Indonesia's Batang SEZ explores up to $56M tech deal with Axelera AI

Jakarta (ANTARA) - Industropolis Batang Special Economic Zone (SEZ) is exploring a potential partnership worth €20 million to €50 million (US$22.4 million to US$56 million) with European chip designer Axelera AI, although the estimated value does not represent a capital investment commitment.

The memorandum of understanding (MoU), signed in London, supports efforts to develop digital infrastructure and high-tech industries while promoting environmental sustainability, Industropolis Batang President Director Marfan Trihartiko said in a statement received on Thursday.

"When exploring partnerships, we must prioritize technologies that use energy and resources efficiently and deliver tangible benefits to industries and surrounding communities," Marfan said.

Under the MoU, the parties will explore the use of edge-computing accelerators, which process data close to its source, including production machinery and industrial sensors.

The technology under consideration uses air cooling and is designed for embedded computing, edge computing, and server applications, with an emphasis on energy efficiency.

The parties will also discuss supporting infrastructure, system integration, and potential opportunities in the semiconductor and electronic components industries. The zone estimates the indicative aggregate value of the potential cooperation at €20 million to €50 million over the 2027–2030 period.

The figure represents the potential value of technology, systems, and services that could be deployed in Indonesia, rather than a commitment to capital investment, the zone said.

"This MoU is a first step. We will proceed carefully and transparently at each stage, in accordance with applicable regulations," Marfan said.

The MoU remains exploratory, with any subsequent steps subject to further assessment and applicable regulations.

Marfan said the zone aims to develop an integrated industrial ecosystem capable of adapting to technological advances.

"Future Industrial City at Industropolis Batang is not just a production site, but an integrated and sustainable industrial ecosystem," he said.

The trade attaché at the Indonesian Embassy in The Hague facilitated the signing of the MoU. The parties first met at Trade Expo Indonesia 2026, where Industropolis Batang participated in Danareksa Industrial Park's joint marketing program.

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Translator: Indra AP, Rahmad Nasution
Editor: M Razi Rahman
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