Bridging Security and Infrastructure: The Role of Digital ID Rollout in Shaping Indonesia’s Data Center Market

The Indonesian government urges citizens to activate their digital ID, Identitas Kependudukan Digital (IKD), to streamline access to public and private sector services. The IKD allows citizens to access government services without physically visiting offices. The initiative aims to digitize all government services by the first half of the year. The digital ID application uses passwords and biometrics and serves as a digital wallet for personal credentials. The government is working to increase registration by opening service posts and dispatching teams to communities. Less than 4% of the expected 220 million citizens have activated their digital ID, indicating a significant gap between the current progress and the government’s target of June.1

However, cybersecurity experts suggest first enhancing the digital security system associated with digital population identity data, including the potential for data leaks that can be exploited through malware, phishing, and social engineering methods, knowing that approximately 300 million ID data were leaked from the Population and Civil Registration Office (Dukcapil) in July 2023.2 About 5 months later, 252 million points of data from the General Election Commission were also leaked.3

On the other hand, Telkom Indonesia, a state-owned telecommunications company, plans to sell a minority stake in its data center business which is related to the overall digital security system. Telkom intends to leverage the growing global demand for data centers, especially in Indonesia, where Internet penetration is rapidly increasing. With 28 data centers currently in operation, the sale would provide the financial means to further expand its data center footprint.4 This strategic move, coupled with the IKD implementation, is poised to influence the data center industry in Indonesia. The new IKD could increase the demand for data center services in Indonesia, including the processing and storing of citizens’ data. This could drive companies to enhance their data center capacity or even seek reliable data center service providers.


The IKD initiative reflects a broader commitment to modernizing administrative processes and embracing digital governance practices, aligning with global trends. However, despite its potential benefits, the IKD initiative faces challenges. To mitigate the transition risks, experts argue, the digital population identity system should be equipped with defenses against cyberattacks. Furthermore, the relatively low number of IKD activations compared to the target population highlights the need for concerted efforts to raise awareness and improve accessibility. Overcoming these challenges will require collaboration between government agencies, private sector stakeholders, and civil society organizations to ensure the successful implementation and widespread adoption of IKD across Indonesia. Moreover, with data center being an integral part of the overall security system, there are also opportunities to enhance this system. The rollout of the IKD leads to increased data processing and storage requirements, and there could be a growing demand for data center services to manage this influx of data. Engaging effectively with this sector, service providers can capitalize on the potential growth in demand for data center services related to the implementation of IKD.

[1] Macdonald, Ayang, (2024), Indonesia Urges Massive Signup for New Digital ID to Ease Access to Public Services, February 6. Retrieved:

[2] CNN Indonesia, (2023), 300 Juta Data Dukcapil Diduga Bocor, Kominfo Lakukan Prosedur Standar, July 17. Retrieved:

[3] Muthiariny, Dewi, (2023), Kominfo Ministry Responds to KPU’s Voter Data Leak, December 4. Retrieved:

[4] Gooding, Matthew, (2024), Telkom Indonesia Could Sell Stake in Data Center Business, February 6. Retrieved:


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