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Navigating data centre opportunities across APAC - Indonesia

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Indonesia is one to watch in the APAC region for data centre growth. The draw of tax incentives and special economic zones, coupled with low barriers to foreign investment, has made it an attractive destination for investment from big global players.

To explore settings in other jurisdictions visit our APAC Regulatory Guide.

Tencent Cloud, to give one prominent example, has pledged to funnel US$500 million into infrastructure in Indonesia by 2030. Its third data centre in the country became fully operational in June 2025, in what it celebrated as ‘one of the largest and most complex cloud relocations ever undertaken in Southeast Asia’.

Rapid growth presents challenges, but the Indonesian government and industry leaders are collaborating on solutions. The government’s digital infrastructure push aligns with Indonesia Emas 2045 (or ‘Golden Indonesia’), its vision for a prosperous and advanced nation by 2045.

As Indonesia transforms into a hub for data centres, it is poised to drive economic growth and technological advancement.

Spotlight on key drivers

In the zone

Indonesia requires data centres to be located in designated industrial estates, which are supported by essential infrastructure for power and water.

This is helpful, with the quality of infrastructure varying widely across the country. Location exemptions are available in certain circumstances, but this general location restriction nonetheless limits site selection flexibility. Data centre businesses can receive a number of fiscal and non-fiscal incentives in SEZs established by the Indonesian government to promote investment in various industries. These foster economic growth and technological advancement.

Renewable futures

Indonesia's commitment to renewable energy and sustainability broadly, as a signatory to the Paris Agreement, represents a forward-looking driver for the sector.

Although not yet fully codified in regulations specific to data centres, this encourages operators to invest in sustainable practices, aligning with global trends.

'In the past 5 years Indonesia has dramatically evolved into a top destination for digital infrastructure. We've seen investments surge, driven by major players.'

Ali Budiardjo Nugroho Reksodiputro Partner Ayik Candrawulan Gunadi

Download the Indonesia chapter below

Data Centres - APAC Regulatory Guide
Chapter 5: Indonesia

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