Tuesday, July 16, 2024

State-owned enterprises minister plans to make Indonesia as leading data center hub in SE Asia

Reading Time: 2 minutes
Imanuddin Razak




The Minister of State-Owned Enterprises (BUMN), Erick Thohir, has ambitious plans to position Indonesia as the leading data center hub in Southeast Asia. This vision involves encouraging the state-owned company PT Telekomunikasi Indonesia Tbk (Telkom) to establish partnerships within the ASEAN region.

Erick believes that this target can be expedited by leveraging 166 collaborative projects currently present in Southeast Asia. To elaborate, 73 of these projects are still in the potential phase, with a total estimated value of US$17.8 billion.

“If we don’t prepare data center infrastructure, it will become a problem in the future. One way we are addressing this is through partnerships with Telkom and Telkomsel in Southeast Asia,” stated Erick at Hotel Mulia on Tuesday, September 5, 2023.

Becoming a key player

Erick is confident that Telkom will ultimately become one of the major players in the data center industry in Southeast Asia. He deems this goal feasible, particularly because Telkom’s subsidiary, PT PT Dayamitra Telekomunikasi Tbk or Mitratel, is already the largest telecommunications tower business in Southeast Asia.

Nonetheless, Erick emphasizes that Indonesia should not just be a market in Southeast Asia but a key player in the business. Therefore, he intends to increase the number of state-owned enterprises that can compete on a global level.

“The Ministry of State-Owned Enterprises’ goal for 2024-2034 is to have more state-owned companies that can compete globally,” he said.

Focus on renewable energy

In addition to data centers, Erick plans to capitalize on some of the 166 projects in Southeast Asia that focus on renewable energy. According to him, one domestic development in the renewable energy industry is the construction of floating solar power plants.

Erick calculates that the floating solar power plants owned by PT Masdar Mitra Solar Radiance can be increased from around 130,000 megawatts to 1 million megawatts, or 1 gigawatt. This is due to the relaxation of the restrictions on the area of lakes that can be utilized, increasing from 15% to 25%.

“Imagine, our lakes could become friendly places for generating new renewable energy. We are opening up this investment domestically,” said Erick.

Substantial funds needed

Previously, President Joko Widodo, or Jokowi, estimated that the funding required for the energy transition in the ASEAN region would reach $29.4 trillion, or approximately Rp 448 quadrillion. This substantial capital can be acquired through innovative financing schemes involving beneficial and sustainable partnerships.

Jokowi also encouraged ASEAN member countries to actively participate in downstream activities in the industry and the development of electric vehicle (EV) ecosystems. He believes that these two strategies can boost the economic growth of ASEAN.

Imanuddin Razak






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.


The obligation to allocate 60 percent of natural gas production for the domestic market (DMO) is expected to increase the utilization of the glass industry to 90 percent, says the Flat and Safety Glass Association (AKLP) in a statement.
A subsidiary of state owned energy company Pertamina, Pertamina New & Renewable Energy (Pertamina NRE) and Coal Power Generation Company Bangladesh Limited (CPGCBL) have signed a Memorandum of Understanding (MoU) of 500 MW grid-connected solar PV project at Moheshkhali area of Cox’s Bazar, Bangladesh, and other parts of the country.
The Financial Services Authority (OJK) has given the green light to the Muhammadiyah Muslim organization to establish or acquire an Islamic bank in Indonesia, citing the authority’s objective of fostering the growth of a robust and competitive Islamic banking industry.
State electricity company PT PLN energizes the first transmission line connecting its 150 kiloVolt (kV) Kolaka Substation in Kolaka regency, Southeast Sulawesi, with the substation of PT nickel mining company PT Ceria Nugraha Indotama (CNI), part of the Ceria Group.
The Ministry of Energy and Mineral Resources (ESDM) is considering possible relaxation for export of bauxite ores, an official said.
The Ministry of State-Owned Enterprises (SOEs) is pushing for state-owned companies to focus on six key sectors − basic infrastructure development, mineral industry downstreaming, energy security and defense system modernization, tourism development, SME initiatives, and agricultural development − to boost domestic economy.