BALINEWSID.COM, TANGERANG — Indonesia is seeking to attract data center investment by offering its abundant renewable energy potential as demand for electricity from the rapidly growing digital industry continues to rise.
Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia has significant hydropower potential, including around 23 gigawatts (GW) from the Mamberamo River in Papua and approximately 12 GW from the Kayan River in Kalimantan.
Bahlil made the remarks while opening Electricity Connect 2026 in Partnership with Enlit Asia at the Indonesia Convention Exhibition (ICE) BSD in Tangerang on Tuesday (Sept. 22). The event was attended by thousands of delegates, investors, business representatives and academics from Indonesia and abroad.
Bahlil said growing energy demand in several countries, particularly demand for renewable energy to support the expansion of the digital industry, presented an opportunity for Indonesia to attract investment.
“We know that in several countries, energy supplies are already under increasing pressure, particularly renewable energy. There are many data centers being developed,” Bahlil said.
He urged investors not to hesitate to consider Indonesia as a location for data center development.
Indonesia has more than 17,000 islands and a diverse range of renewable energy resources, including solar, hydropower, geothermal and wind energy.
Bahlil highlighted the country’s large hydropower potential as one of the options available to investors seeking renewable electricity.
“If you are looking for hydropower, the Mamberamo River in Papua has a potential of 23 gigawatts. In Kalimantan, the Kayan River has potential of around 12 gigawatts,” he said.
The government sees access to clean electricity as increasingly important for the data center industry, which requires a large and reliable supply of power.
The government is also seeking to increase renewable energy capacity as part of its efforts to support the country’s energy transition and long-term emissions reduction targets.
Under the 2025–2034 Electricity Supply Business Plan (RUPTL), Indonesia plans to add 69.5 GW of power generation capacity, with 70 percent of the additional capacity targeted to come from renewable energy sources.
The government is also implementing a 100-GW solar power program, which Bahlil said is targeted for completion within three years.
“This is not just a theme. It has been turned into a concrete program,” Bahlil said.
In addition to its energy resources, the government is highlighting Indonesia’s economic conditions as another factor supporting investment.
Bahlil said Indonesia’s economy continued to grow by more than 5 percent in the second quarter of 2026, while inflation stood at around 3 percent despite ongoing geopolitical uncertainty.
With a population approaching 300 million, Indonesia is expected to see continued growth in demand for digital services and electricity.
The government is seeking to develop renewable energy and attract investment in data centers while strengthening the country’s overall electricity system.
Bahlil closed his remarks by urging investors to consider Indonesia for future investment.
“If you want to invest, this is the moment. This is the right timing,” he said.
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