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Data center requirement to be eased: Minister
A Google data center is seen in Douglas County, Georgia, the US
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A Google data center is seen in Douglas County, Georgia, the US. A requirement to build data centers in Indonesia is set to be eased as the regulation incurs high costs and threatens competitiveness, Communications and Information Minister Rudiantara said recently. (AP/Google) (AP/Google)
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span class="caption">A Google data center is seen in Douglas County, Georgia, the US. A requirement to build data centers in Indonesia is set to be eased as the regulation incurs high costs and threatens competitiveness, Communications and Information Minister Rudiantara said recently. (AP/Google)
A requirement to build data centers in Indonesia will be eased as it incurs high costs and threatens competitiveness, the communications minister has said.
According to Government Regulation No. 82/2012 on the management of electronic transactions and systems, data and disaster recovery centers for public services must be located within the country.
Communications and Information Minister Rudiantara said the government was preparing a draft revision based on input from industry players such as banking and aviation firms as it aimed to increase competitiveness and lower prices for consumers.
Previously, IDC Financial Insights research manager Agus Kurniadi said the regulation had a significant effect on Indonesian banks as it required customers' data to be stored on Indonesian soil. Thus, Indonesian banks that previously operated overseas data centers must repatriate the information.
Based on an IDC data center index ranking released in 2014, Indonesia was included in the bottom three for data center building, surpassing only the Philippines and China. Hong Kong and Singapore, meanwhile, ranked first and second among all 13 Asia-Pacific countries, excluding Japan.
A lack of adequate infrastructure and uneven electricity distribution were cited as the main challenges for enterprises looking to build data centers in the country. (kes)(+)
