Encourage Semiconductor Industry, Government Ready To Compete With Other Countries

Coordinating Minister for the Economy Airlangga Hartarto in IPEF (Photo: dock. Coordinating Ministry for the Economy)

JAKARTA - The Indonesian government continues to encourage the semiconductor industry. Therefore, Coordinating Minister for the Economy Airlangga Hartarto said that he had collaborated with the Economic Research Institute for ASEAN and East Asia (ERIA) research institute.

Airlangga explained that the signing of the cooperation includes the first, a joint study of Indonesian accession to become a member of the OECD and a Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP).

"Here the scope of cooperation is Indonesia's accession study related to OECD and CPTPP, ERIA will conduct a review of the benefits, simulations of the scenario and formation of the PMO (Project Management Office) rather than the OECD," he said after the signing of the memorandum of understanding at his office, Jakarta, Tuesday, July 30.

Furthermore, the second is the cooperation in establishing the ASEAN Zero Emission Center which will be inaugurated at the end of August 2024.

Airlangga said the third, namely cooperation in the ASEAN Ready Feature to develop semiconductor supply chains to expand the automotive and battery industry markets.

"For the study of supply chains, be it semiconductors, digital economy development, and also studies on the next generation automotive industry in ASEAN to supply global supplies, including the development of battery-based industries," he said.

Airlangga said specifically for the cooperation in the development of the semiconductor industry, it was based on the potential market share in ASEAN in 2029 which reached US$3 billion. Meanwhile, India's market share as a competitor to the industry amounted to US$15 billion.

"ERIA's support for future ready compared to ASEAN's first, semiconductor supply chain in ASEAN and India, ASEAN's share is estimated to be semiconductor in 2029 to be US$3 billion and India is preparing for US$15 billion, so we are competing with India," said Airlangga.

According to Airlangga, the form of cooperation with ERIA is in the form of in-depth study and publication as well as increasing HR capacity, and cooperation plans in 2 years and can be extended.

"Then ERIA will prepare a digital innovation and sustainable economy center and this is in the form of digital transformation research and startup ecosystems in the ASEAN region," he explained.