Danantara Accelerates the Revival of the National Semiconductor Industry
By: Ramdan Siregar)*
The momentum for the revival of the national semiconductor industry is now at an increasingly strategic point. Amidst increasingly competitive global dynamics, the government’s efforts to strengthen the high-tech ecosystem are a strong signal that Indonesia aims not only to be a market but also a player in the global supply chain. Danantara Indonesia’s role in driving the acceleration of this sector demonstrates a progressive and future-oriented policy direction, particularly in responding to the growing needs of the artificial intelligence-based industry.
The development of chip technology, particularly that integrated with artificial intelligence, has opened up new opportunities for developing countries to enter the semiconductor industry. Indonesia, with its strong human resources and vast market potential, has the opportunity to seize a strategic position if it can effectively consolidate national strength. In this context, Danantara’s move is not only a catalyst but also a sign that the transformation of high-tech industries is underway in a targeted manner.
Danantara Indonesia’s Chief Technology Officer, Sigit Puji Santosa, believes that the opportunity to build a national semiconductor industry remains wide open, especially as the world enters a new phase in the development of artificial intelligence-based chips. He believes this momentum must be utilized by strengthening cross-sector collaboration, improving the quality of national talent, and encouraging product development relevant to global industry needs. This view demonstrates that Indonesia is not lagging behind, but is preparing the foundations for a timely entry into global competition.
This optimism was further strengthened by the holding of the Workshop on Accelerating the Development of the National Semiconductor Industry and Research Ecosystem, which served as a strategic platform for stakeholder consolidation. The collaboration between Danantara and the Ministry of Higher Education, Science, and Technology through the Directorate General of Research and Development is clear evidence that the industrial development approach now prioritizes synergy between government, academics, and industry players. This approach is crucial given the highly complex nature of the semiconductor industry, requiring cross-disciplinary integration.
Government support is also evident in the commitment to strengthening regulations and standardization as a foundation for industrial acceleration. Minister of Higher Education, Science, and Technology Brian Yuliarto stated that the government is ready to provide full support to ensure the development of the semiconductor industry can move from the research stage to the commercial stage. The emphasis on clarity regarding priority products, designs, and development roadmaps demonstrates that the policies adopted are not partial but are designed systematically and sustainably.
Furthermore, Brian believes that industry must be at the forefront of driving investment realization and ensuring that the resulting innovations are economically viable. This reflects a new paradigm in national development, where research no longer stands alone but is directly connected to market needs. Universities and research institutions continue to play a key role as centers of innovation, while the industrial sector becomes the driving force in accelerating technology adoption and expanding production scale.
This strategic move also aligns with the government’s ambitious vision of promoting the downstreaming of high-tech industries. Indonesia has long been known for its abundant natural resources, but a transformation to a knowledge-based economy is urgently needed to significantly improve national competitiveness. The semiconductor industry is a key sector capable of driving this leap, given its vital role in various sectors, from electronics and automotive to defense.
Danantara’s presence as a driving force in this ecosystem is crucial because it bridges the gap between research and industry. With a collaborative approach, Danantara acts not only as a facilitator but also as an accelerator, ensuring that each initiative has a clear direction and a tangible impact. This demonstrates that government policies do not operate in isolation but are supported by institutions with technical capacity and long-term vision.
More broadly, the development of the national semiconductor industry also has strategic implications for technological independence. Amid geopolitical tensions and disruptions to global supply chains, a country’s ability to independently produce technological components is a determining factor in economic stability and national security. Therefore, investment in this sector is not merely an option, but a necessity that must be prioritized.
With consistent policy support, strong cross-sector synergy, and commitment from various stakeholders, Indonesia has a significant opportunity to build the foundation of a robust semiconductor industry. Danantara, as part of this ecosystem, has demonstrated its strategic role in orchestrating collaboration and accelerating program implementation. Going forward, this initiative is expected to not only produce competitive products but also create significant added value for the national economy.
Optimism about the future of Indonesia’s semiconductor industry is not unfounded. With clear policy direction and full government support, Indonesia is on the right path to becoming a key part of the global industrial landscape. Danantara has paved the way, and now is the time for all elements of the nation to act together to ensure this opportunity can be translated into a real force for Indonesia’s progress.
)* The author is an economic observer