Danantara–Arm Partnership Accelerates Indonesia's Semiconductor Industry Leap
LONDON – A framework agreement between Indonesia’s Danantara Investment Management Body (BPI Danantara) and Arm Limited aims to enable Indonesia to master semiconductor technology.
“Arm is one of the companies that dominates the semiconductor market, particularly in terms of design. This is the most upstream segment of the semiconductor industry itself,” said Coordinating Minister for Economic Affairs Airlangga Hartanto following the cooperation signing ceremony.
President Prabowo Subianto witnessed the signing of the framework agreement between BPI Danantara and Arm Limited in London on 23 February 2026. The Head of State specifically attended the signing as a demonstration of the government’s commitment to Indonesia’s technological advancement and innovation-driven economic transformation.
According to Airlangga, Arm controls approximately 96 per cent of chip technology for the global automotive sector and nearly 94 per cent of chip design for data centres and artificial intelligence. Through this cooperation, Indonesia targets accelerating mastery of strategic technologies that have long been the foundation of various modern digital innovations.
“Through this cooperation, Indonesia is expected to conduct training for 15,000 of our engineers within the Arm ecosystem, so they can master chip design technology, and the cooperation plan will continue to the next generation of semiconductors or chips, so that Indonesia has capabilities in the semiconductor and design field,” Airlangga added.
Airlangga noted that this cooperation is a direct follow-up to President Prabowo’s directive to strengthen mastery of national technology independently, complementing the government’s broader agenda of building national food security and energy security.
“This is the leapfrog for the digital ecosystem,” he said.
Investment Minister and Head of BPI Danantara Rosan Perkasa Roeslani stated that the partnership is expected to have wide-ranging impacts on the development of national industry whilst strengthening Indonesia’s technological sovereignty. The programme will be implemented through sending expert personnel abroad and bringing Arm trainers directly to Indonesia with specialised training modules.
“Six industries will indeed be selected for the development of these chips and as the Coordinating Minister mentioned, 15,000 of our engineers will be trained by Arm, either by sending them there or later their instructors will come to Indonesia with their modules,” Rosan said.
Airlangga further explained that six national chip design developments will focus on strategic intellectual property areas.
“These six represent IP, intellectual property, which we can select whether one is for automotive technology, second internet of things, third related to data centres, it could also be about home appliances, the other two we can choose whether we want the futuristic ones, particularly autonomous vehicles and quantum computing, and others. This will all be discussed later with Danantara, so this IP will be held by Indonesia,” Airlangga added.
This strategic partnership marks Indonesia’s transformation from technology consumer to high-value producer in the global supply chain. The government views technology as a “turbocharger” for Indonesia to become a top-tier global economy by bridging the nation’s vast human resources and natural wealth with the need for high productivity towards the vision of Golden Indonesia 2045.