Jurisdiction Index / Indonesia
Indonesia
JCI composite · as of · methodology v0
Indonesia scores 53.6/100 on the Compute Institute Jurisdiction Competitiveness Index (Tier 3, Contested), ranking #24 of 30 rated jurisdictions with a stable outlook, as of June 15, 2026 under methodology v0. Its strongest dimension is Capital & Ecosystem Depth at 7/10; its weakest is Power Availability & Deliverability at 3.9/10. 15 of 22 sub-factors are scored on E1–E2 evidence (data confidence B). The stable outlook is driven by 7 forward-looking signals (+0.42 net points, E3–E4 evidence): time-to-power (E3), cost certainty / contractability (E3), observed construction velocity (E3), labor & supply capacity (E4), AI-specific law in force (E3), committed capital (E3) and ecosystem (E3).
Dimension breakdown
Seven dimensions, each 0–10, weighted per methodology v0. JCI = Σ(dimension × weight) × 10.
Power Availability & Deliverability
Power Cost
Speed to Build
Regulatory & AI Policy Environment
Fiscal & Incentives
Capital & Ecosystem Depth
Stability & Execution Risk
Outlook drivers — Stable (+0.42 net points)
Forward-looking E3–E4 signals. They move the outlook only — never the base score.
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Time-to-power -0.35 pts as of
“No published DC fast-track energization equivalent to Malaysia's Green Lane; PLN connection for large loads typically runs ~2-4 years, and a 2 May 2025 island-wide Java-Bali blackout hit 1.8M customers while an Oct 2025 multi-day Aceh blackout exposed reliability gaps — time-to-power for major DC loads sits in the ~2-4yr band against the <18mo (=10) / 3-4yr (=5) anchors.”
Source: Data Storage Asia, 'Driving Power Resilience in Indonesia's Renewable Era' (2025); Bali/Aceh 2025 blackouts (datastorageasia.com)
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Cost certainty / contractability -0.19 pts as of
“PLN is a near-monopoly off-taker and buyer; bilateral corporate PPAs and third-party grid access remain limited (captive power historically restricted, partly opening under recent reform), so DCs largely take regulated PLN tariffs reset quarterly rather than locking long-term fixed-price 24/7 supply.”
Source: Norton Rose Fulbright, Renewable energy snapshot: Indonesia (PLN single-buyer / limited PPA) (www.nortonrosefulbright.com)
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Observed construction velocity +0.31 pts as of
“Disclosed delivery is real but mid-pace (graded thin/honestly): Indonesia's DC stock reached ~0.97-1.07 GW in 2025 with Jakarta's pipeline up 30% to ~709 MW, the National Data Center in Cikarang commissioned Mar 2025, and the DayOne-INA 72 MW Batam Nongsa campus targeted for end-2025 — steady additions rather than the GW-scale single-campus velocity seen in Johor/US.”
Source: Real Estate Asia, 'Jakarta's data centre pipeline grows 30% to 709MW'; Mordor/Arizton ID DC market (2025) (realestateasia.com)
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Labor & supply capacity +0.00 pts as of
“Indonesia offers abundant general construction labor, but specialized DC/hyperscale EPC depth is thin versus Singapore/Malaysia and nearly all critical electrical and mechanical equipment (switchgear, chillers, generators) is imported, constraining schedule certainty on large AI campuses.”
Source: Data Center Frontier, 'Thailand and Indonesia Look to Become Data Center Hubs for APAC' (2025) (www.datacenterfrontier.com)
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AI-specific law in force +0.22 pts as of
“Indonesia has no binding AI statute — governance rests on non-binding instruments (the 2023 Kominfo Circular Letter No. 9/2023 AI ethics guidance and the Golden Indonesia 2045 / AI Center of Excellence agenda) — a permissive-but-uncertain posture that leaves AI workloads largely unregulated yet legally undefined.”
