Source: Kompas.com | September 22, 2026

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has invited investors to utilize Indonesia’s islands as sites for data center construction.

Bahlil noted that Indonesia possesses a vast territory with numerous islands that remain available for investment purposes.

“Ladies and gentlemen, investors need not hesitate to build data centers in Indonesia. We have the largest territory in Southeast Asia, and we still have an abundance of islands,” said Bahlil during the Electricity Connect 2026 event held in Tangerang, Banten, on Tuesday (September 22, 2026).

In addition to its vast territory, Indonesia possesses energy potential capable of supporting data center operations.

This potential includes sources such as solar, hydro, geothermal, and wind energy.

Bahlil also mentioned that electricity production costs in Indonesia would be more competitive compared to other countries.

“We will provide facilities and incentives for all of you,” Bahlil stated before the Electricity Connect 2026 audience.

PLN Prepares to Meet Data Center Electricity Needs

Reliable electricity supply is a crucial aspect to consider when constructing data centers.

Bahlil assured that meeting the electricity requirements for data centers would not be an issue.

“Once they express their interest and specify the required electricity capacity, PLN will certainly make the necessary preparations,” he said.

Indonesia’s Data Center Market

The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) previously presented data center investment opportunities in Indonesia to Chinese investors during the Indonesia-China Partnership Forum in Jakarta on Thursday (July 23).

Andi Maulana, Deputy for Investment Services at the Ministry of Investment and Downstreaming/BKPM, stated that data center development represents a promising investment opportunity.

This opportunity is supported by the growth of Indonesia’s digital economy, which is among the fastest in Southeast Asia. According to a presentation by BKPM citing Mordor Intelligence, Indonesia’s data center market value is set to reach approximately US$1.44 billion in 2025.

This figure is expected to rise to US$1.83 billion in 2026.

Indonesia’s data center market is projected to continue growing, reaching US$3.48 billion by 2031, with a compound annual growth rate (CAGR) estimated at 13.71 percent.

Meanwhile, the global data center market value is expected to increase from US$386.71 billion in 2025 to US$684.39 billion in 2031.