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Ministry of Industry spurs investment in the semiconductor industry

01 September 2021 11:19

JAKARTA - The electronics industry is one of the sectors that receive development priorities according to the Making Indonesia 4.0 roadmap. In order to increase the competitiveness of the electronics industry in the country, strategic steps are needed in an effort to spur the ability to produce components with high added value.

"The government is determined to create a conducive business climate, including encouraging Indonesia as an investment destination to build the semiconductor industry," said Industry Minister Agus Gumiwang Kartasasmita at an international webinar on Indonesian Industrial Opportunities related to the Global Chip Shortage Issue, Tuesday (31/8). 

The Minister of Industry stated that the trade war between the United States and China until the Covid-19 pandemic had a major impact on the chip supply chain to meet various production needs such as automotive, electronic goods, and telecommunication equipment. "Of course, Indonesia must think of optimal ways to safeguard the national industry," he said.

Therefore, the semiconductor industry development strategy needs to be carried out with various options. This is because the development of this sector requires time with a large amount of investment. It also requires a highly skilled workforce and a manufacturing process with strict quality control.

"As an illustration, chip industry startups, especially chips for artificial intelligence such as Alphabet with Google, Nvidia, Graphcore, Thinci, Grog and dozens of chip industry startups, including the global chip industry, can currently collaborate in strengthening the chip supply chain in Indonesia," he said.

Agus added, chips continue to develop, from microcontroller chips to artificial intelligence chips whose functions are increasingly complex in line with the development of industry 4.0. "The strategic role of the chip industry is becoming increasingly strategic in national and global economic growth," he added. (LM)

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