Indonesia Takes Bold Steps in Digital Transformation: AI and Semiconductors at the Forefront

Jakarta, INTI - The rapid development of digital technology has been met with a proactive response from the Indonesian government, which has implemented policies supporting the utilization of digital technology across various sectors of the national industry. In 2023, the government launched the National Digital Economy Framework, projecting artificial intelligence (AI) and semiconductors as core components of Indonesia’s current and future digital economy strategies.

“We should be grateful for Indonesia’s demographic bonus, but it must translate into productivity. To achieve that, the government is facilitating specialized education, re-skilling, up-skilling, and world-class education programs. Among them is the presence of Tsinghua University in the Kura-Kura Bali Special Economic Zone (KEK), which should be expanded and deepened,” said Coordinating Minister for Economic Affairs, Airlangga Hartarto, during the Knowledge Sharing and Networking Event "Shaping The Future Economy: AI & Semiconductor" at the Unity in Diversity (UID) Campus within the Kura-Kura Bali KEK, Sunday (29/09).

The knowledge-sharing and networking event was held in collaboration with the KEK National Council, KEK Kura-Kura Bali, Tsinghua Southeast Asia, and the Indonesian Engineers Association (PII). Minister Airlangga emphasized that the event aimed to gather all stakeholders of the Kura-Kura Bali KEK, including the government, academics, and industry players.

“This important meeting is indeed a baby step for Indonesia to become part of the AI and semiconductor ecosystem,” said Minister Airlangga.

The UID Bali Campus has become a platform for various collaborations in leadership programs and sustainable education between UID and Tsinghua Southeast Asia (TSEA). Minister Airlangga further directed that the Kura-Kura Bali KEK should establish an economic campus that can serve as the heart and intellectual center of the Kura-Kura Bali KEK.

“This campus can be the core of human resource development, especially for the eastern and central regions of Indonesia. If we can develop the Tsinghua campus in Indonesia to accommodate not only Java but also central and eastern regions, I believe it will become a catalyst for technology and innovation in Indonesia,” Minister Airlangga added.

He also stressed that technological transformation is the key to unlocking Indonesia’s economic growth potential by accelerating three economic engines: revitalizing the conventional economy, driving new economic engines, and strengthening the Pancasila economy.

In addition to launching the Making of Indonesia 4.0 Roadmap to revitalize the manufacturing sector and transform it into a major force in the fourth industrial revolution through technological transformation, during Indonesia’s ASEAN Chairmanship in 2023, Minister Airlangga also launched the Digital Economic Framework Agreement (DEFA) to boost the economy in the ASEAN region.

Furthermore, the government has established a semiconductor task force to accelerate the development of the semiconductor ecosystem in the country. Soon, Indonesia will expand local Assembly, Testing & Packaging (ATP) capacities and develop high-skilled talents.

“Each development of AI and semiconductors requires dozens of human workers behind the scenes. This will actually create more jobs with different skill sets,” concluded Minister Airlangga.