Energy and Mineral Resources (ESDM) has highlighted Indonesia's strong potential for new business ventures in artificial intelligence (AI) and data center development. Anggawira, Special Advisor to the ESDM Minister for Oil and Gas Infrastructure Acceleration, noted that establishing data centers in Indonesia requires significant, reliable clean energy sources. He emphasized that energy availability is crucial for fostering AI and digitalization growth. “Energy is a vital factor in driving AI and digitalization. We need to focus on ensuring energy availability to support data center expansion,” he told CNBC Indonesia’s Energy Corner on Tuesday, 5 November 2024. Several companies in the data center sector have expressed commitment to invest in Indonesia, which would require stable and reliable energy supplies.
Natural gas, specifically Liquefied Natural Gas (LNG), has been identified as a viable clean energy source to support these data centers. Anggawira highlighted that Indonesia expects a substantial LNG surplus within the next 2-3 years, making it a strategic energy source for this industry. Notably, investments in data centers globally are projected to reach USD 39.7 billion by 2032, growing at an annual rate of 4.8%, while Indonesia’s data center market alone holds a USD 3.37 billion potential for this year. Minister of Communication and Informatics, Budi Arie Setiadi, recommended that Indonesia learn from countries like Malaysia, Vietnam, and India, which have advanced data center ecosystems. He pointed out that streamlined licensing processes, strong infrastructure, and energy availability are critical success factors for attracting global investors to Indonesia’s data center market.
