C-Malign Exploitation Indonesia’s Critical Dual-use CHIPS | SFOP0009541

Opportunity Information: Apply for SFOP0009541

The grant opportunity titled "C-Malign Exploitation Indonesia's Critical Dual-use CHIPS" (Funding Opportunity Number SFOP0009541) is a U.S. Department of State initiative run through the Bureau of International Security and Nonproliferation. It was posted on March 17, 2023, with an original application deadline of April 17, 2023. The Department is offering support through a cooperative agreement, which usually means the government expects to stay actively involved during the project rather than simply issuing funds and stepping back. The program sits under CFDA 19.901 and is categorized under a nonstandard activity label listed as "Other," suggesting it cuts across typical program buckets and is focused on a specialized nonproliferation capacity-building aim.

At its core, the opportunity is designed to strengthen nonproliferation outcomes in Indonesia by addressing a modern pathway for proliferation risk: the intersection of foreign investment, advanced technology supply chains, and trade governance. The title highlights "critical dual-use CHIPS," which points to technologies and components that can be used for legitimate civilian purposes but may also be repurposed to support sensitive military capabilities or weapons-related programs. In practical terms, dual-use chips and related semiconductor ecosystem inputs can be relevant to high-performance computing, advanced communications, sensing, aerospace applications, and other areas where commercial and defense uses overlap. The concern implied by the "malign exploitation" framing is that certain foreign actors could use investment deals, joint ventures, supply-chain partnerships, or technology transfers to gain access to sensitive know-how, manufacturing capabilities, or strategic infrastructure in ways that undermine global nonproliferation objectives.

The opportunity sets out two main lines of effort. The first is to improve understanding in Indonesia of why foreign direct investment screening matters and how it works in practice. FDI screening, in this context, refers to the policy and institutional tools governments use to review inbound investments for national security and strategic risks, including risks tied to sensitive technologies, critical infrastructure, and potential technology diversion. The grant is aimed at building familiarity with the mechanics of screening systems: what triggers a review, what information is collected, how risks are assessed, what mitigation measures can be imposed, and how agencies coordinate to make decisions that balance economic openness with security concerns. A key emphasis is mitigating "malign and exploitative investment activities," meaning investments that may be structured to obscure beneficial ownership, pressure local partners into unfavorable technology-sharing arrangements, create dependency in critical sectors, or enable access to restricted items and expertise through commercial channels.

The second line of effort is to help build and socialize a body of empirical research on the economic effects of adopting strategic trade controls (STCs). Strategic trade controls generally include export controls, import/transit controls, end-use and end-user controls, licensing systems, catch-all provisions, compliance expectations for industry, and enforcement mechanisms intended to prevent the illicit transfer of sensitive goods, software, and technology. Countries sometimes face domestic skepticism about STCs because of concerns they could slow trade, raise compliance costs, or reduce competitiveness. This grant is explicitly interested in empirical research that examines the economic impacts associated with adopting STCs, with the goal of grounding policy debates in evidence rather than assumptions. The word "socialize" signals that the program is not only about producing research, but also about disseminating it to relevant stakeholders, such as government ministries, regulators, legislators, industry associations, academia, and civil society, so the findings can inform public discussion and policy design.

Funding details indicate a total award ceiling of up to $900,000, with an expectation of making two awards. That suggests the program may support either two separate project teams or two complementary projects that together cover training, research, convenings, and outreach. Because the instrument is a cooperative agreement, awardees should generally anticipate ongoing coordination with the Department of State during implementation, such as alignment on workplans, deliverables, stakeholder engagement, and potentially iterative adjustments based on findings and on-the-ground realities.

Eligibility is listed broadly as "Others," with additional eligibility details referenced outside the excerpt provided. In many State Department nonproliferation-related opportunities, eligible applicants can include nonprofits, think tanks, universities, research organizations, and sometimes for-profit entities depending on the specific program language, though the exact limitations would be defined in the full notice. The targeted geography is Indonesia, and the thematic focus is preventing proliferation-related exploitation of advanced, dual-use technology sectors by strengthening investment governance and trade control capacity, while simultaneously building an evidence base that addresses the economic trade-offs and benefits of stronger strategic trade controls.

In summary, this opportunity is essentially a capacity-building and research-and-outreach program meant to help Indonesia better protect sensitive, dual-use technology ecosystems from risky or predatory foreign investment practices, and to support the adoption and public acceptance of strategic trade controls by generating and widely sharing credible economic research. The intended end state is a stronger policy environment where Indonesia can continue to attract beneficial investment and grow high-tech sectors while reducing the risk that those same channels are used to enable proliferation or other national security threats.

• The Department of State, Bureau of International Security-Nonproliferation in the other (see text field entitled explanation of other category of funding activity for clarification) sector is offering a public funding opportunity titled "C-Malign Exploitation Indonesia’s Critical Dual-use CHIPS" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 19.901.
• This funding opportunity was created on Mar 17, 2023.
• Applicants must submit their applications by Apr 17, 2023. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Each selected applicant is eligible to receive up to $900,000.00 in funding.
• The number of recipients for this funding is limited to 2 candidate(s).
• Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).

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