Indonesia’s energy advantage tested by AI data-centre boom
Vast renewable potential gives the country an edge, but certain constraints threaten to blunt it
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[JAKARTA] Indonesia’s vast land-mass and proximity to the equator give it nearly 4,000 gigawatts (GW) of renewable-energy potential, an advantage unmatched in South-east Asia.
Yet, gaps in grid infrastructure, questions over bankability of renewable-energy projects and the slow expansion of reliable energy supply could crimp its ability to capitalise on that advantage in the race for data-centre and artificial intelligence investment.
Johan Batubara, director of investment at Indonesia’s sovereign wealth fund, the Indonesia Investment Authority, told The Business Times that access to reliable power is becoming foundational for hyperscalers, particularly in an increasingly supply-constrained environment.
