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Indonesia 4.0: Accelerating Digital Readiness in the Manufacturing

The Indonesian government reaffirmed its unwavering commitment and confidence in embracing ongoing technological advancements occurring worldwide that will enable the nation to compete on a global scale and become a driving force in various industries. With robust government support and a resolute focus on digitalisation, combined with collaborative efforts, Indonesia is well-prepared to tackle future challenges head-on and realise its potential in the digital economy.

According to a study, Indonesia’s economic value surged to USD$77 billion or 53.1% in 2022, experiencing a substantial improvement of 3.70% (year over year) in 2021. Analyses predict that this value will increase to USD$130 billion by 2025. Considering these projections, the government is expediting the digital transformation within the manufacturing industry sector.

The Indonesian government has initiated the implementation of Making Indonesia 4.0, a roadmap designed to equip the country for the challenges and opportunities of the digital industrial era. The roadmap specifically targets seven crucial manufacturing sectors: food and beverage, textile and clothing, automotive, chemical, electronic, medical device, and pharmaceutical industries. These sectors play a pivotal role, contributing to 70% of the country’s industrial Gross Domestic Product (GDP), 65% of industrial exports, and employing 60% of Indonesia’s industrial workforce. The focus on these sectors ensures a comprehensive approach to enhance their digital readiness and maintain Indonesia’s industrial competitiveness in the digital era.

The Indonesian Digital Industry Centre PIDI 4.0, encompasses a comprehensive set of strategic programmes designed to propel the nation’s digital transformation. Among these, one revolves around the training and upskilling of human resources to effectively navigate the evolving landscape of Industry 4.0. With a keen focus on developing the necessary skills and competencies for Industry 4.0, this training programme has garnered significant attention, attracting the participation of thousands of individuals across the country.

In addition to the human resource development aspect, PIDI 4.0 also features a showcase of Industry 4.0 advancements. It serves as a platform to highlight the adoption and implementation of disruptive technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT) in various sectors. By showcasing these technologies, PIDI 4.0 aims to inspire and encourage industries to embrace the transformative potential of Industry 4.0, fostering innovation, efficiency, and competitiveness.

The centre recognises the importance of building a robust 4.0 ecosystem within Indonesia. This entails fostering collaboration among key stakeholders, including government institutions, industry players, research institutions, and educational establishments. By cultivating a collaborative ecosystem, PIDI 4.0 aims to drive synergy, knowledge sharing and co-creation, ultimately strengthening an environment conducive to successfully implementing Industry 4.0 technologies and practices in the country.

Through these multifaceted programs and initiatives, PIDI 4.0 strives to accelerate Indonesia’s digital transformation journey, positioning the nation at the forefront of Industry 4.0 advancements. By investing in human capital development, showcasing disruptive technologies, and nurturing a collaborative ecosystem, PIDI 4.0 endeavours to empower industries, drive economic growth, and ensure Indonesia’s readiness to seize the opportunities presented by the digital era.

The country is keenly aware that the accessibility and affordability of digital financial services need to be expanded to support digital economic and financial transformation related to post-pandemic recovery.

OpenGov Asia has earlier reported on the government’s plan to boost the digitalisation ecosystem, emphasising the digital economy and Indonesia’s financial competitiveness considering the ASEAN Economic Community. Digital infrastructure development was accelerated, pro-digital legislation and regulations were enacted (such as the Digital Indonesia Roadmap for 2021–2024), and attempts were made to improve citizens’ digital literacy and proficiency.

As part of its overall digital ambitions, the nation is also speeding up the incorporation of the Electronic-Based Government System (SPBE). A Presidential decree regarding this is currently being prepared, according to PANRB Minister Abdullah Azwar Anas. The rule is part of a larger initiative to speed up SPBE implementation.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

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CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

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Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

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HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

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IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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