Speaking at a discussion in Central Jakarta, Nezar said Indonesia’s vast mineral resources could become a strategic advantage as global competition intensifies in AI-related industries.
“To strengthen our bargaining position amid competition in the artificial intelligence industry, Indonesia, with its mineral wealth, must be able to enter the global supply chain of the AI industry,” he said.
Nezar noted that Indonesia has an estimated 340 million tons of silica sand reserves, a key raw material used to produce silicon wafers, which form the foundation of chips and semiconductors.
“This is our main capital. Silica sand is the primary raw material for making silicon wafers, which are the basis of chips. Today, this has become a strategic industry being aggressively pursued by advanced economies,” he said.
Despite this potential, Indonesia has yet to become part of the global semiconductor supply chain. Domestic semiconductor manufacturing facilities, Nezar added, still rely heavily on imported components.
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To change that, he stressed the importance of downstream processing, warning that Indonesia should no longer remain merely an exporter of raw materials.
“At the moment, we can only export raw silica sand to China, European countries, and Japan, where it is processed. This has to stop. We must pursue downstream processing so we can truly enter the global supply chain,” he said.
Nezar said the government is now working to identify opportunities and map the natural resources needed by the semiconductor industry as part of a broader strategy to build domestic capacity.
In parallel, Indonesia is actively exploring cooperation with countries that play strategic roles in the global semiconductor industry.
“We are opening doors for cooperation with strategic countries that we can partner with to build a semiconductor industry, especially to strengthen artificial intelligence infrastructure,” he said.
Nezar expressed optimism that Indonesia could achieve sovereignty in its AI ecosystem if it effectively harnesses its resources and industrial opportunities.
“There are many opportunities we have overlooked. Only now are we realizing that all this capital exists in Indonesia and can be developed to achieve sovereignty in our artificial intelligence ecosystem,” he said.
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Translator: Farhan Arda, Raka Adji
Editor: Rahmad Nasution
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