Forecasts depend on demand and infrastructure
In an official statement issued in Jakarta on October 27, 2026, Haryo Limanseto, expert staff for regional development at the Coordinating Ministry for Economic Affairs, described digital infrastructure investment as a way to advance digital transformation and support economic growth amid global uncertainty.
The Indonesia Data Center Provider Organization (IDPRO) estimates that capacity could reach 11–12 GW by 2030. Its chairman, Hendra Suryakusuma, put currently installed and operating capacity at about 650 MW, according to Kontan.co.id's September 25 report.
IDPRO cautioned that its forecast represents potential capacity or projects in the pipeline, not assured development. Realizing it will depend on customer demand, grid readiness, available energy and land, fiber connections, permitting and the pace of construction.
Grid limits and planned projects
The Java-Madura-Bali grid can accommodate only 3,207 MW against projected high-voltage data center demand exceeding 12,000 MW for 2026–2030, according to PLN's vice president for strategic planning and transmission asset management, Imam Makhfud. Asian Business Review reported the figures in October 2026.
PLN is considering mobile substations because developers work on an 18-month timeline, while building a substation takes 24 months. The state utility has also committed more than 1 gigavolt-ampere of capacity apiece to Big Data Exchange (BDx) and Digital Edge (Singapore) Holdings in Greater Jakarta, and signed an agreement to supply 450 MW to DayOne Data Centers in Batam, according to the same publication.
Other announced developments include CoreWeave's plans for 360 MW of Indonesian data center capacity and a planned $5 billion artificial intelligence campus in Batam backed by Chinese investors, Asian Business Review reported.
Electricity consumption by Indonesian data centers is forecast to quadruple to about 26 terawatt-hours by 2030. Strategy advisory firm YCP Holdings cited that projection from a May 2025 report by UK-based think tank Ember Energy Research CIC, according to Asian Business Review.
Renewable electricity also faces competing demand from exports. YCP Holdings' Jason Ong told the publication that Singapore's conditional approval of about 3.4 GW of electricity imports from Indonesia creates competition for renewable power between domestic data centers and export customers.
Generation expansion and solar rollout
The government's power plans include 69.5 GW of additional capacity under PLN's 2025–2034 Electricity Supply Business Plan, known as RUPTL, to support the expanding digital economy.
The Ministry of Energy and Mineral Resources said in its May 26, 2025, announcement that renewables and energy storage account for about 76% of the planned additions. It listed 42.6 GW of renewables and 10.3 GW of storage, with fossil fuels supplying the remaining 16.6 GW.
The ministry's renewable allocation comprises 17.1 GW of solar, 11.7 GW of hydro, 7.2 GW of wind, 5.2 GW of geothermal, 0.9 GW of bioenergy and 0.5 GW of nuclear capacity. It valued the plan's investment opportunities at Rp2,967.4 trillion and said about 73% of capacity was reserved for independent power producers.
Alongside RUPTL, the government is pursuing its flagship 100-gigawatt-peak (GWp) solar program. President Prabowo Subianto launched it in Gilimanuk, Bali, on August 25, according to pv magazine's October 27, 2026, report. The initial phase comprises 14 projects across six provinces with a combined capacity of about 5.3 GWp. Prabowo set a target of 100 GW within three years; Indonesia had 1.49 GW of cumulative solar capacity at the end of 2025.
Digital growth and workforce needs
Haryo cited the e-Conomy SEA 2025 report as evidence of the scale of Indonesia's digital economy: gross transaction value approaching $100 billion, with annual growth of about 14%, making it Southeast Asia's largest.
The report, produced by Google, Temasek and Bain & Company, also projects Indonesia's digital economy to reach around $340 billion by 2030. According to figures cited by Assistant Deputy Minister Theodore Sutarto of the Coordinating Ministry for Economic Affairs in Telecom Review Asia on July 29, 2026, about 80% of Indonesian digital users interact daily with AI-powered services. That is the highest level of consumer AI engagement in Southeast Asia, while the country's estimated AI market potential is about $70.6 billion.
Indonesia is expected to need approximately 9 million skilled digital workers by 2030. To address that need, the government is expanding vocational education and training through the Digital Talent Scholarship initiative, working with global technology companies and international partners, including through WAICO.
Companies investing in workforce skills can also receive Super Tax Deduction incentives of up to 200% for qualifying vocational training programs.
Regional investment and local media
Haryo also outlined efforts to attract investment and make greater use of Special Economic Zones (SEZs) and Industrial Parks to develop regional industries. Indonesia has 25 SEZs and 181 Industrial Parks spanning a total of 125,000 hectares. Investment accumulated in the SEZs has reached Rp368 trillion and generated nearly 250,000 jobs.
The government is encouraging micro, small and medium enterprises (MSMEs) and local media businesses to find commercial opportunities through technology. It urged regional news organizations to promote local MSME products, tourism and regional economic opportunities through digital marketing, creative content and community engagement.
Local media companies are also being encouraged to establish creative service divisions and other commercial ventures to diversify revenue, without compromising editorial independence or the integrity of their reporting.
"Expanding business opportunities must be balanced with editorial independence and information credibility, as public trust is the main capital for the sustainability of the media industry," Haryo said.
