Data center industry seeks firm power connection timelines over lower tariffs

By Raymond Hendriwan

Indonesia's data center industry is urging state utility PT PLN (Persero) and energy regulators to introduce a dedicated electricity supply framework for digital infrastructure, saying guaranteed power connection dates are more important than lower electricity tariffs in attracting hyperscale investments.

Hendra Suryakusuma, chairman of the Indonesia Data Center Provider Organization (IDPRO), said at the Digital Transformation Indonesia Conference & Expo (DTI-CX) 2026 on Wednesday that investors need certainty on three key issues: when initial power will be available, how capacity can be expanded over time, and the cost of grid connection and network reinforcement.

While PLN has signed several power sale and purchase agreements (PJBTL) with data center operators—including a 1.2 GW agreement with PT Starone Mitra Telekomunikasi in May and a separate 511 MVA agreement for a Batam project in April—Hendra said the contracts do not include binding energization dates or protections against delays.

He added that Indonesia's current PJBTL framework also exposes investors to electricity tariffs that are reviewed quarterly, creating uncertainty for projects financed over 10 to 15 years.

Hendra pointed to Malaysia as a regional benchmark, where electricity supply agreements place greater emphasis on guaranteed grid connection timelines.  Malaysia’s Tenaga Nasional Berhad for instance, energized the Sedenak campus in Johor under an Electricity Supply Agreement within 12 months.

In contrast, Indonesia's PJBTL is only a sale-and-purchase agreement, with permitting taking six to nine months across multiple ministries. "Sometimes we obtain the permit to build, but the transmission never gets finished," Hendra said.

To improve coordination, IDPRO plans to hold monthly meetings with PLN and transmission authorities to monitor infrastructure development and help ensure power is available in line with the industry's expansion plans.

Editing by Reiner Simanjuntak