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IT Infrastructure: Indonesia's AI and Semiconductor Strategy
IT Infrastructure: Indonesia's AI and Semiconductor Strategy
IT Infrastructure: Indonesia's AI and Semiconductor Strategy

The rapid growth of IT Infrastructure has led the Indonesian Government to implement policies that support the use of digital technology across various sectors of the national industry.

In 2023, the Government introduced the National Digital Economy Framework, projecting artificial intelligence (AI) and semiconductors as the core components of Indonesia’s IT Infrastructure strategy, both for the present and the future.

IT Infrastructure: Indonesia's AI and Semiconductor Strategy

“We must appreciate Indonesia's demographic bonus, but it must lead to productivity. To achieve this, the Government facilitates specialized education, re-skilling, up-skilling, and world-class education. One of the key initiatives includes expanding and deepening Tsinghua University’s presence in the Kura-Kura Bali Special Economic Zone,” said Coordinating Minister for Economic Affairs Airlangga Hartarto at the Knowledge Sharing and Networking Event titled “Shaping The Future Economy: AI & Semiconductor” held at the Unity in Diversity (UID) Campus in the Kura-Kura Bali Special Economic Zone, Sunday (29/09).

The event, organized in collaboration with the National Council for Special Economic Zones, Kura-Kura Bali SEZ, Tsinghua Southeast Asia, and the Indonesian Engineers Association (PII), aimed to bring together stakeholders of the Kura-Kura Bali SEZ, including the Government, academics, and industry players.

“This meeting is crucial as it marks Indonesia's first step toward integrating into the AI and semiconductor ecosystem, which will become an integral part of our future IT Infrastructure,” Airlangga added.

The UID Bali campus has already fostered various partnerships in leadership and sustainable education programs between UID and Tsinghua Southeast Asia (TSEA). Airlangga suggested that Kura-Kura Bali SEZ should develop an economic campus that can serve as the heart of intellectual life and human resource development in the region, strengthening Indonesia's IT Infrastructure.

“This campus can become a hub for human resource development, particularly in Eastern and Central Indonesia. Suppose we can expand Tsinghua's campus in Indonesia to accommodate students from Java and the central and eastern regions. In that case, it will catalyze technological and innovation growth within Indonesia's IT Infrastructure,” Airlangga explained.

He emphasized that technological transformation, including the enhancement of IT Infrastructure, is crucial in unlocking Indonesia’s economic growth potential. The Government focuses on accelerating three economic drivers: revitalizing conventional economic engines, driving new ones, and strengthening Pancasila-based economics.

In addition to launching the Roadmap for Making Indonesia 4.0, which aims to revitalize the manufacturing sector and transform it into a significant force in the fourth industrial revolution, Airlangga introduced the Digital Economic Framework Agreement (DEFA) during Indonesia's ASEAN Chairmanship in 2023. DEFA is a strategic step to boost ASEAN’s economy through improved IT Infrastructure.

The Government has also established a task force to accelerate the development of the semiconductor ecosystem in Indonesia. Soon, Indonesia will expand its local Assembly, Testing, & Packaging (ATP) capacity and develop a highly skilled workforce that is aligned with IT Infrastructure needs.

“Every AI and semiconductor development requires the support of numerous people. Therefore, this technological progress will create many job opportunities in various areas within IT Infrastructure,” Airlangga concluded.

Key attendees of the event included Deputy III of the Coordinating Ministry for Economic Affairs, Elen Setiadi, Deputy V of the Coordinating Ministry for Economic Affairs, Ali Murtopo Simbolon, Acting Secretary General of the National Council for Special Economic Zones Rizal Edwin Manansang, Special Staff of the Coordinating Minister for Economic Affairs Reza Yamora Siregar, Assistant to the Coordinating Minister for Economic Affairs Raden Pardede and Hammam Riza, Spokesperson for the Coordinating Ministry for Economic Affairs Haryo Limanseto, Vice Chair III of the National Council for Special Economic Zones Budi Santoso, CEO of PT Bali Turtle Island Development Sri Indrastuti Hadiputranto, President of UID Tantowi Yahya, Professor Stella Christie from the Tsinghua Laboratory of Brain and Intelligence, and Secretary General of PII Bambang Goeritno.

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