double-skinned crabsgood crabexellent crab

Indonesia, UK-Based Arm in Talks for $200 Million Project

Jayanty Nada Shofa
March 5, 2026 | 1:25 pm
SHARE
Danantara and Arm Limited sign framework agreement in London on Feb. 23, 2026. (Photo Courtesy of Presidential Press Bureau)
Danantara and Arm Limited sign framework agreement in London on Feb. 23, 2026. (Photo Courtesy of Presidential Press Bureau)

Jakarta. Indonesia and the UK-based semiconductor giant Arm are in talks for a $200 million project, according to a senior minister; however, the government still wishes to keep the timeline and technical details a secret.

Sovereign wealth fund Danantara and Arm recently agreed to train 15,000 Indonesian engineers in chip design.

Chief Economic Affairs Minister Airlangga Hartarto revealed on Thursday that Arm was keen on moving to the “next phase”. Negotiations are now underway for a new “special project” that will be separate from the earlier human capital development.

“We are still negotiating [with Arm]. That’s why we can’t disclose it,” Airlangga told reporters in Jakarta.

ADVERTISEMENT

The cooperation is worth "around $200 million”.

The Jakarta Globe asked Airlangga whether this meant Arm sought to help establish a foundry or semiconductor product manufacturing in Indonesia, something that the minister denied. 

Airlangga described Arm as “the brain that mainly deals with the software side” of semiconductor production. Arm licenses its architecture to other companies for chip development. His response hinted that the upcoming cooperation would be on the design aspect.

Even so, Indonesia had just secured US business deals on foundries, Airlangga said. The economic tsar was alluding to the multi-billion-dollar deals secured by Galang Bumi Industri, which operates an eco-industrial park in the Batam island. The agreements — involving the US-based Tynergy and Essence — revolve around the semiconductor manufacturing processes. Investments related to ingot wafer, wafer slicing, and fabrication are in the pipeline.

Developing a homegrown comprehensive semiconductor ecosystem has long been on Indonesia’s wishlist. 

US semiconductor firm Fairchild used to run an assembly, testing, and packaging facility in Indonesia decades ago. The company decided to relocate to close neighbor Malaysia in the 1980s following Jakarta’s ban on automation to protect labor. Indonesia at the time lacked the domestic capacity to sustain its foothold in the semiconductor industry after Fairchild’s exit, Airlangga said.

Tags: Keywords:
Google Add Investor.id as a preferred source on Google +
SHARE

Related Articles


Special Updates Aug 22, 2026 | 6:55 pm

Indonesia–EU Trade Deal Enters Final Stage as Government Prepares for Signing and Implementation

Indonesia-EU trade deal nears signing, with implementation targeted for early 2027 to boost market access and investment.
Business Aug 20, 2026 | 5:19 pm

Indonesians Keep $252 Billion in Gold ‘Under the Pillow’: Airlangga

Indonesian households hold an estimated 1,800 tons of gold worth $252 billion, offering huge potential for the country’s bullion market.
Business Aug 20, 2026 | 5:09 pm

Indonesia, Germany Eye Deeper Ties in Green Energy, Semiconductors

Indonesia and Germany are deepening cooperation in renewable energy, semiconductor supply chains and vocational education.
Special Updates Aug 20, 2026 | 4:27 pm

Indonesia Sets Out 2027 Economic Transformation Plan to Drive 8% Growth

Indonesia is accelerating downstreaming, investment and SOE reforms as it seeks new growth engines and targets 8% economic growth.
Business Aug 10, 2026 | 9:37 pm

Destry Nomination Ensures Smooth Transition at Bank Indonesia: Airlangga

Airlangga backs Destry Damayanti as BI governor, saying her experience at the central bank would ensure a smooth leadership transition.
Business Aug 10, 2026 | 11:47 am

Indonesia Reconsiders Hybrid Car Incentives as Sales Surge 45%

Hybrid sales jumped 45% in H1 2026, but the government says strong demand weakens the case for more incentives.
Business Aug 7, 2026 | 2:03 pm

Indonesia Expands Tax, Wage Incentives to Curb Layoffs

Indonesia is using tax incentives and government-funded internship wages to help companies retain workers amid layoffs.
Special Updates Jul 31, 2026 | 4:31 pm

How Indonesian Traditions Can Drive Local Economy

The Indonesian government sees opportunities in driving the local economy by preserving local traditions.
Business Jul 27, 2026 | 6:16 pm

Government Says Perry Warjiyo's Resignation Won't Disrupt Monetary Policy

The government says Bank Indonesia's policies and coordination will continue unchanged despite Perry Warjiyo's resignation.
Business Jul 23, 2026 | 10:01 pm

Gov't  to Launch International Financial Center in Jakarta Before Expanding to Bali

Indonesia will launch its international financial center in Jakarta before expanding the project to Bali within two to three years.

The Latest


News 5 hours ago

Court Hears of $5,000 Fee for Expedited Hajj Slots in 2023

A former Religious Affairs Ministry staffer testified that 181 pilgrims paid $5,000 each for expedited hajj departures in 2023.
News 6 hours ago

Five Journalists Reported Missing While Covering Anak Krakatau Eruption

Five journalists and two boat crew members are missing after losing contact while covering the Anak Krakatau eruption off Banten.
Business 7 hours ago

Trump Tariffs Cripple EU Firms’ Confidence in ASEAN

As many as 81% of the surveyed European businesses admit that the US tariffs had weakened their confidence in ASEAN.
Business 9 hours ago

Rupiah Strengthens to Rp17,632 on Reserve Boost

The rupiah rose 0.05% to Rp17,632 as higher foreign exchange reserves offset geopolitical risks and US inflation concerns.
Business 10 hours ago

Stocks Climb 1% as Indonesia’s Reserves, Airport Operations Recover

Indonesian stocks rose 1% as stronger foreign reserves and airport reopenings lifted domestic market sentiment.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED