Data centers key to driving 8 percent economic growth: Minister

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that data center development is one of the main levers for driving higher economic growth in Indonesia.

This is because data centers are crucial infrastructure for the development of the digital economy and artificial intelligence (AI), which are projected to be the driving force of future economic growth.

"Indonesia wants to grow by more than 8 percent, and one of the levers is the digital economy. And the key is, of course, AI, and AI will exist if the data center infrastructure is good," Hartarto said.

He made this statement at the IDPRO 1-Decade 2026 event: Indonesia's Future through the Development and Strengthening of Digital Talent in Indonesia's Data-Centre Sector as an ASEAN Hub Center of Excellence, held in Jakarta on Wednesday.

Hartarto expressed his appreciation for IDPRO's contribution over the past decade in driving the development of the national data center industry.

According to him, the data center sector has become a game changer for the Indonesian economy, as the need for digital infrastructure to support economic activity and technological transformation increases.

The government also continues to strengthen regional digital cooperation through the ASEAN Digital Economic Framework Agreement (DEFA), which is expected to be signed at the upcoming ASEAN Summit.

The implementation of DEFA is projected to increase ASEAN's digital economic potential and open up greater opportunities for Indonesia to strengthen its position as a regional digital economy hub.

Hartarto believes Indonesia has several advantages for developing the data center industry, including land availability, competitive energy prices, and support from diverse domestic energy sources such as geothermal, solar, and hydropower.

The government is also continuing to prepare supporting infrastructure to ensure reliable energy availability for data center development in various regions of Indonesia.

In addition to data center development, Hartarto is encouraging the strengthening of the national semiconductor industry by collaborating with British technology company ARM to develop chip designs.

This step is expected to lay the foundation for the development of various future technologies, including AI, the internet of things (IoT), autonomous vehicles, and quantum computing.

To support the development of this ecosystem, the government is targeting training for 15,000 young talents in the semiconductor sector over the next three years.

The program is expected to strengthen the capacity of national human resources while encouraging the emergence of a generation of digital engineers capable of competing globally.

"We must maintain this momentum. Among other ASEAN countries, I can say that Indonesia is more prepared," said Hartarto.

Therefore, he said, the development of digital talent, data centers, and the semiconductor industry must continue to be encouraged so that Indonesia does not fall behind in the global digital economy.

Related news: Singapore-Johor-Riau triangle to be optimized as regional data center

Related news: RI seeks alternatives routes to cut internet reliance on Singapore

Related news: BP Batam oversees US$5 billion investment in AI data center

Translator: Arie Novarina

Editor: Azis Kurmala

Copyright © ANTARA 2026