Government backs Nongsa expansion with electricity, water solutions, and regulatory reforms for investors.
Indonesia has pledged to ensure adequate electricity and raw water supplies for data center development in Batam, while emphasizing that the industry’s expansion must not disrupt access to essential resources for local residents.
Government Prioritizes Data Center Utilities
Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo said the government is committed to ensuring adequate electricity and raw water for Batam’s growing data center industry, particularly at Nongsa Digital Park. He described energy and water availability as essential for sustaining high-value investment and said Indonesia should not lose the strategic opportunity presented by the sector.
SWRO and Weather Modification Among Water Options
The government and BP Batam have identified several options to help secure water supplies, including weather modification measures and seawater reverse osmosis (SWRO), a desalination technology that converts seawater into freshwater. The measures are being considered to support data center development and its long-term utility requirements.
Residents’ Water Supply Must Be Protected
Dradjad stressed that additional infrastructure for data centers should not interfere with water availability for Batam residents. The government’s approach is intended to ensure that industrial demand and community requirements can be met simultaneously, an important consideration as investment in digital infrastructure continues expanding across the city.
Batam Also Strengthens Investment Regulations
Beyond electricity and water, authorities are working to improve licensing and regulatory governance in Batam’s Free Trade and Free Port Zone. Dradjad highlighted the implementation of the government’s 2025 regulations on free trade zones and risk-based business licensing, saying the reforms are expected to strengthen legal certainty, improve logistics efficiency, support supply chain integration, and enhance transport connectivity.
Investment Reaches Rp59.73 Trillion
Batam’s economy grew 7.28 percent in the second quarter of 2026, outpacing growth of 6.99 percent in Riau Islands province and 5.29 percent nationally. By the third quarter, Batam had recorded Rp59.73 trillion (approximately S$4.78 billion) in realized investment, equivalent to 85.33 percent of its full-year target.
Indonesia’s commitment to securing electricity, water, and regulatory support strengthens Batam’s effort to attract high-value digital investment while protecting essential services for residents. For Indonesians, the challenge will be ensuring data center expansion translates into sustainable economic benefits without straining local infrastructure. For Singaporeans, the development is particularly relevant as nearby Batam continues emerging as a complementary digital infrastructure and investment hub in the region.
Sources: EN Tempo (2026) , EN Antara (2026)
Keywords: Batam Data Centers, Nongsa Digital Park, Batam Electricity Supply, Batam Water Supply, SWRO Technology, Digital Investment
