Antara News·Indonesia·Thursday, November 12, 2026 at 06:25 AM UTC

Indonesia secures power, water supplies for Batam data centers

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Bayu Saputra, Tegar Nurfitra

Jakarta (ANTARA) - The Indonesian government is committed to ensuring adequate electricity and raw water supplies to support data center development in Batam, Riau Islands, Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo said.

In a statement on Thursday, Wibowo described electricity and water as critical requirements for high-value investment projects, particularly the planned data center estate at Nongsa Digital Park in Batam.

"We cannot afford to miss out on this strategic opportunity," Wibowo said.

He noted that the government and the Batam Indonesia Free Zone Authority (BP Batam) have identified several options to meet the project's resource needs, including weather modification measures and Seawater Reverse Osmosis (SWRO) technology to produce freshwater from seawater.

Wibowo stressed that these measures will ensure sufficient utility supplies for the project without disrupting access for local residents.

Beyond infrastructure support, he highlighted ongoing regulatory and licensing reforms in the Batam Free Trade and Port Zone (KPBPB), which are expected to strengthen legal certainty for investors and improve logistics efficiency.

He underscored the importance of effectively implementing the 2025 government regulations on risk-based business licensing and free trade zones to strengthen supply chain integration and improve connectivity across transportation modes.

Wibowo added that the regulatory framework is expected to help position Batam as "a benchmark for other economically strategic regions in Indonesia."

He stressed that the government recognizes the need for greater efforts to develop special economic zones and industrial estates to boost economic growth, industrial competitiveness, and investment.

Batam's economy expanded by 7.28 percent in the second quarter of 2026, outpacing the 6.99-percent growth recorded in Riau Islands province and the national growth rate of 5.29 percent.

The city also posted Rp59.73 trillion (around US$3.2 billion) in realized investment in the third quarter, equivalent to 85.33 percent of its full-year target.

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