Indonesia plans data centre rules to involve local businesses
Foreign investment would remain welcome, while ministers also called for closer coordination between digital infrastructure development and energy supply.
Indonesia plans to regulate data centre investment to give national and regional businesses a role in developing the facilities, Minister for Downstreaming and Energy Transition Bahlil Lahadalia said.
In remarks carried on the Communication and Digital Affairs Ministry’s website on 20 October 2026, Bahlil said the government would continue to welcome foreign investors while seeking collaboration with Indonesian businesses in the areas receiving investment.
He said technology investment should be assessed not just by the amount of capital it brings in, but also by the business opportunities it creates for national and regional entrepreneurs. The government wants communities near data centres to benefit from their economic activity.
Data centres require substantial capital and technology, but employ relatively few people. Their operations also consume significant resources, particularly electricity and water.
Communication and Digital Affairs Minister Meutya Hafid separately called for data centres and AI Factory development to be coordinated rather than handled sector by sector. She said cooperation with the Coordinating Ministry for Downstreaming and Energy Transition was important to align digital infrastructure needs with available energy supplies.
