Data Centers in Makassar
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Makassar – Strategic Gateway to Central Indonesia
Executive Summary
Makassar is an essential emerging data center market for businesses targeting Eastern Indonesia. Its strategic location on Sulawesi provides a critical low-latency connection point, enabling reliable digital service delivery to millions outside the primary hubs of Java. This makes it a strong candidate for disaster recovery sites and for companies expanding their digital footprint across the archipelago.
Makassar: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing international connectivity with strong regional links. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Nearest hub is Jakarta; private connectivity options available. |
| Power Cost | IDR 1,100.00 - 1,500.00/kWh | Costs are competitive for the region, supporting scalable growth. |
| Disaster Risk | Moderate (4.5/10) | Dominated by seismic and flood risks; requires site-specific diligence. |
| Tax Incentives | Yes | DC-specific concessions are available in designated economic zones. |
| Sales Tax | 12% VAT — as of September 2025 | Standard national rate applies to equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier presence is growing, with several national and regional providers available, as of September 2025. The market is developing towards greater carrier neutrality, offering more choice for colocation customers.
Direct Cloud On-Ramps: As of September 2025, there are no direct public cloud on-ramps located in Makassar. Secure, private connections to major cloud providers are established via the primary national hub in Jakarta through network extension services.
Internet Exchange Points (IXPs): Local traffic is primarily exchanged through nodes of the Indonesia Internet Exchange (IIX), which helps keep domestic latency low. Most international peering for the region is routed through Jakarta.
Bare Metal: Bare metal solutions are available from multiple providers, offering dedicated compute for performance-sensitive workloads. Options from vendors like Hivelocity can be deployed to serve the local market.
Power Analysis
Average Cost Of Power: Industrial power costs in Makassar are estimated between IDR 1,100.00 and IDR 1,500.00 per kWh, as of September 2025. This competitive pricing structure makes large-scale deployments financially viable compared to more mature regional markets.
Power Grid Reliability: The power grid supporting Makassar's commercial zones is relatively stable. Data centers in the area are engineered with redundant power feeds, on-site fuel storage, and full UPS systems to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Makassar provide low-latency access to the city's central business district and the port, a major logistics and trade hub for all of Eastern Indonesia. This proximity is ideal for shipping, manufacturing, and regional service providers.
Regional Market Reach: Makassar serves as a digital gateway to the island of Sulawesi and the wider Eastern Indonesian archipelago, including the Maluku Islands and Papua. This reach covers a significant and growing online population underserved by infrastructure in Jakarta.
Tax Advantage For Data Centers: Indonesia provides tax incentives for data centers operating within designated Special Economic Zones (SEZs). These advantages can include relief from certain taxes and regulatory duties, directly reducing the total cost of ownership for operators.
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 environmental hazards requiring specific mitigation strategies are tsunamis (9.3/10), earthquakes (8.9/10), river floods (8.4/10), and coastal floods (8.1/10). Diligent site selection and modern facility engineering are critical to address these known regional threats.
