Minister of Industry Agus Gumiwang Kartasasmita said semiconductors are a strategic foundation for Indonesia’s industrial transformation, supporting key sectors such as electronics, automotive manufacturing, and energy, and accelerating digitalization in 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 dependence on imports while strengthening national industrial competitiveness,” Minister Agus said in a statement received in Jakarta on Wednesday, January 28, 2026, as quoted by Antara.

Demand for semiconductors continues to rise in line with Indonesia’s manufacturing sector's growth and the adoption of new technologies. National automotive production has surpassed one million units annually, while the government targets producing hundreds of thousands of electric vehicles by 2030, all of which require a reliable, sustainable supply of semiconductor components.

At the same time, demand for electronic devices such as smartphones and laptops remains dominated by imported products. Indonesia currently has one semiconductor assembly and testing facility in Batam, along with several integrated circuit (IC) design companies.

However, the ministry believes the national semiconductor ecosystem still requires comprehensive strengthening, particularly in human resource development, research and innovation, and deeper integration into global supply chains.

As a concrete step, the Ministry of Industry has initiated a national semiconductor ecosystem development program to strengthen chip design capabilities that align with industrial needs and are oriented toward global markets. 

The program has been included in the 2025–2029 Blue Book, Indonesia’s medium-term foreign loan plan, with financing valued at USD 16.185 million.

“Our main focus is building national human resource capabilities in chip design, providing shared infrastructure for research and prototyping, and strengthening collaboration between industry, universities, and global partners,” Minister Agus said.

Momentum for the initiative was reinforced during a meeting between Minister Agus and the Asian Development Bank (ADB) Country Director for Indonesia, Bobur Alimov, in Jakarta. 

During the meeting, the ADB expressed its commitment to supporting the Indonesian government through technical assistance, including preparing readiness criteria, conducting feasibility studies, and ensuring that projects meet Green Book requirements before entering the financing stage.

Minister Agus welcomed the ADB’s support, saying the cooperation aligns with Indonesia’s national development agenda, particularly in strengthening human resources, mastering advanced technology, and increasing the value added of the domestic industry. ***