Komdigi Eyes Sulawesi to Kupang for AI Data Centres, Promising Backup Links Beyond Java
Indonesia's Ministry of Communication and Digital Affairs (Komdigi) wants AI data centres spread into the east of the country, with areas from Sulawesi to Kupang under study as candidate locations, IMBCNews reported on October 24. Director General of Digital Infrastructure Wayan Toni Supriyanto set out the approach in an official statement on October 20, presenting it as a way to break the concentration of digital infrastructure investment in western Indonesia.
Wayan said locations must be prioritised according to the needs of government, industry, education and public services, and that energy supply and site suitability are decisive. To keep facilities outside Java and Batam from becoming isolated, the government will provide backup connectivity linking them to national and international connectivity hubs. Large power supply, substations, cooling water and disaster mitigation are being aligned with state utility PLN and regional governments, and a draft presidential regulation on undersea cables and data centres is in public consultation.
He stressed that intelligent infrastructure takes more than capital and construction. Coordination among central and regional governments, PLN, network operators, land agencies and investors is needed to give certainty on land availability and costs. Running AI factories through 2030 will demand very large amounts of electricity and uninterrupted high-capacity networks, he said, with no more delays or capacity shortfalls on backbone, middle-mile or access networks.
What it means in practice
The push targets a real imbalance. Much of Indonesia's announced AI capacity sits in and around Jakarta, West Java and Batam, from Nvidia's eyed data centre in Batam to the 1 GW build-out mapped by Telkom, NeutraDC and Danantara. Moving east could bring compute closer to regional universities and public services, but it also tests grids where supply is thinner, and disputes such as West Java halting the BDX Jatiluhur campus over permits show how land and licensing problems can stall projects.
Komdigi did not name specific sites, investors or budgets, and the statement set no timetable for the presidential regulation. Without firm power and connectivity commitments, operators are likely to keep favouring established hubs where customers and capacity already exist.
What to watch: the final text of the regulation on undersea cables and data centres, whether PLN publishes capacity plans for eastern provinces, and the first investor to commit to a site east of Java.