Jakarta (VNA) – Indonesia is accelerating its technological self-reliance strategy after sovereign wealth fund Danantara signed a framework cooperation agreement with leading chip design firm Arm Limited, witnessed by President Prabowo Subianto in London on February 23.
The signing marks a new step in Indonesia’s efforts to build a national semiconductor industry. Danantara was represented by its Chief Executive Officer and Minister of Investment and Downstreaming Rosan Roeslani. The ceremony was also attended by Minister of Energy and Mineral Resources Bahlil Lahadalia, Coordinating Minister for Economic Affairs Airlangga Hartarto, and Cabinet Secretary Teddy Indra Wijaya.
Hartarto said the partnership follows President Prabowo’s directive to strengthen national technological independence, in parallel with efforts to ensure food and energy security. "This is a leapfrog for Indonesia’s digital ecosystem," he noted.
Arm Limited was selected for its dominant position in the global semiconductor design industry. The British company accounts for around 96% of the automotive chip technology market and nearly 94% of chip design for data centres and artificial intelligence (AI) applications.
Roeslani expressed hope that the cooperation would provide fresh momentum for domestic industry while reinforcing Indonesia’s “technological sovereignty,” an increasingly important concept amid geopolitical competition and shifting global supply chains.
Under the plan, six strategic industries will be chosen to develop chip applications, paving the way for a domestic semiconductor ecosystem.
Indonesian officials described the agreement as a crucial upstream link in the semiconductor value chain, a high value-added sector that determines a country’s ability to master core technologies. A key component of the deal is a large-scale training programme aimed at building high-quality human resources.
Around 15,000 Indonesian engineers are expected to be trained within the Arm ecosystem through various schemes, including overseas placements, bringing Arm experts to Indonesia, and developing specialised chip design modules. The long-term goal is to enable Indonesia to master next-generation semiconductor design technology and strengthen national industrial capacity.
The move comes as countries worldwide race to enhance semiconductor capabilities to reduce dependence on major technology powers. If successful, the strategy could position Indonesia as an emerging chip design hub in Southeast Asia and elevate its standing in the global technology value chain./.
