ASIATODAY.ID, JAKARTA — Indonesia is accelerating efforts to develop a national semiconductor ecosystem as part of its broader strategy to strengthen industrial resilience and enhance global competitiveness. The initiative was highlighted during a meeting between Minister of Industry Agus Gumiwang Kartasasmita and Asian Development Bank (ADB) Country Director for Indonesia Bobur Alimov.
Minister Agus underscored that semiconductors are a critical pillar of Indonesia’s industrial transformation, supporting key sectors including electronics, automotive manufacturing, energy, and industrial digitalization.
“Indonesia has a vast domestic market for semiconductor-based products—from smartphones and laptops to motor vehicles and electric vehicles. Developing a national semiconductor ecosystem is a strategic step to reduce import dependence while strengthening industrial competitiveness,” the minister said after the meeting in Jakarta on January 27, 2026.
Growing Demand Drives Strategic Urgency
Indonesia’s demand for semiconductors continues to rise in line with the expansion of its manufacturing base and the adoption of advanced technologies.
Domestic vehicle production has exceeded one million units annually, while the government targets the deployment of hundreds of thousands of electric vehicles by 2030, further intensifying the need for reliable and sustainable semiconductor supplies.
Despite strong demand, Indonesia remains heavily reliant on imported electronic products, underscoring the importance of building a more integrated domestic supply chain.
Currently, Indonesia hosts one semiconductor assembly and testing facility in Batam, along with several integrated circuit (IC) design companies.
However, the Ministry of Industry acknowledges that the ecosystem remains at an early stage and requires comprehensive strengthening—particularly in human capital development, research and innovation, and global supply chain integration.
USD 16 Million Program Enters National Development Pipeline
As a concrete step forward, the Ministry has launched a National Semiconductor Ecosystem Development Program, focusing on market-driven chip design aligned with global industry requirements. The program has been included in Indonesia’s Medium-Term External Loan Plan (Blue Book) 2025–2029, with a proposed financing value of USD 16.185 million.
The initiative prioritizes:
– Development of national talent in chip design and engineering
– Provision of shared infrastructure for research, prototyping, and testing
– Stronger collaboration between industry, universities, and global partners
ADB Commits to Project Readiness and Financing Support
ADB expressed its commitment to support the Indonesian government through project readiness assessments, feasibility studies, and preparation to meet Green Book criteria prior to financing approval.
Minister Agus welcomed ADB’s support, noting that the partnership aligns with Indonesia’s national development agenda, particularly in strengthening human capital, advancing technological capabilities, and increasing domestic value creation.
“This cooperation with ADB is expected to accelerate the development of a robust, competitive, and globally integrated semiconductor ecosystem, while unlocking new investment opportunities in Indonesia’s high-technology industries,” the minister concluded. (AT Network)
Follow Us at Google News and WA Channel