Airlangga Extends Tax Incentives of Up to 300 Percent for Semiconductor R&D
Jakarta — Coordinating Minister for Economic Affairs Airlangga Hartarto said the government is offering tax incentives of up to 300 percent to bolster research and development (R&D) in semiconductor technology in Indonesia. The incentives are provided in the form of tax deductions for companies that collaborate with universities in technology research and development, as well as strengthening talent in the semiconductor field.
“Tax incentives already exist relating to R&D and education, whereby the government can provide tax deductions to companies that cooperate with universities. The magnitude ranges from 200 to 300 percent,” Airlangga said in the Tanah Abang area, Central Jakarta, on Thursday, 5 March 2026.
The policy aims to encourage collaboration between the industrial sector and higher education institutions so that technology development can be more in line with industry needs.
Airlangga explained that developing the semiconductor industry requires a strong ecosystem, including involvement of higher education institutions in preparing human resources and research that supports industry needs.
In this regard, he regards the roles of the relevant ministries and universities as important to bridge cooperation between the business world and educational institutions so that the incentive facilities can be utilised optimally.
“This is from Ditjen Dikti (Directorate General of Higher Education) to bridge between industry and universities, and also to bridge with the Minister of Finance, because regarding tax deductions the role of the Minister of Finance is very large,” he said.
A spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, detailed that the incentive scheme has been in effect, but its uptake has not yet been optimal.
Therefore, the government is pushing Ditjen Dikti to strengthen the facilitation of cooperation between companies and universities in research activities and to help companies take advantage of the tax deduction facilities through coordination with the Direktorat Jenderal Pajak (DJP) of the Ministry of Finance.
The government also targets strengthening national semiconductor talent. A total of 15,000 engineers are targeted to study chip design technology through the collaboration between Danantara and Arm Limited.
The partnership is aimed at accelerating capacity-building and national autonomy in developing strategic technologies, particularly in semiconductors, which are a foundational element of various innovations and the digital ecosystem.