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The Indonesian government is taking significant steps to elevate the country’s data centre industry, a crucial driver of future economic and technological advancement. By introducing two key affirmative policies, Indonesia aims to enhance its position as a leading hub for data centres both regionally and internationally. These measures are part of a broader strategy to accelerate national digital transformation.
Minister of Communication and Information, Budi Arie Setiadi, revealed that the government plans to fortify Government Regulation Number 71 of 2019, which governs the implementation of electronic systems and transactions (PP PSTE).
In addition, a new Draft Regulation concerning the Implementation of Electronic Systems for the Public Scope is being prepared. These regulatory enhancements are expected to provide a robust framework that supports the growth of the data centre industry.
Speaking at the Data Centre Industry Dialogue held in South Jakarta, Minister Setiadi highlighted the importance of these regulations in strengthening the investment climate and enhancing business competition within the data centre sector.
“With these two provisions, we are confident that we can offer reliable services, protect national interests, and enhance the market potential for data centre providers,” Minister Setiadi stated.
The government’s initiative also aims to refine existing provisions that govern private sector data centres, including PP PSTE and the Regulation of the Minister of Communication and Information Number 5 of 2020. The review of these regulations is focused on optimising the economic value of the data centre industry, ensuring that a clear and effective regulatory environment supports the sector’s growth.
Minister Setiadi emphasised that the limited revisions to existing regulations are intended to provide greater legal certainty on key issues. The policy updates are designed to foster a fair business competition climate and promote a healthier development of the industry. Key areas under review include data classification, access to electronic systems for supervision and law enforcement, and investment facilitation related to land acquisition, energy supply, and green energy solutions.
“The government is committed to creating an environment that supports industrial growth and ensures that our regulations facilitate investment and innovation in the data centre sector,” Minister Setiadi said.
He expressed hope that the industry will experience rapid growth and emerge as a central pillar in Indonesia’s digital transformation journey towards Golden Indonesia 2045.
The Data Centre Industry Dialogue served as a platform to explore opportunities and challenges within the sector. Minister Setiadi praised the event for its role in fostering discussion and collaboration among industry stakeholders.
“I would like to extend my gratitude to all the industry players in Indonesia’s data centre ecosystem, who have tirelessly worked to advance this sector,” he added.
The government’s proactive stance underscores its commitment to leveraging data centres as a key component of Indonesia’s digital infrastructure. By strengthening regulatory frameworks and creating a favourable environment for investment, Indonesia aims to attract both domestic and international players to its data centre industry. This move not only supports the country’s digital transformation goals but also positions Indonesia as a competitive player in the global data centre market.
The new policies are expected to address several critical aspects of the data centre industry, including enhancing service reliability, ensuring data security, and promoting sustainable practices. As Indonesia continues to embrace digital innovation, the government’s efforts to support the data centre industry will be instrumental in driving the nation towards its ambitious digital transformation objectives.
Indonesia’s latest policy initiatives reflect a strategic approach to harnessing the potential of the data centre industry, ensuring that it remains a vital contributor to the country’s economic and technological future.
