THE MICROELECTRONICS INFRASTRUCTURE IN INDONESIA

Onno W. Purbo, F. Ihsan Hariadi and Mervin Hutabarat
Inter University Center on Microelectronics
Institute of Technology Bandung
Bandung 40132, INDONESIA
Tel: 62-22 250-6280
FAX: 62-22 250-5442
iuc-me@itbgtw.itb.ac.id

In this report, the microelectronics infrastructure as well as its potential market and research direction in Indonesia will be described. Telecommunication sector with investment in the order of US$ 0.6 billion by the year 2000 would be the most promising field for microelectronics industry as well as R&D in Indonesia. A significant effort and international collaborations have to be performed to produce qualified human resources needed to backup the development in the Indonesia's microelectronics industries.

INTRODUCTION
	Electronics and Microelectronics technology / infra-structure is relatively new in Indonesia as compared to other technology, such as, aero-space technology, which already has an established international level industrial and research infra-structure in the 80's. The current microelectronics infra-structure in Indonesia is in its infancy with probably a significant portion of research and development in telecommunication sector in the future. To add more added value into the microelectronics product in Indonesia, investment in human resource development should be significantly increased to meet the industrial demand.
	With the establishment of Inter University Center (IUC) on Microelectronics at ITB in 1986, the Indonesian is currently supported by three main research institutes in Microelectronics, namely,
  •	IUC Microelectronics at ITB.
  •	Indonesian Science Institute (LIPI).
  •	PT. LEN Industry.
	Especially the IUC Microelectronics at ITB is responsible for the development of human resources needed to enhance the Indonesia's microelectronics industries. International collaboration is required as the IUC Microelectronics at ITB has very limited staff members.
	In this report, the Indonesian electronics and microelectronics infrastructure will be described. It will be shown that telecommunication sector is the most promising sector in Indonesia. Subsequently, the capability as well as the direction of microelectronics research and development in Indonesia will be presented.

THE INDONESIAN ELECTRONICS AND MICROELECTRONICS INFRASTRUCTURE
	In 1993 [1], estimated number of industries in electronics is 295 companies, which consists of 78 companies in consumer electronics; 156 companies in industrial electronics (including telecommunication subsector); and 63 companies in electronics components. The total output of electronics industries in Indonesia is US$ 2 million with approximately US$ 1.2 million as export commodities. The Indonesian electronics industries absorb approximately 100.000 employee in 1993.
	Predicted by the Department of Industry (in March 1994) [1], in 1999, the estimated total output of electronics industry in Indonesia is approximately US$ 10 million with estimated export value of US$ 5 million. The estimated total additional human resource employed in electronics industries is 150.000 persons in the next five years. To achieve this goal, it is requires to put a significant investment in human resource development [1].
	Based on SRI report [2], table 1 shows the current capability of Indonesia's electronics industries, categorized into consumer electronics, industrial electronics (including telecommunication) and components. It shows that the consumer electronics, which basically an assembly plant with usually no research, have a significantly better capability than other sector. The condition in other sector is even worst; consequently, in these sectors, the Indonesian has to rely heavily on imported equipments and components.
	In contrast with other electronics sectors, business prospect in telecommunication sector is the most profitable in Indonesia [3]. Business in the Indonesian telecommunication sector is predictable with significant regulation and government intervention in the technological aspect as well as funding. As shown in Table 2, the amount of investment (in 5 years) in telecommunication industry is three orders of magnitude higher than the total output of domestics electronics industry. In other words, nearly all of the investment is actually go to foreign companies / suppliers. The Indonesian association on electronics telecommunication industry (AIETI) argues that by only committing 1% of the investment into R&D, the Indonesian can save approximately US$ 0.6 billion by the year 2000 [3]. Up to 1999, with a commitment of 1% of investment, we are looking at a potentially US$ 75 million for approx. 5 year R&D in telecommunication in Indonesia.

