INTRODUCTION 

Artificial intelligence ("AI") has rapidly become a foundation of today's digital economy, driving unprecedented demand for computing power. Meeting this demand requires more than advanced software; it depends on robust physical infrastructure, including AI data centers supported by reliable power, suitable land, and advanced computing equipment.

As established data center hubs such as Northern Virginia in the United States and the FLAPD markets (Frankfurt, London, Amsterdam, Paris, and Dublin) face mounting constraints on land availability, power capacity, and grid connectivity, global investors are expanding their search for new locations capable of supporting large-scale AI infrastructure. The race is no longer about identifying opportunities; it is about securing critical resources before they become difficult to obtain. Amidst these conditions, Indonesia has emerged as a compelling destination, offering the competitive advantages needed to enable sustained digital infrastructure investment.

This article explores why Indonesia is emerging as a regional AI data center hub, the legal and regulatory considerations investors should address, and how strategic legal planning can support successful execution.

Regards, 
Pasaka Rievan Smith
Counsellors at Law 

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INTRODUCTION

Indonesia has fundamentally changed the way certain strategic commodities are exported.

Government Regulation No. 24 of 2026, effective from 1 June 2026, introduces a centralized export system for coal, palm oil, and ferroalloy, with additional commodities expected to follow. Rather than allowing exporters to sell directly to overseas buyers, exports will gradually be centralized through a government-designated state-owned enterprise, which is widely expected to be PT Danantara Sumberdaya Indonesia.

For businesses operating in these sectors, this represents a significant regulatory shift that may affect existing contracts, pricing strategies, and export operations.

Regards, 

Pasaka Rievan Smith
Counsellors at Law

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Pasaka Rievan Smith – Counsellors at Law successfully advised and assisted the corporate guarantor in connection with a USD 49.5 million cross-border aircraft lease transaction involving the acquisition of a private aircraft by a high-net-worth individual through its corporate vehicle.

Acting exclusively for the corporate guarantor, our team reviewed and negotiated the corporate guarantee package and related transaction documents, including parallel guarantee documents governed by different laws, to ensure compliance with applicable legal and corporate requirements while facilitating the successful completion of the transaction.

Working alongside the lessee's counsel and coordinating with both international and Indonesian counsel acting for the lessor, we assisted in addressing complex cross-border legal issues arising under the guarantee structure and related transaction documents.

Led by our Partner, Ishak Ricardo Pasaka, alongside our Associates, Atina Putri Indira and Fahreza Ahmad Sugianto, this engagement reflects PRS's experience in advising on sophisticated cross-border corporate guarantee and aviation finance transactions requiring seamless multi-jurisdictional coordination, commercial insight, and precise legal execution.