Indonesia's High-Tech Investment Prospects Remain Strong Despite NVIDIA's Malaysia Choice

Growing Demand for Data Infrastructure

Despite NVIDIA's decision to expand in Johor, Malaysia rather than Indonesia ¹

, the Indonesian Chamber of Commerce (Kadin) remains optimistic about the country's prospects for attracting foreign direct investment (FDI) in high-tech sectors for 2026 ²

Source 2

https://industri.kontan.co.id/news/kadin-nilai-prospek-fdi-high-tech-indonesia-masih-kuat-pada-2026

. The optimism is based on Indonesia's rapidly growing demand for computing and data storage, driven by its large domestic market and digital economy expansion.

Competitive Landscape and Challenges

Mohammad Faisal, Executive Director of Center of Reform on Economics (CORE) Indonesia, highlighted that investors still consider traditional factors when choosing locations. "Malaysia has superior infrastructure, including digital and telecommunications, as well as transportation networks," Faisal explained ¹

. The availability of skilled labor is another critical factor for digital investments.

Regional Trends and Opportunities

Wakil Ketua Umum Koordinator Bidang Organisasi, Komunikasi, dan Pemberdayaan Daerah Kadin Indonesia, Erwin Aksa, noted that established tech hubs like Singapore face limitations in land and electricity supply, making alternative locations in the region more attractive ²

. This regional trend benefits Indonesia as investors seek new locations.

Future Outlook

The contrasting views between NVIDIA's investment decision and Kadin's optimism highlight the ongoing challenges Indonesia faces in attracting top tech investments. Addressing infrastructure gaps and developing skilled workforce remain crucial for Indonesia to capitalize on the growing demand for high-tech infrastructure.