Indonesia is intensifying the development of its national semiconductor industry to capitalize on a rapidly growing domestic market while reducing dependency on imported components, which reached nearly USD 4.87 billion in January–November 2025, almost double the USD 2.33 billion recorded in 2020. Domestic demand is expanding across key sectors, including electronics, automotive, telecommunications, energy, and digital transformation, with national production of mobile phones reaching 30–60 million units per year and vehicles totaling 803,867 units in 2025, including electric and hybrid models that require up to three times more semiconductors than conventional vehicles.

The Ministry of Industry (Kemenperin) is taking a staged approach, prioritizing chip design and human resource development to build a strong foundation for local semiconductor production. Indonesia has established assembly and testing facilities connected to the global value chain, integrated circuit design firms, and downstream industries such as OEMs, EMS, and the automotive sector. To accelerate growth, Kemenperin launched the Indonesia Chip Design Collaborative Center (ICDEC) in collaboration with Polytron and 13 universities, aiming to strengthen chip design capabilities, attract investment, create high-tech enterprises, and enhance the country’s role in the global semiconductor supply chain. This initiative is expected to boost technological independence, manufacturing value addition, skilled employment, and international competitiveness.
Source:
https://www.indotelko.com/read/1769953005/kemenperin-ingin-tekan-nilai-impor-semikonduktor