Denny Setiawan, Director of Digital Infrastructure Policy and Strategy at the Ministry of Communication and Digital, believes that creating a supportive investment climate and providing incentives are key to the growth of the data center ecosystem and industry in Indonesia.
"For this incentive to be effective, the scheme implemented must be accompanied by long-term policy certainty to reassure investors," Denny said in a press release for the Focus Group Discussion (FGD) event entitled "Opportunities and Challenges for Data Center Business in Indonesia" in Jakarta on Friday.
According to him, data center providers and customers who import equipment to data centers need to obtain tax incentives so that Indonesia can compete with competing countries in the ASEAN region.
He added that the licensing process also needs to be simplified, with the support of strategic planning and adequate infrastructure.
Denny emphasized that the development of new data centers should not only be concentrated in Batam and Jakarta or Cikarang, but should be spread across the Western, Central, and Eastern regions of Indonesia.
Locations close to the landing point of the submarine cable communication system (SKKL) are considered more ideal because they can minimize data latency.
"Integrated data will provide a more targeted roadmap for future development," Denny said, adding that the provision of green energy is also an important factor in attracting data center investment.
