From market to maker: Mapping Indonesia's semiconductor roadmap
Amid rapid technological advances and rising global demand for chips across industries, the government aims to transform Indonesia into more than an electronics market and consumer base.
The objective is clear: upgrade national industrial competitiveness and enable Indonesia to climb the global semiconductor value chain.
The Ministry of Industry has reaffirmed its commitment to developing high-tech sectors, including semiconductors, as foundations for industrial transformation and technological independence.
Semiconductors underpin high-value sectors such as electronics, automotive, telecommunications, and energy, while also supporting the country's digital transformation agenda.
Government planners view stronger participation in semiconductor production as essential to advancing industrial development, especially given Indonesia's significant domestic demand.
Indonesia produces 30–60 million mobile phones annually, while laptop demand is projected to reach 1.57 million units in 2026. Both rely heavily on semiconductor components.
In the automotive sector, Indonesia assembled 803,867 vehicles last year, including electric and hybrid models requiring roughly three times more chips than conventional vehicles.
A GlobalData report showed the global semiconductor market grew 23 percent, from US$407.9 billion in 2017 to US$501.3 billion in 2021. Growth is expected to continue amid electrification, digitalization, and artificial intelligence expansion.
Related news: Chip design, talent key to semiconductor independence: Minister
Despite its potential, Indonesia remains heavily dependent on imported semiconductors.
Imports reached US$4.87 billion in 2021, nearly double the US$2.33 billion recorded in 2020, underscoring the urgency of strengthening the domestic ecosystem to avoid remaining on the supply chain's periphery.
Betting on chip design as entry point
Industry Minister Agus Gumiwang Kartasasmita has said efforts to build a supportive semiconductor ecosystem have been underway for several years.
Since 2019, the ministry has developed strategies to enable Indonesia's involvement in chip design, marking a milestone during Hannover Messe 2023 in Germany.
The government sees chip design as the most feasible entry point before progressing to more capital-intensive stages such as fabrication.
This approach reflects recognition that a strong industrial base requires skilled talent, credible research capacity, and synergy among government, academia, and industry.
According to the Semiconductor Industry Association, chip design involves defining product requirements, developing architecture and logic, and arranging components to ensure devices can receive, transmit, process, and store data.
The National Development Planning Ministry included semiconductor ecosystem development in its 2025–2029 Blue Book of foreign loan plans, proposing US$16.185 million in financing.
In talks with the Asian Development Bank (ADB) in January 2026, the Industry Ministry sought support ranging from readiness assessments to feasibility studies.
Related news: Indonesia seeks partnership with Malaysia in semiconductor industry
ADB backing is seen as important to help Indonesia prepare projects in line with international standards.
The government has also drafted a roadmap covering materials, design, fabrication, assembly, testing, and packaging, supported by human resource development, research, infrastructure, and conducive policies.
Building talent and long-term capacity
Authorities plan to establish the Indonesia Chip Design Collaborative Center (ICDeC), a nonprofit organization aimed at developing talent and advancing chip design capabilities.
The initiative underscores the central role of human capital in industrial growth, with research positioned as the backbone of the semiconductor agenda.
However, significant challenges remain, including the need for highly skilled professionals, sustained financial commitment, and advanced technological mastery.
Indonesia's long-term ambition is to shift from a consumer of semiconductor products to a competitive innovator within the global ecosystem.
By leveraging its domestic market and strengthening enabling policies and financing, Indonesia aims to secure a larger role in the industry's future growth.
Related news: Indonesia boosts semiconductor sector to strengthen competitiveness
Related news: Indonesia accelerates semiconductor, AI industry development
Translator: Ahmad Muzdaffar, Tegar Nurfitra
Copyright © ANTARA 2026
The objective is clear: upgrade national industrial competitiveness and enable Indonesia to climb the global semiconductor value chain.
The Ministry of Industry has reaffirmed its commitment to developing high-tech sectors, including semiconductors, as foundations for industrial transformation and technological independence.
Semiconductors underpin high-value sectors such as electronics, automotive, telecommunications, and energy, while also supporting the country's digital transformation agenda.
Government planners view stronger participation in semiconductor production as essential to advancing industrial development, especially given Indonesia's significant domestic demand.
Indonesia produces 30–60 million mobile phones annually, while laptop demand is projected to reach 1.57 million units in 2026. Both rely heavily on semiconductor components.
In the automotive sector, Indonesia assembled 803,867 vehicles last year, including electric and hybrid models requiring roughly three times more chips than conventional vehicles.
A GlobalData report showed the global semiconductor market grew 23 percent, from US$407.9 billion in 2017 to US$501.3 billion in 2021. Growth is expected to continue amid electrification, digitalization, and artificial intelligence expansion.
Related news: Chip design, talent key to semiconductor independence: Minister
Despite its potential, Indonesia remains heavily dependent on imported semiconductors.
Imports reached US$4.87 billion in 2021, nearly double the US$2.33 billion recorded in 2020, underscoring the urgency of strengthening the domestic ecosystem to avoid remaining on the supply chain's periphery.
Betting on chip design as entry point
Industry Minister Agus Gumiwang Kartasasmita has said efforts to build a supportive semiconductor ecosystem have been underway for several years.
Since 2019, the ministry has developed strategies to enable Indonesia's involvement in chip design, marking a milestone during Hannover Messe 2023 in Germany.
The government sees chip design as the most feasible entry point before progressing to more capital-intensive stages such as fabrication.
This approach reflects recognition that a strong industrial base requires skilled talent, credible research capacity, and synergy among government, academia, and industry.
According to the Semiconductor Industry Association, chip design involves defining product requirements, developing architecture and logic, and arranging components to ensure devices can receive, transmit, process, and store data.
The National Development Planning Ministry included semiconductor ecosystem development in its 2025–2029 Blue Book of foreign loan plans, proposing US$16.185 million in financing.
In talks with the Asian Development Bank (ADB) in January 2026, the Industry Ministry sought support ranging from readiness assessments to feasibility studies.
Related news: Indonesia seeks partnership with Malaysia in semiconductor industry
ADB backing is seen as important to help Indonesia prepare projects in line with international standards.
The government has also drafted a roadmap covering materials, design, fabrication, assembly, testing, and packaging, supported by human resource development, research, infrastructure, and conducive policies.
Building talent and long-term capacity
Authorities plan to establish the Indonesia Chip Design Collaborative Center (ICDeC), a nonprofit organization aimed at developing talent and advancing chip design capabilities.
The initiative underscores the central role of human capital in industrial growth, with research positioned as the backbone of the semiconductor agenda.
However, significant challenges remain, including the need for highly skilled professionals, sustained financial commitment, and advanced technological mastery.
Indonesia's long-term ambition is to shift from a consumer of semiconductor products to a competitive innovator within the global ecosystem.
By leveraging its domestic market and strengthening enabling policies and financing, Indonesia aims to secure a larger role in the industry's future growth.
Related news: Indonesia boosts semiconductor sector to strengthen competitiveness
Related news: Indonesia accelerates semiconductor, AI industry development
Translator: Ahmad Muzdaffar, Tegar Nurfitra
Copyright © ANTARA 2026