Indonesia's data center industry continues its remarkable growth, with the market value projected to reach USD 3.7 billion (approximately IDR 57.7 trillion) by 2024. Significant investments totaling USD 634 million (IDR 9.8 trillion) are solidifying Indonesia's position as a strategic data center hub in Southeast Asia. The Ministry of Communication and Informatics forecasts that Southeast Asia's data center capacity will grow to 2,733 megawatts by 2028, with Indonesia poised to become a major player due to its surplus electricity in Java and Batam and its strategic location. Muhammad Arif, Chairman of the Indonesian Internet Service Providers Association (APJII), emphasized the importance of investment-friendly regulations, attractive incentives, and legal certainty to unlock the country’s full potential.
In alignment with efforts to strengthen Indonesia’s digital infrastructure, APJII and Bersama Digital Data Center (BDDC) have inaugurated the second Indonesia Internet Exchange in East Jakarta (IIX-JK2). This initiative is expected to enhance interconnection efficiency among national internet providers and digital content suppliers. “The presence of IIX-JK2 complements and strengthens the capacity and reliability of IIX-APJII as the primary hub for national internet interconnection,” Arif explained. He highlighted the strategic role of the new facility in ensuring fast, secure, and efficient services for internet users. With its geographic advantages and growing infrastructure, Indonesia is well-positioned to become a leading data center investment destination in Southeast Asia, driven by rising global demand for secure, reliable, and cost-effective data centers.
