Indonesian Government Policy Supports Green Data Center

Nov 22, 2022 | Insight

Indonesia’s Ministry of Communication and Information Technology issued the Green Data Center Policy to encourage green data center growth in Indonesia. Many of us now take for granted having access to the internet daily. The “new normal” of working, studying, communicating with loved ones, and resting online has been accelerated by the pandemic, and this trend will continue for some time.

Unquestionably, our digital existence has increased Internet traffic and changed demand dynamics for data centers. Over 200 million people use the internet in Indonesia, which is projected to rise. According to research by the Indonesian Network Operators Association, between two and eight hours are spent online every day by roughly 60% of users. Additionally, with a market share of about 50%, Indonesia’s e-commerce sector has grown to be the biggest in Southeast Asia with its green data center policy.

Data centers can be categorized as a captive (in-house) or internet-facing

Data centers (cloud-based) depend on where they are located. “Internet-facing data centers typically handle relatively few apps, are often browser-based, and have numerous users, typically unknown.” Examples of internet-facing businesses that run one or more application functionality for hundreds of millions of people include Facebook, eBay, and Google. On the other hand, enterprise-devoted or captive data centers “serve fewer users but host more programs that range from off-the-shelf to custom.” 15 Secure production plants for banks and powerful computational facilities for r&d are examples of captive green data center policies.

Contrary to managing data centers, privately hired or colocation data centers let businesses rent data center operations from places that are owned and run by others for their cloud-based applications.

The colocation service provider often provides:

  • A safe place.
  • Power for gear.
  • An IP address.
  • A link to the network that connects to the internet.

Hardware and software, as well as their installation and maintenance, must be provided by the business. As businesses expand and change to meet new needs, colocation data centers can provide adaptable solutions. A business can improve productivity by renting out its data center.

Data Center Classification based on Energy Usage

The energy used by data centers can range between a few kilowatts to hundreds of thousands of kilowatts. Based on market analysis by Datacenter Fluid Intelligence, four separate categories are shown below. Several studies in New Zealand And Australia that are pertinent to Indonesia have also used these categories:

a. small data centers (also known as “in-house” server rooms or closets) between 10 and 150 kW

b. medium data centers between 150 and 750 kW;

c. business data centers with 750 kilowatts to 2,500 kW of power; and

d. massive data centers with 2,500 kW or more of power.

Estimates of Additional Captive Government Data Centers

One that utilizes any level of government in Indonesia, such as central, provincial, and town agencies, as well as SOEs (Stated-Owned-Enterprise), is recognized as a government data center. These facilities also have a disaster recovery center (DRC). A second data center enables an organization to recover its data and continue with business after a disaster.

A conservative estimate implies that federal agencies have roughly 120 data center facilities. Each of their own DRC. At least 240 data centers (excluding data centers of less than 150 kW). (The section on potential energy savings has more information on this.)

As there are 155 SOEs, assuming that each includes a data center and a DRC, there are 310 data centers that are part of the SOEs. As a result, there would be 550 data centers owned by government organizations and SOEs, which may be more than in the private industry.

Power consumption is frequently unknown, and overall expenses are significant. Backup and disaster restoration systems need to be better managed, poorly designed, better designed, and occasionally nonexistent. As governments and SOEs are compelling to store more data.

Demand for these government data center systems is increasing at an unprecedented rate. To ensure the continuation of expansion, essential IT managers or heads of departments are signing a contract that includes unused space. Contractual terms are challenging to control, and as a result, the Indonesian government faces considerable risks and hidden expenses.

Indonesian Data Center Unification Initiative

The Indonesian government still needs to create a comprehensive plan to prepare for an increase in demand for these data center facilities in the future. However, there is an opportunity for significant savings gained by integrating older, cheaper, and less effective data centers. If a strategic strategy is devised to meet the expected rise in government need for data storage within the next 5–15 years.

For instance, the Federal Green Data Center Policy and data center Initiative expects to save the US government $3 billion over the next few years. To assist the Government of Indonesia in identifying which data centers are inefficient. To reconsider the continuer usage of its aging data centers. Benchmarking surveys should be used to define criteria.

