Indonesia has officially released a development roadmap for the semiconductor and artificial intelligence (AI) industries, clearly identifying these two fields as the core driving forces for economic transformation in the digital age. Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized at a press conference that by 2045, the contribution of the digital economy to GDP growth will exceed 60%, with semiconductors and AI becoming key engines.
Strategic Layout: Building a Complete Industry Chain EcosystemIndonesia has currently established a “Special Working Group for Semiconductor and AI Development” led by the Ministry of Economic Affairs, focusing on advancing four major strategies:1. Initiate a full chain layout for “chip design-manufacturing-packaging and testing,” with an initial investment of $2.3 billion to build a packaging and testing base on Batam Island.2. Plan to establish three national-level AI data centers by 2027, with the first project located in the Nongsa economic special zone on Bintan Island.3. Exempt semiconductor equipment imports from tariffs for five years and provide tax credits of up to 2 billion Indonesian Rupiah (approximately $130,000) for AI startups.4. Plan a chip manufacturing corridor on Java Island, linking industrial nodes such as Surabaya and Makassar.Digital Economy “Three-Step” Strategy1. Establish a nationwide 5G network by 2025, with the digital economy scale exceeding $150 billion.2. Cultivate 10 global TOP 100 technology companies by 2030, with the digital economy volume reaching $600 billion.3. Become the digital hub of ASEAN by 2045, with a contribution rate of over 60% from the digital economy.Indonesia has signed the “Digital Economy Framework Agreement” (DEFA) with the ASEAN Secretariat, which is expected to drive the overall digital economy scale of ASEAN from $1 trillion to $2 trillion by 2030.