Adding Competitiveness to Indonesia’s Digital Sector, Tier IV Data Center Built in Jakarta

Liputan6.com, Jakarta The government continues to encourage the growth of the national data center industry in order to increase the competitiveness of the digital sector in Indonesia. On Wednesday (9/10/2024), the Bersama Digital Data Center (BDCC) together with the Association of Internet Service Providers (APJII) inaugurated a tier IV data center called JST1.

JST1 Tier IV Data Center is also the Second Indonesia Internet Exchange in Jakarta (IIX–JK2). The presence of BDDC JST1 and IIX–JK2 is part of BDDC’s commitment to support the Government’s efforts to realize national digital sovereignty through onshore data center services.

Minister of Communication and Information, Budi Arie Setiadi, explained that the data center industry continues to grow rapidly globally in line with the increasing development of digital technology.

“We hope that the inauguration of BDDC JST 1 can spur the growth of the national data center industry, increase the competitiveness of Indonesia’s digital sector, and support the acceleration of digital transformation. “In this case, it means that BDDC contributes to strengthening and providing digital infrastructure in Indonesia, especially the data center industry,” he said at the BDDC JST1 Grand Opening event in Jakarta, Wednesday (9/10/2024).

Budi also highlighted the centralization of domestic data centers where data located on overseas servers can be stored in data centers in Indonesia.

“We need to ask the industry, if the industry agrees that all data operating in Indonesia must be stored in data centers in Indonesia, the government must listen to that,” he said.

Budi said the Ministry of Communication and Information is committed to supporting the growth of the data center ecosystem and encouraging the strengthening of domestic data centers as a form of digital infrastructure readiness in Indonesia. The global data center market is predicted to grow to 52,010 MW in 2028.

This growth trend is also occurring in Southeast Asia with the data center market size projected to reach 2,733 MW in 2028. Meanwhile in Indonesia, the data center market will grow to USD 3.37 billion and in terms of investment it will reach USD 634 million in 2024.

Chairman of the Indonesian Internet Service Providers Association (APJII), Muhammad Arif, said that the industry’s rapid growth and focus on data protection requires a more reliable IIX with increasingly higher scalability.

Currently, with peak traffic reaching more than 13 Tbps, APJII is focusing on increasing the capacity and quality of infrastructure which is the backbone of Indonesian ISPs, namely collaborating with BDDC JST1 to build IIX-JK2.

“IIX-JK2 is designed to provide full support for the growth of Indonesian internet service providers (ISPs) and strengthen data traffic on the Indonesia Internet Exchange. “The presence of IIX-JK2 will connect more ISPs and also participate in other data centers, so that increasing internet penetration and quality in the country can be done more quickly,” said Arif.