Indonesia Accelerates Semiconductor Industry Leap

RRI.CO.ID, London - President of the Republic of Indonesia Prabowo Subianto witnessed the signing of a framework agreement between the Danantara Indonesia Investment Management Agency (BPI Danantara) and Arm Limited in London, England, on Monday, 23 February 2026. The President of Indonesia specifically witnessed the signing to underscore the government's significant attention to the prospects of technological advancement and Indonesia's innovation-based economic transformation.

"This is a collaboration for Indonesia so that Indonesia can master semiconductor technology, and Arm is one of the companies that dominates the semiconductor market, especially in terms of design. So this is the upstream segment of the semiconductor industry itself," said Coordinating Minister for Economic Affairs Airlangga Hartanto after the signing of the collaboration.

According to Airlangga, Arm is known to control around 96 percent of chip technology for the global automotive sector and almost 94 percent of chip designs for data centers and artificial intelligence. Through this collaboration, Indonesia aims to accelerate the mastery of strategic technologies that have long been the foundation of modern digitalization.

"With this collaboration, it is hoped that Indonesia can train 15,000 of our engineers within the Arm ecosystem, so they can master chip design technology, and the collaboration plan will continue to the next generation of semiconductors or chips, so that Indonesia has capabilities in the field of semiconductors and design," said Airlangga.

Airlangga added that this cooperation is a direct follow-up to President Prabowo's directive to strengthen national technology mastery independently, complementing the government's major agenda in building national food and energy resilience.

"This is a leapfrog in the digital ecosystem," he said.

On the same occasion, the Head of BPI Danantara Rosan Perkasa Roeslani stated that the partnership is expected to have a wide impact on the development of the national industry while also strengthening Indonesia's technological sovereignty. The program will be conducted through the deployment of experts abroad as well as bringing Arm trainers directly to Indonesia with specialized training modules.

"There will indeed be six industries selected for the development of these chips, and as mentioned by Mr. Coordinating Minister, there will be 15,000 of our engineers who will be trained by Arm, either by sending them here or having their instructors come to Indonesia with the modules," said Rosan.

Furthermore, Airlangga explained that the six national chip design developments will be focused on the field of strategic intellectual property.

"These six are IPs, intellectual property, that we can choose whether one is for automotive technology, the second for the internet of things, the third related to data centers, then it could also be about home appliances, and the other two we can choose whether we want the futuristic ones, especially autonomous vehicles, and quantum computing, and others." So this is all still being discussed later with Danantara, so this IP will be owned by Indonesia," added Airlangga.

This strategic partnership also marks Indonesia's step toward transforming from a consumer of technology into a high-value producer in the global supply chain. The government views technology as a "turbocharger" for Indonesia to become a top-tier world economy by bridging the vast potential of human resources and national natural wealth with high productivity needs toward the vision of Golden Indonesia 2045.