Danantara Signs MoU with Arm Limited to Accelerate Semiconductor Industry Development
Jakarta, VIVA – President of the Republic of Indonesia Prabowo Subianto witnessed the signing of a framework agreement between the Danantara Indonesia Investment Management Agency (BPI Danantara) and Arm Limited in London, United Kingdom, on Monday, 23 February 2026.
The head of state specifically attended the signing as a demonstration of the government’s strong commitment to the prospects of technological advancement and innovation-based economic transformation in Indonesia.
“This is a collaboration for Indonesia to master semiconductor technology, and Arm is one of the companies that dominates the semiconductor market, particularly in terms of design. So this represents the most upstream segment of the semiconductor industry itself,” said Coordinating Minister for Economic Affairs Airlangga Hartanto, as quoted from a presidential press bureau statement on Tuesday, 24 February 2026.
According to Airlangga, Arm is known to control approximately 96 per cent of chip technology for the global automotive sector and nearly 94 per cent of chip designs for data centres and artificial intelligence. Through this partnership, Indonesia is targeting accelerated mastery of strategic technologies that have long served as the foundation for various modern digital innovations.
“With this collaboration, it is hoped that Indonesia can provide training for 15,000 of our engineers within the Arm ecosystem, so they can master chip design technology, and the cooperation plan will extend to the next generation of semiconductors or chips, enabling Indonesia to develop capabilities in semiconductors and design,” Airlangga added.
Airlangga further stated that this partnership is a direct follow-up to President Prabowo’s directive to strengthen national technological mastery independently, complementing the government’s broader agenda of building national food security and energy security.
Furthermore, Airlangga explained that six national chip design developments would be focused on strategic intellectual property areas.
“These six represent intellectual property that we can choose from — first, automotive technology; second, internet of things; third, data centres; then home appliances; and the remaining two, we can select whether we want futuristic applications, particularly autonomous vehicles, quantum computing, and others. All of this will still be discussed with Danantara, so that the intellectual property will be held by Indonesia,” Airlangga added.