Infrastructure & Environment 60 minutes

Drafting the Infrastructure Clause

Inter-agency Simulation: AI Data Center Regulation

Overview

A major international hyperscale cloud provider has submitted an application to build a 100 MW data center campus on the outskirts of a mid-sized Indonesian city that relies on a single reservoir for its water supply. The project promises 2,000 jobs and massive digital economic growth but will consume an estimated 15% of the city's current water capacity. The Perpres drafting committee must decide how to regulate this.

Key Stakes

• Foreign direct investment worth $2.5 billion and 2,000 direct jobs
• 15% of the city's water supply at risk of diversion
• Precedent-setting regulation for all future AI infrastructure projects in Indonesia
• Potential conflict with the 2009 Environmental Protection Law (UU 32/2009)
• Indonesia's credibility as a digital investment destination in ASEAN
• Local community livelihoods dependent on the reservoir for agriculture

Roles (3)

Digital Economy Push

Bappenas & Komdigi (Digital Infrastructure)

Ensure the regulation does not stifle foreign digital investment while maintaining Indonesia's competitiveness as a regional data center hub.

Legal Harmonization

Kemenkumham & Setneg

Ensure the new Perpres clause does not conflict with the existing 2009 Environmental Protection Law (UU 32/2009) or other existing regulations, while creating legally defensible standards.

Technical Standards

BRIN & IKN Authority

Define the specific technical thresholds (e.g., Power Usage Effectiveness, Water Usage Effectiveness) that are scientifically sound and practically achievable.

Framework References

Indonesia Perpres on AI (Draft)UU 32/2009 Environmental ProtectionSingapore Green Data Centre StandardEU Energy Efficiency Directive

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