Jakarta. Indonesia and Singapore are exploring a strategic partnership to develop regional data center infrastructure through the Singapore-Johor-Riau (SJR) growth corridor, Chief Economic Minister Airlangga Hartarto said on Tuesday.

The initiative is part of broader efforts to strengthen regional supply chains and accelerate the growth of Southeast Asia’s digital economy.

Airlangga said discussions on the cross-border data center ecosystem remain ongoing but have significant strategic value for both countries.

“We are discussing how to create synergies between Singapore, Johor, and Riau as a data center hub. This is one of the strategic agendas currently under discussion,” Airlangga said in Jakarta.

According to the minister, the digital sector is increasingly viewed as a new engine of economic growth, with greater resilience to disruptions caused by geopolitical tensions and global conflicts than many traditional industries.

Beyond data centers, Indonesia and Singapore are also expanding cooperation in strategic economic zones, including the Batam-Bintan-Karimun (BBK) area and the Kendal Industrial Park in Central Java. Both are considered important platforms for attracting investment and supporting technology-driven economic transformation.

Airlangga said Kendal Industrial Park is nearing full capacity and will be expanded by an additional 1,000 hectares to accommodate new investment demand.

“Kendal Industrial Park is currently operating at nearly full utilization and will undergo a further 1,000-hectare expansion,” he said.

Meanwhile, Nongsa Digital Park in Batam is also approaching full occupancy and preparing for its next phase of expansion.

Located just across the Singapore Strait, Nongsa Digital Park has emerged as one of Indonesia’s leading digital-economy hubs, benefiting from its proximity to Singapore as well as robust telecommunications infrastructure and growing data center capacity.

Airlangga said strengthening the digital industry and data center ecosystem is essential to enhancing economic resilience because the sector is less dependent on physical logistics networks and therefore less vulnerable to disruptions caused by geopolitical conflicts or trade tensions.

He added that digitalization and semiconductor development have become central themes in economic discussions involving ASEAN, Europe, and the United States.

Separately, the Indonesian government, together with Danantara Indonesia and Arm Ltd, is targeting the development of up to 15,000 semiconductor professionals over the next three to five years.

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