Indonesia, India Partner to Build Global Electronics Hub

• Indonesia moves from raw minerals to semiconductors, AI, and capital goods with India
• Silica sand plus Tata Electronics and Netweb Technologies support a national chip ecosystem
• Energy efficiency, tech transfer, and resilient supply chains for global electronics hub positioning

Indonesia has established a strategic partnership with India to accelerate its down streaming program by focusing on metal production, semiconductor development and artificial intelligence systems.

The initiative establishes a full transition from raw mineral export activities to the creation of advanced capital equipment and microchip technology.

The domestic development of industrial equipment will serve as the main focus for the ESDM Deputy Minister Yuliot Tanjung's partnership. The partnership centers on Indonesia's extensive silica sand reserves, which serve as a vital resource for producing silicon wafers used in semiconductor manufacturing.

Deputy Minister of Communication and Digital Affairs Nezar Patria emphasized how mineral resources serve as a crucial component to establish a national chip manufacturing ecosystem.

Indonesia is currently collaborating with important Indian businesses, which include Tata Electronics, which operates India's first semiconductor assembly, testing facility and Netweb Technologies, which specializes in artificial intelligence-based servers and high-performance computing systems.

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The partnership was formalized during a meeting between Yuliot and India’s Ministry of Steel Secretary General Sandeep Poundrik.

The upcoming MoU will establish energy efficiency standards, which will link technology transfer through engineering training programs and supply chain resilience for processed metals between Southeast Asia and South Asia.

"India is expected to submit a draft MoU shortly, after which we will coordinate with the Ministry of Foreign Affairs for formal signing," Yuliot stated.

The partnership between the two countries operates as a strategic "China Plus One" initiative, which enables Indonesia to join India's "Make in India" program. Indonesia aims to establish itself as a secondary hub for global electronics supply chains by attracting high-tech foreign direct investment through its control of domestic mineral resources.