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Indonesia targets chip self-reliance with new industry roadmap

Indonesia’s Ministry of Industry has announced a national roadmap for developing the semiconductor industry, aiming to strengthen Indonesia’s role in the global supply chain.

The plan emphasizes four main pillars: materials, design, fabrication, and assembly, testing, and packaging, supported by talent development, research, infrastructure, and industry policies.

Minister Agus Gumiwang Kartasasmita highlighted the importance of increasing local value addition and technology independence.

To support this, the ministry established the Indonesia Chip Design Collaborative Center (ICDEC), involving PT Hartono Istana Teknologi and experts from 13 universities.

Indonesia currently has existing facilities in semiconductor testing and assembly, along with local companies in chip design and automotive industries.

Despite these foundations, Agus noted Indonesia’s high semiconductor import dependence, which reached US$4.87 billion from January to November 2025, posing a challenge to industry resilience.

🔗 Source: kumparan

🧠 Food for thought

Implications, context, and why it matters.

Key questions remain unanswered in Indonesia’s semiconductor roadmap

  • The plan lists four pillars, including fabrication, yet it gives no dollar figure or funding pledge to carry it out.
  • Chip fabrication plants often cost several billion dollars, so the lack of a budget leaves a large gap in how the project would be paid for.
  • It also skips a choice between cutting-edge chips and mature-node chips (older, more established manufacturing processes), which changes the investment needed and the customers Indonesia could serve.
  • No schedule appears for reaching technology independence or cutting the reported US$4.9 billion in semiconductor imports from January to November 2025, so it is hard to judge whether the targets are realistic.

A focus on design could be Indonesia’s smartest move in a diversifying tech world

  • Governments worldwide are spreading chip supply chains across more countries to improve resilience and reduce reliance on a few dominant manufacturing regions.
  • Indonesia aims to grow its domestic semiconductor industry, which could place it as a new node in a more distributed global technology network.
  • The Indonesia Chip Design Collaborative Center (ICDEC) points to a near-term bet on chip design plus domestically owned intellectual property (IP) alongside the four-pillar roadmap.
  • Chip design needs less upfront capital than fabrication, letting Indonesia build IP and train workers before it takes on multi-billion dollar manufacturing projects.

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