Indonesia Accelerates Semiconductor Industry to Boost Global Competitiveness

RRI.CO.ID, Jakarta – The Ministry of Industry continues to accelerate the development of the national semiconductor industry as part of its strategy to strengthen the industrial structure and enhance global competitiveness. Minister of Industry Agus Gumiwang Kartasasmita, in a meeting with Bobur Alimov, Country Director of the Asian Development Bank (ADB) for Indonesia, emphasized that semiconductors are a critical foundation for national industrial transformation, particularly in supporting the development of the electronics, automotive, energy, and industrial digitalization sectors.

“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 dependency while strengthening the competitiveness of the national industry,” Agus Gumiwang said in an official statement in Jakarta , Tuesday (27/01/2026).

The Minister of Industry noted that demand for semiconductors in Indonesia continues to rise in line with the growth of the manufacturing industry and the adoption of new technologies. National motor vehicle production, which has exceeded one million units per year, along with the target to develop hundreds of thousands of electric vehicles by 2030, requires a reliable and sustainable supply of semiconductor components. Meanwhile, demand for electronic devices such as mobile phones and laptops is still largely dominated by imported products.

Currently, Indonesia has one semiconductor assembly and testing industry in Batam, as well as integrated circuit (IC) design companies. However, the minister assessed that the national semiconductor ecosystem still needs to be strengthened comprehensively, particularly in the areas of human resource development, research and innovation, and integration into global supply chains.

As a concrete step, the Ministry of Industry has initiated a national semiconductor ecosystem development program through strengthening chip design capabilities aligned with industrial needs and oriented toward the global market. The program has been included in the Medium-Term External Loan Plan, or the Blue Book 2025–2029, with total financing of USD 16.185 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 Gumiwang explained.

During the meeting, ADB expressed its interest and commitment to supporting the Government of Indonesia in developing the national semiconductor ecosystem. ADB’s support includes assistance in preparing readiness criteria, conducting feasibility studies, and ensuring project readiness to meet Green Book requirements before entering the financing stage.

Agus Gumiwang welcomed ADB’s commitment and said the cooperation aligns with the national development agenda, particularly in strengthening human capital, mastering technology, and increasing domestic industrial value added.

“We hope that cooperation with ADB can accelerate the realization of a strong, competitive national semiconductor ecosystem that is integrated into the global value chain, while also opening up new investment opportunities in high-technology industries,” Agus concluded.