Batam Becomes Indonesia’s Data Center


Batam can now be called the data center of Indonesia. This is because a total of three data centers will be built in Batam, Riau Islands. The three data centers are precisely located in the Nongsa Special Economic Zone (SEZ). Until 2030, a total of 11 data centers will be built in the area.

Quoted from the Nongsa SEZ Development report in August 2022, Tuesday (30/8/2022), the three data centers are owned by different entities.

First, there is a data center owned by PT. Data Center First Nongsa One, with Hong Kong investors and an investment commitment value of Rp 4.3 trillion. Its development so far has been groundbreaking on July 25, 2022, with a target of operating phase 1 in the fourth quarter of 2023.

Furthermore, there is a data center managed by PT. GDS IDC Service with investors from Hong Kong and the investment commitment value is Rp. 3 trillion. This has been groundbreaking on July 14 and is targeted to operate in phase 1 around the second quarter of 2023 or the first quarter of 2024.

And the last one, there is the National Data Center by the Ministry of Communication and Information (Kominfo). Kominfo has determined Nongsa as the location for the construction of the National Data Center through the Minister of Communication and Informatics Letter No. 482/M.Kominfo/PR.01.04/07/2021, 8 July 2021.

This will be the 3rd National Data Center in Indonesia. The project is targeted for phase 1 operation in early 2024.

Minister of Communications and Informatics Johnny G Plate is said to have visited the Korean financing team on June 24, 2022, to start the project around October-November 2022. The investment commitment value in this project reaches Rp 2.32 trillion.

The construction of the three data centers will create new jobs in the construction sector for approximately 1,000 workers during the 12-month construction period. The program also has a positive impact on micro-enterprises, such as rice stalls, mini shops, and transportation for communities around Nongsa.

Furthermore, according to the Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, the data center business in Batam is very promising. He also added that the moratorium on the construction of it in Singapore would benefit Batam.

He revealed that currently, his party continues to encourage infrastructure improvements in Batam. “We will also continue to provide convenience for investors,” he said.