JAKARTA - The Ministry of Industry (Kemenperin) continues to accelerate the development of the national semiconductor industry as part of the strategy to strengthen the industrial structure and increase global competitiveness.
This will be realized immediately after the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita held a meeting with the Country Director of the Asian Development Bank (ADB) for Indonesia Bobur Alimov in Jakarta, Tuesday, January 27.
Agus emphasized that semiconductors are an important foundation for national industrial transformation, especially in supporting the development of the electronics, automotive, energy, and industrial digitization sectors.
"Indonesia has a very large domestic market for semiconductor-based products, ranging from mobile phones, laptops to motor vehicles and electric vehicles. Therefore, the development of a national semiconductor ecosystem is a strategic step to reduce import dependence while strengthening the competitiveness of the national industry," said Agus quoted from a written statement, Wednesday, January 28.
Agus said that the need for semiconductors in Indonesia continues to increase in line with the growth of the manufacturing industry and the adoption of new technologies.
Moreover, the production of national motor vehicles has reached more than one million units per year and the target of developing electric vehicles to hundreds of thousands of units by 2030 requires the availability of reliable and sustainable semiconductor components.
On the other hand, demand for electronic devices such as mobile phones and laptops is still dominated by imported products.
Currently, Indonesia has one semiconductor assembly and testing industry in Batam as well as an integrated circuit (IC) design company.
However, Agus admitted that the national semiconductor ecosystem still needed to be strengthened holistically, especially in terms of human resource development, research and innovation, and integration into the global supply chain.
For this reason, in a meeting with the Minister of Industry, ADB expressed its interest and commitment to support the Government of the Republic of Indonesia in its efforts to develop the national semiconductor ecosystem.
ADB support includes assistance in the preparation of readiness criteria, feasibility studies (FS) to ensure project readiness to meet the criteria of the Green Book before entering the financing phase.
Agus also appreciated the commitment of ADB and assessed that the cooperation was in line with the national development agenda, especially in strengthening human capital, mastering technology and increasing the added value of domestic industries.
"We hope that cooperation with ADB can accelerate the realization of a strong, competitive, and integrated national semiconductor ecosystem with global value chains, as well as open up new investment opportunities in the high-tech industrial sector," he explained.
The Ministry of Industry has initiated a national semiconductor ecosystem development program through the strengthening of chip designs in line with industry needs and market-oriented globally.
The program has been included in the list of medium-term foreign loan plans or Blue Book 2025-2029 with a financing value of 16.185 million US dollars.
"Our main focus is to build national human capital capabilities in the field of chip design, provide a shared infrastructure for research and prototyping, and strengthen collaboration between industry, universities, and global partners," he explained.
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