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View all search resultsData 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.
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Servers in a corridor of a data center process information in this undated illustration. (Shutterstock/Caureem)
T
he 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 West Java administration earlier this month suspended construction work for a data center campus developed by Singapore-based digital infrastructure firm BDx Data Centers in Jatiluhur, Purwakarta regency, amid concerns over outstanding environmental and building approvals.
BDx, which already operates three data center sites in Indonesia, reportedly had yet to secure its environmental impact assessment (Amdal) and building approval (PBG).
“It is the second phase [of the development], but the provincial government suspended the project. The thing is, BDx itself has already put in [investment] through the Investment and Downstream Ministry,” Deputy Industry Minister Faisol Riza said on Tuesday, as quoted by CNBC Indonesia.
Read also: Water concerns triggers suspension of West Java data center project
While acknowledging that the data center still required several permits and documents, he said the project’s suspension highlighted poor coordination between central and regional governments that could hinder investment in data centers with significant economic potential.
He said the government was taking the issue seriously, given data centers’ strategic role in powering industries such as semiconductors and artificial intelligence.
