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Overcoming Chip Scarcity, German Semiconductor Industry Ready to Invest Trillions in RI

JAKARTA, KOMPAS.com – Industry semiconductor is a vein that plays an essential role in accelerating digital transformation.

Minister of Industry (Minister of Industry) Agus Gumiwang Kartasasmita said, along with the development of the industrial era 4.0, the need for semiconductor chips continues to grow.

“We see this increasing demand for semiconductors as a strategic investment opportunity. Indonesia needs to seize this opportunity,” said Industry Minister Agus Gumiwang Kartasasmita in an official broadcast quoted by Kompas.com, Saturday (18/6/2022).

Also read: Meeting German President, Minister of Industry Says Opportunities for Cooperation in Semiconductor Industry to Vaccines

The Minister of Industry said that Indonesia is a big market for electronic products. Therefore, the Ministry of Industry spurred the growth of the semiconductor industry.

This step is believed to strengthen the domestic manufacturing structure so that it can be more competitive.

In addition, the development of telecommunication and automotive equipment, especially electric vehicles (electrical vehicle/EV), as well as digitization in many sectors, also opens up more opportunities for the semiconductor industry,” he explained.

Agus is optimistic that the development of the semiconductor industry in the country can be accelerated, for example by joining the global semiconductor industry ecosystem and entering the global chip supply chain.

“This can be done through cooperation with global chip player countries, one of which is Germany,” he said.

Through a meeting at the state visit of the President of the Federal Republic of Germany Frank-Walter Steinmeier, Indonesia and Germany agreed to increase investment in the high-tech industry and open up opportunities to develop semiconductor factories in Indonesia so that the industry can play a role in the global chip supply chain.

Also read: Road to G20, Minister of Industry Talks About Eco Industrial Parks for Inclusive and Sustainable Industrialization

PT Infineon Technologies Batam, has committed to an increase in investment of IDR 569.3 billion for a capacity increase of 65 million per week by 2025, and will increase to IDR 1.3 trillion for a capacity of 150 million per week until 2030.

PT Infineon Technologies Batam is one of the companies engaged in the semiconductor industry, and has invested in Indonesia since 1996. The production capacity of PT Infineon Technologies Batam in 2020 reached 15 million pieces per week and increased to 22 million pieces per week in 2021.

The Minister of Industry emphasized that his party is committed to accelerating the transformation of industry 4.0 through the Making Indonesia 4.0 program.

The strategic steps carried out, among others, are through increasing awarenessreadiness assessment, industry 4.0 transformation assistance, implementation project transformation, launching industrial ecosystem 4.0, INDI 4.0 awards and national lighthouse industry 4.0, as well as conferences and expo industry 4.0.

“We have designated PT Infineon Technologies Batam as the National Lighthouse Industry 4.0 this year, after going through various stages of verification. Previously, in 2021, PT Infineon Technologies Batam received the INDI 4.0 award from us for the Smart Factory category,” explained the Minister of Industry.

Infineon is the fourth company in Indonesia to be designated a National Lighthouse Industry 4.0, following PT Akebono Brake Astra Indonesia, PT Pupuk Kalimantan Timur, and PT Indolakto-Purwosari.

National Lighthouse Industry 4.0 is an example of digital transformation and the application of 4.0 technology. These companies are considered worthy of being role models for industry players in their sectors and can become government dialogue partners in the implementation of Industry 4.0 in Indonesia.

Also read: Minister of Industry: Increasing PMI Manufacturing Can Support National Economic Growth Performance

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