Analytical Commentary by Tenggara Strategics

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Illustration of servers in a data center.

Opinion premium

Analysis: The hidden costs of Indonesia’s data center gold rush

Indonesia wants to ride the global data center boom, betting that investment, skilled jobs and computing power for artificial intelligence will drive economic growth. But the cloud leaves its imprint on the ground: Data centers consume vast amounts of electricity and water and can expose surrounding communities to heat and noise. The question is whether the government will make this boom work for the public or leave communities to pay for it.

1 day ago

Opinion premium

Analysis: Free education, but at what cost?

President Prabowo Subianto wants Indonesians to enjoy free education from kindergarten through university. Few would dispute the objective of making education more accessible. The harder question is how the government will pay for it. The state has yet to fully fund a Constitutional Court order to extend free compulsory basic education to private schools, even as Prabowo adds free university tuiti...

2 days ago

Opinion premium

Analysis: SAL new rulebook: Where the money should go

The government has formally changed how it manages its budget surplus funds (SAL), ending a nearly year-long debate over how the roughly Rp 400 trillion (US$22.4 billion) in surplus funds should be managed and put to use. Under Finance Ministry Regulation (PMK) No. 67/2026, excess government cash can now be placed with commercial banks or invested in government securities (SBN), giving the Finance...

3 days ago