Enviro News Asia, Tangerang — Indonesia is positioning its abundant energy resources as a foundation for expanding the country’s digital economy and attracting investment in data centers.
Energy and Mineral Resources Minister Bahlil Lahadalia called on investors to consider Indonesia as a data center hub, highlighting the country’s renewable energy potential, including hydropower resources estimated at 23 gigawatts (GW) along the Mamberamo River in Papua and around 12 GW along the Kayan River in Kalimantan.
Bahlil made the statement while opening Electricity Connect 2026 in partnership with Enlit Asia at the Indonesia Convention Exhibition (ICE) BSD, Tangerang, on September 22. The event brought together thousands of delegates, investors, business representatives and academics from Indonesia and abroad.
Bahlil said growing demand for digital infrastructure was increasing pressure on energy supplies in several countries, particularly as data centers require greater access to renewable and low-carbon electricity.
“Data centers are growing rapidly. Investors should not hesitate to build data centers in Indonesia,” Bahlil said.
Indonesia has more than 17,000 islands and a diverse range of energy resources, including solar, hydropower, geothermal and wind energy.
The minister highlighted the Mamberamo River in Papua, with an estimated hydropower potential of 23 GW, and the Kayan River in Kalimantan, with potential of around 12 GW, as examples of resources that could support large-scale electricity demand.
The government is also seeking to expand access to clean electricity for energy-intensive industries as it pursues its net-zero emissions target for 2050–2060.
Under the 2025–2034 Electricity Supply Business Plan (RUPTL), Indonesia plans to add 69.5 GW of power generation capacity, with 70 percent expected to come from renewable energy sources. The government is also implementing a 100 GW solar power program targeted for completion within three years.
“These are not merely themes. They have been translated into concrete programs,” Bahlil said.
Beyond energy resources, the government is also highlighting Indonesia’s economic conditions as a factor supporting investment. Bahlil said the economy maintained growth above 5 percent in the second quarter, while inflation remained around 3 percent despite geopolitical uncertainty.
With a population of nearly 300 million, Indonesia is expected to see continued growth in demand for electricity and digital services.
The government is seeking to align renewable energy development and investment in data centers with efforts to strengthen the national electricity system and support industrialization, downstream processing and digitalization.
Bahlil also urged investors to consider Indonesia as an investment destination amid the country’s ongoing energy infrastructure expansion.
“If you want to invest, this is the moment,” he said.
Electricity Connect 2026 carries the theme “Powering Regional Sovereignty, Securing Energy Systems Resilience.” The forum is aimed at strengthening the reliability, affordability and sustainability of Indonesia’s electricity system amid accelerating industrialization, downstream development and digital transformation. (*)
