Indonesia-US Semiconductor Cooperation Deemed Strategic for National Industry
JAKARTA — The cooperation on semiconductor industry development between Indonesia and the United States, valued at IDR 81.98 trillion, has received support from the Indonesian House of Representatives. Kaisar Abu Hanifah, a member of Commission VII of the House from the PKB faction, views this collaboration as important for strengthening the structure of Indonesia’s national industry and expanding Indonesia’s role in the global semiconductor supply chain.
“In my assessment, this is highly strategic. We support this cooperation to promote industrial self-sufficiency and enhance Indonesia’s role in the global semiconductor supply chain,” said Kaisar on Sunday (1 March 2026).
Indonesia and the United States previously signed a Joint Development Agreement in the first phase valued at USD 4.89 billion, or approximately IDR 81.98 trillion. The signing was witnessed by President Prabowo Subianto during an official visit to Washington D.C. on 18 February 2026.
Kaisar stated that the investment value is not only related to financing, but also presents opportunities for technology transfer and enhancement of human resource capacity. “With an investment of IDR 81 trillion, we not only gain financial support, but also access to technology to strengthen innovation and competitiveness in the international market,” he said.
Semiconductors are important components in various technology products, ranging from mobile phones, computers, and electric vehicles to defence equipment. To date, this industry has been dominated by several major countries, so Indonesia’s involvement is seen as opening opportunities to enter the global production chain.
Kaisar added that Indonesia possesses strategic raw materials such as tin, nickel, and bauxite that can support the development of the semiconductor industry. If managed optimally, this sector has the potential to create new employment opportunities and strengthen downstream industries domestically.
The cooperation is also said to have potential to expand to USD 26.7 billion in advanced stages. The government is expected to ensure that the benefits of this investment are truly felt by the public through job creation and strengthening of the national industry.
Amid global competition and geopolitical dynamics affecting the world’s supply chains, the strengthening of strategic industries such as semiconductors is considered an important step to maintain Indonesia’s economic resilience.