Source: CoinGeek, 'Indonesia unveils AI Center of Excellence' (2024); Kominfo AI ethics circular (coingeek.com)
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Committed capital +0.25 pts as of
“Headline commitments are large but mostly multi-year pledges/announcements (grade E4-honest): Microsoft's $1.7B 4-year cloud/AI commitment (30 Apr 2024) is the firm's largest in-country and is being deployed (Indonesia Central region live), Indosat-Nvidia announced a $200M AI center, and BP Batam reported oversight of a $5B AI DC — signed/financed dollars (e.g. Microsoft region build-out, DayOne-INA 72 MW) are a fraction of the announced totals.”
Source: Microsoft Stories Asia / DCD, 'Microsoft to invest $1.7bn in Indonesia' (30 Apr 2024); Indosat-Nvidia $200M (www.datacenterdynamics.com)
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Ecosystem +0.19 pts as of
“Emerging but real ecosystem: ~0.97-1.07 GW DC stock in 2025 with Jakarta holding 56.7% share; AWS, Google Cloud and Microsoft have all activated Indonesia cloud regions, Oracle launched its Batam region (Jul 2025), and Batam draws Singapore overflow via subsea fiber — though scale trails Singapore/Johor and US BIS chip-export/diffusion rules create GPU-import uncertainty.”
Source: Arizton / Mordor Intelligence Indonesia Data Center Market 2025 (Jakarta 56.7% share); AWS/Google/MSFT regions (www.mordorintelligence.com)
Sub-factor scores and sources
Every base-scored input below carries E1–E2 evidence: a justification, an evidence-level grade, and a link to the underlying source document.
Power Availability & Deliverability — 3.9/10 (weight 20%)
|
Sub-factor
|
Score
|
Justification
|
Evidence
|
Source
|
|---|---|---|---|---|
| Grid headroom 40% of dimension | 4 /10 | PLN's system-wide reserve margin fell from ~40% in 2023 to ~18% at peak demand in 2024 per PLN's annual report (a little over half PLN's own minimum target); the Java-Bali main grid still held >40% reserve in 2023 but headroom is being absorbed fast by DC demand, the 2025-2034 RU... as of | Mongabay on PLN annual-report reserve margin (~18% national 2024, Java-Bali >40% in 2023); RUPTL 2025-2034 (Ashurst) for ~33.5 GW Jamali news.mongabay.com | |
| Time-to-power 35% of dimension | — | Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score. | — | — |
| Energy mix & expandability 15% of dimension | 3.5 /10 | Indonesia's grid is coal-dominant (~60%+ coal generation); the $20B JETP targets only 34% renewables by 2030 and is stalling — disbursement has badly lagged the headline (the JETP's ~$1.17B for retiring two plants is planned cost, not money out the door) and the Cirebon-1 early-r... as of | Ember response to Indonesia JETP Progress Report 2025; Indonesia JETP ($20B, 34% RE by 2030) ember-energy.org | |
| Water availability 10% of dimension | 4 /10 | WRI Aqueduct ranks Indonesia 55th for baseline water stress nationally (moderate), but the Jakarta/West Java anchor zone is acute: parts of Jakarta sink up to ~26 cm/yr from groundwater overextraction, ~40% of the city is below sea level, and piped water covers only ~40% of the c... as of | Space4Water / WRI on Jakarta subsidence & water stress (Indonesia 55th baseline water stress, WRI Aqueduct) www.space4water.org |
Power Cost — 6.4/10 (weight 12.5%)
|
Sub-factor
|
Score
|
Justification
|
Evidence
|
Source
|
|---|---|---|---|---|
| Industrial electricity price 60% of dimension | 7 /10 | PLN's large-industry I-4 tariff (>30,000 kVA) is Rp 996.74/kWh (Q2 2026, uniform all-hours); at the 2025 average FX of ~16,700 IDR/USD that is ~$60/MWh and at the Jun-2026 JISDOR of 17,921 IDR/USD ~$56/MWh — well inside the <$45 (=10) / $140 (=0) anchor band and among the cheapes... as of | PLN I-3/I-4 tariff schedule, sunenergy.id (Q2 2026: I-4 = Rp 996.74/kWh) sunenergy.id | |
