Jam Gadang is located in central Bukittinggi, a city in the Minangkabau Highlands of West Sumatra. It sits in the middle of the Sabai Nan Aluih Park, near the Ateh Market and palace of Mohammad Hatta. The structure was built in 1926, during the Dutch colonial era, as a gift from Queen Wilhelmina to the city's controleur. It was designed by architects Yazin and Sutan Gigi Ameh, reportedly at a cost of 3,000 guilder.

Originally a rooster figure was placed on the apex, but it was changed into a Jinja-like ornament during the Japanese occupation (1942–1945). Following Indonesian independence, the tower's top was reshaped to its present form, which resembles traditional Minang roofs (see Rumah gadang). Local oral tradition holds that the internal mechanisms of the clock are twin to those of Elizabeth Tower (Big Ben) in London.

On March 6, 2007, the Jam Gadang tower was damaged by two earthquakes that struck western Sumatra. Over the following years it was refurbished by the Indonesia Heritage Trust (Badan Pelestarian Pusaka Indonesia). Funding for the 600 million rupiah(approximately 55 thousand Euros) restoration came from the Netherlands. The refurbished tower was inaugurated on December 22, 2010, as part of Bukittinggi's 262nd anniversary celebrations.

The Jam Gadang tower has been as an observation posts during fires, such as one that affected the Ateh Market. During Ramadhan, the call to prayer that marks the breaking of the fast is sounded from the tower.