Data Centers in Makassar
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Makassar – Strategic Hub for Eastern Indonesia
Executive Summary
Makassar is an emerging data center market, serving as the primary digital gateway to Eastern Indonesia. For businesses targeting expansion in Sulawesi and the surrounding islands, establishing a presence here is critical for reducing latency and improving service delivery. This strategic location enables access to a significant and growing user base, directly impacting application performance and regional market penetration.
Makassar: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reflects its status as a developing regional hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via private network extension to Jakarta. |
| Power Cost | IDR 1,500.00 – IDR 2,200.00/kWh | Represents a developing market with evolving grid infrastructure. |
| Disaster Risk | Moderate (4.5/10) | Dominated by seismic and coastal flood risks. |
| Tax Incentives | Yes | DC-specific concessions may be available in designated zones. |
| Sales Tax | 12% VAT, as of September 2025 | Standard national rate applies. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality As a nascent market with 1 primary data center, carrier density is developing. Businesses can expect access to over 10 national and regional carriers as of September 2025, with options for interconnection within carrier-neutral facilities.
Direct Cloud On-Ramps As of September 2025, Makassar has no direct public cloud on-ramps. Secure, private connectivity to major cloud providers like AWS, Google Cloud, and Microsoft Azure is achieved via network extension to the primary hub in Jakarta.
Internet Exchange Points (IXPs) The Open-IXP node in Makassar facilitates local traffic exchange, helping to reduce latency for end-users within the region. Most national and international peering, however, is routed through Jakarta.
Bare Metal Bare metal services are available, enabling dedicated compute resources for performance-sensitive workloads. Providers like Hivelocity and Leaseweb can service the region through network partners or regional deployments.
Power Analysis
Average Cost Of Power Industrial power costs in Makassar are estimated between IDR 1,500.00 – IDR 2,200.00/kWh, as of September 2025. Indonesia's grid is primarily powered by fossil fuels (~81%), with a growing renewables segment (~19%) consisting of hydropower and geothermal sources. This pricing structure is competitive for an emerging market.
Power Grid Reliability The power grid serving Makassar's main commercial zones is adequate for business operations. Data centers in the market are built with significant electrical redundancy, including N+1 UPS systems and backup generators, to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Makassar are positioned to serve the city's main port, industrial estates, and commercial centers. This proximity supports logistics, trade, and regional enterprise customers who require low-latency access to their applications.
Regional Market Reach Makassar is the strategic economic center for all of Eastern Indonesia. Colocation here provides a performance advantage for serving millions of users across Sulawesi, the Maluku Islands, and West Papua, a region historically underserved by digital infrastructure.
Tax Advantage For Data Centers Indonesia offers potential tax incentives for data centers located in designated Special Economic Zones (SEZ). These benefits can include relief from certain taxes and duties, designed to attract investment in digital infrastructure.
Natural Disaster Risk
Makassar has a Moderate natural disaster risk profile, with an INFORM Risk score of 4.5 out of 10, as of September 2025. The primary risks for infrastructure are driven by the region's coastal location and seismic activity. Key hazards include Tsunami (9.3/10), Earthquake (8.9/10), River Flood (8.4/10), and Coastal Flood (8.1/10).
