This Is The Reason Google Prefers Malaysia To Build A New Data Center Than Indonesia

Minister of Communication and Information Budi Arie Setiadi (photo: Dinda Buana/VOI)

JAKARTA - Google will start building its newest data center and cloud area in Malaysia with an investment value of US$2 billion or equivalent to Rp31.3 trillion.

With the construction of a data center in Malaysia, Google marks a significant step in expanding its presence in Southeast Asia. However, why did Google choose to build their data center in Malaysia?

After conducting a study, the Minister of Communication and Information Budi Arie Setiadi said that there were three factors why Malaysia was chosen as the location for the construction of the Google data center.

The first is related to electricity prices per kWh, where according to Budi, Malaysia provides a price of 8 cents per kWh. Meanwhile, the price of electricity in Indonesia for the industry is priced at 10-11 cents kWh.

"Two, they are free of tax for capital goods. Malaysia, here, Johor. The third is legal certainty in investment," he explained at the JST1 Grand Opening event from the Joint Digital Data Center (BDDC) on Wednesday, October 8 in East Jakarta.

According to Budi, if Indonesia can provide these three factors to investors, then Indonesia can be more competitive in competing in data center investment with neighboring countries.

As a data center provider in Indonesia, President Commissioner of the Joint Digital Data Centers (BDDC), Setyanto Hantoro, said that to attract investors to enter Indonesia, special incentives are needed, in addition to electricity rates.

"There is a tax. Because there are many goods that we have to import, the import tax is made easier, humiliated. Because this is a long-term investment, "explained Setyanto adding an answer from the Minister of Communication and Information.