Jakarta (ANTARA) - Indonesia’s digital economy could expand to US$600 billion through the ASEAN Digital Economy Framework Agreement (DEFA), Coordinating Economic Minister Airlangga Hartarto said on Wednesday.

“With the ASEAN DEFA, which we plan to sign this year, our potential can increase to US$600 billion,” Airlangga said after opening a semiconductor training program in Jakarta.

The ASEAN DEFA aims to strengthen regional digital integration through digital trade, cross-border connectivity, data governance and technology ecosystem development across Southeast Asia.

Airlangga said Indonesia’s digital economy is currently projected to reach US$400 billion by 2030, with further growth potential through deeper regional integration.

He added that semiconductor development is becoming increasingly important because chips underpin industries including automotive, electronics, data centers and the internet of things.

According to Airlangga, the government has started strengthening the domestic semiconductor ecosystem through talent development and partnerships with global technology companies.

One initiative involves cooperation between Indonesia’s sovereign wealth fund Danantara and Arm Ltd., a British chip architecture designer.

“The Danantara training program with Arm has just started as part of efforts to accelerate integration into the global semiconductor and electronics ecosystem,” he said.

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Airlangga said the global semiconductor industry is projected to reach US$1.5 trillion, driven by artificial intelligence and digital infrastructure growth.

He said Indonesia holds several advantages in the sector, including its population of about 285 million, expanding digital economy and abundant strategic mineral resources.

Indonesia is currently entering the semiconductor supply chain through assembly, testing and packaging activities while strengthening its engineering workforce, he added.

The Danantara-Arm semiconductor training program drew 1,000 participants selected from around 4,500 applicants through digital recruitment channels.

The government aims to develop 15,000 semiconductor engineers over the next three years to strengthen Indonesia’s domestic chip industry ecosystem.

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Translator: Aria Ananda, Yashinta Difa
Editor: Rahmad Nasution
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