Jakarta, Dec 22, 2023 – Back-end investment (testing & assembly) for the development of the semiconductor industry from the United States will begin entering Indonesia next year.

This assurance was conveyed by the Coordinating Minister for the Indonesian Economy, Airlangga Hartarto at the Indonesian Economic Outlook National Seminar forum “Optimism for Strengthening the National Economy in the Midst of Global Dynamics”, Friday, December 22 2023.

According to Airlangga, the government has targeted an ecosystem to support investment in the front-end industry (wafer fabrication) for semiconductors to be established by 2026.

“The back-end investment and front-end ecosystem of silica that we have, downstream silica is directed to semiconductors,” said Airlangga.

Currently, Indonesia has been selected and promoted to enter the semiconductor downstream ecosystem which includes world semiconductor producers such as the United States, Taiwan, Japan and South Korea.

“We have started cooperation with the governments and companies of the United States, Taiwan, Japan and South Korea in developing Human Resources, manufacturing and Research & Development,” he said.

In the initial stage, the partnership is planned to start with training of reliable domestic human resources in the semiconductor sector.

Starting in 2024, the number of training is targeted at 500 people, then 1,000 people per year in the range 2025 to 2030.

The downstreaming of silica into silicon wafers is expected to support the independence of the domestic photovoltaic (PV) module and semiconductor industry.

To achieve this, several supporting activities need to be carried out, such as preparing a silicon wafer industry roadmap and creating a comprehensive industrial tree.

Based on data from the Ministry of Energy and Mineral Resources, in Indonesia there are 328 silica sand mining companies, 98 Mining Business Permit (IUP) holders, 82 Exploration IUP holders with the realization of silica sand mining in 2021 amounting to 2.01 million cubic meters, and 330 million tons of total reserves.

The potential locations for silica sand mining are in Bangka Belitung, Central Kalimantan and West Kalimantan. Meanwhile, quartzite’s total resources are 297 million tons and the main location for mining potential is in Aceh.

In terms of raw material potential for the PV and semiconductor industry, BPS 2022 data states that the potential import substitution value for Silicon Wafers reaches $17.7 million, $120 million for semi-conductor products, $6.2 million for unassembled solar cells, and $65.9 million for solar cells assembled. (AT Network).