Indonesia Allocates US$150 Million for Semiconductor Ecosystem
The Indonesian government is allocating an initial fund of US$150 million to build a national semiconductor ecosystem through a framework agreement between Badan Pengelola Investasi Danantara Indonesia (BPI Danantara) and Arm Limited.
The signing of the cooperation was witnessed directly by Prabowo Subianto, accompanied by Coordinating Minister for Economic Affairs Airlangga Hartarto, on Monday, February 23, 2026, in London, England. “This collaboration is expected to enable Indonesia to train 15,000 of our engineers within the Arm ecosystem,” said Airlangga in a written statement, quoted on Wednesday, February 25, 2026.
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Arm is a company that dominates the semiconductor market for the global automotive sector, especially in chip design for data centers and artificial intelligence. Airlangga stated that this strategic partnership marks Indonesia’s step to transform from a technology consumer into a high-value producer in the global supply chain.
He said that technology is a driver of national economic growth that bridges Indonesia’s human resource potential and natural wealth with the need for high productivity towards the vision of Golden Indonesia 2045.
According to Airlangga, the collaboration is a follow-up to President Prabowo’s direction to strengthen national technological independence while also complementing the agenda of building food and energy resilience. The initiative is also positioned as a strategic leap in strengthening the national digital ecosystem.
He explained that the development of six national chip designs will focus on strategic intellectual property (IP) that will be owned by Indonesia. These six IPs, he said, could include automotive technology, the internet of things, data centers, home appliances, and futuristic fields such as autonomous vehicles and quantum computing. All of these options will still be discussed together with Danantara, with IP ownership remaining in the hands of Indonesia.
Airlangga also said that the collaboration is aimed at building an ecosystem for developing national software capabilities through collaboration with a number of universities, including the Bandung Institute of Technology, Gadjah Mada University, and the University of Indonesia.
Preparation for the collaboration has been ongoing for almost the past two years to support the agenda of strengthening the semiconductor sector. National talent will later receive direct training from trainers within the Arm Limited ecosystem.
In the next stage, the development of a new generation of chips is expected to open up greater investment opportunities, including in the manufacturing or printing aspect, which is currently dominated by a number of global companies.
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