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The growth of the data center industry in Batam City, Riau Islands Province is in an upward trend, reaching hundreds of billions in rupiah according to the Investment Coordinating Board (BKPM).
"Indonesia has not only set a new record in digital investment, but has also strengthened its position as a gateway to digital infrastructure in Southeast Asia," stated Investment and Downstream Ministry/BKPM Macroeconomics Expert Staff Imam Soejoedi while speaking during the Schneider Electric Innovation Day Batam 2025 event at the JW Marriot Harbour Bay Hotel in Batam City, Riau Islands on Apr. 23, 2025.
Realized investments to Riau Islands reached Rp35.36 trillion in 2024, with Batam City contributing Rp25.47 trillion.
"For the data center and telecommunications industry in Batam, investment for the 2023-2024 period was recorded at Rp446.78 billion, dominated by foreign investments from Singapore, Hong Kong, America, Malaysia, and India," he added.
Imam said that the realized investments for data center and telecommunications is a strong signal from investors that they continue to place great trust in the national investment climate.
"The central and regional governments are also trying to support ease of investment for data center industry players," he said.
At the same occasion, Batam Free Trade and Free Port Zone Authority (BP Batam) Free Trade Zone, Free Port Zone, and Special Economic Zone Development Center Head Irfan Widyasa explained that there are plans for 18 data centers to operate in Batam City soon.
"There are nine data centers [currently] operating in the Nongsa Digital Park SEZ. Later, there will be four more. Meanwhile, there are five data centers outside the Nongsa SEZ," he said.
Separately, Schneider Electric Indonesia & Timor Leste President Director Martin Setiawan stated that digitalization has now become the main foundation for resilient and adaptive industrial growth.
"Indonesia's digital economy is projected to reach US$130 billion by 2025, reflecting its huge domestic potential. At the regional level, Indonesia contributes around 40 percent of the total digital economy in Southeast Asia," he explained.
Martin highlighted the importance of cross-sector collaboration in driving digital adoption.
"Digital transformation must be realized in the form of practical solutions that are relevant to industry needs," he said.
Through Innovation Day, Schneider sought to present a platform that showcases several cutting-edge technologies and encourages dialogue and collaboration to accelerate strategic adoption of technology.
"Schneider Electric continues to be committed to supporting industry players in achieving measurable, competitive, and sustainable growth," he concluded.