Indonesia is on the verge of a digital transformation driven by the rapid advancement of artificial intelligence (AI). In the latest episode of Nusantara Academy, the discussion opened with the readiness of Indonesia’s data centers to handle the increasing demand for AI computing.
In the latest episode of Nusantara Academy, host Ayu Saptarika, Marketing Development at PT. Primacom Interbuana, guided the discussion on the readiness of Indonesia’s data centers to handle the increasing demand for AI computing.
The podcast featured two experienced speakers:
- Hazlan Hezri, Senior Program Manager at Microsoft, who highlighted the importance of upskilling human resources and fostering industry-government collaboration
- Bizardy Ilham, Data Center Solutions Manager at Legrand Indonesia, who emphasized infrastructure challenges, energy efficiency, and data center management.
The conversation made it clear that AI adoption is not just about technology, but also about preparing the entire ecosystem, including skilled workforce, robust facilities, and operational strategies. This episode offers valuable insights for businesses, developers, and policymakers to ensure that Indonesia’s data centers are not only AI-ready but also efficient, secure, and sustainable.
When Are Indonesian Entrepreneurs Ready for AI?
AI enhances daily operations but does not replace human personnel. Human involvement remains essential, particularly for monitoring, troubleshooting, and decision-making. Podcast speakers highlighted that while Indonesian vocational schools provide a solid foundation in programming (C++ and JavaScript), AI implementations—especially those integrating cybersecurity—are moving toward new programming paradigms.
Entrepreneurs face a critical choice: implement AI-ready data centers immediately or adopt a gradual approach. Given Singapore’s current AI Data Center boom, Indonesian providers must prepare infrastructure and workforce capabilities proactively.
Impact of AI on Edge and Conventional Data Centers
Edge Data Centers, located near end-users, play a key role in ensuring low-latency access to AI services. However, the podcast emphasized that locations outside city centers depend heavily on submarine and terrestrial networks. Telecommunications convergence—integrating terrestrial, satellite, and base station networks—is crucial to minimize points of failure.
Furthermore, Data Center Infrastructure Management (DCIM) systems can monitor components in real-time, predicting failures and optimizing energy usage. While AI assists monitoring, human intervention remains indispensable to act on alerts and maintain operations.
Energy Consumption and Sustainability Challenges
AI Data Centers consume significantly more energy than conventional centers, operating at 50–60°C compared to 20°C in traditional facilities. This higher energy demand presents sustainability challenges, especially in a warming world.
Indonesia has begun transitioning to renewable energy sources like solar power and Combined Cycle Gas Turbines (CCGT), reducing reliance on coal. However, for critical operations, national electricity still dominates due to capacity limitations. Hybrid approaches—using renewable energy for non-critical operations and grid power for core functions—are currently the most feasible strategy.
Internationally, countries like the USA and European nations have introduced carbon credits and incentives for companies to reduce their carbon footprint. Indonesia is gradually moving toward similar ESG-aligned practices, though formal incentives remain limited.
Workforce and Human Resource Development
A standout point from the podcast was the importance of foundational programming skills. Indonesian students often learn programming from a young age, giving them an advantage over peers in regions like Singapore, where reliance on AI tools like ChatGPT has reduced basic coding skills.
Understanding programming fundamentals is critical for troubleshooting AI applications, and logical thinking from A to Z is necessary for problem-solving. The workforce must also upskill and obtain certifications in AI and cybersecurity to remain competitive. Global providers such as Google and Microsoft already offer free courses on AI and cybersecurity, while institutions like Nusantara Academy provide specialized certifications.
Blockchain Integration and Data Center Implications
Blockchain technology, often paired with AI, requires fast transaction validation, adding pressure on data center infrastructure. In Indonesia, cryptocurrencies are treated as commodities rather than transactional currencies.
However, blockchain has critical applications in governance, such as land acquisition rights managed by the Indonesian National Land Office. Integrating IoT devices and tokens with blockchain enhances accuracy in mapping, reduces disputes, and ensures data integrity, even in disaster scenarios like the 2019 Palu earthquake.
Growing Demand and Regional Opportunities
Indonesia’s population of 278 million, coupled with high smartphone penetration, drives enormous demand for data capacity. Younger users prioritize video and content creation, while enterprise demands remain stable but predictable.
Singapore’s moratorium on new Data Centers has created a regional opportunity, positioning Indonesia as an attractive hub for AI Data Center development. Strategic planning, regulatory alignment, and network infrastructure will determine Indonesia’s competitiveness in this emerging market.
Key Takeaways and Future Outlook
Podcast speakers Hazlan and Bizardy emphasized that AI adoption is inevitable. To prepare for this transformation, Indonesian data centers must focus on:
- Regulatory Alignment: Government policies and permissions are critical for network speed and AI deployment.
- Infrastructure Readiness: Adequate network convergence, edge deployment, and energy supply are essential.
- Sustainability Practices: Balancing AI’s high energy demands with renewable energy solutions supports ESG goals.
- Human Resource Development: Continuous upskilling, certifications, and programming fundamentals remain vital.
- Strategic Location Planning: Edge and central city data centers must optimize connectivity for AI services.
The combination of government support, infrastructure development, and skilled workforce will enable Indonesia to capitalize on the AI Data Center trend, particularly as Singapore’s restrictions shift regional demand.
Conclusion
AI will reshape the Indonesian data center industry, increasing energy consumption, transforming workforce needs, and requiring advanced infrastructure. While challenges such as sustainability and regulatory alignment persist, Indonesia’s strong programming education and strategic geographic advantages offer significant opportunities. Data center providers that invest in AI-ready infrastructure, sustainable energy practices, and certified human resources will be well-positioned to lead in the upcoming AI era.
By preparing now, Indonesia can ensure it is not left behind in the global AI race and can leverage AI to enhance governance, efficiency, and digital innovation across sectors
For more details, listen directly to the podcast on YouTube Nusantara Academy and don’t forget to register for training by contacting https://wa.me/6285176950083