| Price trajectory & exposure 25% of dimension | 5 /10 | Non-subsidized tariffs adjust quarterly (Jan/Apr/Jul/Oct) against ICP oil price, coal reference price (HBA), inflation and the IDR/USD rate; coal-heavy generation keeps headline costs low today but exposes DCs to fuel-subsidy rationalization and a weakening rupiah (16,700 in 2025... as of | PLN I-3/I-4 tariff schedule, sunenergy.id (Q2 2026: I-4 = Rp 996.74/kWh) sunenergy.id | |
| Cost certainty / contractability 15% of dimension | — | Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score. | — | — |
Speed to Build — 5/10 (weight 17.5%)
|
Sub-factor
|
Score
|
Justification
|
Evidence
|
Source
|
|---|---|---|---|---|
| Permitting regime 40% of dimension | 5 /10 | GR No. 28/2025 (effective 5 Jun 2025) overhauls risk-based licensing through a single mandatory OSS platform covering KKPR spatial suitability, environmental approval, building permit (PBG) and SLF, building on the 2020 Omnibus Law — streamlined on paper, but local-government KKP... as of | SSEK Law Firm, 'Indonesia Overhauls Risk-Based Business Licensing with GR No. 28 of 2025' ssek.com | |
| Observed construction velocity 35% of dimension | — | Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score. | — | — |
| Labor & supply capacity 25% of dimension | — | Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score. | — | — |
Regulatory & AI Policy Environment — 5.5/10 (weight 12.5%)
|
Sub-factor
|
Score
|
Justification
|
Evidence
|
Source
|
|---|---|---|---|---|
| AI-specific law in force 35% of dimension | — | Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score. | — | — |
| DC-specific regulation 35% of dimension | 5.5 /10 | Government Regulation PP 71/2019 (in force 10 Oct 2019, amending PP 82/2012) is a substantive DC-relevant regime: public-scope electronic system operators must store and process data within Indonesia and strategic/government/national-security data must remain onshore, while priva... as of | ITIF, 'Indonesia's Data Localization Regulation' (9 Jun 2025); PP 71/2019 itif.org | |
| Regulatory predictability 30% of dimension | 5.5 /10 | World Bank WGI Regulatory Quality for Indonesia was 60.85 percentile rank (2023) — upper-middle globally — but Moody's revised the Baa2 outlook to negative on 5 Feb 2026 citing 'reduced policy predictability and weaker governance' under the Prabowo administration, tempering the f... as of | World Bank WGI Regulatory Quality (Indonesia 60.85 pctile, 2023), TradingEconomics tradingeconomics.com |
Fiscal & Incentives — 6.1/10 (weight 10%)
|
Sub-factor
|
Score
|
Justification
|
Evidence
|
Source
|
|---|---|---|---|---|
| Enacted incentives 40% of dimension | 7 /10 | Enacted incentives are strong: under the KEK/SEZ tax-holiday regime, investment plans of ≥IDR 500B qualify for a 100% CIT holiday for 5-20 years (longer for strategic projects), while investments of IDR 100B-500B get a 50% CIT reduction for five years; GR 47/2025 expanded the Bat... as of | PwC Indonesia Corporate Taxes / 3E Accounting (CIT 22%, 2026) taxsummaries.pwc.com | |
| Headline tax burden 40% of dimension | 5.5 /10 | Indonesia's standard corporate income tax rate is 22% (stable through 2026), moderate globally; large MNE hyperscalers face OECD Pillar Two 15% global-minimum-tax exposure that caps the net value of headline tax holidays. as of | PwC Indonesia Corporate Taxes / 3E Accounting (CIT 22%, 2026) taxsummaries.pwc.com | |
| Incentive durability 20% of dimension | 5.5 /10 | The KEK CIT-holiday window is long (10-25 years, statute-based under MoF regulation), giving structural durability, but durability is tempered by Pillar Two top-up tax eroding net benefit for the largest hyperscalers and by frequent regulatory churn (GR 28/2025, GR 47/2025) refle... as of | ideatax, 'Tax Holidays in Indonesia's Special Economic Zones'; MoF Reg 33/PMK.010/2021 ideatax.id |
