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Oracle Explores Data Center Investment in Indonesia’s Batam Island

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Oracle Corp is in talks with the Indonesian government to establish a new cloud services center on Batam Island, according to Bloomberg News. The company is considering Nongsa Digital Park, a location that benefits from free trade zone status and its strategic proximity to Singapore and Malaysia. Oracle has ongoing cloud service initiatives in both countries, further fueling its interest in the region.

Earlier in October, Oracle revealed plans to invest over $6.5 billion to create its first public cloud region in Malaysia. Oracle’s expansion in Southeast Asia is part of a broader effort to grow its global infrastructure, which spans Asia from Japan to New Zealand and extends to India, as stated by Garrett Ilg, Oracle’s Executive Vice President for Japan and Asia Pacific.

The company’s cloud infrastructure in Singapore already includes two data centers, and Oracle operates 50 public cloud regions across 24 countries, underscoring its expanding global presence. As Oracle continues to broaden its reach, it is expected that Batam Island will play a key role in its ambitious regional strategy.

Oracle, Indonesia’s Investment Ministry, and Communication Ministry did not immediately respond to requests for comment.

Apple Still Barred from Selling iPhone 16 in Indonesia Despite Investment Deal

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Apple remains unable to sell its iPhone 16 in Indonesia, despite reaching a deal to establish a local production facility. The issue stems from the company’s failure to meet Indonesia’s domestic content requirements, which mandate that smartphones sold within the country must contain at least 35% locally made parts.

According to Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, although Apple has signed an agreement to build a facility on Batam Island to produce its Airtag tracking device, this does not fulfill the necessary local content criteria for iPhones. The minister clarified that the production of Airtags does not directly contribute to the local assembly of iPhone components, and therefore, the factory will not help Apple secure the certification needed to sell the iPhone 16 in Indonesia.

While the facility will be worth $1 billion and is expected to begin operations in 2026, the minister emphasized that the local content rule applies strictly to phone components. As of now, Apple has no manufacturing operations in Indonesia, though it has established application developer academies in the country since 2018.

Apple’s ongoing efforts to enter the Indonesian market come after a series of meetings between the company and Indonesia’s government. Apple proposed “innovative investment” solutions, which Indonesia countered with conditions for meeting local manufacturing requirements.