JAKARTA: The Industry Ministry has pushed back against the suspension of a major data centre site in West Java, warning that conflicting, misaligned policies between the central government and regional administrations could undermine business confidence and disrupt investment.
The West Java administration earlier this month suspended construction work for a data centre campus developed by Singapore-based digital infrastructure firm BDx Data Centres in Jatiluhur, Purwakarta regency, amid concerns over outstanding environmental and building approvals.
BDx, which already operates three data centre sites in Indonesia, reportedly had yet to secure its environmental impact assessment and building approval.
“It is the second phase of the development, but the provincial government suspended the project. The thing is, BDx itself has already put in investment through the Investment and Downstream Ministry,” Deputy Industry Minister Faisol Riza said.
While acknowledging the project still required several permits, he said the project’s suspension highlighted poor coordination between central and regional governments that could hinder investment in data centres with significant economic potential. — The Jakarta Post/ANN
