Data center project should not be halted amid policy rift: Ministry
The Industry Ministry has pushed back against the suspension of a major data center site in West Java, warning that conflicting, misaligned policies between the central government and regional administrations could undermine business confidence and disrupt investment.
The Industry Ministry has defended against the suspension of a major data center project in West Java, Indonesia, asserting that conflicting policies between the central government and local authorities could harm investor confidence and disrupt business. The West Java administration suspended construction of a data center campus operated by Singapore-based firm BDx Data Centers in Jatiluhur, Purwakarta regency due to unresolved environmental and building approvals.
BDx has already invested in three other data center sites within Indonesia, but had not yet secured its necessary environmental impact assessment (Amdal) and building approval (PBG). Deputy Industry Minister Faisol Riza stated that while the project is in its second phase, the provincial government's suspension highlighted poor coordination between central and regional governments that could impede investment in data centers with substantial economic potential.
The ministry emphasized the strategic importance of data centers, particularly in supporting emerging industries like semiconductors and artificial intelligence.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
