Jakarta, INTI - Indonesia has partnered with a US based company to develop a semiconductor industry in Batam, with an initial investment valued at US$4.9 billion (approximately Rp82 trillion).
The agreement was signed as part of the National Strategic Project (PSN) Wiraraja Green Renewable Energy & Smart Eco-Industrial Park (GESEIP) in Galang, Batam.
President Prabowo Subianto directly witnessed the signing ceremony, which took place at the office of the U.S. Chamber of Commerce.
The agreement was signed between PT Galang Bumi Industri, the developer of PSN Wiraraja GESEIP, and several US strategic partners, including Essence Global Group and Tynergy Technology Corporation. The Joint Development Agreement was officially executed on February 18, 2026.
Downstream Processing & Integrated Supply Chain Development
President Director of PT Galang Bumi Industri, Ahmad Maruf Maulana, stated that the partnership marks a concrete step toward green energy-based downstream industrialization and semiconductor technology development in Indonesia.
“The ecosystem being developed within PSN Wiraraja GESEIP covers the downstream processing of silica quartz into high value-added products, ranging from purification of glass raw materials to polysilicon production for semiconductor and solar cell needs," he said in a written statement on Thursday (Feb 19, 2026).
Through the Tynergy Group of Companies, the downstream development will include silica quartz purification for the glass industry via PT Quantum Luminous Indonesia, as well as polysilicon purification through PT Essence Global Indonesia.
At the initial stage, the investment amounts to US$4.9 billion. If the first phase proves successful, an additional US$26.7 billion will be invested to produce ingot wafers, wafer slicing, and fabrication facilities, creating a fully integrated domestic semiconductor production chain.
Beyond industrial investment, the cooperation also includes the construction of manufacturing infrastructure in Galang, renewable energy projects, workforce capacity building, and advanced technology research and development.
Renewable Energy, Technology Transfer and Job Creation
Tynergy Technology Corporation is targeting an initial investment of up to US$250 million for the development of manufacturing facilities in Galang, with projections to generate approximately 2,500 skilled jobs.
To meet the energy needs of the industrial zone, the Tynergy Group will establish PT Energy Tech Indonesia to build a sodium-ion energy storage facility with a capacity of up to 150 MW.
In terms of technology transfer, Tynergy Technology Corporation USA is also developing cooperation between two free economic zones: PSN Wiraraja GESEIP in Galang and Solanna Akimel 7 Technopark in the Phoenix metropolitan area, Arizona. This commitment was formalized through a Transnational Special Economic Zone Friendship Pact between the two areas.
The collaboration is expected to strengthen Indonesia’s position in the global semiconductor and renewable energy supply chains, while also supporting the development of AI-based data centers and sustainable energy transition initiatives.
The President welcomed the agreement as a tangible outcome of economic diplomacy and a reinforcement of the Indonesia-United States strategic partnership.
This major investment in downstream industrialization and green energy is anticipated to stimulate national economic growth, create employment opportunities, and enhance Indonesia’s global industrial competitiveness.
Conclusion
The Indonesia–US semiconductor partnership marks a strategic milestone in advancing downstream industrialization, renewable energy integration, and high-tech manufacturing. With multi-billion-dollar investments and long-term supply chain integration plans, the project positions Indonesia as an emerging player in the global semiconductor ecosystem. Beyond economic growth and job creation, the collaboration reinforces bilateral strategic relations and accelerates Indonesia’s transition toward green and technology-driven industries.
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