At a press conference on Wednesday, Coordinating Minister for Economic Affairs Airlangga Hartarto said these sectors are key to Indonesia’s digital-era economic transformation.
He mentioned that by 2045, GDP growth will depend heavily on the digital and AI sectors.
"Semiconductors and AI will be among the main engines of future growth," he stated.
He outlined several strategies taken by the government to accelerate their development.
First, the government has formed a task force for the development of semiconductor ecosystems and AI under the coordination of the Coordinating Ministry for Economic Affairs.
The task force will be responsible for expediting the creation of a semiconductor ecosystem, starting from chip design, human resource training, to the construction of data centers, Hartarto said.
Second, the government will focus on human resource development by providing scholarships for those pursuing undergraduate to doctoral degrees in science, technology, engineering, and mathematics (STEM), vocational training, and research in the field of technology.
"Indonesia has collaborated with US universities, including Arizona State University and Purdue University. We will also encourage cooperation with universities in Singapore," Hartarto said.
The third strategy is encouraging the development of assembly, testing, and packaging facilities, which have started in the Batam area.
Under the fourth strategy, the Indonesian government will focus on increasing investment and trade in the semiconductor and AI sectors.
"The government will ensure that the amount of investment in this sector will continue to increase along with the expansion of its industrial ecosystem," Hartarto said.
Regarding the AI sector, he noted that artificial intelligence is not merely an automation tool, but can also be used to increase the productivity of various sectors.
"Indonesia already has an AI data center in the Nongsa Special Economic Zone (KEK). This data center will become one of the main industries driven by Indonesia," he emphasized.
He said that the government is still preparing a road map for the development of the national semiconductor and AI industry.
Indonesia aims to become ASEAN’s largest digital economy, with its digital economy projected to reach US$150 billion by 2025 and US$600 billion by 2030.
Regionally, the ASEAN digital economy is forecasted to grow from US$1 trillion to US$2 trillion with the implementation of the Digital Economy Framework Agreement (DEFA).
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Translator: Bayu Saputra, Resinta Sulistiyandari
Editor: Anton Santoso
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