Indonesia stands on the brink of becoming a major player in the 21st-century semiconductor industry, bolstered by significant backing from the United States. This opportunity marks a pivotal moment for the nation’s economic and technological advancement.
Jose W. Fernandez, the US Deputy Secretary of State for Economic Growth, Energy, and the Environment, announced that Indonesia has been selected as one of seven countries to receive US support to become a semiconductor development hub.
“We have designated Indonesia as one of the seven countries that will receive our support for semiconductors, to become a semiconductor hub,” Fernandez declared during a media briefing at the US Embassy in Jakarta on Monday (15/7/2024). This designation is part of the broader CHIPS Act, aimed at strengthening semiconductor industries globally.
Fernandez emphasized Indonesia’s potential in the semiconductor sector, highlighting the nation’s strategic position in the global market. “Indonesia has a significant opportunity to be part of the 21st-century semiconductor industry,” he noted.
This support will involve educational opportunities, investments from US semiconductor firms, and various exchange programs designed to enhance Indonesia’s capabilities in this critical field.
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In a related development, the Organisation for Economic Co-operation and Development (OECD) recently visited Indonesia at the US’s request to evaluate the country’s semiconductor ecosystem. This visit underscores the international interest in Indonesia’s burgeoning semiconductor sector.
During his visit, Fernandez also engaged with Indonesian government officials to discuss critical minerals, companies, and potential investors.
“There is substantial potential for collaboration with Indonesia in critical minerals, which is why we are in discussions about a critical minerals agreement,” Fernandez stated. These minerals are essential for the production of semiconductors, making this collaboration crucial for the industry’s growth.
This trip marked Fernandez’s first visit to Indonesia as Deputy Secretary of State, though he is no stranger to the country. During former President Barack Obama’s administration, Fernandez visited Indonesia six times. He explained that these frequent visits reflect the significant potential for US-Indonesia relations in areas such as commerce, people-to-people exchanges, and energy.
“Today, I discussed many of these issues with my colleagues in the government,” Fernandez shared.
Key topics included the Joint Energy Transition Partnership (JETP), energy, critical minerals, and Indonesia’s ambition to join the OECD. Fernandez also addressed environmental issues like plastic pollution and ongoing agreement negotiations, with semiconductors being a central theme.
The US’s commitment to supporting Indonesia in becoming a semiconductor hub is not just about technology but also about fostering long-term economic growth and stability. The investment in education and infrastructure, coupled with strategic partnerships, positions Indonesia to play a vital role in the global semiconductor supply chain.
As Indonesia steps into this new role, the benefits are expected to ripple across its economy, driving innovation and creating jobs. The nation’s journey to becoming a semiconductor powerhouse is supported by the US’s comprehensive approach, ensuring that Indonesia can leverage its potential fully.
In conclusion, the strategic partnership between Indonesia and the US in the semiconductor industry represents a monumental step forward. With robust support and a clear vision, Indonesia is well on its way to becoming a key player in the global semiconductor market, heralding a new era of technological and economic growth.
