JAKARTA – The Indonesian government is strengthening its strategic efforts to promote mastery of upstream semiconductor technology to enhance global competitiveness. This effort was marked by the signing of a cooperation agreement between the Indonesian Investment Management Agency Danantara (BPI Danantara) and Arm Limited, witnessed by President Prabowo Subianto in London, England.
Arm is known to be a major global player in chip design, with a market share of approximately 96 percent of automotive chip technology and nearly 94 percent of chip designs for data centers and artificial intelligence (AI). This dominance makes this partnership strategic for opening Indonesia’s access to core technologies.
Cabinet Secretary Teddy Indra Wijaya stated that this partnership is a crucial step in accelerating the mastery of national strategic technologies, particularly semiconductor chip design, which is the foundation of modern digital innovation.
“This collaboration is aimed at enabling Indonesia to master chip design technology as an upstream component of the semiconductor industry,” said Teddy.
As part of the collaboration, the government is targeting training 15,000 Indonesian engineers within the Arm ecosystem. This program includes technology transfer, curriculum strengthening, and integration of national talent into the global semiconductor industry network.
“This training is expected to produce superior human resources who are not only technology users but also capable of developing and mastering intellectual property (IP) in the chip sector,” Teddy continued.
The government considers the Danantara-Arm collaboration to be a crucial momentum for Indonesia to transform from a technology consumer to a high-value-added producer in the global supply chain.
“This is a strategic step to strengthen Indonesia’s global position through mastery of technology and innovation,” said Teddy.
This step follows up on President Prabowo’s directive to strengthen national technological independence. The government positions technology as a crucial pillar, complementing food and energy security in building national sovereignty.
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that this collaboration is part of Indonesia’s “leapfrog” strategy in the global digital ecosystem.
“Mastering chip design is key to entering the highest value chain of the semiconductor industry,” he said.
Meanwhile, Rosan Perkasa Roeslani, Minister of Investment and Downstreaming and Head of BPI Danantara, stated that this partnership will strengthen national technological sovereignty while encouraging innovation-based industrial transformation.
“Going forward, national chip development will focus on a number of strategic sectors, including automotive, the internet of things (IoT), data centers, household appliances, and future technologies like autonomous vehicles and quantum computing,” he said.
By strengthening the upstream semiconductor industry, Indonesia affirms its commitment to building an economy based on high technology and superior human resources, toward the vision of Golden Indonesia 2045. (*/rls)
