Indonesia and India Discuss Semiconductor Cooperation Opportunities
Indonesia and India have opportunities to expand industrial collaboration ranging from electric vehicles to digital industrial transformation. As two countries with large domestic markets and strong manufacturing bases, Indonesia and India have complementary industrial structures in developing the Indo-Pacific regional supply chain. These opportunities were a focus of a bilateral meeting between Indonesia’s Vice Minister of Industry, Faisol Riza, and India’s Minister of State for Industry and Trade, Jitin Prasada, held on the sidelines of the 10th BRICS Industry Ministers’ Meeting in Jaipur, India.
This is the right moment to bring Indonesia-India industrial cooperation to a more concrete stage. The two countries have complementary industrial structures and significant market potential. “We hope this meeting can further strengthen relations between the two countries while opening up opportunities for more concrete, implementable, and mutually beneficial industrial collaboration,” said Indonesia’s Vice Minister of Industry, Faisol Riza, during the bilateral meeting with the Indian government in Jaipur last week.
The bilateral meeting was a follow-up to the increasingly close relationship between the two countries following Indonesian President Prabowo Subianto’s visit to India for the 2025 Republic Day commemoration and Indian Prime Minister Narendra Modi’s state visit to Indonesia in July 2026. The series of high-level meetings marked a new chapter of cooperation in trade, investment, health, pharmaceuticals, industrial downstreaming, and human resource development.
Trade relations between the two countries continue to show positive development. Indonesia-India trade value in 2025 reached USD 23.16 billion, with Indonesian exports at USD 18.32 billion and imports at USD 4.84 billion. On the other hand, Indonesia’s non-oil and gas manufacturing exports to India have declined in recent years. This issue was one of the main agenda items for both countries to expand market access for Indonesian manufactured products. The bilateral meeting took place as Indonesia officially became a full BRICS member, opening wider industrial collaboration space with member countries, including India.
During the meeting, the Indian government welcomed Indonesia’s concrete cooperation proposals in strategic sectors, particularly green industry development, semiconductors, and agro-industry. India also expressed particular attention to Indonesia’s import quota restriction policies on some of its products, an issue that will be forwarded to the relevant ministries by Indonesia.
Indonesia also invited India to expand collaboration in the semiconductor industry, which plays a strategic role as a foundation for various priority sectors, from electronics, automotive, telecommunications, and energy to digital transformation. In particular, digital industrial transformation is carried out through the application of automation, artificial intelligence, and smart manufacturing, as well as data centre development that can increase productivity and industrial competitiveness for both countries.
This bilateral meeting was part of efforts to expand Indonesia-India industrial cooperation through investment, technology development, manufacturing supply chain expansion, and improved industrial competitiveness. The collaboration provides greater space for national industries to enter the global market while strengthening Indonesia’s position as India’s strategic partner in sustainable industrial development.