Supporting the Data Center Industry, Government Prepares Two Affirmative Policies

The Minister of Communication and Informatics stated that limited revisions to existing regulations are expected to enhance legal certainty in several key norms.

The data center industry is one of the main drivers of the economy and technology in the future. The growth of the data center industry is part of the strategy to accelerate national digital transformation.

To strengthen the investment climate, increase business competition, and address public needs through innovation in the data center industry, the government is committed to introducing affirmative policy breakthroughs, recognizing Indonesia's potential as a hub for the regional and international data center industry.

Minister of Communication and Informatics, Budi Arie Setiadi, announced that the government would strengthen Government Regulation No. 71 of 2019 on the Administration of Electronic Systems and Transactions (PP PSTE) and draft the Ministerial Regulation on the Administration of Electronic Systems for Public Scope.

"With these two regulations, we believe we can provide reliable services, protect national interests, and strengthen the potential market for the data center industry," he explained during the Data Center Industry Dialogue in South Jakarta on Wednesday (11/09/2024).

Minister Budi Arie also opened the possibility of regulating the private sector data centers through PP PSTE and Ministerial Regulation No. 5 of 2020 on the Administration of Electronic Systems (PSE) for the Private Sector.

"These two provisions are currently under review to ensure that the economic value of the data center industry can be optimized," he clarified.

The Minister stated that the limited revisions to existing regulations are expected to increase legal certainty in several key norms. According to Budi Arie, the development of industry-friendly policies is an effort to create a fair business competition climate and encourage healthier industry growth.

"This includes data classification, access to electronic systems and data for supervision and law enforcement, as well as investment facilities related to land, energy supply, and green energy," he explained.

Minister Budi Arie hopes that the data center industry will grow rapidly and become a key pillar in the national digital transformation agenda towards Indonesia Emas 2045.

"The government is committed to providing an environment that supports industry growth and ensuring that existing regulations support investment and innovation in this sector," he emphasized.

Minister Budi Arie expressed appreciation for the Data Center: The New Engine for Indonesia Economy dialogue, which explored opportunities and challenges in the data center industry in Indonesia.

"I would like to thank all industry players in Indonesia's data center ecosystem, who have persistently worked to achieve progress in this sector," he said.

The Data Center Industry Dialogue, organized by CNBC Indonesia, was attended by CNBC Indonesia Editor-in-Chief Wahyu Daniel, PLN President Director Darmawan Prasojo, and PT DCI Indonesia President Director Otto Toto Sugiri.

 

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