Coordinating Minister for Economic Affairs Airlangga Hartarto has announced Indonesia’s plans to develop its semiconductor industry, with the United States and Japan ready to become co-investors. Speaking at the 2024 National Investment Coordination Meeting in South Jakarta on Wednesday, 11/12/2024, Airlangga emphasized the importance of reducing Indonesia’s dependency on raw commodities, whose prices are often volatile. Highlighting semiconductors as a critical future industry, he stated that their role is pivotal in digitalization, as no equipment can function without semiconductor components. However, Indonesia’s current semiconductor sector focuses mainly on assembly, testing, and packaging. To elevate this industry, efforts are underway to enhance human resource capabilities through collaborations with Purdue University and Arizona State University in the US.
Airlangga also noted progress with several startups in Bandung already engaged in semiconductor development, collaborating with global players like Nvidia. Meanwhile, Minister of State-Owned Enterprises Erick Thohir highlighted the potential of selenium, a byproduct from PT Freeport Indonesia’s smelter in Gresik, East Java, as a key material for semiconductor production. PT Freeport Indonesia’s smelter processes copper concentrate sourced from Papua, producing selenium and other commodities essential for semiconductor manufacturing. Erick described semiconductors as a promising new industry for Indonesia, underpinned by the availability of raw materials like selenium within the country.
