Everything you need to know about the data centre market in Indonesia

Greater Jakarta is the key market in the country with over 70MW of capacity as of 2020.

According to JLL, in the past three years, major local and international data centre players, from developers and investors to end-users, have gradually entered the Indonesian market, attracted by the country’s socioeconomic potential. 

“The increased adoption of cloud-based services also drives demand for data centres as Indonesia is home to many start-up companies, including Gojek, Tokopedia and Traveloka. This robust ecosystem attracts global cloud players, such as Alibaba Cloud, Google Cloud Platform, Amazon Web Service, Microsoft Azure and, most recently, Tencent Cloud as they have launched their data centre facilities in Indonesia.” 

JLL says both local and foreign operators and developers, such as DCI Indonesia, Telkom Indonesia, NTT, STT GDC, Keppel DC and Princeton Digital Group, have also established their data centre facilities in the country. 

Here’s more from JLL:

Greater Jakarta is seen as the key market in Indonesia, especially Cikarang and Karawang areas. As of 2020, Greater Jakarta has a data centre capacity of more than 70 MW*. This means that the data centre market in Indonesia is still at a nascent stage; hence, underserved − especially when compared to similar markets such as India which has 447 MW**.

However, the sector is anticipated to grow and evolve rapidly as it has in many other markets in the region and globally. This quick response is supported by Indonesia’s potential, such as: 

• As of 2020, Indonesia has 200-million internet users and 170-million social media users; one of the biggest online markets globally with 1.25 mobile phones per capita. 

• Digital payment users and transaction value in Indonesia are expected to grow by 60% and 100%, respectively, in the next five years. 

• Cloud revenue is expected to triple over the next five years. 

• To some extent, 5G licences have been recently issued to some operators and there will be more to follow. 

With the government improving the country’s infrastructure via reliable power sources and fibre optics for better network connectivity, more data centre facilities are expected to materialise inside and outside of the Greater Jakarta area. 

As the population is transitioning to a new digital world, Indonesia's data centre industry is here to stay and will see a much stronger growth in the years to come.

Read the full report here.

*Structure Research 

**JLL; https://www.us.jll.com/en/trends-and-insights/research/data-center-outlook