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Data Centers in Indonesia

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Indonesia – Powering Southeast Asia's Digital Growth

Executive Summary

Indonesia is the critical hub for any business targeting Southeast Asia's enormous and rapidly growing digital economy. With over 100 data centers and direct on-ramps to all major cloud providers, Indonesia offers the infrastructure density required to deliver low-latency services to the fourth largest population on the planet, directly impacting application performance and user retention.

Indonesia: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Excellent submarine cable access connecting Asia, Australia, and the Americas.
Direct Cloud On-RampsOver 7 — as of September 2025AWS, Google Cloud (GCP), Microsoft Azure, Alibaba Cloud.
Power CostIDR 1,550.00 - 1,800.00/kWhCompetitive regional pricing helps manage high-density deployment costs.
Disaster RiskMedium (4.5/10) — as of September 2025Site selection is critical to mitigate specific seismic and flood risks.
Tax IncentivesVariesDC-specific concessions are available in designated areas, but broader incentives are limited.
Sales Tax12% VAT — as of September 2025Standard Value Added Tax rate applies to services.

Network & Connectivity Ecosystem

As home to one of the world's largest internet user bases, Indonesia’s connectivity ecosystem is dense and competitive. The market is defined by excellent international connectivity and a focus on keeping domestic traffic local to improve performance.

Carrier Density & Carrier Neutrality: With over 23 providers operating in the country as of September 2025, businesses have significant choice. Carrier-neutral facilities in Jakarta and surrounding areas provide access to this rich ecosystem, ensuring resilient and cost-effective network architectures.

Direct Cloud On-Ramps: Indonesia has more than 7 dedicated cloud on-ramps serving 5 distinct cloud regions as of September 2025. Direct, low-latency connectivity is available to all major hyperscalers, including:

  • AWS
  • Google Cloud (GCP)
  • Microsoft Azure
  • Alibaba Cloud

Internet Exchange Points (IXPs): The Indonesia Internet Exchange (IIX) is the nation's primary peering point. Utilizing the IIX is essential for any service targeting the local population, as it dramatically reduces latency by keeping domestic traffic within the country.

Bare Metal: Bare metal server availability is strong, particularly in the Jakarta area. Providers like Hivelocity and phoenixNAP offer dedicated server solutions for workloads that require maximum performance and direct hardware control.

Power Analysis

Average Cost Of Power: Industrial power rates typically range from IDR 1,550.00 to 1,800.00/kWh as of September 2025. This competitive pricing is a key advantage for managing the operational costs of high-performance computing and large-scale storage deployments.

Power Grid Reliability: The power grid in major data center zones like Jakarta is well-engineered, with facilities receiving power from multiple substations for redundancy. While the national grid relies heavily on fossil fuels (~81%), modern data centers are built with robust UPS and generator backup systems to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated in and around Jakarta, providing low-latency access to Indonesia's financial, e-commerce, and government centers. This proximity is vital for trading applications, payment processing, and content delivery networks.

Regional Market Reach: An infrastructure footprint in Indonesia serves as a strategic gateway to the 680 million people in the ASEAN region. Its central location and strong international fiber links make it an effective hub for regional service delivery.

Tax Advantage For Data Centers: Indonesia provides specific tax concessions and potential exemptions for data centers developed within designated Special Economic Zones (SEZs). These incentives are designed to attract investment and can significantly lower the total cost of ownership for operators who meet the government's criteria.

Natural Disaster Risk

Indonesia carries a Medium overall disaster risk profile, with an INFORM Risk score of 4.5 out of 10 as of September 2025. The country's location on the Ring of Fire and its archipelagic geography create specific, well-understood hazards that must be addressed through careful site selection and facility engineering.

Key natural hazards to consider include:

  • Tsunami: High risk (9.3/10)
  • Earthquake: High risk (8.9/10)
  • River Flood: High risk (8.4/10)
  • Coastal Flood: High risk (8.1/10)
  • Epidemic: High risk (7.4/10)
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