Cooperating With Germany, Indonesia Opens Up Opportunities To Become A World Chip-Producing Country

Minister of Industry Agus Gumiwang Kartasasmita while in Germany. (Photo: Doc. Ministry of Industry)

JAKARTA - The government through the Ministry of Industry is said to be exploring cooperation with a German technology company, Toolcraft AG, related to the development of the semiconductor industry. The information was revealed when the Minister of Industry, Agus Gumiwang Kartasasmita, visited Germany this week.

"Toolcraft AG's investment in Indonesia, which began with the establishment of this joint venture, provides an important opportunity to strengthen the additive manufacturing industry in the country", said the Minister of Industry in a press statement quoted on Friday, October 29.

According to the Minister of Industry, collaboration opportunities are wide open so that later Indonesia can become one of the suppliers for the world's semiconductor industry.

It was also revealed that the development of the domestic semiconductor industry needs to be prioritized. The reason is, so far, chips to meet various production needs such as automotive, electronic goods, and telecommunications equipment still depends on imports.

"The trade war between the United States and China until the COVID-19 pandemic has an impact on-chip supply conditions. This challenge also provides new opportunities for investors to develop this industry in Indonesia”, he said.

The Minister of Industry hopes that Toolcraft AG, which has an international network, can attract clients to make Indonesia a production base for components from outside Germany, especially for the Asian market.

“The company expressed its commitment to support the development of industry 4.0 in Indonesia. This collaboration is targeted to be a milestone for partnerships with various manufacturing industries in Indonesia", he said.

In the previous VOI report, the Director-General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) at the Ministry of Industry, Taufiek Bawazier, said that Indonesia had actually been one of the strongest countries in the semiconductor (chip) industry.

According to Taufiek, the peak of the independence of the Indonesian chip industry occurred in the mid-1980s. Not kidding, he revealed that the value of Indonesia's chip trade with several countries at that time reached a value of hundreds of millions of US dollars.

"In 1985, Indonesia exported semiconductor products worth US$ 135 million", he said in a webinar entitled Indonesian Industry Opportunities Regarding Global Chip Shortage Issues, Tuesday, August 31.

Unfortunately, this situation did not last long because the parent entity of the foreign company decided to leave Indonesia.

“We can export because there are companies from the United States here. But unfortunately, in 1986 they moved to another country”, he said.

Just so you know, the strategic position of the semiconductor industry is increasingly being taken into account at this time. Because, in its development, many countries are fighting over chips for their production needs. Meanwhile, chip-producing countries protect because this commodity is high-tech, and has its own political bargaining power.