PT Telkom Indonesia (Persero) Tbk and PT Perusahaan Gas Negara (Persero) Tbk (PGN) have signed a memorandum of understanding (MoU) to advance the use of biomethane and other low-carbon energy solutions for data center development, marking a strategic step toward building a green digital infrastructure ecosystem in Indonesia.
The agreement was signed in Jakarta on Friday by President Director of Telkom Indonesia Dian Siswarini and PGN President Director Arief Kurnia Risdianto, in the presence of senior officials from Danantara Indonesia and both companies.
Bhimo Aryanto, Senior Director of Business Performance and Assets Optimization at Danantara Indonesia, described the partnership as a key milestone in cross-sector integration.
“We see this collaboration as an important momentum to strengthen integration between the digital and energy sectors. The synergy built will not only create efficiency, but also open up opportunities for sustainable value creation, while strengthening Indonesia’s position in the regional digital ecosystem,” Bhimo said, as quoted by Jakarta Globe on Tuesday, April 14, 2026.
Green energy integration for data centers
Under the partnership, Telkom will develop data center ecosystems that require low-emission energy, while PGN will supply cleaner energy, including biomethane derived from palm oil waste in Sumatra.
The cooperation also includes joint studies and the exploration of green energy implementation for data center operations, both in Indonesia and in international markets. The initiative is expected to ensure reliable access to sustainable energy, an increasingly critical requirement for next-generation data centers.
Infrastructure strategy and key locations
Telkom Group has identified five strategic data center locations: Cikarang, Batam, Serpong, Sentul, and Surabaya, all of which are already connected to PGN’s gas pipeline infrastructure.
This alignment enables the optimization of existing energy assets while supporting the expansion of green data center capacity across Indonesia.
PGN and Telkom leadership statements
PGN President Director Arief Kurnia Risdianto emphasized that biomethane will play a central role in the company’s transition toward low-carbon energy.
He noted that PGN is no longer limited to its traditional role as a natural gas provider, but is increasingly positioning itself as a clean energy company supporting future infrastructure development. According to Arief, the biomethane initiative for data centers creates new value-added opportunities while contributing to Indonesia’s broader energy transition.
Meanwhile, President Director of Telkom Indonesia Dian Siswarini highlighted the strategic importance of the partnership for strengthening national digital capabilities.
“This collaboration supports the readiness of clean and efficient energy for the development of sustainable data centers, while also strengthening Indonesia’s digital sovereignty and positioning the country as a regional digital hub. This is in line with TelkomGroup’s ambition to become a digital infrastructure powerhouse in the region,” Dian said.
Global expansion and AI-ready ecosystem
Beyond domestic collaboration, Telkom Group is expanding its global green infrastructure strategy through its data center subsidiary, NeutraDC, which has partnered with Sembcorp Development Ltd since 2025.
The partnership focuses on integrated digital infrastructure and sustainable energy services, covering energy supply, electricity availability, and downstream commercial applications.
These combined domestic and international initiatives are expected to accelerate the development of AI-ready, low-carbon data centers in Indonesia.
Strategic outlook
The MoU marks an important milestone in aligning digital infrastructure development with clean energy initiatives in Indonesia.
Both companies stated that the partnership is expected to deliver scalable, innovative, and sustainable solutions, while generating long-term value for stakeholders and supporting the national economy.
External analysis: energy demand and sustainability challenges
The collaboration reflects a broader global shift toward integrating digital infrastructure with lower-carbon energy sources, as demand for data centers continues to surge alongside the rapid expansion of artificial intelligence and cloud computing.
Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), has previously highlighted that Indonesia will require a significant increase in clean energy supply to support the rapid growth of digital infrastructure, underscoring the urgency of accelerating the energy transition.
Separately, Fitch Solutions has noted in its regional assessments that access to reliable and lower-carbon energy is becoming an increasingly important factor for global data center operators when determining investment locations.