Indonesia’s Minister for Higher Education, Science, and Technology, Satryo Soemantri Brodjonegoro, has called for the development of semiconductors and artificial intelligence (AI) as essential drivers of the nation’s technological future. The minister underscored the importance of these sectors as pivotal components for boosting Indonesia’s competitive edge in the global technology landscape.
Minister Brodjonegoro’s statement was made during the presentation of the National Medium-Term Development Plan for 2025-2029. This comprehensive development strategy outlines the government’s focus on nine priority investment sectors, with semiconductors being one of the key areas identified for growth.
According to Minister Brodjonegoro, the government aims to leverage the country’s natural resources and favourable environment to foster innovation and technological advancements in this field.
Indonesia’s advantage in semiconductor development stems from its abundant raw materials, including silica, bauxite, gold, and quartz sand. Minister Brodjonegoro highlighted that the country has 27 billion tons of quartz sand, with an additional 330 million tons across 23 provinces. This resource can be processed into silicon, a key component in semiconductor chips.
Minister Brodjonegoro pointed out that Indonesia’s natural wealth in these materials positions the country favourably in the growing semiconductor market, which is currently valued at approximately US$ 592 billion. This presents a tremendous opportunity for Indonesia to develop a robust semiconductor ecosystem capable of serving both domestic and international markets.
However, to realise this potential, the minister stressed the importance of creating the right regulatory frameworks to support the growth of the semiconductor industry. This includes establishing policies that facilitate investment, foster innovation, and ensure the development of a skilled workforce capable of meeting the demands of the sector.
Minister Brodjonegoro highlighted AI’s potential to drive sustainable economic growth and innovation. He noted that AI can address key issues like food security, the green economy, healthcare, digitalisation, and the creative industries, offering solutions that can transform multiple sectors and contribute to long-term prosperity.
The minister also emphasised the need to focus on the development of AI-related talent and technologies. To this end, Minister Brodjonegoro called for the preparation of regulations and talent development programmes tailored to the specific needs of both the semiconductor and AI industries.
He also stressed the need to increase investment in research and development (R&D) to support the growth of deep-tech and high-value-added industries. By fostering collaboration between government agencies, industry players, and academic institutions, Indonesia can create an environment conducive to cutting-edge innovation in both sectors.
Moreover, Minister Brodjonegoro warned of the risks associated with Indonesia’s current economic trajectory. The Minister acknowledged that the country is striving to break free from the “middle-income trap,” a situation where nations struggle to transition from middle-income status to high-income status due to low productivity and limited economic diversification.
He cautioned that if Indonesia does not address these challenges effectively, the country could face more disadvantages than benefits in its pursuit of technological advancement and economic growth.
Minister Brodjonegoro urged experts from various fields to collaborate and innovate, ensuring that solutions focus on real-world problems that benefit society as a whole. “Innovation should focus on addressing tangible, pressing issues,” he said. By focusing on key sectors like semiconductors and AI, Indonesia can position itself as a leader in technology and innovation, driving long-term economic success.
As OpenGov Asia reported, Indonesia is committed to strategically developing AI, with Communication and Digital Minister Meutya Hafid revealing the country’s five key priorities in its national AI strategy: health services, bureaucratic reform, talent education, smart city development, and food security.
These priorities are designed to leverage AI’s potential to enhance public services, governance, education, infrastructure, and agriculture, positioning Indonesia as a leader in technological innovation across these vital sectors.
