February 25, 2026 | 04:58 pm
TEMPO.CO, Jakarta - The Indonesian government has earmarked an initial US$150 million to develop a national semiconductor ecosystem under a framework agreement between the state's sovereign wealth fund Danantara and Arm Limited.
The partnership signing was witnessed by President Prabowo Subianto and Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday, February 23, 2026, in London.
“This collaboration is expected to enable Indonesia to train 15,000 engineers within the Arm ecosystem,” Airlangga said in a statement released on Wednesday, February 25, 2026.
Arm is a leading global semiconductor design company whose chip architectures are widely used in automotive technology, data centers, and artificial intelligence.
Airlangga described the agreement as a strategic step toward shifting Indonesia’s role from a technology consumer to a high-value producer within the global supply chain.
He said technology development is key to driving economic growth, linking Indonesia’s human capital and natural resources with higher productivity in line with the country’s “Golden Indonesia 2045” vision.
According to Airlangga, the partnership follows President Prabowo’s directive to strengthen technological self-reliance while supporting broader national priorities, including food and energy security. The initiative is also intended to accelerate the development of Indonesia’s digital ecosystem.
As part of the cooperation, Indonesia plans to develop six national chip designs focused on strategic intellectual property (IP) that will be owned domestically.
The proposed IP areas include automotive applications, the Internet of Things, data centers, home appliances, and emerging technologies such as autonomous vehicles and quantum computing. Discussions on the final scope are ongoing with Danantara, with IP ownership to remain in Indonesia’s hands.
Airlangga added that the partnership will also seek to build a national software development ecosystem through collaboration with leading universities, including Bandung Institute of Technology, Gadjah Mada University, and University of Indonesia.
Preparations for the collaboration have been underway for nearly two years as part of Indonesia’s broader semiconductor development strategy. Indonesian engineers are expected to receive direct training from experts within Arm’s global network.
In the next phase, officials say the development of next-generation chips could pave the way for larger investments, including in semiconductor manufacturing and fabrication, a sector currently dominated by a handful of global players.
Read: Indonesia to Reactivate 12,000 Km of Railway Lines, Starting in West Java
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