Capital & Ecosystem Depth — 7/10 (weight 12.5%)
|
Sub-factor
|
Score
|
Justification
|
Evidence
|
Source
|
|---|---|---|---|---|
| Committed capital 40% of dimension | — | Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score. | — | — |
| Ecosystem 30% of dimension | — | Excluded — no E1–E2 evidence available; weaker evidence cannot enter a base score. | — | — |
| Sovereign/anchor capital availability 30% of dimension | 7 /10 | Indonesia has two sovereign vehicles: Danantara (launched Feb 2025, mandate over ~$900B in SOE assets, ~$61B initial capital, drawing ~$20B co-investments) and the Indonesia Investment Authority (INA, est. 2021, ~$10.5B AUM) which is directly co-developing the 72 MW DayOne Batam... as of | Aseanbriefing, 'Indonesia Officially Launches Danantara'; Wikipedia Indonesia Investment Authority (INA $10.5B) www.aseanbriefing.com |
Stability & Execution Risk — 4.9/10 (weight 15%)
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Sub-factor
|
Score
|
Justification
|
Evidence
|
Source
|
|---|---|---|---|---|
| Political/policy continuity 40% of dimension | 5.5 /10 | Indonesia retains investment-grade ratings (S&P BBB stable, 29 Jul 2025; Fitch BBB stable, 12 Mar 2025) reflecting macro stability, but Moody's revised its Baa2 outlook from stable to negative on 5 Feb 2026 citing reduced policy predictability and weaker governance under the new... as of | Bank Indonesia / OJK: S&P BBB (29 Jul 2025), Fitch BBB (12 Mar 2025), Moody's Baa2 outlook to negative (5 Feb 2026) www.ojk.go.id | |
| Currency, transfer & convertibility 35% of dimension | 4.5 /10 | The rupiah is a managed float with Bank Indonesia capital-flow and FX intervention measures; it depreciated from a ~16,700 IDR/USD 2025 average to a 17,921 JISDOR on 12 Jun 2026 (record-weak territory), and the BBB/Baa2 sovereign sits below hard-currency advanced peers — meaningf... as of | Bank Indonesia JISDOR (17,921 IDR/USD, 12 Jun 2026); CEIC FX series www.ceicdata.com | |
| Physical & geopolitical risk 25% of dimension | 4.5 /10 | Conflict risk is low, but physical risk is a genuine constraint: the Jakarta/West Java anchor sits in a high seismic-hazard zone on the Ring of Fire (Australian-Eurasian subduction) with active volcanism (Merapi) and severe Jakarta subsidence, whereas Batam — the Singapore-overfl... as of | Taylor & Francis, 'Probabilistic seismic hazard analysis for greater Jakarta'; Indonesia-Investments natural disasters www.tandfonline.com |
Signals
Recent ingested source documents linked to this jurisdiction via extracted claims or triage mentions, newest first.
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SE Asia's power demand from data centres, EVs to grow by more than 100TWh in next 5 years, report...
· Reuters · relevance 0.70
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www.tandfonline.com · relevance 0.00
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www.ceicdata.com · relevance 0.00
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www.ojk.go.id · relevance 0.00
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www.mordorintelligence.com · relevance 0.40
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www.aseanbriefing.com · relevance 0.20
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www.datacenterdynamics.com · relevance 0.75
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ideatax.id · relevance 0.20
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itif.org · relevance 0.60
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taxsummaries.pwc.com · relevance 0.00
Scores are reproducible from the frozen inputs snapshot recorded at computation time (2026-06-15T23:52:38+00:00). See the full methodology for rubrics, weights, and the evidence ladder.