November 30, 2020

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Indonesia’s manufacturing sector must leverage digital technology to boost productivity

Indonesia’s Ministry of Industry believes digital technology, such as cloud computing and the Internet of Things (IoT) is it is critical to boosting the productivity of the manufacturing sector, including small and medium industries (IKM) during the pandemic and the new normal thereafter. Such tech deployment would be in accordance with the Making Indonesia 4.0 roadmap.

Director-General of Small, Medium and Miscellaneous Industries (IKMA) of the Ministry of Industry, Gati Wibawaningsih in Jakarta acknowledged that the pandemic had become a global issue for business, especially with the necessary social restrictions. Implementation of distancing normas has caused a shift in lifestyle, work models and business methodology.

In order to reduce the impact of the pandemic, the Ministry of Industry is looking at ways to maintain the activities of domestic business actors by utilising Cloud Computing and IoT based technology platforms. According to Gati, the development of digital technology has led to the creation of many breakthroughs for the manufacturing industry.

The advantages of these two technologies are considered useful in maintaining the business continuity of the IKM sector. Gati conceded that such technology would have a big impact on the SME sector business, especially during this pandemic.

The benefits of using cloud computing range from digital security to network, data centres and capable servers. Additionally, the use of IoT systems will easily interconnect technology, information and communication.

To accelerate the adoption of digital technology in the industrial sector, Gati urged cloud computing and IoT technology providers to support the production process more. This collaboration would be essential to form a solution ecosystem that would bridge the needs of industry and society.

Sutedjo Tjahjadi, Managing Director a cloud business, said the technology makes work very practical and does not need to use large infrastructure; cloud computing can also minimise company expenses. In a digital era, computers are increasingly touching all of our lives, especially during this pandemic and moving online is a critical strategy that must be carried out continuously in future as well.

In line with these trends, the Ministry of Industry launched the Startup4Industry program that would bridge the needs of industry with startup players as technology providers. This program was launched by the Minister of Industry, Agus Gumiwang Kartasasmita under the umbrella of Indonesia Is Confident With Domestic Technology.

The Startup4 Industry program Directorate-General of IKMA of the Ministry of Industry, Endang Suwartini, said that the development of immersive technology needs the government’s attention because it is proven to be able to create new jobs and make the industry more efficient. For example, using Augmented Reality and Virtual Reality (AR / VR) during this pandemic has increased, initially being used for gaming has been effectively deployed for industry, education, training and tourism.

“The growing development of the AR/VR industry will encourage the electronics industry in Indonesia to start developing research and development for hardware development,” said Endang.

The Chair of the Indonesian AR/VR Association (INVRA), Andes Rizky, agreed this was the time for the Indonesian AR/VR industry to take grow and develop exponentially. Immersive technology as a new business field is recognised by the government through the publication of the 2020 Indonesian Standard Business Classification (KBLI) giving it formal legitimacy and a regulatory framework.

OpenGov Asia recently reported on the accelerated digital transformation of Indonesia’s Industry 4.0. The increased pace is being driven by efforts to increase productivity, efficiency and safety to adapt to the new normal brought about by the pandemic.