Data Centers in Indonesia

Indonesia – The Digital Gateway to Southeast Asia

Executive Summary

Indonesia is the primary destination for enterprises targeting the massive consumption of Southeast Asia’s largest digital economy. By placing infrastructure here, organizations gain direct access to over 280 million consumers while meeting strict local data residency requirements. This positioning ensures the lowest possible latency for high stakes applications across the archipelago.

Indonesia: At A Glance

Network & Connectivity Ecosystem

Indonesia serves as a critical interconnection point for the ASEAN region, featuring a rapidly maturing infrastructure.

Carrier Density & Carrier Neutrality: Carrier count: over 23. The market is competitive, with a rounded range of ~20 to 25 providers as of September 2025. Most major facilities are carrier neutral, allowing for flexible cross connects and diverse pathing. Managing traffic is more efficient when packets stay within local borders rather than routing through regional hubs.

Direct Cloud On-Ramps: Over 7, enabling access to 5 cloud regions as of September 2025. Localized presence for Alibaba Cloud, AWS, Google Cloud (GCP), and Microsoft Azure removes the need to backhaul traffic to neighboring countries for core compute requirements.

Internet Exchange Points (IXPs): The Indonesia Internet Exchange (IIX) remains the primary hub for domestic traffic, significantly reducing latency by keeping local data within the country.

Bare Metal: High performance compute solutions are readily available through global providers such as Hivelocity and Latitude.sh, supporting workloads that require physical hardware without virtualization overhead.

Power Analysis

Power in Indonesia is managed primarily through the state utility, providing stable industrial feeds to major data center corridors.

Average Cost Of Power: Industrial electricity ranges from $0.07 to $0.11/kWh, as of September 2025. The generation mix consists of approximately 81% fossil fuels and 19% renewables. These rates offer a significant cost advantage compared to more expensive mature markets in the region.

Power Grid Reliability: Data center clusters, particularly around Jakarta and its satellite cities, utilize well-engineered grids with redundant multi-substation support to ensure high availability.

Market Access, Business & Tax Climate

Indonesia offers a strategic entry point for businesses targeting high growth emerging markets.

Proximity To Key Business Districts: Data centers are centrally located near Jakarta’s Sudirman and Kuningan districts. This proximity is vital for financial services and technology firms requiring sub-millisecond response times for their corporate headquarters.

Regional Market Reach: This market acts as the central node for the Indonesian archipelago and provides a sturdy jumping off point for services across the Malay Peninsula.

Tax Advantage For Data Centers: The government provides corporate tax holidays and exemptions on import duties for hardware in designated areas. This reduced tax burden significantly lowers the total cost of ownership for large scale infrastructure deployments.

Natural Disaster Risk

Indonesia has a Moderate (4.5/10) risk profile, primarily driven by its position on the Ring of Fire as of September 2025. Modern facilities use specific engineering to manage these environmental factors.

• Risk Rubric: Moderate (4.5/10)
• Tsunami: 9.3 (High). Facilities are typically located inland to mitigate these direct regional risks.
• Earthquake: 8.9 (High). Seismic isolation and structural reinforcement are standard for major sites.
• River Flood: 8.4 (High). Advanced drainage systems and elevated equipment placements manage seasonal rainfall.
• Coastal Flood: 8.1 (High). Coastal facilities use reinforced perimeters and specialized flood barriers.
• Epidemic: 7.4 (Moderate). Redundant staffing protocols and remote management capabilities are industry standards as of September 2025.