MICROELECTRONICS RESEARCH IN INDONESIA
	The leading microelectronics research institute in Indonesia is the IUC Microelectronics at ITB and the Indonesia Science Institute. In this report, we will focus on various microelectronics research at IUC Microelectronics ITB as well as review our major microelectronics facilities in Indonesia, which can be listed as follows:
  •	Laser direct writing (at 1 micron resolution) based on InterTech system (Burnaby, Canada) is one of our major technology with Gate Array based wafer for fast turn-around time microelectronics prototyping facility. One of the major research output using this facility is an analog IC for high speed modem for building our computer network in Indonesia.
  •	Full Custom IC Processing facility (at approx. 20 micron resolution) with Ion implant capability hosted in four class 10,000 clean rooms of 150 sq. meters each. Supported by HP-based instrumentations for device evaluation as well as SUPREM 3 & 4 and PISCES-2B simulators. It is currently used mainly for microelectronics sensors and microwave IC research. Integration with our microelectronics design facilities is currently underway.
  •	IC design facilities, with approximately 15 workstations running Berkeley, Stanford, RMIT, UNSW tools as well as commercial tools such as Mentor Graphics.
  •	Field programmable gate array (Xilinx's logic cell array) development system based on Microcomputer-based Electronic Design Station (MEDS) with Future-Net DASH LCA Software.
Major research as well as institutional development funding at IUC Microelectronics (1987-1991) was coming from the Government Development Budget at a rate of approx. US$200.000/year as shown in Table 3. Starting 1992, the IUC Microelectronics ITB has to be self-supporting and, thus, shown as increased expenditure from contract work. In 1994, the situation is much better with a commitment of at least US$400.000/year in research contract work and international collaborations, such as, AAECP (ASEAN-Australia Economic Cooperation Program). The major current research works are:
  •	In telecommunication and information technology
	  	Design and Implementation of Image Processor: a matching co-processor.
	  	Integrated Image Map and Position Detection Using GPS Satellite.
	  	Development of High-Speed Regional Packet Radio Computer Network.
	  	Design and Implementation Chip for Switching Matrix for Central Telephone.
	  	CD-ROM based multi-media information system.
	  	PCM Interface IC Design.
	  	Build & Launch Low Earth Orbit (LEO) Micro Satellite.
  •	In bio-medical electronics
	  	Computed Impedance Tomography.
  •	In IC Design, Processing and Instrumentation
	  	Design, Fabrication and Characterization of Semiconductor Devices for Power Electronics Application.
	  	Development of Thick Film Sensors.
	  	Microelectronics Instrumentation: Ultra Sonic Sensors using PVDF film for application in liquid, solid and transducer array.
	  	Reconfiguration for Wafer Scale Integration.
	  	Microwave Monolithic Integrated Circuits.
	  	Gate Array based 64Kbps MSK packet radio modem.
The large market in Indonesia's telecommunication has been reflected in the major research works at IUC Microelectronics as approx. half of the work is leaning towards telecommunication areas with heavy support from Analog and Microwave IC research group. The other half is spread among bio-medical electronics and microelectronics sensor research groups.

SUMMARY
	In this paper, the microelectronics infrastructure in Indonesia has been overviewed. With large investment in telecommunication industries, the microelectronics industries in Indonesia have to be able to penetrate its output into the telecommunication market. As shown, more than half of the research done in our institute is in telecommunication and information systems. The large potential work in the Indonesia requires a significant number of qualified human resources as well as international collaborations.

REFERENCES
[1]	Adriansyah Parman, "Development of electronics industry and science technology requirements," presented in national coordination meeting for research and technology XII, 22-24 May 1994.
[2]	Stanford Research Institute (SRI) International, Industrial restructuring of the electronics subsector in Indonesia, December 1992.
[3]	Krisnahadi S. Pribadi, "Electronics and Telecommunication Industry: contribution of research and technological development and self-supporting industry," presented in national coordination meeting for research and technology XII, 22-24 May 1994.
[4]	IUC Microelectronics, University Research for Graduate Education Proposal, IUC Microelectronics 1994.

Table 1.  Technological Capability of Indonesia's Electronics Industry [2]
Type of Technology	Consumer
Elec.	Business/
Industry	Components	
Production Technology				
• Layout placement	 4	 1	 3	
• Assembly capability	 3	 2	 3	
• Inventory Control	 3	 2	 2	
• Quality Control	 3	 1	 2	
• Productivity	 2	 1	 1	
Production Technology				
• Circuit design	 2	 1	 1	
• Mechanical design	 2	 1	 NA	
• Product testing	 2	 1	 NA	
• Product competitiveness	 3	 2	 NA	
	Marking Scheme 5=Perfect down to 1=Poor

Table 2. Projected Growth in Indonesia's Telecommunication Industry [3]
Year		1999	2004	2009	2014	2019	
population (Million)	185	206	225	245	265	285	
A. Minimum Growth (PT. Telkom)							
Penetration into population (%)	1.6	3.9	6.2	8.6	12.1	15.8	
Telecommunication capacity (Mil. Phone)	3.0	8.0	14.0	21.0	32.0	45.0	
Installation per 5 year (Mil. Phone)		5.0	6.0	7.0	11.0	13.0	
Investment (Mil. US$)		7,500	9,000	10,500	16,500	19,500	
Market for Telecom. Equip. (Mil. US$)		4,500	5,400	6,300	9,900	11,700	
B. With R&D and Local Industry (AIETI)							
R&D, 1% from Investment (Mil. US$)		75.0	90.0	105.0	165.0	195.0	
Market share of local industry (%)		20	35	45	55	65	
Market share of local industry (M. US$)		900	1,890	2,835	5,445	7,605	
Imported Telecom. Equip. & Comp. (M US$)		2,970	2,997	3,056	4,109	4,037	
Saving in resources (Mil. US$)		585	1,229	1,843	3,539	4,943	

Table 3. Recurrent Expenditures (Thousand US$) [4]
SOURCE OF INCOME	88/89	89/90	90/91	91/92	92/93	
Govt's Routine Budget	-	-	-	-	-	
Govt's Development Budget	196.02	286.26	204.83	181.79	30.62	
Contracts	-	-	-	20	55.5	
Donation	-	-	-	8.5	-	
Student's tuition and fees	-	-	-	-	7.2	
TOTAL	196.02	286.26	204.83	210.29	93.32