Data Centers in Indonesia

Indonesia – The Gateway to Southeast Asian Digital Growth

Executive Summary

Indonesia is the essential choice for enterprises looking to capture the massive digital consumption of Southeast Asia’s largest economy. By colocalizing here, organizations secure direct access to over 280 million consumers while meeting strict local data residency laws. This strategic positioning ensures low latency and high availability for mission-critical 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. Major facilities remain carrier-neutral, permitting flexible cross-connects and diverse pathing.

Direct Cloud On-Ramps: Over 7, enabling access to 5 cloud regions as of September 2025. Local on-ramps include Alibaba Cloud, AWS, Google Cloud (GCP), and Microsoft Azure. This localized presence removes the need to backhaul traffic to Singapore for core compute requirements.

Internet Exchange Points (IXPs): The Indonesia Internet Exchange (IIX) is the primary hub, significantly reducing domestic latency by keeping local traffic within the country’s borders.

Bare Metal: Resilient bare metal solutions are widely available through global providers such as Hivelocity and Latitude.sh, supporting high-performance workloads without virtualization overhead.

Power Analysis

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

Average Cost Of Power: Industrial electricity ranges from $0.07 to $0.11/kWh, as of September 2025. The generation mix is approximately 81% fossil fuels and 19% renewables. These competitive rates support large-scale deployments compared to more expensive regional neighbors.

Power Grid Reliability: Major data center corridors, particularly around Jakarta and its satellite cities, use 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 headquarters.

Regional Market Reach: Indonesia serves as a gateway to the broader Indonesian archipelago and provides a stable jumping-off point for services across the Malay Peninsula.

Tax Advantage For Data Centers: The government provides tax relief and regulatory incentives for facilities in designated Special Economic Zones. These advantages lower the total cost of ownership by reducing import duties on hardware and offering corporate tax holidays.

Natural Disaster Risk

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

• Risk Rubric: Moderate (4.5/10)
• Earthquake: 8.9 (High). Structural reinforcement and seismic isolation are standard for major sites.
• River Flood: 8.4 (High). Advanced drainage and elevated equipment placements are used to manage seasonal rainfall.
• Tsunami: 9.3 (High). Facilities are generally located inland to mitigate these direct regional risks.
• 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 standard as of September 2025.