This blog post discusses Indonesia’s ambition to become a major player in the semiconductor industry, with a focus on attracting investments and developing its manufacturing capabilities. According to Airlangga, Indonesia lost out on semiconductor investments to Malaysia due to regulatory challenges. However, China has shown interest in setting up chip production facilities in Indonesia.
Despite efforts to attract investments, Indonesia faces stiff competition from Malaysia and Singapore, which have established semiconductor industries. To compete effectively, Indonesia needs to focus on research and development, skilled workforce development, and addressing regulatory challenges.
The blog also highlights how Indonesia’s limited experience in semiconductor production may require significant fiscal resources to attract investments. It discusses the challenges Indonesia faces in attracting major global chip manufacturers and the need to develop a strategic plan to advance its semiconductor industry.
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