Making Indonesia 4.0: Entering the global digital competition

Indonesia
Screen Shot 2018-04-09 at 17.10.53(Source: Jokowi via Twitter)

Indonesia is committed to building a global competitive manufacturing industry through accelerating the implementation of Industry 4.0. This is marked by the launch of Making Indonesia 4.0 as a road map and Indonesia’s strategy to enter the current digital era.

“Increasing value added is the key to compete and win the competition in today’s global competition,” said Minister of Industry Airlangga Hartarto at the launch of Making Indonesia 4.0 as part of a series of Indonesia Industrial Summit 2018 events in Jakarta on April 4, 2018.

To that end, the national industry requires connectivity and interaction through integrated technologies, information and communications which can be utilized throughout the manufacturing value chain to achieve efficiency and product quality improvement.

The minister then explained that Making Indonesia 4.0 provides a clear direction for future national industry movement, including focusing on developing five manufacturing sectors that will be piloted and running 10 national initiatives in order to strengthen Indonesia’s industrial structure.

Screen Shot 2018-04-09 at 17.06.59 copy“I believe that the 4th industrial revolution will open the market for more jobs”  (Source: Indonesian Secretariat via Twitter)

“The compilation of this roadmap has involved various stakeholders, ranging from government institutions, industry associations, business actors, technology providers, as well as research and education institutions,” he said. Airlangga also believes, through the commitment and active participation of all parties, the implementation of Industry 4.0 in Indonesia will run successfully and on target.

“Successful implementation of Making Indonesia 4.0 will be able to drive real GDP growth of 1-2 percent per year, so that annual GDP growth will rise from baseline by 5 percent to 6-7 percent in 2018-2030 period,” he said. From that achievement, the manufacturing industry will contribute 21-26 percent to the nation’s GDP by 2030.

Furthermore, GDP growth will be driven by a significant increase in net exports, where Indonesia is estimated to reach 5-10 percent of the ratio of net exports to GDP by 2030. In addition to the increase in productivity, Making Indonesia 4.0 promises opening employment of 7-19 million people, in both manufacturing and non-manufacturing sectors by 2030 as a result of greater demand for exports.

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