Singapore-Johor-Riau triangle eyed as regional data center hub

Indonesia and Singapore are exploring ways to optimize the development of a regional data center hub within the Singapore-Johor-Riau growth triangle, Coordinating Minister for Economic Affairs Airlangga Hartarto said.

"We discussed ways to create synergies between Singapore, Johor and Riau as a data center hub. This has strategic value for all of us," Airlangga said on Tuesday.

He noted that the global economy is increasingly shifting toward digital sectors as a new source of growth, which has proven relatively resilient amid current geopolitical uncertainties.

According to Airlangga, strengthening the Singapore-Johor-Riau triangle is also part of broader efforts to enhance the digital economy and regional supply chains across ASEAN.

Beyond the growth triangle initiative, Indonesia and Singapore have reaffirmed their commitment to expanding economic cooperation through the Batam-Bintan-Karimun (BBK) special economic zone, as well as the Nongsa Digital Park in Batam and the Kendal Industrial Park in Central Java.

Airlangga said both industrial parks are operating at full capacity and are expected to undergo further expansion.

He highlighted Nongsa Digital Park as one of Indonesia's emerging digital hubs, citing its proximity to Singapore and the availability of reliable data center and telecommunications infrastructure.

The minister said the initiative aligns with growing global interest in digitalization and semiconductor development, which have become key priorities in economic discussions involving the United States, Europe and ASEAN countries.

"In Europe, ASEAN and even in discussions with the U.S. Trade Representative, digitalization and semiconductors have emerged as key areas of focus," Airlangga said.

Separately, Indonesia's sovereign wealth fund Danantara Indonesia and British semiconductor company Arm Ltd. have committed to helping develop up to 15,000 Indonesian semiconductor professionals over the next five years to support the country's digital transformation and semiconductor ambitions.

Editing by Reiner Simanjuntak