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Industry 4.0 initiatives further Indonesia’s global competitiveness

Photo Credit: Ministry of Industry

Recent findings have shown that Indonesian companies, which have implemented Industry 4.0 technologies, experienced a 40% increase in productivity and efficiency.

As reported, this had strengthened the determination of Indonesia’s Ministry of Industry to continue inviting all manufacturing sectors in the country to also implement the digital era technologies.

In a message at the closing of the Indonesia Industrial Summit 2019, Minister of Industry Airlangga Hartarto explained that an increase in a company’s profitability would entail an increase in the government’s profitability as well, thanks to the tax the companies are paying.

The Indonesian Government has done several initiatives to highlight the significance of Industry 4.0.

Industry 4.0 initiatives

It has implemented the Making Indonesia 4.0 roadmap, which was created to improve the competitiveness of the country’s national industries in the global arena.

OpenGov Asia earlier reported that Indonesia expects performance boost with Industry 4.0 and highlighted how the country aims to be one of the top 10 economic powers by 2030.

The Ministry of Industry, moreover, launched INDI 4.0 in line with their implementation of the Making Indonesia 4.0 roadmap.

In an earlier report, OpenGov Asia narrated about INDI 4.0, which is an assessment indicator to measure Indonesia’s Industry 4.0 readiness.

The Indonesia Industry 4.0 Readiness Index is the benchmark index that will be used by the government and the industry in measuring the country’s level of readiness towards the Fourth Industrial Revolution.

The average assessment result from 326 participating industries is favourable and showed that the industries are quite ready.

Another initiative was recently done by the Ministry. The Ministry of Industry entered into a Memorandum of Understanding (MoU) with Fraunhofer Germany and the National Research Centre in South Korea.

This aims to elevate Indonesia’s industry players so that they can compete with other countries.

Another key initiative being planned by the Ministry is to build an innovation centre, to be done in collaboration with technology providers, software providers and industries that are prepared to become pioneers.

This will be similar to the digital capability centre established in Singapore, wherein around 20 Indonesian companies are members.

The Minister proceeded with highlighting four critical things in the implementation of Industry 4.0. These are:

  1. The use of technology
  2. Investment to support the availability of technology
  3. Improved education to provide re-training for the country’s human resources
  4. Innovation

The Partner Country Concept

Indonesia, meanwhile, is the official partner country of the Hannover Messe 2020, which is the world’s leading tradeshow for industrial technology.

The tradeshow spotlights a selected country every year, allowing this country to draw the attention of visitors and the media.

As partner country, the Making Indonesia 4.0 roadmap will be introduced to the world. It will also open doors for Indonesia as it seeks investments in order to upgrade manufacturing capabilities and develop a digital infrastructure.

In addition, the Minister hopes that as partner country, Indonesia will be able to accelerate technology adoption as well as open opportunities for the utilisation of the Internet of Things (IoT) in order to improve the domestic electronics industry.

OpenGov Asia earlier reported that IoT tops Indonesia’s priority for Industrial Revolution 4.0.

It will be one of the backbones of the adoption of Industrial Revolution 4.0 in Indonesia and is considered to be ‘The Next Big Thing’ in the telecommunications industry.

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