February 25, 2024

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Empowering Indonesia’s Digital Industry

Over the past decade, digitisation has emerged as a dominant global trend, and future projections indicate that it will continue to be a significant driver of global economic growth, including in Indonesia. Hence, digital transformation has become an urgent necessity for the national manufacturing industry as a crucial effort to enhance efficiency and stimulate technological innovation, thereby boosting competitiveness on the global stage.

Image credits: kominfo.go.id

“In the context of Indonesia, it is important to acknowledge that digital industry players have experienced significant growth, in line with the ‘Making Indonesia 4.0’ initiative continuously advocated by the government. Moreover, digital and electronic products manufactured in Indonesia have been improving in quality, enabling them to compete effectively in the global market,” emphasised Taufiek Bawazier, the Director-General of Metal, Machinery, Transportation Equipment, and Electronics Industry (ILMATE) at the Ministry of Industry.

The ‘Making Indonesia 4.0’ initiative, driven by the government, has played a vital role in propelling this digital transformation, creating abundant opportunities for Indonesian companies to engage in the digital industry and participate in an increasingly digitally interconnected global economy. In this context, more industry players in Indonesia have begun to understand the importance of digital transformation, investing in technology and innovation. They realise that to compete in a complex global market, companies must harness digital technology and continue innovating.

However, digital transformation poses several challenges, such as the increased demand for skilled labour in technology, data protection and privacy, and cybersecurity. Therefore, while promoting digital transformation, it is also essential to address these challenges effectively to allow both the public and industry players to reap the maximum benefits of this change.

To introduce the capabilities of Indonesia’s digital and electronic industry to a broader international audience and expand their market access, the Ministry of Industry facilitated the participation of six digital and electronic industrial manufacturers in the Electronic Exhibition in Hong Kong.

This initiative aims to assist manufacturers in extending their reach and promoting their products to the international community. By participating in this exhibition, Indonesian manufacturers can showcase the quality and innovative potential of domestically produced electronic and digital products in an increasingly digitally interconnected global market. This also serves as an effort to support national industrial growth and strengthen Indonesia’s position in the worldwide economy.

Yan Sibarang Tandiele, Secretary of the Directorate General of Metal, Machinery, Transportation Equipment, and Electronics Industry (ILMATE), explained, “We have sent six representatives from the domestic electronic and digital industry to this exhibition, not only for promotional purposes but also with the goal of opening up new opportunities for collaboration and investment.” This effort reflects the commitment to establish collaborative relationships and explore investment opportunities that can strengthen the position of Indonesia’s digital and electronic industry on the international stage.

The Ministry of Industry has also actively promoted investment through a series of activities related to the Hong Kong Electronics Fair (Autumn Edition). In this endeavour, the Ministry of Industry has explained government investment policies. Several fiscal policies have been formulated to encourage investment in this sector, including tax holidays, tax allowances, and super tax deductions. All these policies are designed to stimulate investment technology mastery and strengthen the industrial structure that supports industrial companies meeting the requirements and criteria set forth.

Yan further explained, “On the other hand, the non-fiscal policies given to industrial companies also include facilitating the participation of industrial companies in international exhibitions.” Through the implementation of these policies, it is expected that the domestic electronics and telematics industry will experience significant strengthening and empowerment.

These measures are also seen as a critical strategy to enhance domestic industry capacity. Furthermore, these steps can create economic balance and help reduce the trade deficit that the electronics and digital industries have previously caused. All these efforts are aimed at strengthening Indonesia’s position in the electronics and telematics industry at the global level.


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