Govt Strengthens Commitment to Semiconductor Industry Development

The government is intensifying efforts to build a strong foundation for its semiconductor industry. The Ministry of Industry has reaffirmed its commitment to advancing chip design, research, and innovation as part of a long-term transformation toward high-tech industries. This initiative is seen as crucial for boosting technological independence and positioning Indonesia within the global supply chain.

  • Government Commitment:
    • Ministry of Industry (Kemenperin) emphasizes consistent development of the national semiconductor ecosystem.
    • Aligns with President Prabowo Subianto’s directive to strengthen industrial structure and innovation-driven downstreaming.
  • Strategic Importance:
    • Semiconductors identified as a foundation for electronics, automotive, and digital technology sectors.
    • Efforts ongoing since 2019, including participation in Hannover Messe 2022 to engage global semiconductor players.
  • Global Collaboration:
    • MoU signed with Apple to support R&D activities in Indonesia.
    • Partnership with Indonesia Chip Design Collaborative Center (ICDeC) focuses on talent development and increasing local content (TKDN).
  • National Planning:
    • Chip design program included in Bappenas Blue Book, signaling cross-ministerial priority.
    • Infrastructure support provided through Indonesia Manufacturing Center (IMC), with dedicated facilities for chip design and testing.
  • Upcoming Forum:
    • Indonesia Semiconductor Summit 2026 scheduled for 29–30 January at ITB Innovation Park, Bandung.
    • Forum will unite government, industry, academia, and global partners to align policies and strengthen collaboration.
  • Roadmap:
    • Focus areas include chip design, talent development, and multi-stakeholder collaboration.
    • Long-term goal: integrate Indonesia into the global semiconductor value chain.

Strategic Insights

Indonesia’s push to develop a semiconductor ecosystem reflects recognition of the sector’s role as a backbone of modern industry. By prioritizing chip design and talent development, the government is laying the groundwork for participation in global value chains while reducing reliance on imports. Partnerships with global technology companies and the inclusion of semiconductor programs in national planning documents demonstrate a coordinated approach that blends infrastructure, education, and international collaboration.

The broader significance lies in how these efforts position Indonesia for long-term competitiveness in high-tech industries. Building a semiconductor ecosystem is not only about economic growth but also about resilience, as semiconductors underpin critical sectors from digital technology to energy. The roadmap signals a strategic investment in human capital and innovation capacity, ensuring that Indonesia can evolve from being a market to becoming an active contributor in global technology development.

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