DPR: Semiconductors are Relevant to the Development of Indonesian Industry

ILLUSTRATION BETWEEN

Member of the House of Representatives from the Gerindra Faction, Azis Subekti, said in various national planning documents, the government and the House of Representatives have repeatedly emphasized that the future of the Indonesian economy can no longer depend on raw material exports and consumption alone.

He said that the RPJMN places economic transformation as the main agenda, with the aim of building a more productive, independent, and competitive economic structure.

"This direction is in line with the Vision of Gold Indonesia 2045, which targets Indonesia to become a high-income country with advanced industries, superior human resources, and strong economic resilience. In this context, the discussion about semiconductors becomes relevant - not as an elitist technology issue, but as the foundation of modern industrialization," said Azis in his statement, Sunday, December 28.

To note, semiconductors are the "brains" of almost all current economic activity. Chips are in cellphones, vehicles, factory machines, to public service systems.

"When supplies are disrupted, the industry slows down, prices rise, and jobs are threatened. The global chip crisis 2020-2022 is a reminder of the full dependence on imports of strategic components contrary to the direction of the RPJMN which emphasizes the resilience of national industries," continued Azis.

The member of Commission II of the DPR explained that in the RPJMN it was emphasized that industrial development should be directed at deepening the industrial structure and increasing domestic added value. This means, said Azis, Indonesia is not enough to just be a market or final assembler, but must be more involved in the global value chain.

"The RPJMN also underlines the importance of fiscal prudence and realistic policies. Therefore, Indonesia's semiconductor strategy must be directed at strengthening industry segments that are in line with national capabilities," he said.

Azis assessed that this approach was in line with President Prabowo Subianto's Asta Cita Program, especially the agenda to strengthen national economic independence, accelerate industrialization, and create quality jobs. In this framework, according to him, semiconductors are seen not only as a symbol of technological progress, but as an instrument to expand the industrial base and strengthen national competitiveness.

"The focus of policy is directed at the semiconductor assembly, testing, and packaging industry, as well as electronic manufacturing and supporting components. This segment is more labor-intensive, more realistic in terms of investment, and has proven to be able to create a large number of jobs," he explained.

"This is the concrete implementation of the mandate of the RPJMN on the development of the manufacturing industry and industrial areas," continued Azis.

In addition, continued Azis, the agenda of downstreaming which is a pillar of the RPJMN and also emphasized in the Asta Cita finds its relevance here. Indonesia has nickel, copper, and tin - important materials for the electronics industry.

"However, as the government often emphasizes, downstream processing must produce industries and jobs, not just exports of semi-finished materials," he said.

Azis added that connecting natural resources with electronic manufacturing is a more meaningful and sustainable form of downstream processing.

The legislator from the Central Java District said that industrial development cannot be separated from human development. The RPJMN explicitly states that improving the quality and competitiveness of human resources is the main condition for economic transformation.

"This is in line with President Prabowo's vision to strengthen vocational education and industrial skills. Without skilled technicians, operators, and engineers, the semiconductor strategy will only stop on paper," he said.

"All of these steps lead to one big goal that is emphasized in the Vision of Gold Indonesia 2045: high, sustainable, and inclusive economic growth. The semiconductor and electronics industry provides a real path to achieving this goal - through the creation of formal jobs, productivity improvement, and strengthening the country's tax base," continued Azis.

From the perspective of the state budget, said Azis, this approach also reflects the principle of prudence emphasized in the RPJMN. The state plays a role as a lever, not a bearer of all risks. Incentives are aimed at attracting investment and building an ecosystem, so that in the medium and long term it will strengthen state revenues.

In the end, said Azis, semiconductors are not just about technology, but about the direction of development. The RPJMN provides a planning framework, Asta Cita provides political mandates, and the Vision of Gold Indonesia 2045 provides long-term goals.

"The challenge is to ensure that the three meet in consistent policies and concrete executions," he said.

Azis assessed that Indonesia should not become the world's semiconductor giant in the short term. However, Indonesia should not continue to be on the sidelines of the global value chain.

"With realistic, integrated, and pro-job creation policies, semiconductors can be an important part of Indonesia's journey towards a sovereign, strong, and prosperous economy," he concluded.