Prabowo Secures Landmark USD 4.89B Semiconductor Deal in Washington

Jakartaweekly.com – President Prabowo Subianto, accompanied by Coordinating Minister for Economic Affairs Airlangga Hartarto, witnessed the signing of a Phase 1 Joint Development Agreement (JDA) for the Semiconductor Ecosystem in Washington D.C. on Wednesday (Feb 18). The initial agreement is valued at USD 4.89 billion, with the potential for follow-up investments reaching USD 26.7 billion.

This agreement marks a concrete step for Indonesia to solidify its position in the global technology supply chain and accelerate its transition toward high-value industries.

A Strategic Repositioning in the Global Supply Chain

Minister Airlangga Hartarto emphasized that the JDA is more than just a financial injection; it is a vital part of Indonesia’s strategic repositioning within the global industrial architecture.

“We want to ensure that Indonesia becomes an integral part of the world’s semiconductor value chain, strengthening industrial independence and increasing our bargaining power in global supply,” Minister Airlangga stated.

The collaboration involves a National Strategic Project (PSN) managed by PT Galang Bumi Industri (GBI) as the Indonesian lead, alongside U.S.-based strategic technology partners Essence Global Group, LLC. and Tynergy Technology Corp.

5,000 High-Skilled Jobs and Technology Transfer

The investment is projected to create approximately 5,000 high-skilled jobs, focusing on critical fields such as engineering, wafer manufacturing, advanced material technology, and next-generation energy systems.

“Indonesia is no longer positioned merely as a technology market, but as a base for production and strategic technological development,” Airlangga explained. This move is expected to trigger a significant transfer of technology and enhance the capacity of Indonesia’s national human resources.