Indonesia targets global semiconductor supply chain role

Jakarta (ANTARA) -

Indonesia, with an estimated 340 million tons of silica sand reserves, is well positioned to become an important player in the global semiconductor and artificial intelligence (AI) supply chains, Deputy Minister of Communication and Digital Affairs Nezar Patria said.

"Indonesia has enormous potential to become part of the global supply chain. Semiconductor manufacturing requires silica sand, and Indonesia has reserves of approximately 340 million tons," Nezar said in a statement on Thursday.

He emphasized that these natural resources should be processed through downstream industries to strengthen Indonesia's position in the global supply chain.

"So, I believe downstreaming is more than just a slogan. It involves processing minerals and other raw materials into higher-value products. This is a strategic step that must be carried out by all stakeholders in Indonesia, particularly in the electronics industry, which is evolving very rapidly," he said.

Nezar expressed hope that stronger collaboration among stakeholders in developing supporting infrastructure would enhance Indonesia's competitiveness and enable the country to establish a strategic position within the global supply chain.

"In the semiconductor industry, countries that can create supply chain choke points are the ones that will have greater influence over the global supply chain," he said.

In addition to infrastructure, he highlighted the availability of skilled human resources as another critical factor. According to him, a strong talent pool can help compensate for infrastructure limitations.

He stressed that Indonesia's success in capitalizing on AI development will depend not only on adopting the technology but also on building a comprehensive ecosystem that supports innovation and industrial growth.

"The future of AI is being written in Asia, and Indonesia has an important role to play in this story. The policy choices we make today will determine who benefits from AI in the future," he said.

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Translator: Farhan, Kenzu

Editor: Primayanti

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