Jakarta, INTI - The Ministry of Industry continues to accelerate the development of Indonesia’s semiconductor industry as part of a broader strategy to strengthen the industrial structure and enhance global competitiveness. This was highlighted during a meeting between Minister of Industry Agus Gumiwang Kartasasmita and the Asian Development Bank (ADB) Country Director for Indonesia, Bobur Alimov.
Minister Agus Gumiwang Kartasasmita emphasized that semiconductors serve as a critical foundation for Indonesia’s industrial transformation, particularly in supporting the growth of the electronics, automotive, energy, and industrial digitalization sectors.
“Indonesia has a very large domestic market for semiconductor-based products, ranging from mobile phones and laptops to motor vehicles and electric vehicles. Therefore, developing a national semiconductor ecosystem is a strategic step to reduce import dependency while strengthening the competitiveness of Indonesia’s industrial sector,” said the Minister following the meeting in Jakarta on Tuesday, January 27, 2026.
The Minister noted that Indonesia’s demand for semiconductors continues to rise in line with the expansion of the manufacturing sector and the adoption of new technologies. National motor vehicle production, which exceeds one million units per year, along with the target to develop hundreds of thousands of electric vehicles by 2030, requires a reliable and sustainable supply of semiconductor components. At the same time, demand for electronic devices such as smartphones and laptops remains largely met through imports.
Currently, Indonesia has one semiconductor assembly and testing facility in Batam, as well as several integrated circuit (IC) design companies. However, the Minister acknowledged that the national semiconductor ecosystem still needs to be strengthened comprehensively, particularly in the areas of human resource development, research and innovation, and integration into the global supply chain.
Building a Market-Oriented National Semiconductor Program
As a concrete measure, the Ministry of Industry has initiated a national semiconductor ecosystem development program by strengthening chip design capabilities aligned with industrial needs and oriented toward the global market. The program has been included in the Medium-Term External Loan Plan, commonly known as the Blue Book 2025–2029, with a total financing value of USD 16.185 million.
“Our main focus is to build national human resource capabilities in chip design, provide shared infrastructure for research and prototyping, and strengthen collaboration between industry, universities, and global partners,” the Minister explained.
During the meeting, ADB expressed its interest and commitment to supporting the Government of Indonesia in developing the national semiconductor ecosystem. ADB’s support includes assistance in formulating readiness criteria, conducting feasibility studies, and ensuring project preparedness to meet Green Book requirements prior to entering the financing stage.
The Minister welcomed ADB’s commitment and noted that the cooperation aligns with Indonesia’s national development agenda, particularly in strengthening human capital, advancing technological mastery, and increasing domestic industrial value-added.
“We hope that our cooperation with ADB will accelerate the realization of a strong and competitive national semiconductor ecosystem that is integrated into global value chains, while also opening new investment opportunities in high-technology industrial sectors,” the Minister concluded.
Conclusion
The partnership between the Ministry of Industry and ADB marks a strategic step toward building a resilient and competitive semiconductor ecosystem in Indonesia. By prioritizing human capital development, research infrastructure, and global collaboration, the initiative is expected to reduce import dependency, enhance industrial value-added, and position Indonesia as an integral player in the global semiconductor value chain.
Read more: Government Lays the Groundwork for the Semiconductor Industry