On October 17, 2024, Indonesian Minister of Communication and Information, Budi Arie Setiadi, discussed why foreign investors often choose Malaysia over Indonesia for data centre investments. He highlighted the need to enhance Indonesia's investment climate, simplify the investment process, and reduce electricity prices to make data centre more affordable for operators. While these steps are beneficial, they do not fully address the key issues that deter foreign investors from considering Indonesia. To truly attract investments in the data centre sector, Indonesia must shift its focus to improving its cybersecurity reputation and actively promoting local products.
Before tackling electricity costs, the priority should
be on reshaping Indonesia's image in the global tech landscape particularly
regarding cybersecurity. The country's IT sector is not yet recognized for
strong cybersecurity, and there is a general lack of trust in Indonesian-made
technology solutions and this perception extends beyond its borders, leading to
a lack of trust in local cybersecurity practices. For foreign investors, trust
is paramount, especially in a field as sensitive as data centre, where security
risks can have catastrophic consequences.
Even within Indonesia, many businesses prefer
well-known foreign brands like Fortinet for their cybersecurity needs, despite
the fact that some local products outperform these imported options. To change
this mindset, Indonesia needs to have more confidence in its homegrown
technologies and actively promote them as a viable alternative.
Cybersecurity and the Need for Local Solutions
The indifference toward cybersecurity in Indonesia is
a significant barrier. The country has witnessed numerous cyberattacks targeting
government ministries, financial institutions, and other key sectors, which
highlight systemic vulnerabilities and a reactive approach to security.
Improving cybersecurity is essential for attracting data centre investments, as
investors need assurance that their data will be protected against threats.
Lower electricity prices will not make up for the risks posed by a perceived
lack of security and reliance on foreign products.
To address this, Indonesia must take proactive steps
to strengthen its cybersecurity infrastructure and promote local solutions. By
boosting confidence in locally made technology, the country can reduce its
dependence on foreign brands and foster a sense of pride in its own
capabilities.
Promoting Local Production: A Strategic Move for National
Confidence
For Indonesia to become a more attractive destination
for data centre investments, it must prioritize and support its local
technology industry. Here are some strategies to achieve this goal:
1. Encouraging Adoption of Locally Made Cybersecurity
Products
The government should actively promote the adoption of
local cybersecurity solutions, not just in the private sector but also within
government institutions. By mandating or incentivizing the use of
Indonesian-made technology in critical infrastructure projects, the country can
demonstrate confidence in its own products. Highlighting successful use cases
of local solutions can help change perceptions and build trust both
domestically and internationally.
2. Providing Incentives for Companies That Choose
Indonesian Products
Companies that adopt locally produced cybersecurity
products should receive incentives such as tax breaks or government grants.
This approach not only supports local businesses but also encourages the
development of a strong domestic technology industry. Promoting local solutions
sends a powerful message to investors that Indonesia is committed to enhancing
its technological capabilities and reducing reliance on foreign brands.
3. Fostering Innovation and Collaboration Within the IT
Sector
To increase the quality and competitiveness of
Indonesian-made technology, the government should invest in research and
development initiatives, public-private partnerships, and innovation hubs.
These efforts can encourage collaboration between academia, industry, and
government to produce cutting-edge solutions that meet international standards.
With a strong foundation of local innovation, Indonesia can position itself as
a hub for high-quality cybersecurity products and services.
4. Building a Culture of National Pride in Technology
Confidence in locally made products starts with a
cultural shift. The Indonesian public, businesses, and government must embrace
the value of supporting homegrown technology. This means not just promoting
local products for economic reasons but fostering a culture that genuinely
believes in the quality and reliability of Indonesian technology. A successful
shift in mindset can create a domino effect, where local companies gain more
customers, further invest in their products, and improve their offerings over
time.
5. Demonstrating the Effectiveness of Local Solutions
Through Government Projects
The Indonesian government should lead by example by
adopting local cybersecurity solutions in public sector projects. Successful
implementations can be showcased as proof of the reliability of Indonesian-made
technology, helping to build trust and credibility. When the government is
confident in using local products to secure critical infrastructure, it sets a
strong precedent for private companies and foreign investors.
Addressing Cybersecurity as a National Priority
While promoting local products is vital, it must go
hand-in-hand with efforts to improve the overall cybersecurity landscape in
Indonesia. The country needs to:
·
Strengthen
Cybersecurity Regulations
Implement strict cybersecurity standards that are on
par with international norms. Regulations should encourage the adoption of
secure practices and the use of locally certified products, ensuring that
Indonesia's data centres are equipped to handle the latest cyber threats.
·
Invest
in Threat Intelligence and Incident Response Capabilities
Strengthening the nation's ability to detect and
respond to cyber threats will enhance the reputation of local products and
services. Investors are more likely to consider Indonesia if they see a robust,
coordinated approach to cybersecurity, backed by strong local solutions.
·
Raise
Awareness About the Importance of Cybersecurity
Education is key to changing attitudes toward
cybersecurity in Indonesia. Awareness campaigns and training programs can help
individuals and companies understand the risks and benefits of using local
solutions. When the public is well-informed, they are more likely to trust and
adopt homegrown technology.
The Consequences of Overlooking Local Potential
Indonesia's dependence on foreign cybersecurity
products reflects a lack of confidence in local capabilities. This hesitation
not only hinders the growth of the domestic tech industry but also sends the
wrong signal to foreign investors. If the country does not actively promote its
own solutions and demonstrate their value, it will continue to struggle to gain
a foothold in the global data centre market.
The truth is, Indonesia has the talent and resources
to produce world-class cybersecurity products. However, without a strong
commitment to supporting and promoting local solutions, these efforts will fall
short. For Indonesia to truly attract foreign investments, it needs to embrace
and champion its own innovations. The message should be clear: Indonesia is
confident in its technology, and it stands behind its products.
Conclusion
To make Indonesia a preferred destination for data
centre investments, the strategy must go beyond reducing electricity prices. It
requires a comprehensive approach that includes enhancing cybersecurity,
promoting local products, and fostering a culture of national pride in
technology. By prioritizing the promotion of homegrown solutions and supporting
the local tech industry, Indonesia can reshape its image and attract the trust
of foreign investors.
If Indonesia invests in its own capabilities and
showcases the effectiveness of locally made cybersecurity solutions, it can
transform its reputation and become a competitive player in the global data
centre market. The time has come for Indonesia to believe in itself and promote
its own production with confidence.
#Indonesia # Budi
Arie Setiadi #data # cybersecurity #SYDECO #threat intelligence
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