Indonesia boosts national electricity capacity to support AI growth

 Indonesia is expanding electricity capacity to power artificial intelligence (AI) growth as data centers drive rising energy demand, a senior minister said 

Coordinating Minister for Economic Affairs Airlangga Hartarto said stronger digital infrastructure and energy security were priorities as Jakarta works toward AI sovereignty.

“AI must serve as a catalyst for productivity, industrial competitiveness, stronger micro, small, and medium enterprises (MSMEs), high-value jobs, and better public services,” Airlangga said at the Artificial Intelligence Impact Summit 2026.

The government plans to add 70 gigawatts (GW) of capacity under state utility PLN’s 2025-2034 power supply plan and is pushing a 100 gigawatt-peak (GWp) solar program.

Indonesia’s data center capacity currently stands at about 0.45 to 0.58 GW.

Airlangga said the government will also strengthen human resources to speed AI adoption across sectors. It aims to develop 9 million digital talents by 2030.

Support includes the Digital Talent Scholarship, a super tax deduction of up to 200 percent for vocational training, and a Danantara-Arm partnership to train 15,000 semiconductor chip design engineers over three years.

AI will also be applied in manufacturing, supply chains and public services, including business licensing through the Online Single Submission system, logistics, taxation and healthcare.

Airlangga said Indonesia has a robust digital economy base, with 229 million internet users and 22 million MSMEs connected to digital ecosystems.

Indonesia’s digital economy is projected to reach US$100 billion-US$130 billion in 2026, while AI’s contribution is expected to exceed US$360 billion-US$400 billion by 2030.

He said AI development must rest on governance prioritizing safety, accountability, public protection and regulatory certainty so the technology benefits the wider economy.

“Let us unite our efforts to make AI a driving force for Indonesia’s economic transformation. Through technological sovereignty and collective action, we can build a productive, innovative, inclusive, and globally competitive Indonesia,” Airlangga said.