International Collaboration, Semiconductor Downstreaming Opens New Investment Opportunities

Jakarta – Indonesia’s efforts to strengthen the downstream semiconductor industry continue to show significant progress through strengthened international collaboration. Synergy between the government, research institutions, universities, and global partners is considered a key factor in driving Indonesia deeper into the global value chain (GVC) of the semiconductor industry, while simultaneously opening up new, significant investment opportunities.

Trio Adiono, Chairman of the Indonesia Chip Design Collaborative Center (ICDEC), emphasized that strengthening research and development in chip design is the most realistic and strategic strategy for Indonesia. Chip design is the primary gateway for Indonesia to become more than just a market, but also a producer of knowledge and talent in the high-tech industry.

“Chip design is a strategic entry point for Indonesia to strengthen its position in the global semiconductor supply chain. Through consistent research and educational collaboration, Indonesia has the potential to become a solutions provider for the global semiconductor industry,” said Trio.

The support of international partners such as Cadence, MEDs, Qualcomm, High Tech NL, IMEC, ASML, and Fraunhofer demonstrates that the national semiconductor ecosystem is gaining global trust. This collaboration underscores a long-term commitment to building national capacity in a sustainable and integrated manner.

Meanwhile, Minister of Industry Agus Gumiwang Kartasasmita stated that the development of the semiconductor ecosystem is in line with President Prabowo Subianto’s directive to strengthen the national industrial structure and deepen innovation-based downstreaming.

“The semiconductor industry is a crucial foundation for the development of various strategic sectors, from electronics and automotive to digital technology,” Agus said in a statement.

The Minister of Industry emphasized that the agenda to strengthen the semiconductor ecosystem is not a new policy, but has been implemented continuously for the past few years.

“The government continues to encourage cross-sector synergy to ensure Indonesia has strong and sustainable industrial competitiveness amidst increasingly fierce global competition,” he added.

Through the commitment of a consortium of US and German companies under PT Quantum Luminous Indonesia, the President Director of PT Quantum Luminous Indonesia, Walter William Grieves, revealed that his company is ready to begin construction of a semiconductor factory, a silica sand downstream facility, and high-tech glass manufacturing in the PSN Wiraraja Green Renewable Energy and Smart-Eco Industrial Park area. The total investment value reaches USD 26.73 billion or approximately IDR 444 trillion.

“This step marks the companies’ strong commitment to accelerating the realization of major investments in the semiconductor-based industrial sector and high-tech glass manufacturing in Indonesia,” said Grieves.

To expedite the first phase of construction in early 2026, the company has submitted a request for accelerated permit finalization to the Ministry of Investment and Downstream Development, considering that this project has the status of a National Strategic Project (PSN), thus directly impacting investment certainty, supply chain readiness, local workforce absorption, and the implementation of vocational programs and technology transfer with the parent company in Germany.

“We have submitted a letter requesting investment acceleration to the Minister of Investment and Downstream Development for the second time, and the investment commitment was also signed at the BP Batam Investment Awards,” he concluded.

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