President Prabowo Witnesses Danantara–Arm Partnership to Accelerate Semiconductor Industry

President Prabowo Subianto witnesses the signing of a framework agreement between BPI Danantara and Arm Limited in London, England, on Monday (02/23).

President Prabowo Subianto witnessed the signing of a framework agreement between the Indonesia Investment Management Agency Danantara (BPI Danantara) and Arm Limited in London, England,  Monday (02/23).

The President personally witnessed the signing as a demonstration of the Government’s strong commitment to advancing technology prospects and Indonesia’s innovation-based economic transformation.

“This is a collaboration for Indonesia to master semiconductor technology, and the Arm is one of the companies dominating the semiconductor market, especially in design. This is the most upstream part of the semiconductor industry itself,” said Coordinating Minister for Economic Affairs Airlangga Hartarto after the ceremony.

According to Airlangga, the Arm is known to control around 96 percent of global automotive chip technology and nearly 94 percent of chip designs for data centers and artificial intelligence. Through this partnership, Indonesia aims to accelerate the mastery of strategic technologies that have long served as the foundation for modern digital innovations.

“With this collaboration, it is hoped that Indonesia can train 15,000 of our engineers within the Arm ecosystem, so they can master chip design technology, and the partnership plans will continue to the next generation of semiconductors or chips, so that Indonesia has capabilities in semiconductors and design,” Airlangga added.

Airlangga further explained that this partnership is a direct follow-up to President Prabowo’s directives to strengthen independent national technology mastery, complementing the Government’s major agenda in building national food and energy resilience. “This is the leapfrog for the digital ecosystem,” he said.

Meanwhile, Minister of Investment and Downstream Industries/CEO of Danantara Rosan Perkasa Roeslani stated that the partnership is expected to have a broad impact on national industry development while strengthening Indonesia’s technological sovereignty. Indonesian engineers will be sent abroad or Arm trainers will come to Indonesia with special training modules.

“Indeed, there will be six industries selected for chip development, and as conveyed by the Coordinating Minister, there will be 15,000 of our engineers trained by the Arm, either by sending them here or the trainers coming to Indonesia with their modules,” said Rosan.

Furthermore, Airlangga explained that the development of six national chip designs will focus on strategic intellectual property areas. “These six represent IP, intellectual property, that we can choose, whether for automotive technology, for Internet of Things, or related to data centers, then also for home appliances. The other two we can choose whether for futuristic purpose, especially autonomous vehicles and quantum computing, and others. All of this will be discussed later with the Danantara, so the IP will be owned by Indonesia,” Airlangga added.

This strategic partnership also marks Indonesia’s transformation from a technology consumer to a high-value producer in the global supply chain. The Government views technology as a “turbocharger” for Indonesia to become a top-tier world economy by bridging the vast potential of national human resources and natural wealth with high productivity needs toward the Golden Indonesia 2045 vision. (BPMI) (EST/MMB)