Industry Ministry pushes chip ecosystem as Indonesia targets high-tech competitiveness
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- Indonesia’s Industry Ministry is pushing to build a stronger semiconductor ecosystem to boost competitiveness and reduce import dependence.
- The government plans to prioritize chip design skills, shared research infrastructure and deeper integration into global supply chains.
- ADB has signaled support through readiness criteria and feasibility work to prepare the project for financing under national planning mechanisms.
Kemenperin is accelerating the development of Indonesia’s semiconductor ecosystem to seize opportunities in the high-tech industry market while strengthening the competitiveness of domestic manufacturing on the global stage.
Industry Minister Agus Gumiwang Kartasasmita said in a statement received in Jakarta on Wednesday that semiconductors are a strategic foundation for the nation’s industrial transformation, particularly in supporting electronics, automotive, energy and the broader push to digitalize manufacturing.
“Indonesia has a very large domestic market for semiconductor-based products, ranging from mobile phones and laptops to motor vehicles and electric vehicles. Therefore, developing a national semiconductor ecosystem is a strategic step to reduce import dependence while strengthening the competitiveness of the national industry,” Agus said.
He added that as manufacturing expands and new technologies are adopted, Indonesia’s demand for semiconductors continues to rise. National motor vehicle output has surpassed one million units per year, and the government’s target to develop hundreds of thousands of electric vehicles by 2030 will require reliable and sustainable semiconductor components.
At the same time, demand for electronic devices such as mobile phones and laptops is still dominated by imported products.
Indonesia currently has one semiconductor assembly and testing facility in Batam, as well as an integrated circuit (IC) design company.
However, the Industry Ministry said strengthening the national semiconductor ecosystem still requires a comprehensive approach, particularly in developing human resources, boosting research and innovation, and integrating Indonesia more deeply into global supply chains.
As a concrete step, the ministry has initiated a program to develop the national semiconductor ecosystem by strengthening chip design capabilities aligned with industrial needs and oriented toward global markets.
The program has been included in the medium-term external loan plan, or the Blue Book 2025–2029, with proposed financing of US16.185 million.
“Our main focus is to build national human resource capabilities in chip design, provide shared infrastructure for research and prototyping, and strengthen collaboration between industry, universities and global partners,” Agus said.
The government’s push to accelerate the ecosystem was also highlighted during a meeting between the minister and Asian Development Bank (ADB) Country Director for Indonesia Bobur Alimov in Jakarta on Wednesday (Jan. 27), where the two sides discussed strengthening cooperation.
During the meeting, ADB expressed its commitment to support the Indonesian government by assisting in drafting readiness criteria, conducting feasibility studies and ensuring project preparedness to meet Green Book requirements before moving to the financing stage.
Agus welcomed ADB’s support, saying the cooperation aligns with national development priorities, particularly in strengthening human resources, mastering technology and increasing the value added of Indonesia’s industrial base.
indonesianpost.com | Antara
