President Prabowo Witnesses Danantara-Arm Framework Agreement to Build Indonesia's Semiconductor Industry

President Prabowo Witnesses Direct Agreement between Danantara and Arm for Semiconductor Industry JAKARTA - Indonesian President Prabowo Subianto witnessed the signing ceremony of a framework agreement between the Anagata Nusantara Power Investment Management Agency (BPI Danantara) and Arm Limited in London, England, Monday, February 23, local time, which aims to build and strengthen the national semiconductor industry. In the series of events, Danantara was represented by Danantara’s CEO, who is also the Minister of Investment and Industrialization/Head of BKPM Rosan Perkasa Roeslani. Several ministers such as Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia, Coordinating Minister (Menko) for the Economy Airlangga Hartarto, and Cabinet Secretary Teddy Indra Wijaya also witnessed the signing ceremony of the Danantara-Arm framework agreement accompanying President Prabowo. Coordinating Minister for the Economy Airlangga, after the event, explained that the partnership was a follow-up to President Prabowo’s instructions to want independence in national technology mastery, therefore complementing the government’s major agenda to build national food and energy security. “This is a leapfrog for the digital ecosystem,” said Airlangga Hartarto, as quoted by Antara, from the official broadcast of the Presidential Secretariat. On the same occasion, Airlangga explained that Arm Limited was chosen as a partner by Danantara because the British semiconductor company currently controls around 96 percent of chip technology for the global automotive sector, as well as almost 94 percent of chip designs for data centers and artificial intelligence (AI). “This is a collaboration so that Indonesia can master semiconductor technology, and Arm is one of the companies that dominate the semiconductor market, especially in terms of design. So, this is the most upstream in the semiconductor industry itself,” said Coordinating Minister Airlangga. Airlangga continued that the framework agreement between Danantara-Arm Limited is expected to be the basis for the training of 15,000 Indonesian engineers in the Arm ecosystem. “[The goal, ed.] so that they can master chip design technology, and the work plan is continued to the next generation of semiconductors or chips so that Indonesia has the ability in the semiconductor and design fields,” continued Airlangga. On the same occasion, Danantara CEO Rosan Perkasa Roeslani hopes that the partnership with Arm Limited can have a wide impact on the development of the national industry while strengthening Indonesia’s technological sovereignty. The cooperation, Rosan said, includes sending experts abroad and bringing experts directly from Arm to Indonesia with special training modules. “There will indeed be six industries that will be selected for development from this chip, and the plan is also as conveyed by the Coordinating Minister, there are 15,000 of our engineers who will be trained, trained by Arm, either by sending them here or later their teachers will come to Indonesia with the modules,” said Rosan.