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July 20, 2026

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‘New digital corridor’: Singapore, Indonesia say Batam-Changi undersea cable’s arrival will boost ties

The cable, set to be operational in September, will be the shortest and most direct connection between Changi and Nongsa Digital Park in Batam, an emerging digital hub that hosts a growing cluster of data centres and is seen as a digital bridge between the two countries.

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BATAM: Singapore and Indonesia leaders on Monday (Jul 20) lauded the completion of a strategic subsea cable system linking Batam and Changi which both sides said will strengthen bilateral cooperation.

They added that the impending launch of the Nongsa-Changi Cable will also support the ambitions of Batam, Bintan, Karimun (BBK) to become a digital economy hub in Southeast Asia. BBK is a free trade zone where Singapore and Indonesia share a longstanding partnership to enhance business connectivity between both countries.

The 50km cable linking Batam and Singapore provides the shortest and most direct connection between Changi and Nongsa Digital Park in Batam, an emerging digital hub that hosts a growing cluster of data centres.

Speaking at a ceremony on Monday to mark the completion of the cable in Nongsa, Singapore’s Deputy Prime Minister Gan Kim Yong said the project will support the growth of data centres and digital services in Batam while helping businesses operate across borders.

“Businesses developing AI-cabled applications, operating cloud services, or running advanced manufacturing facilities, all depend on the ability to move data securely, reliably and with minimal delay,” he said.

“That is why projects like the Nongsa-Changi Cable matter.”

He said that the project is “a testament to our deepening bilateral partnership” noting that earlier this month, at the Singapore-Indonesia Leaders’ Retreat in Jakarta, Prime Minister Lawrence Wong and President Prabowo Subianto welcomed efforts to develop Batam, Bintan and Karimun into a vibrant digital hub.

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Singapore Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong speaking during the Nongsa-Changi Cable Landing Ceremony at Nongsa Digital Park Batam, on Jul 20, 2026. (Photo: CNA/Alyssa Tan)

Echoing this, Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto described the Nongsa-Changi Cable project as the “physical foundation of a new digital corridor”, linking the two countries.

“Let us build this digital corridor not just with cables and data but with trust, partnership and a shared vision. Let the benefit reach not only Indonesia and Singapore but the entire ASEAN region,” he said at the ceremony.

Airlangga also compared the length of the cable between Changi and Nongsa to the similar distance between Indonesia’s capital Jakarta and West Java’s Bogor, stressing the contrast between the “one hour … of … traffic” of a physical journey between the two cities against the 0.2 millisecond speed of the digital connection.

“Indonesia’s digital transformation is measured by real infrastructure and growing … connectivity,” he said, referencing the country’s 235.26 million internet users, and 99.5 million broadband users.

Equipped with 24 fibre pairs, the cable is designed to deliver high-capacity, low-latency connectivity to meet the rapidly growing demand for cloud services, hyperscale platforms, AI and data centre interconnection across the region.

The cross-border project is a joint venture between Singapore-based digital infrastructure firm BW Digital and Telekomunikasi Indonesia International (Telin), a subsidiary of public telecommunications company Telkom Indonesia.

Ludovic Hutier, chief executive officer of BW Digital, said that the ceremony on Monday marked the culmination of two years of development, with the system expected to operate fully in September this year.

“This is the first subsea cable to land directly at Nongsa Digital Park, where the data centres are located. It provides a direct connection between data centres in Batam and Singapore, making connectivity faster and more efficient,” Hutier told CNA.

Indonesian conglomerate Citramas Group began the development of Nongsa Digital Park in March 2018, with support from both the Indonesian and Singapore governments as part of broader bilateral efforts to develop Batam as a digital bridge between the two countries.

It was officiated by then-Indonesian foreign minister Retno Marsudi and her Singaporean counterpart Vivian Balakrishnan.

The Nongsa-Changi Cable will provide more than 1.6 petabits per second of additional capacity while connecting Batam and Singapore with a latency of less than two milliseconds, said Gan, who is also Singapore’s minister for trade and industry.

Gan said the project could bring more opportunities for Singapore, Indonesia and even the Association of Southeast Asian Nations (ASEAN), as member states work towards signing the ASEAN Digital Economy Framework agreement later this year.

It will be ASEAN’s first comprehensive, region-wide agreement dedicated to the digital economy, aimed at strengthening digital connectivity and integration among ASEAN Member States.

The agreement aims to establish common rules and frameworks that facilitate digital trade, simplify digital trade procedures, support trusted cross-border data flows, enhance digital payments and electronic transactions, strengthen online consumer protection, and promote greater digital interoperability across the region, according to Singapore’s Ministry of Trade and Industry.

Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto speaking during the Nongsa-Changi Cable Landing Ceremony at Nongsa Digital Park in Batam, on Jul 20, 2026. (Photo: CNA/Alyssa Tan)

Gan also described the cable as a testament to the deepening and complementary bilateral relationship between Singapore and Indonesia.

“Singapore brings global connectivity, a trusted business environment, and links to companies and customers around the world. Indonesia brings scale, talent, land for future growth, and significant potential in renewable energy,” he said.

Singapore’s proximity to the Batam, Bintan, Karimun region, in which Nongsa is located, allows companies to draw strengths on both countries by building teams and operations across both locations while serving customers throughout Southeast Asia and beyond, added Gan.

“This partnership can also open up opportunities for companies from both countries to collaborate, and for our people to acquire new skills and experience, ” he said.

Airlangga said that Batam’s data centre industry is expanding by about 22 per cent annually, outpacing the national industry’s growth rate of 19 per cent.

He described the data centre industry as the “right sector” to boost Indonesia’s economic growth.

“Our aspiration for achieving 8 per cent economic growth can be developed with this digital ecosystem and this will not be harmed by what is happening in the (Strait of) Hormuz,” he said.

Airlangga was referring to Prabowo’s economic growth target of 8 per cent by 2029 and the tensions in the Middle East amid a conflict between Iran and the United States.

A generic photo of the cable landing at Taman Nongsa Indah Village’s beach, on Jul 20, 2026. (Photo: CNA/Alyssa Tan)

Nongsa Digital Park, about a 50 minute ferry ride from Singapore’s Tanah Merah Ferry Terminal, currently hosts nine data centres including at least three sites that have completed construction and are in early stages of operation, according to Batam Indonesia Free Zone Authority (BIFZA).

CNA reported previously on Batam’s broader push into the digital economy sector as it seeks to position the city as a major regional data centre hub.

Batam’s information and communication sector has grown from 2.4 per cent of its gross regional domestic product in 2010 to 4.1 per cent in 2024, according to Statistics Indonesia – a government agency which conducts national statistical surveys and data collection.

Industry observers attribute the growth largely to the expansion of data centres, animation and digital services concentrated in Nongsa Digital Park but a shortage of skilled workers and environmental pressures due to the proliferation of data centres could constrain Batam’s ambitions if left unaddressed.