With bold targets ahead, Indonesia is driving growth through structural reforms, broader trade ties and a renewed push to strengthen domestic capabilities.
December 12, 2025
Indonesia’s economy grew 5.04% year-on-year in the third quarter of 2025, supported mainly by the manufacturing and agriculture sectors, along with a rebound in exports. The government has introduced several stimulus packages to support households and create jobs, including food assistance, internship programs, housing initiatives, tax breaks for small businesses and infrastructure projects intended to bolster economic activity through 2026.
To further drive national economic growth, the Indonesia Investment Authority is prioritizing investment in high-growth sectors including digital infrastructure, healthcare and renewable energy. At the same time, Indonesia’s new sovereign wealth fund, Danantara, plans to deploy US$10 billion within three months starting October 2025. Over the next two years, it will focus on investments in energy and food security, renewable energy, financial services, healthcare, real estate and digital infrastructure.
Advancing Digital Economy and Infrastructure
Indonesia’s expanding digital economy and rapid adoption of AI are attracting significant investment from global tech giants. Amazon Web Services (AWS), for example, has committed billions to developing and scaling the country’s digital infrastructure. In August, AWS hosted its AWS Summit Jakarta, bringing together industry leaders and business executives to network and exchange insights. During the event, AWS reaffirmed its commitment to delivering the technology, expertise and partnerships needed to support businesses and advance Indonesia’s digital economy.
Meanwhile, PT Telkom Indonesia (Persero) Tbk (Telkom) is executing two landmark moves by developing a hyperscale data center in Batam and spinning off part of its wholesale fiber connectivity business. These initiatives reflect Telkom’s strategic intent to enable Indonesia’s AI and digital economy ambitions, optimize assets and governance for long-term competitiveness and position itself as a regional digital infrastructure champion.
Moving Toward Golden Indonesia 2045
As part of a strategic pivot, the government is expanding and reimagining its global partnerships, highlighted by its landmark Comprehensive Economic Parnership Agreement with the EU and its renewed focus on the Middle East. It is also continuing to deepen regional cooperation through ASEAN.
These efforts align with the Golden Indonesia 2045 vision—a national strategy to transform the country into a prosperous and developed nation with meaningful global influence. The strategy is built on four pillars: sustainable growth, social equity, environmental stewardship and geopolitical influence.
Driving this vision, businesses—particularly in high-value sectors—will be the main engines of growth, supporting bold targets of 7% to 8% annual GDP expansion. To enable this, the government is implementing business-friendly policies that attract foreign investment and promote local enterprises and entrepreneurship.
Sustainability remains central to Indonesia’s economic agenda. The country has committed to achieving net zero emissions by 2060 and is heavily investing in an integrated electric vehicle ecosystem, leveraging its position as the world’s largest nickel producer. It also aims to increase the share of renewable energy in its electricity mix to 41% by 2040, up from 15% in 2024. The Asian Development Bank recently approved a US$470 million results-based loan to help the country accelerate the rollout of utility-scale solar and wind projects and upgrade grid infrastructure across major systems.
With these efforts in place, Indonesia is well positioned to achieve its goal of building a sustainable and globally competitive future.
ExecLeaders At AWS Summit Jakarta
The executive forum provided a platform for strategic dialogue on digital innovation, leadership and key business imperatives such as transformation, agility and resilience.
(L-R): Jeff Johnson, Managing Director, ASEAN of AWS, Andrew Katuari, Managing Director of PT Sayap Mas Utama (Wings Group), Gunawan Chiu, CTO of PT Siloam International Hospitals Tbk and SutjahyoBudiman, CEO of PT Sarana Pactindo (PAC)
AWS ExecLeaders Jakarta, held alongside the AWS Summit Jakarta on 7 August 2025 at The Ritz-Carlton Jakarta, Pacific Place, brought together industry leaders to discuss rapid technological advancements and the role of leadership in shaping organizations in the AI era.
