Jakarta (ANTARA) – Indonesia’s Investment and Downstreaming Ministry has promoted data center investment opportunities to Chinese companies, during the Indonesia-China Partnership Forum held in Jakarta on Thursday.The ministry’s Deputy for Investment Services, Andi Maulana highlighted data center infrastructure as a high-potential sector driven by Indonesia's rapidly expanding digital economy, which remains among the fastest growing in Southeast Asia.”Data center development is a very promising investment opportunity,” Andi said told representatives of 27 Chinese enterprises.“As one of the fastest-growing digital economies in Southeast Asia, Indonesia is supported by a young, mobile-first population, expanding internet access and pro-innovation government policies,” he added.The ministry cited research from Mordor Intelligence, cited by the ministry, projects Indonesia's data center market to reach US$1.83 billion in 2026, up from US$1.44 billion in 2025.By 2031, the domestic market is expected to hit US$3.48 billion, representing a compound annual growth rate (CAGR) of 13.71 percent. Globally, the data center market is forecasted to expand from US$386.71 billion in 2025 to US$684.39 billion by 2031.Andi said the growing demand for data center infrastructure reflects the broader expansion of Indonesia's digital economy, which is projected to reach a Gross Merchandise Value (GMV) of between US$180 billion and US$340 billion by 2030.To support incoming foreign investment, the government continues to implement regulatory reforms, including strengthening the risk-based Online Single Submission (OSS) system, which is integrated with 28 ministries and agencies, and enforcing strict Service Level Agreements (SLAs) for business licensing.Investors are also offered access to 25 special economic zones (SEZs), 181 industrial estates, and the Direct Construction Investment Facilitation (KLIK) program.Available fiscal incentives include tax holidays, tax allowances, exemptions from import duties on machinery and raw materials, as well as super tax deductions for vocational training and research and development activities.Beyond digital infrastructure, the ministry also invited Chinese investors to explore opportunities in downstream industries, renewable energy, and healthcare.According to ministry data, realized Chinese investment in Indonesia totaled US$38.34 billion between 2021 and the first half of 2026, creating employment for more than 500,000 Indonesian workers.