Indonesia seeks to enhance its expertise in critical technologies by forming a collaboration between state investment firm Danantara and British semiconductor company Arm. This collaboration was officially endorsed by President Prabowo Subianto during his visit to London.
Cabinet Secretary Teddy Indra Wijaya stated that the agreement would accelerate Indonesia's acquisition of essential technologies that drive contemporary digital advancement, as the government strives to enhance productivity, competitiveness, and technological autonomy.
"Through this cooperation, Indonesia targets faster mastery of strategic technologies that form the foundation of modern digital innovation,” Teddy says.
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Arm dominates the global automotive chip technology market with approximately 96 percent share and has a significant presence in chip designs for data centers and artificial intelligence, holding nearly 94 percent market share.
This partnership is of great importance for Indonesia's aspirations in the fields of semiconductors and advanced manufacturing.
Indonesia has agreed to undergo training for 15,000 engineers within Arm's ecosystem to enhance chip design capabilities, with plans to further expand collaboration in the field of next-generation semiconductor development, according to Teddy.
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The collaboration is a result of President Prabowo's initiative to enhance national technological self-reliance and is in line with the government's overarching goal to enhance food and energy security and reinforce Indonesia's position in the global supply chain.
The chief executive of Danantara, Rosan Perkasa Roeslani, who holds positions as the investment and downstreaming minister and head of the Investment Coordinating Board, signed the framework agreement.
"This strategic partnership marks Indonesia’s shift from a technology consumer to a high-value producer in the global supply chain,” Teddy said.
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This event was attended by notable senior ministers such as Airlangga Hartarto, the Coordinating Minister for Economic Affairs, and Bahlil Lahadalia, the Minister of Energy and Mineral Resources.
Airlangga emphasized that the collaboration exemplifies Indonesia's commitment to achieving technological independence and enhancing its industrial endurance over time, ultimately bolstering sustainable economic development and global competitiveness.