Indonesian Political, Business & Finance News

Bappenas Urges Asian Collaboration to Build a Semiconductor Ecosystem

| Source: ANTARA_ID Translated from Indonesian | Technology
Bappenas Urges Asian Collaboration to Build a Semiconductor Ecosystem
Image: ANTARA_ID

Jakarta (ANTARA) — The National Development Planning Ministry (Bappenas) is encouraging cooperation among Asian countries to build a semiconductor industry ecosystem, with the aim of increasing the added value of resources and economic competitiveness amid global technological advances.

National Development Planning Minister and Bappenas head Rachmat Pambudy said Asian countries should strengthen collaboration to promote shared growth rather than simply compete in developing strategic industries.

“I see the ambassadors of India and Singapore here. We can build an ecosystem together with Asian countries; we do not need to compete, but should work together to grow together,” he said at the Danantara Technology & Innovation Investment Forum (DTIIF) 2026 in Jakarta on Monday.

“Our country is large, and our neighbours are strong. Let us work together and grow together to escape the middle-income trap. If Indonesia grows faster, Singapore should be happier, and India should be happier too,” he added.

He stressed that Indonesia’s semiconductor industry development must go beyond assembly and include the creation of a comprehensive industrial ecosystem.

He said this ecosystem should be supported by a skilled workforce, including through education in science, technology, engineering and mathematics (STEM), as well as stronger research and innovation centres.

Natural resource advantages alone are not enough to improve economic competitiveness without mastery of technology and innovation, he said. Without them, Indonesia risks continuing to sell raw materials with limited added value.

Alongside expanding research capacity, he emphasised the importance of disseminating innovation so that people in various sectors can use it, ensuring the benefits of technological progress are not concentrated solely in research centres.

Rachmat said Indonesia has the potential to improve its competitiveness through technology development, the use of its resources and improvements in human-resource quality.

Cooperation with Asian countries can also help promote sustainable economic growth and improve public welfare, he said.

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