Indonesia, Malaysia Advance Semiconductor and Energy Cooperation

RRI.CO.ID, Jakarta - Indonesia and Malaysia are moving to deepen cooperation in semiconductors, energy resilience, and cross-border trade, following a series of high-level meetings in Kuala Lumpur this week.

During his working visit to Malaysia on March 30–31, 2026, Indonesian Deputy Foreign Minister Arif Havas Oegroseno met with Malaysia’s Deputy Foreign Minister, Deputy Minister of Investment, Trade and Industry, the Director General of the National Security Council, and representatives of the local semiconductor industry.

The discussions focused on geopolitical challenges and economic collaboration, with particular emphasis on strengthening semiconductor ecosystems, boosting inter-provincial trade between border regions, maritime boundary issues, Community Learning Centers (CLC), and energy security.

Minister Arif Havas underscored the importance of diversifying energy sources amid instability in the Middle East. “Indonesia and Malaysia are fortunate to have alternative energy resources, supported by cooperation between our state-owned oil and gas companies to diversify crude oil,” he said, as quoted on the Indonesian Ministry of Foreign Affairs official website.

On trade, both sides agreed to intensify provincial-level cooperation, especially between Sumatra and Peninsular Malaysia, as well as Kalimantan and Sulawesi with Sabah and Sarawak.

In talks with Malaysia’s semiconductor industry, the two countries committed to expanding collaboration in niche markets such as data centers, automotive, and health devices, leveraging Indonesia’s chip design expertise to strengthen regional data sovereignty.

Minister Arif Havas emphasized that building a domestic semiconductor industry and nurturing talent are crucial for long-term sovereignty.

The visit also paved the way for upcoming high-level engagements, including the Annual Consultation between leaders of both nations and the Joint Commission for Bilateral Cooperation at the foreign ministerial level, scheduled for 2026. ***