Anthony Amni, Country Manager, Indonesia, AWSGanapathy “G2” Krishnamoorthy, Vice President of Database Services, AWS
With the theme “From Possibility to Practice,” the forum opened with a welcome address by Anthony Amni, Country Manager of AWS Indonesia. He noted that as Indonesia marks its 80th year of independence, the country must prepare for the future amid intensifying global competition. To stay competitive, he emphasized the need for rapid innovation and technology adoption, reaffirming AWS’ commitment to providing the technology, expertise and partnerships to help customers succeed.
Future of Data
Generative AI (GenAI) has revolutionized the workplace by automating mundane tasks, increasing productivity and improving the quality of work. Tools such as Amazon Q, for example, can quickly summarize large volumes of data and documents, noted Ganapathy “G2” Krishnamoorthy, Vice President of Database Services at AWS during his keynote on “The Future of Data and Business Transformation.” Customers are also using GenAI to create engaging and impactful experiences, he added.
But having a strong, trusted data foundation is critical, said Krishnamoorthy, as it enables easy access to data, models and AI assets, ensures consistent governance and trust, and supports applications across different business functions. He cited Amazon SageMaker that enables this vision—helping users to quickly find, trust and use curated datasets and models.
Krishnamoorthy observed that the future of AI and database innovation is becoming increasingly open and ecosystem-driven. He noted that open models will have a significant impact, adding that while technologies such as GenAI are transformative, data remains the constant. He emphasized that today’s infrastructure should be built to support both current technologies and future innovation.
Arvind Mathur, Enterprise Strategist, AWS
Building Momentum for Transformation
During his keynote on “From Possibility to Practice – Elevate, Energize and Envision,” Arvind Mathur, Enterprise Strategist at AWS, expressed enthusiasm about emerging technologies that are unlocking new possibilities, highlighting quantum computing as an example. He noted that Amazon Braket—a fully managed quantum computing service that provides access to multiple types of quantum computers—enables financial institutions to rethink portfolio optimization and risk analysis.
Mathur also pointed to the convergence of digital twins, GenAI and agentic capabilities as a powerful network of technologies “feeding off each other and creating possibilities that were almost unimaginable just a few years ago.” He added, “As we connect robotics, AI, and energy storage, we’re seeing innovations such as self-driving cars and humanoid robots become reality.”
On workplace transformation, Mathur observed that organizations investing heavily in transformation efforts are not always successful, often becoming mired in bureaucracy. “Leaders need to realize that adding more resources may not necessarily solve the problem,” he said. “You need to fundamentally change the organization’s dynamics.”
To turn their vision from possibility to practice, Mathur said leaders must elevate, energize and envision. To elevate, organizations should build a culture where every individual feels empowered to lead. “Culture is one of the most powerful levers for organization excellence,” he noted. “Leaders who take the time to shape a culture that drives real decision-making are the ones who build organizations where it’s not just a few people at the top making the right decisions.”
Energize is about creating energy and excitement within the organization to embrace change, Mathur explained. Even small approaches, such as gamification, can create momentum. He added that fostering a culture where feedback is valued and learning is continuous also contributes to this energy. Finally, envision is about creating the future—partnering with business teams to imagine new possibilities.
Leadership and AI
A panel discussion moderated by Jeff Johnson, Managing Director, ASEAN at AWS, explored the topic “Navigating the GenAI Revolution: Strategies for Executive Leadership.” The panel featured Andrew Katuari, Managing Director of PT Sayap Mas Utama (Wings Group), Gunawan Chiu, CTO of PT Siloam International Hospitals Tbk and Sutjahyo Budiman, CEO of PT Sarana Pactindo (PAC).
Katuari emphasized that implementing AI in the workplace should not be treated as an IT project, but as an organization-wide initiative requiring collaboration and a shift in mindset. For such efforts to deliver value, he said, leadership must provide clear direction, supported by strong alignment across middle management and buy-in from frontline employees.
Chiu shared insight s on how the healthcare sector is exploring ways to apply AI across both operational and clinical functions. He noted that GenAI could help ease doctors’ administrative workloads, allowing them to spend more time with patients and less on paperwork.