Similar to other nations with developing data center industries, decision-makers. People in Indonesia who manage government data centers need the most recent information about the available technologies, duration, or money to choose between buildings. An energy-efficient data center or using cloud services that the government has approved. Due to competing priorities like assuring security and dependability, they might not give IT energy efficiency the attention it deserves.

To increase power supply for other essential sectors, such as agriculture, manufacturing, household, and residential sectors, increasing energy efficiency in data centers as a whole should be a key goal. However, the greatest motivation to increase energy efficiency is in colocation data centers.

Efforts to Improve Energy Efficiency and Reduce Emissions in Indonesia

There are indicators from surveys that colocation data centers have indeed implemented the majority of the EEMs (Energy Efficient Mortgage)s. A more thorough survey cannot establish the full scope of measures adopted in Indonesia. To help the government decide which technologies qualify for incentives. Identifying which EEMs are most likely to implement in Indonesia is crucial. The Financial Services Authority’s Sustainable Financing Roadmap has identified a few incentives (OJK).

Benchmarking and Consolidating Government Green Centers

Many consultants working to maintain or perform urgent repairs in these governmental data centers are the source of the attention on government green data center policy. With a few globally accredited exceptions, these engineers claim that many government data centers significantly underperform on most energy, security, and resiliency parameters, making them less dependable and generally slower than multinational technology corporations and e-mail providers. This is clear from the fact that, excluding a few ministries, most government officials rarely utilize it.

For all government entities to create data center clusters or begin the transition to potential government-owned or designated data centers, ESDM can offer some objective benchmark recommendations for energy efficiency (such as PUE). A data center consolidation initiative might further strengthen the “shared infrastructure and services” goal advocated by KOMINFO, which might be challenging to achieve due to institutional reluctance.

For instance, the government believes in introducing “infrastructure sharing” in cellular communication towers. Carriers will save Rp5.2 trillion (slightly less than $500 million). Therefore, the government might also consider infrastructure sharing or data center consolidation.

A ministerial directive by KOMINFO on reporting standards for both public and private data centers is in Development to promote such data center consolidation. This is a chance for ESDM to work out a deal with KOMINFO that includes a shared reporting mechanism on using EEMs and identifies less energy-efficient data centers.

National Whole-of-Government Road Map to Support the Green Data Center Industry

With suggestions from the scientific community, businesses, and government organizations. The Indonesian government may create a road map for data center technology that would apply to the country. (with an emphasis on sustainability and energy efficiency).

The map can give you information on how to cut down on energy use in data centers without sacrificing the performance of the system or security needs. Additionally, it can point out important areas of study where academic and professional organizations might lead in creating techniques for reporting on energy and cutting-edge technology.

Because of decreased transportation, improved e-commerce operations and manufacturing methods, and other energy-saving effects, the rise of ICT can support a net reduction in fuel consumption for the industry. There is, however, a corresponding increase in localized energy usage at data centers, as well as a spike in energy prices and accompanying greenhouse effect (GHG) emissions.

Indonesia has seen an unheard-of increase in the usage of computers, cell phones, and other gadgets in recent years. As a result of the increasing use of ICT devices. There was an immediate and uncontrollable increase in the need for “back-office” help in the event of data centers.

About 1.5% of Indonesia’s total national generation capacity was used in 2014 to power the data center industry. The electricity use by data centers is anticipated to rise from 2.0% to 3.0% of total electricity production by 2017.

It is still being determined if the nation can supply the data center infrastructure necessary to satiate its increasing demand. The willingness and effort of the public and private sectors to modernize the data center industry through the adoption of best practices and the implementation of specifications are necessary. It is essential to manage this growth as well as the consideration of accessibility, safety, and other operating processes.


The government of Indonesia has announced a new policy to promote Green Data Centers in Indonesia. This policy is considered one of the best in the world, as it will support data center infrastructure companies built in Indonesia and promote investments in the IT industry. It is expected to help data center infrastructure companies invest more in their data centers in Indonesia and provide high-quality customer service.

Indonesia’s move to support green data centers is momentum for data center investors. This policy is considered critical for the country’s efforts to improve its ICT infrastructure in the context of its overall digital economy strategy, which is designed to promote innovation and boost productivity in the digital era.

With better infrastructure and increasing demand from corporations and individuals alike, Indonesia could quickly become one of Asia’s largest data center hubs.

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