In today’s digital era, data has become a strategic asset, as valuable as natural resources. In Indonesia, people spend an average of nearly seven hours a day online—engaging in social media, navigation apps, streaming platforms, and e-commerce. These daily activities generate massive amounts of data, including sensitive information such as banking transactions, medical records, and government documents. The critical question is: where is this data stored, and how much control does Indonesia truly have over it?
Data Sovereignty: Beyond Technology
Data sovereignty is not just a technological issue; it is a matter of national security. Data stored abroad is automatically subject to foreign jurisdiction, posing potential risks to Indonesia’s control over sensitive citizen and government information.
Although data seems intangible, it physically resides in infrastructure known as data centers. The location of these centers plays a crucial role in determining a nation’s sovereignty over its digital assets.
The Strategic Role of Data Centers
In a recent Nusantara Data Center Academy podcast, experts Hendra Surya Kusuma and Aris highlighted the vital role of data centers in Indonesia’s digital ecosystem. Historically, the majority of Indonesian internet data was stored overseas—primarily in Singapore and Hong Kong. This reliance created vulnerabilities in terms of security, accessibility, and high international bandwidth costs.
Today, the rise of local data centers is gradually reshaping the landscape, offering three main benefits:
- Enhanced security, as data is controlled within Indonesia.
- Faster access, with reduced latency.
- Lower costs, by reducing dependency on international data traffic.
More than storage facilities, data centers serve as the backbone of the digital economy, enabling disaster recovery, cybersecurity layers, and reliable infrastructure for both public and private services.
Regulatory Evolution: From Strict to Flexible
Indonesia’s regulatory journey reflects the challenge of balancing business flexibility with sovereignty. Government Regulation (PP) No. 82 of 2012 initially required certain electronic data to be stored domestically. However, this was later replaced by PP No. 71 of 2019, which adopted a more flexible approach by distinguishing between public and private data.
While this relaxation supports global business operations, it also increases the risk of data flowing abroad. Certain critical sectors, such as finance, remain bound by stricter rules, mandating domestic storage to safeguard national interests.
This mirrors practices in other regions, such as the European Union’s GDPR, which requires local storage and legal oversight of data to ensure accountability and protection.
National Data Center: A Government Strategy
To strengthen sovereignty, the Indonesian government is developing the National Data Center (Pusat Data Nasional or PDN) across multiple regions, including Sumatra, Java, Kalimantan, and Nusa Tenggara. This decentralized model aims to consolidate scattered government data centers, improving security, efficiency, and accessibility.
The initiative brings several advantages:
- Lower latency, especially for users outside Java.
- Stronger data security, with centralized and standardized oversight.
- Greater efficiency, by streamlining public sector digital services.
However, challenges remain, such as limited infrastructure in Eastern Indonesia, the need for a cohesive national IT blueprint, and stronger regulatory enforcement to ensure compliance.
The Future: Growth and Challenges Ahead
Indonesia’s booming digital economy will continue to drive demand for larger data center capacity. Key challenges include:
- Overlapping and fragmented government data centers.
- The absence of comprehensive cybersecurity legislation.
- Uneven infrastructure development between western and eastern regions.
Yet, the opportunities are equally significant. With the right mix of regulation, infrastructure investment, and industry collaboration, Indonesia has the potential to build a sovereign, secure, and sustainable digital ecosystem.
Conclusion
The Nusantara Data Center Academy podcast underscores that safeguarding data sovereignty is a national imperative. Data is no longer just digital records—it is a national asset that shapes Indonesia’s security, economy, and sovereignty in the digital age.
Through the expansion of local data centers, the establishment of a National Data Center, and the evolution of regulatory frameworks, Indonesia is paving the way toward a more independent and resilient digital future.
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