In the financial services sector, Budiman described how AI is streamlining internal processes, such as accelerating compliance workflows to reduce bottlenecks. He added that AI has also transformed the customer experience and st rengthened fraud detection capabilities.
The AWS ExecLeaders Jakarta event was designed exclusively for IT and business executives, providing a platform for thought leadership, networking and meaningful engagement with AWS leaders and industry peers. Through thought ful dialogue and executive peer sharing, the event underscored the power of innovation and collaboration in shaping Indonesia’s digital future—inspiring leaders to envision what is possible and accelerate their business transformation in the AI era.
Telkom Indonesia Drives The Future Of Digital Connectivity
With a new hyperscale data center in the pipeline and fiber connectivity initiatives, Telkom Indonesia is strengthening its position as a regional digital infrastructure leader and advancing AI-powered, sustainable data ecosystems.
Southeast Asia is entering a new phase of digital acceleration, powered by unprecedented investment in data infrastructure. Across the region, hyperscale data center projects, fiber expansions and artificial intelligence (AI)-ready cloud facilities are rising to meet surging demand for computing power.
The Southeast Asian data center market was valued at US$13.7 billion in 2024 and is projected to reach US$30 billion by 2030, according to Research and Markets. AI-ready capacity alone is expected to increase by around 33% annually as enterprises shift from on-premise systems to hybrid-cloud and machine-learning platforms.
Against this backdrop, PT Telkom Indonesia (Persero) Tbk (Telkom) is executing two landmark moves that underline its transformation from a traditional telecommunications provider into a regional digital infrastructure powerhouse by developing the NeutraDC Nxera Batam hyperscale data center and spinning off part of its wholesale fiber connectivity business.
At the same time, these initiatives serve as a new revenue growth engine for Telkom, reinforcing the company’s long-term commitment to sustainable value creation through the expansion of digital infrastructure and AI-enabled ecosystems.
Building Southeast Asia’s AI Backbone
Telkom’s two landmark moves come as the company accelerates its long-term strategy to establish a strategic holding structure that separates its infrastructure and services arms. The aim is to create agile, value-driven entities capable of competing on a regional stage while advancing Indonesia’s national priorities for digital sovereignty, AI readiness and net zero transition by 2060.
Telkom Indonesia President Director Dian Siswarini describes the transformation as both a business and national mission. “They are about building Indonesia’s sovereign digital foundation and ensuring the country plays a leading role in the Southeast Asian digital economy,” says Dian.
Telkom Infrastruktur Indonesia now operates under its new brand, InfraNexia.
NeutraDC Nxera Batam: Powering the AI Ecosystem
Telkom’s data center arm, PT Telkom Data Ekosistem (NeutraDC), through its subsidiary PT Teknologi Data Infrastruktur (NeutraDC Nxera Batam) marked a major milestone in October 2025 with the topping-off of the NeutraDC Nxera Batam hyperscale data center with its first building (BTM-1), Telkom’s first hyperscale facility in Batam.
The topping-off ceremony was more than a construction milestone, says Dian. She believes the hyperscale data center “will serve as a key backbone of Indonesia’s digital economy transformation.”
Situated in the Kabil Industrial Estate, the NeutraDC Nxera Batam data center will begin operations with an initial IT-load capacity of 18 megawatts (MW), scalable to 54 MW across subsequent phases. Powered by renewable and high-efficiency cooling technologies, it will host next-generation workloads including AI, cloud and big-data analytics.
Located at the heart of the Sijori growth triangle—linking Singapore, Johor and the Riau Islands—the facility strengthens Indonesia’s position as an emerging regional digital hub. Global players are increasingly attracted by Indonesia’s strategic geography, competitive power costs and policy support for green infrastructure.
(L-R): The topping-off ceremony for the NeutraDC Nxera Batam data center marked a significant milestone for the company; Dian Siswarini, President Director of Telkom Indonesia
Regional Connectivity and Partnerships
NeutraDC Nxera Batam is being developed in partnership with Nxera, the regional data center arm of Singtel, and Indonesian conglomerate Medco Group, underscoring Telkom’s collaborative approach to digital ecosystem building.
