Jakarta, INTI - Indonesia’s Ministry of Industry (Kemenperin) continues to strengthen the foundation of the national semiconductor industry as part of its long-term strategy to enhance the competitiveness of Indonesia’s manufacturing sector. This effort is being pursued through the development of an integrated semiconductor ecosystem, with chip design capabilities and human capital development positioned as key priorities in the initial phase.
The semiconductor industry plays a strategic role in supporting a wide range of priority sectors, including electronics, automotive, telecommunications, energy, and digital transformation. National demand for semiconductor components continues to rise in line with the growing scale of downstream industrial activities.
In the electronics sector, domestic smartphone production ranges between 30 and 60 million units annually, while laptop demand is projected to reach 1.57 million units by 2026. In the automotive sector, Indonesia’s vehicle production in 2025 reached 803,867 units, including electric and hybrid vehicles, which contain up to three times more semiconductor content than conventional vehicles.
“The development of the national semiconductor industry cannot be achieved instantly, but must be pursued through a gradual and realistic approach, with talent development and chip design placed as the primary steps in the initial phase,” said Minister of Industry Agus Gumiwang Kartasasmita during his remarks at the Indonesia Semiconductor Summit (ISS) 2026 in Bandung on Thursday, January 29, 2026.
To date, Indonesia has established several key foundations within its semiconductor ecosystem, including semiconductor assembly and testing facilities that are already integrated into the global value chain, integrated circuit design companies, and a downstream industrial base such as Electronic Manufacturing Services (EMS), Original Equipment Manufacturers (OEM), and the national automotive industry.
Nevertheless, the Minister of Industry highlighted Indonesia’s high dependence on semiconductor imports as a strategic challenge to national industrial resilience. According to data from the Central Statistics Agency (BPS), the value of Indonesia’s semiconductor imports nearly doubled, rising from USD 2.33 billion in 2020 to USD 4.87 billion during the January–November 2025 period, in line with the growing demand of domestic industries for these strategic components.
“High dependence on semiconductor imports is an important signal for national industrial resilience. This condition needs to be addressed through strengthening the domestic ecosystem, particularly in chip design and intellectual property development, as the initial foundation for technological independence,” he stated.
As part of this development strategy, the Ministry of Industry has formulated a national semiconductor industry development roadmap with the vision of positioning Indonesia as an active player in the global supply chain.
Building a Comprehensive Semiconductor Ecosystem
The roadmap outlines the strengthening of four core pillars, materials, design, fabrication (front end), and assembly, testing, and packaging (back end), supported by the development of human resources, research and innovation, infrastructure, and a conducive industrial policy framework.
“The national semiconductor development roadmap underscores the government’s commitment not only to attracting investment, but also to creating national value added, strengthening technological independence, and ensuring Indonesia’s sustainable integration into the global semiconductor ecosystem,” the Minister of Industry explained.
To support the implementation of this policy, the establishment of the Indonesia Chip Design Collaborative Center (ICDEC) represents a strategic step in reinforcing the national semiconductor design ecosystem. Initiated by the Ministry of Industry in collaboration with PT Hartono Istana Teknologi (Polytron) and chip design experts from 13 universities, the initiative has formed a nonprofit organization as a foundation for strengthening national capacity, while serving as a collaborative hub connecting government, industry, and academia with the support of 16 partner universities.
ISS 2026 serves as a strategic momentum to enhance global collaboration, technology transfer, and capacity building for the national semiconductor industry. The Ministry of Industry reaffirmed its commitment to continue working in synergy with all stakeholders to strengthen the competitiveness of the manufacturing sector and expand Indonesia’s role in the global supply chain.
Conclusion
ISS 2026 marks an important milestone in Indonesia’s efforts to advance its semiconductor industry through stronger global collaboration, technology transfer, and industrial capacity building. With a clear roadmap, institutional support, and cross-sector partnerships, Indonesia is positioning itself to enhance manufacturing competitiveness and play a more significant role in the global semiconductor supply chain.
Read more: Ministry of Industry and ADB Strengthen Collaboration to Develop Indonesia’s National Semiconductor Ecosystem