Governor orders construction stopped until permits and environmental assessment process are completed.
A major Singapore-linked AI infrastructure project in West Java has been ordered to stop construction over missing permits and an incomplete environmental impact assessment process.
Governor Orders Construction to Stop
West Java Governor Dedi Mulyadi ordered Singapore’s BDx Data Centers to halt construction on its planned data center campus in Jatiluhur until the required permits are obtained and the project’s environmental impact assessment process is completed. The order was communicated to company representatives during a meeting publicized on September 30.
BDx Broke Ground on 640MW AI Campus
BDx said it broke ground on its 640-megawatt artificial intelligence data center campus in Jatiluhur on September 22. The Singapore-based company operates data centers serving cloud companies and other large businesses across Asia. BDx did not respond to a request for comment following the governor’s order.
Dedi Says Issue Is Permitting
Dedi said the project was not being halted because it had been found to violate environmental rules, but because the necessary permits had not yet been issued. He said construction could proceed once the required approvals were secured and the environmental assessment process was completed.
Governor Raises Water Supply Concerns
The governor said he supports investment in West Java as long as projects are environmentally responsible. He also noted concerns that some data centers have been associated with water shortages.
Indonesia’s Data Center Market Keeps Expanding
The dispute comes as Indonesia continues trying to expand its technology infrastructure. According to Research and Markets figures cited by Reuters, Indonesia’s data center market was valued at US$2.81 billion in 2025 and is forecast to reach US$6.08 billion by 2031.
The halt places BDx’s Jatiluhur development on hold until regulatory requirements are completed, while West Java’s government continues to signal support for investment that meets permitting and environmental standards. For Indonesians, the case highlights how large technology projects are being weighed against infrastructure and environmental concerns. For Singaporean companies and investors, it also shows the regulatory requirements that can shape data center expansion in Indonesia.
Sources: Straits Times (2026) , Reuters (2026)
Keywords: BDx Indonesia Project, West Java Data Center, Jatiluhur Data Center, Singapore Investment Indonesia, Dedi Mulyadi, AI Infrastructure
