Indonesia Positions Silica Sand Reserves for Global Semiconductor Supply Chain

Indonesia aims to become a key player in the global semiconductor and artificial‑intelligence supply chains by leveraging its estimated 340 million tonnes of silica sand, a critical raw material for chip manufacturing. Deputy Minister of Communication and Digital Affairs Nezar Patria said the country must move beyond raw‑material extraction to downstream processing that adds higher‑value products, stressing that infrastructure and a skilled talent pool are essential for competitiveness.

Patria highlighted that nations controlling supply‑chain choke points gain greater influence, and that strategic policy choices today will shape who benefits from AI development in the future. The ministry plans to boost talent development and infrastructure to support a sovereign AI ecosystem and to secure Indonesia’s role in the rapidly evolving electronics industry.