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Indonesia ministry urges continuation of data center development despite policy disagreements

Indonesian officials have called for the advancement of a major data center initiative to proceed uninterrupted, even as government agencies grapple with divergent policy positions on the project's framework and implementation.

LSN Indonesia · 16 October 2026

A senior ministry official stated that halting the data center development would undermine Indonesia's digital infrastructure objectives and competitive positioning in the regional technology sector. The project, viewed as critical to the nation's digital transformation agenda, has encountered administrative complications as different government bodies weigh in with varying requirements and conditions.

The ministry emphasized that policy disagreements, while requiring resolution, should not result in project delays that could compromise Indonesia's timeline for modernizing its technology capabilities. Officials noted that the infrastructure initiative aligns with broader national development goals and investment commitments made to international stakeholders.

Government agencies involved in the matter have been encouraged to expedite consultations and reach consensus on outstanding issues without derailing construction and operational timelines. The ministry indicated that a coordinated approach among relevant departments would enable the project to move forward while addressing legitimate regulatory and operational concerns.

The data center project forms part of Indonesia's wider strategy to establish itself as a regional technology hub and reduce reliance on foreign digital infrastructure providers. Development of domestic data processing capabilities is considered essential for supporting growing demand from domestic industries and attracting technology investments to the archipelago.