Indonesian and US Companies to Develop the Semiconductor Industry in Batam, Potentially Creating 5,000 Skilled Jobs
JAKARTA, KOMPAS.com - Indonesia and the United States have officially begun a new phase of cooperation in the high-tech industry, namely the development of semiconductors in Galang, Batam.
The investment value of the project reaches $4.89 billion, equivalent to IDR 82 trillion (exchange rate of IDR 16,800 per US dollar). The potential for additional investment in the future is up to $26.7 billion.
This investment is estimated to create around 5,000 skilled workers, while also accelerating technology transfer and improving national human resource capacity.
The jobs created will focus on the fields of engineering, wafer manufacturing, advanced material technology, and new generation energy systems, which have high added value and a long-term impact on the competitiveness of the national industry.
The partnership between the two countries is marked by the signing of a Joint Development Agreement (JDA) between PT Galang Bumi Industri and several US companies, including Essence Global Group and Tynergy Technology Corporation USA.
The signing was witnessed directly by President Prabowo Subianto at the US Chamber & Commerce office on Wednesday, February 18, 2026.
Galang Bumi Industri is the manager of the Wiraraja Green Renewable Energy & Smart Eco-Industrial Park (GESEIP) National Strategic Project (PSN) in Galang, Batam.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the development of the semiconductor ecosystem is part of the national strategy to deepen industrial structure and increase Indonesia’s competitiveness in the global value chain.
In this context, Indonesia is believed to no longer be positioned solely as a technology market, but as a base for production and development of strategic technology.
“This JDA is not just financial investment. This 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 Airlangga in a press release on Wednesday, February 25, 2026.
The scope of cooperation includes, but is not limited to, investment and development of manufacturing infrastructure, expansion of renewable energy initiatives and green industrial projects, workforce development programs and job creation strategies, as well as joint research and development in advanced technology.
The US partner companies specialize in innovative plasmonic processes for producing wafer ingots and solar cells, as well as integrating advanced energy amplification technology, including the development of fusion ignition technology and various other new generation sustainable energy sources.
Furthermore, this collaboration also opens access for Indonesia to frontier technology, while accelerating the strengthening of the national innovation ecosystem.