Indonesia-US New Ties on Semiconductor is So-So Compared to Vietnam: Expert

Jayanty Nada Shofa
November 16, 2023 | 11:54 pm
SHARE
US President Joe Biden sits across from his Indonesian counterpart Joko "Jokowi" Widodo during a bilateral meeting at the White House on Nov. 13, 2023. (Photo Courtesy of Presidential Press Bureau)
US President Joe Biden sits across from his Indonesian counterpart Joko "Jokowi" Widodo during a bilateral meeting at the White House on Nov. 13, 2023. (Photo Courtesy of Presidential Press Bureau)

Jakarta. The semiconductor cooperation under Indonesia’s freshly announced “comprehensive strategic partnership” -- also known as the CSP -- with the US is so-so compared to that of fellow ASEAN member Vietnam, according to an expert.

President Joko “Jokowi” Widodo’s recent talks with his American counterpart Joe Biden at the White House saw the upgrade of US-Indonesia relations. The leaders agreed to elevate bilateral ties from a strategic partnership to a CSP, a few months after Vietnam achieved the same diplomatic status with the US.

Despite being hailed as a historic new phase in bilateral relations, the semiconductor-related initiatives under the upgraded Indonesia-US ties are not as concrete as what Hanoi is getting.

“We do see an intent to promote semiconductor cooperation between Indonesia and the US. However, the initiatives that the Vietnam-US CSP offers are far more concrete and specific compared to ours,” Muhammad Habib, an international relations researcher at the think-tank Centre for Strategic and International Studies (CSIS), told reporters in Jakarta on Thursday.

Advertisement

“As a case in point, the initiatives under the Vietnam-US CSP develop the semiconductor workforce. The US has also provided an initial seed funding for this,” Habib said.

A White House fact sheet on the Indonesia-US CSP status lays out both countries’ intent to create a “more resilient, secure, and sustainable” global semiconductor value chain. The partnership will begin with a review of Indonesia's current semiconductor system, regulatory framework, as well as workforce and infrastructure needs.

Washington says that it intends to partner with industry associations to lead US semiconductor company trade delegations to Indonesia. There is, however, no mention of funding nor any American semiconductor firm making an investment in the archipelagic country. 

This is in stark contrast with the White House fact sheet on the Vietnam-US CSP announcement in September. As part of the CSP, both countries announced comprehensive workforce development initiatives in Vietnam.

The partnership sees the US and Vietnam jointly developing hands-on teaching labs and training courses for semiconductor assembly, testing, and packaging. The US agreed to provide $2 million in initial seed funding to launch the initiatives, in conjunction with future support from the Vietnamese government and the private sector.

The CSP fact sheet also shows Vietnam being quite popular among American semiconductor makers, among others, Amkor Technology. The Arizona-based company inaugurated a $1.6 billion factory in Bac Ninh last month. California-based Synopsys is launching a semiconductor design and incubation center in partnership with Saigon Hi-Tech Park. Also, California-based Marvell plans to establish a semiconductor design center in Ho Chi Minh City, according to the White House fact sheet.

“We have yet to see similar initiatives [from American semiconductor manufacturers] in Indonesia,” Habib said.

Government data shows the US became the fifth largest foreign investor in Indonesia in the first nine months of 2023. American investment in Indonesia totaled $2.4 billion over the said period, just behind Japan (around $3.3 billion). 

Tags: Keywords:
SHARE

Related Articles


Business Apr 25, 2025 | 8:27 pm

Indonesia’s Deregulation Plan Not Only Meant for US Companies: Gov’t

Indonesia wants to make regulatory changes to cater to not just US companies, but also other businesses regardless of where they come from.
Business Apr 10, 2025 | 6:49 pm

Indonesia Calls Trump’s Tariff Pause ‘A Positive Signal’

In the meantime, Indonesia will continue to uphold negotiations in its approach to Trump's tariffs, deputy minister Dyah Roro Esti says.
Opinion Jan 30, 2025 | 5:29 pm

Navigating the Stormier Weather

While a second Trump presidency could create global trade disruptions, Indonesia can thrive by strengthening regional partnerships.
News Jan 14, 2025 | 7:58 am

Expect More Surprises from ‘Foreign Policy President’ Prabowo, Analyst Says

All stakeholders need to brace themselves for the consequences that may arise from Prabowo's foreign diplomacy surprises, Prabowo says.
News Jan 13, 2025 | 6:43 pm

Prabowo Should Try Convincing Trump to Revive the WTO

Expert says Prabowo needs to engage in some talks with Trump to revive WTO's body that is in charge of reviewing appeals.
Business Jan 13, 2025 | 2:09 pm

Indonesia Told to Urge BRICS to Let New Members Access NDB Loans

The New Development Bank or NDB's financing has not reached the non-founding members of BRICS so far.
Business Nov 28, 2024 | 9:57 am

Indonesia Can Benefit from US-China Trade War Amid Trump's Tariff Threats

Donald Trump has announced plans to increase the tariffs by an additional 10 percent on Chinese goods coming to the US.
News Nov 21, 2024 | 10:43 pm

US to Help Indonesia Boost Milk Production for Prabowo’s Free Meal Program

The US is also open to sharing its decades-long experience of feeding American students free or low-cost meals.
Tech Nov 20, 2024 | 11:37 am

Indonesia and US Strengthen Digital Cooperation with Focus on AI and Smart Cities

As part of this initiative, 12 US companies are scheduled to visit Jakarta, Denpasar, and Nusantara

The Latest


Lifestyle 1 hours ago

The Elderly, The Poor, and The Convert: The Chosen Few Answer the Call of Hajj

Poor, old, or newly converted—many Indonesians spend decades chasing the dream of Hajj. For some, 2025 is finally their moment
Business 2 hours ago

'Not in Our Name': Kadin Probes Alleged Intimidation in $1B Petrochemical Project

Kadin launches probe after viral video shows alleged extortion by local businessmen at Chandra Asri's $1 billion Cilegon project.
Lifestyle 3 hours ago

Review: ‘Final Destination Bloodlines’ Proves Why the Franchise Never Dies

Unlike its characters, "Final Destination" manages to cheat death even after all these years.
News 4 hours ago

Police Arrest 27 for Looting Palm Fruit from Central Kalimantan Plantation

In addition to looting, the suspects have burned a company security post and taken the firm’s security guards hostage, police said.
News 5 hours ago

Indonesia’s Top Islamic Body Rejects Proposal to Legalize Casinos

An MUI leader said the casino issue is not merely legal but deeply rooted in moral and spiritual values.
COPYRIGHT © 2025 JAKARTA GLOBE. ALL RIGHTS RESERVED