During the topping-off ceremony, NeutraDC Nxera Batam signed a master service agreement with seven leading internet service and telecom providers—Permana Net, Super Sistem Group, LitUp Network Indonesia, Iforte, Telin, Matrix Nap Info and Moratelindo—reinforcing its position as a carrier-neutral data center.
NeutraDC Nxera Batam has also secured the Uptime Institute Tier III Certification of Design Documents, confirming its compliance with international standards for reliability, efficiency and sustainability.
InfraNexia: Unlocking Infrastructure Value
Complementing its physical expansion, Telkom is also re-engineering its corporate architecture. In October 2025, Telkom and its subsidiary PT Telkom Infrastruktur Indonesia (TIF) signed a conditional spin-off agreement, transferring part of Telkom’s wholesale fiber connectivity business and assets to TIF.
Valued at 35.8 trillion rupiah (US$2.14 billion), the transaction will see TIF—which operates under its new brand, InfraNexia—owning more than half of Telkom’s total fiber network infrastructure, spanning access, aggregation and backbone layers.
Telkom will retain more than 99.9% shareholding in InfraNexia, which will function as a neutral, wholesale-only connectivity provider serving both Telkom’s entities and external clients.
Dian describes the spin-off as a strategic response to the rapid digital transformation and growing demand for high-capacity connectivity.
“The establishment of TIF InfraNexia strengthens Telkom’s position as Indonesia’s leading digital infrastructure provider and enables us to deliver next-generation services that are more competitive and customercentric,” she says.
Applying Global Best Practice
Telkom’s restructuring mirrors a broader global shift. Leading operators such as Telstra (Australia), Telecom Italia (TIM), Telefónica, O2 and CETIN (Czech Republic) have unlocked value and improved efficiency by separating their network infrastructure businesses into dedicated units.
These moves create transparent, investable platforms capable of forming joint ventures or attracting institutional capital while keeping operational focus sharp. “It enhances global competitiveness and creates added value for stakeholders,” Dian says.
The spin-off also marks new momentum for TIF to operate with greater focus and efficiency in managing network infrastructure and allows it to serve its existing and new customers with a wide range of products and services such as metro ethernet, global link, IP transit, passive access and virtual unbundling local access.
NeutraDC Nxera Batam has secured the Uptime Institute Tier III Certification of Design Documents, confirming its compliance with international standards for reliability, efficiency and sustainability.
Future-Ready Transformation
While NeutraDC Nxera Batam reflects Telkom’s deepening technological and regional footprint in the AI and data infrastructure space, InfraNexia symbolizes its institutional maturity—two sides of the same transformation. One builds capacity to host the AI-driven economy, while the other ensures fiber backbones and cross-border links can deliver it efficiently and securely.
Together, they reflect Telkom’s strategic intent to enable Indonesia’s AI and digital economy ambitions, optimize assets and governance for long-term competitiveness and position itself as a regional digital infrastructure champion. Telkom’s transformation isn’t about adding more servers or data centers, it is about having an AI-ready infrastructure, one that is able to meet the rising demand for AI.
Sustainability and the Bigger Picture
Telkom’s push also supports Indonesia’s wider vision for digital sovereignty and inclusive growth. By housing data domestically while connecting seamlessly to regional networks, Telkom helps ensure that Indonesia not only consumes but also produces and secures its digital assets.
NeutraDC’s commitment to renewable energy and advanced water-cooling systems contributes directly to Indonesia’s net zero 2060 target. InfraNexia’s open-access model, meanwhile, promotes healthy industry collaboration and cost-efficient expansion, ensuring that digital inclusion extends from major cities to remote provinces.
As these initiatives mature, Telkom will play a role in attracting foreign direct investments into Indonesia’s digital infrastructure, not merely through co-location or capacity leasing, but also through partnerships that foster AI innovation, research and cross-border commerce.
Ultimately, Telkom’s transformation reflects confidence in Indonesia’s ability to lead in the digital age. Its approach sets a model for other state-linked enterprises navigating the same shift from traditional utilities to digital-era value creators.
