Data Centers in Makassar
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Makassar – Emerging Digital Hub for Eastern Indonesia
Makassar is establishing itself as a key digital gateway for Eastern Indonesia. For businesses aiming to serve this rapidly growing region, Makassar offers a strategic location to reduce latency and improve service delivery. Deploying infrastructure here connects companies directly to underserved markets, providing a crucial competitive advantage.
Makassar: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity, though less dense than primary Indonesian hubs like Jakarta. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud access hubs are located in Jakarta. |
| Power Cost | IDR 1,650.00 - 1,800.00/kWh | Based on national industrial estimates; costs can vary by provider and scale. |
| Disaster Risk | Moderate (4.5/10) – as of September 2025 | Primarily exposed to seismic, tsunami, and flood risks due to its location. |
| Tax Incentives | Varies | Concessions may be available for data centers operating in special economic zones. |
| Sales Tax | 12% VAT – as of September 2025 | Standard Value Added Tax rate applied nationally. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Makassar's ecosystem is growing, with access to a range of national and regional carriers as of September 2025. While not as dense as Jakarta, the market offers sufficient options for redundancy and competitive pricing within its single primary colocation facility.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Makassar as of September 2025. Businesses require private or long-haul connectivity to access cloud provider fabrics, with the primary interconnection point being Jakarta. This setup is common for emerging edge markets.
Internet Exchange Points (IXPs) Public peering is limited in Makassar. Most traffic exchange occurs privately between carriers or is routed through the Indonesia Internet Exchange (IIX) in Jakarta, which serves as the country's central peering point.
Bare Metal Bare metal server availability is present in the broader Indonesian market, though direct deployments in Makassar may require coordination. Providers like Hivelocity and OVHcloud can serve regional needs, typically deploying from larger hubs like Jakarta or Singapore.
Power Analysis
Average Cost Of Power Industrial electricity rates in Makassar are estimated between IDR 1,650.00 and 1,800.00/kWh as of September 2025. These costs are in line with national averages, making it a predictable market for power budget planning.
Power Grid Reliability The power grid supporting the main business areas is generally reliable for commercial operations. Data centers in the region are built with standard redundancies, including multiple substation feeds and on-site generation, to mitigate any potential grid instability.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Makassar are positioned to serve the city's commercial center and port, which are crucial for logistics, trade, and manufacturing in Eastern Indonesia. This proximity provides low-latency connectivity for local enterprises and government operations.
Regional Market Reach Makassar is the primary economic hub for the island of Sulawesi and the broader Eastern Indonesian archipelago. It provides a strategic digital infrastructure point for reaching millions of end-users across Sulawesi, Maluku, and Papua, areas historically underserved by digital services.
Tax Advantage For Data Centers The Indonesian government offers tax incentives for data centers located within designated Special Economic Zones (SEZs). These programs can provide significant relief from income tax and import duties on capital equipment, directly reducing the total cost of ownership for operators.
Natural Disaster Risk
Makassar has a moderate overall disaster risk profile, with a rating of 4.5 out of 10 as of September 2025. The risk profile is driven by the region's high exposure to specific natural hazards.
Key risks include:
- Tsunami: High risk (9.3/10) due to coastal proximity.
- Earthquake: High risk (8.9/10) from seismic activity in the region.
- River Flood: High risk (8.4/10).
- Coastal Flood: High risk (8.1/10).
While the overall risk class is moderate, data center selection requires careful due diligence on facility engineering and specific mitigation strategies for seismic and flooding events.
