HKI Emphasises that the Semiconductor JDA with the US will Drive Technological Transformation
Jakarta (ANTARA) - The Indonesian Industrial Estate Association (HKI) has emphasised that the signing of a Joint Development Agreement (JDA) for the development of a semiconductor ecosystem between Indonesia and a United States (US) company is a strategic step to accelerate the national industrial transformation towards a high-tech sector.
Chairman of HKI, Akhmad Ma’ruf Maulana, in a statement in Jakarta on Thursday, said that the initial agreement, worth approximately $4.89 billion, involves the Wiraraja Green Renewable Energy & Smart Eco Industrial Park (GESEIP) National Strategic Project (PSN) in Galang, Batam, which is managed by PT Galang Bumi Industri, together with a technology partner from the United States.
He stated that this collaboration is a concrete step in building a downstream industry based on green energy and semiconductors in Indonesia.
“The ecosystem built within the Wiraraja GESEIP PSN includes the downstream processing of silica quartz into high-value products, ranging from the purification of raw materials for glass to the production of polysilicon for semiconductor and solar cell needs,” he said.
According to him, the development of this ecosystem will include the purification of silica quartz for the glass industry, the production of polysilicon, to the next stage in the form of ingot wafer production, wafer slicing, and fabrication to form an integrated semiconductor production chain in the country.
Further investment could potentially reach $26.7 billion if the initial phase is successful.
The cooperation also includes the construction of manufacturing infrastructure, the development of renewable energy, skills development programs for the workforce, and research and development of advanced technology. In the initial phase, this investment is projected to create thousands of skilled jobs and accelerate technology transfer for the national industry.
Meanwhile, the government views the JDA not only as an investment but also as part of an effort to reposition Indonesia in the global high-tech value chain.
“This JDA is not just a financial investment. It is part of Indonesia’s strategic repositioning in the global industrial architecture. We want to ensure that Indonesia becomes part of the global semiconductor value chain, strengthening industrial independence, and increasing bargaining power in the global supply chain,” said Coordinating Minister for Economic Affairs, Airlangga Hartarto.
The signing, which took place in Washington D.C. on February 18, also strengthens transnational collaboration between industrial areas in Galang, Batam, and a technopark in Arizona, United States, to support the transfer of semiconductor technology, the development of sustainable energy, and the strengthening of industrial innovation ecosystems.
This step is expected to strengthen Indonesia’s position in the global supply chain, expand quality employment opportunities, and encourage the acceleration of economic transformation towards a high-tech and sustainable industry.