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View all search resultsData center firms push for clearer, coordinated approvals
The concern follows West Java Governor Dedi Mulyadi’s decision to temporarily halt construction of a BDx data center in Jatiluhur, West Java, despite having attended the project’s groundbreaking ceremony on July 28.
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Illustration of servers in a data center. (Shutterstock/Caureem)
I
ndonesia’s data center industry is calling for stronger legal certainty, urging the government to set clear and predictable rules on environmental, building, water and energy requirements as the country seeks to attract large-scale digital infrastructure investment.
“The key lesson from this situation is that legal certainty does not mean weaker regulation. The data center industry needs clear and firm rules,” the Indonesian Data Center Provider Organization (IDPRO) chairman Hendra Suryakusuma said to The Jakarta Post on Thursday.
“What investors need is certainty about the requirements, who makes the decisions, the sequence of the process and how long it will take to complete.”
The concern follows West Java Governor Dedi Mulyadi’s decision to temporarily halt construction of a BDx data center in Jatiluhur, West Java, despite having attended the project’s groundbreaking ceremony on July 28.
While the project has faced scrutiny over its water use and its environmental and building permits remain under process, Dedi said construction was halted not because the project had violated environmental rules, but because the required permits had yet to be issued.
IDPRO proposed an “integrated pre-construction readiness process” bringing together central and local governments, PLN, water providers and investors from the outset, with parallel permits processed simultaneously and sequential approvals following a clear timeline to ensure spatial planning, environmental, building, water and energy requirements are met before major construction begins.
Hendra said that the Investment Coordinating Board (BKPM) could play an important coordinating role, while local governments should retain a central role because they understand local environmental capacity, spatial planning, water availability and community conditions.
