Indonesias Economic Opportunity through Green Economic Transformation and High-Tech Acceleration: Government Forms AZEC and Semiconductor Task Forces

Jakarta, INTI - Indonesia is on a fast track to realizing its Vision of Indonesia Emas 2045, aiming to become a high-income country by 2045. To achieve this vision, the government is propelling three interconnected economic engines: revitalizing conventional sectors, establishing new economic sectors, and perfecting the Pancasila economic engine.

Under the new economic engine, there is a focus on accelerating future growth through digital applications, semiconductor industry development, and green economy and renewable energy. Following the Vision of Indonesia Emas 2045, the Coordinating Ministry for Economic Affairs initiated the establishment of a new economic engine through the development of the semiconductor ecosystem.

In efforts to materialize this vision, Coordinating Minister for Economic Affairs Airlangga Hartarto has formed the Asia Zero Emission Community (AZEC) Task Force and the Semiconductor Ecosystem Preparation Task Force. To follow up on the formation of these task forces, Minister Airlangga held a virtual audience with the expert groups of the AZEC and Semiconductor Task Forces on Tuesday (2/04).

"AZEC's commitment is mature and needs to be promptly followed up through the realization of several initial projects. Meanwhile, in semiconductor industry development, the first step to enter the semiconductor value chain is logic design development, which requires quality human resources. However, efforts to increase investment in the semiconductor sector must also be carried out simultaneously," Minister Airlangga emphasized during the audience.

During the meeting, the Assistance Team of the Coordinating Minister for Economic Affairs, Raden Pardede, reported on the progress of the AZEC program and semiconductor industry ecosystem development. The government has issued Ministerial Decree No. 406 of 2023 concerning the Indonesia Zero Emission Community Task Force, consisting of Directors, Implementation Teams, and Expert Groups.

Previously, at the AZEC Summit in November 2023, Indonesia and Japan established 24 energy transition cooperation projects outlined in a memorandum of understanding (MoU). Cooperation includes promoting energy transition training, waste to energy, decarbonization, electricity transmission development, geothermal, and green ammonia.

For the Semiconductor Task Force, the tasks of the expert group are outlined in Ministerial Decree No. 16 of 2024. To achieve a semiconductor industry that is part of the global semiconductor supply chain, the government will implement a dual strategy, namely preparing human resources and attracting investments simultaneously.

During the same occasion, Indonesian Ambassador to Singapore Suryopratomo presented an initial review of the semiconductor industry potential in Indonesia, focusing on improving the quality of human resources to meet skilled labor needs in the future through data collection of human resources with relevant expertise in the semiconductor industry.

"The semiconductor industry is a new and promising type of industry," Ambassador Suryo expressed.

"In response to this unusual industry, the Indonesian government should initiate several initiatives to address the lack of skilled human resources in relevant fields in the semiconductor industry, such as organic and biomolecular chemistry," Ambassador Suryo added.

One of Indonesia's strategies to increase the number of skilled human resources relevant to the semiconductor industry is international cooperation in education. In line with this strategy, Indonesian Ambassador to Germany Arief Havas Oegroseno highlighted opportunities for Indonesian students who are currently or have completed their education in relevant semiconductor-related fields to continue their studies in Germany.

"Some universities with good relations with the Indonesian Embassy in Berlin have contacted us to offer opportunities for academics in Indonesia to continue their studies," Ambassador Havas said.

Representing the Indonesian government, the Indonesian Embassy in Germany will collaborate with relevant Ministries/Agencies and educational institutions to increase the number of skilled human resources in Indonesia in the semiconductor industry through advanced education.

Representing academics present, Marzan Aziz Iskandar from the Indonesian Institute of Technology revealed that Indonesia needs to specifically identify semiconductor products to be developed to align with domestic needs and the availability of human resources in Indonesia.

Subsequently, the Chairman of the Indonesia Chip Design Collaborative Center (ICDeC), Professor Trio Adiono from Bandung Institute of Technology, added that ICDeC has initiated several activities aimed at attracting Design House investments in Indonesia, with the ultimate goal of building Qualcomm Indonesia.

"Regarding human resource development in Indonesia, there is a consortium managed by 13 universities and industries. This year, the target is to train 100 people as competent semiconductor human resources," Professor Trio stated.

Currently, ICDeC is trying to build cooperation relationships with research centers with the assistance of the Ministry of Foreign Affairs, Ministry of Research, Technology, and Higher Education, and LPDP.

Closing the audience activity, Minister Airlangga hoped that green economic and semiconductor development could proceed simultaneously. The Indonesian government is also ready to provide incentives to attract investors and other economic cooperation to accelerate the development of both industries, which will bring significant benefits to Indonesia's economic growth.

Those present at the meeting included the Deputy of International Economic Cooperation Coordination, the Deputy of Business and Industry Coordination, senior officials from relevant Ministries/Agencies, expert teams from the AZEC and Semiconductor Task Forces, as well as Indonesian Ambassadors in several relevant countries.