The Indonesian Industrial Estate Association has revealed that investors from the United States, Mainland China, and Taiwan (China) have shown interest in investing in Indonesia's semiconductor industry. The association calls on global semiconductor companies to form joint ventures with local Indonesian enterprises to facilitate technology transfer, improve the local supply chain, and enhance Indonesia's human resource capacity, preventing foreign investment from remaining only at the level of capacity building.
The association's chairman stated that a US-German joint consortium has initiated semiconductor industry development in Batam, Indonesia. The consortium consists of multiple companies with an investment of US$26.73 billion (approximately IDR 447.59 trillion) in Batam, with related facilities set to start construction this year. Investors from Taiwan (China) are still in the negotiation stage. Although investments from Mainland China have already commenced, slow approval processes have prevented physical construction originally scheduled for 2025 from proceeding as planned. The association believes this situation will hinder the strategic progress of Indonesia's high-end manufacturing sector.
He pointed out that the semiconductor investment plans of investors from Taiwan and Mainland China differ from the US-German consortium in terms of consortium structure, technology pathway, and market positioning, but all revolve around building Indonesia's local industrial base and integrating into the global supply chain. Currently, Indonesia's industrial estates are in an expansion phase, with the semiconductor industry listed as a priority area for the association's focus, aligning with the global demand trend for chips and electronic components.
The association has prepared several strategic locations for the development of the semiconductor industry, including Batamindo Industrial Estate and Wiraraja Industrial Estate in Batam. These estates feature well-developed infrastructure, international logistics access, and a continuously growing industrial ecosystem. The association also believes that the semiconductor industry will become a new engine for Indonesia's economic growth, capable of creating high-skilled jobs, deepening industrial downstream processing, and enhancing Indonesia's position in the global technology industry. Developing the semiconductor industry in Indonesian industrial estates through joint venture models is a key strategic measure to build Indonesia's future economic foundation.
The Indonesian Industrial Estate Association has revealed that investors from the United States, Mainland China, and Taiwan (China) have shown interest in investing in Indonesia's semiconductor industry. The association calls on global semiconductor companies to form joint ventures with local Indonesian enterprises to facilitate technology transfer, improve the local supply chain, and enhance Indonesia's human resource capacity, preventing foreign investment from remaining only at the level of capacity building.
The association's chairman stated that a US-German joint consortium has initiated semiconductor industry development in Batam, Indonesia. The consortium consists of multiple companies with an investment of US$26.73 billion (approximately IDR 447.59 trillion) in Batam, with related facilities set to start construction this year. Investors from Taiwan (China) are still in the negotiation stage. Although investments from Mainland China have already commenced, slow approval processes have prevented physical construction originally scheduled for 2025 from proceeding as planned. The association believes this situation will hinder the strategic progress of Indonesia's high-end manufacturing sector.
He pointed out that the semiconductor investment plans of investors from Taiwan and Mainland China differ from the US-German consortium in terms of consortium structure, technology pathway, and market positioning, but all revolve around building Indonesia's local industrial base and integrating into the global supply chain. Currently, Indonesia's industrial estates are in an expansion phase, with the semiconductor industry listed as a priority area for the association's focus, aligning with the global demand trend for chips and electronic components.
The association has prepared several strategic locations for the development of the semiconductor industry, including Batamindo Industrial Estate and Wiraraja Industrial Estate in Batam. These estates feature well-developed infrastructure, international logistics access, and a continuously growing industrial ecosystem. The association also believes that the semiconductor industry will become a new engine for Indonesia's economic growth, capable of creating high-skilled jobs, deepening industrial downstream processing, and enhancing Indonesia's position in the global technology industry. Developing the semiconductor industry in Indonesian industrial estates through joint venture models is a key strategic measure to build Indonesia's future economic foundation.