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Indonesia: digital infrastructure key to attract investment and drive Industry 4.0

Image credit: kemenperin.go.id

Implementation of Industry 4.0 is one of the pillars that Indonesia is building its national strategy on to stimulate domestic manufacturing sector activity, especially in the post-COVID era. Per the Making Indonesia 4.0 initiative, the industrial sector been strongly encouraged to aggressively explore, adopt and deploy technology to further increase efficiency and effectiveness.

“Currently, more and more large and medium scale industries in the country are preparing strategies to adopt digital technology to enter the industrial era 4.0,” said Doddy Rahadi, Head of the Industrial Research and Development Agency (BPPI) of the Ministry of Industry.

According to Doddy, the transformation into an Industry 4.0 environment is a good indicator of the development of the industrial sector, and to accelerate it, support from all relevant stakeholders is the need of the hour.

Minister of Industry Agus Gumiwang Kartasasmita said that the Making Indonesia 4.0 initiative supports industrial companies in adjusting to current conditions. Moreover, during the Covid-19 pandemic, the application of industry 4.0 can facilitate the industry in carrying out health protocols.  “By carrying out digitalisation, companies can manage their work processes and human resources and remain productive,” said Agus.

Importantly, the existence of sound digital infrastructure plays a vital part in attracting investors to explore setting up industries in Indonesia. Therefore, industrial estate management and development companies must incorporate digital infrastructure and facilities that support technological adoption in this digital era. The strategy must be to provide smart factory manufacturing services for investors who want to build factories in the region by applying the industry 4.0 concept.

Director of PT. Jababeka Tbk, Hyanto Wihadhi said, with a breakthrough from the government through the launch of the Making Indonesia 4.0 road map, it is hoped that the application of industrial technology 4.0 can run optimally.

He opined that industrial technology 4.0 provides easy digital access in real-time and increases the productivity and quality of products produced by companies that invest in such facilities. Currently, the Ministry of Industry is actively coordinating and building cooperation networks between stakeholders to accelerate the transformation of industry 4.0.

In this case, the Ministry of Industry has initiated an industrial ecosystem 4.0 called the Indonesian Ecosystem 4.0 (SINDI 4.0). It is designed to be a forum for synergy and collaboration between government, regional companies, industry players, academics and R & D institutions, technical providers, consultants and financial institutions.

The Ministry of Industry continues to strive to maintain the performance of the manufacturing sector which is starting to see a rise despite the impact of the pandemic. The ministry is working hard to encourage national economic recovery.

“Therefore, we will ensure that industrial activities can run well by implementing strict health protocols,” said the Ministry of Industry’s Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE), Taufiek Bawazier.

The most basic of these national upgrades is connectivity that includes the availability of fibre optic networks and broadband capability across facilities. Recently OpenGov Asia reported on how the Ministry of Information and Communication (Kemkominfo) is keen to drive education, innovation and the economy through tech-enabled initiatives. One way is by implementing the Free Indonesia Signal 2020 movement across the nation.

One of the four priority programmes of the ministry is broadband connectivity. The ministry believes broadband is an enabler of economic change and improvement of social welfare and has an important role in creating the conditions for sustainable economic growth and improving people’s welfare.

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