Semiconductor Training Initiative Marks Indonesia’s Push Into Global Chip Supply Chain
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- The upcoming signing of the ASEAN Digital Economy Framework Agreement (DEFA) is projected to unlock Indonesia’s digital economy potential to $600 billion, significantly higher than the initial $400 billion projection for 2030.
- To support this digital expansion, Indonesia is targeting the microchip sector by strengthening its domestic ecosystem through global partnerships and human capital development.
- In cooperation with UK chip designer Arm Ltd, the government has launched a training program via Danantara, marking the first step toward a national goal of producing 15,000 semiconductor engineers within three years.
Jakarta — Indonesia is poised for significant economic transformation with the ASEAN Digital Economy Framework Agreement (DEFA), which could elevate the nation’s digital economy to $600 billion, according to Coordinating Minister Airlangga Hartarto.
Expected to be signed this year, DEFA will strengthen regional digital integration through cross-border trade and data governance. While Indonesia’s digital economy is currently projected to reach $400 billion by 2030, regional cooperation could unlock additional growth beyond baseline projections.
Recognizing that ambition requires execution, the government has identified semiconductors as crucial to this transformation. The global semiconductor market is expected to reach $1.5 trillion by the mid-2030s, driven largely by AI and digital infrastructure expansion.
This week, the government launched a semiconductor training program in partnership with UK tech giant Arm, attracting 4,500 applications with 1,000 selected participants. The intensive training (May 20-22, 2026) is part of an ambitious three-year plan to develop 15,000 semiconductor engineers and specialized technologists.
Rather than competing directly with established semiconductor powers, Indonesia is strategically positioning itself in assembly, testing, and packaging—areas where it can leverage its labor force and manufacturing capabilities. With a population exceeding 285 million and substantial strategic mineral reserves, Indonesia possesses clear advantages.
This calculated approach represents Indonesia’s determination to transition from a consumer of digital technologies to an active participant in their creation and manufacturing. As regional integration accelerates and global semiconductor demand surges, Indonesia’s window of opportunity is narrowing, making these initiatives critical.
indonesianpost.com | Antara
