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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.


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