Indonesia’s chip ambitions: A slow burn as it lags regional champs

[JAKARTA] While Indonesia is strongly positioned in the automotive value chain, it has been much less successful in the semiconductor sector.

Despite possessing abundant essential semiconductor resources such as silica, nickel, tin, copper and gallium, South-east Asia’s largest economy is struggling to compete with regional powerhouses Malaysia and Singapore in carving out a niche in the booming chip sector.

The reasons behind Indonesia’s lag in this space are varied, including the lack of a comprehensive strategy, limited investor-friendly laws, a shortage of skilled workers, and insufficient infrastructure.