Ministry Unveiled Potential of Semiconductor Industry in Indonesia

Jakarta, VIVA – Industry Ministry revealed that Indonesia's semiconductor ecosystem has great potential for development as the abundant availability of raw materials in the country.

This was stated by Priyadi Arie Nugroho, Director of the Electronics and Telematics Industry (IET) at the Ministry during a seminar on the Development of the National Semiconductor Industry Ecosystem at the Indonesia Technology & Innovation (INTI) 2024 event at JIExpo Kemayoran, Jakarta.

"The semiconductor ecosystem in Indonesia has significant potential for development, especially with the abundant availability of raw materials and the high demand for semiconductor products," Nugroho said on Monday (Aug 12).

Regarding raw materials, Indonesia has silica sand reserves amounting to 330 million tons, with deposits spread across Kalimantan, Java, Sumatra, Sulawesi, Nusa Tenggara, and Papua.

"Therefore, the government has provided full support in terms of fiscal incentives for the development of the semiconductor ecosystem," Nugroho remarked.

He stated that some of the government’s support for the development of this semiconductor ecosystem includes the provision of tax holidays, tax allowances, and super tax deductions.

"These incentive facilities have great potential to be utilized by investors interested in the semiconductor industry ecosystem, enabling them to expand or make new investments domestically," he stated.

Furthermore, Nugroho highlighted that there's already a semiconductor company operating in Batam.

This company produces semiconductor components for the automotive sector, including sensors, security systems, and wireless systems.

"Invenion Teknologi in Batam is currently expanding its production to meet the maximum target by 2026, with a capacity of 65 million pieces per week," he concluded.