The Indonesian government officially launched the roadmap called “Making Indonesia 4.0” earlier this week. Industry 4.0 is a term that refers to the fourth industrial revolution in manufacturing and industry. It includes major innovations in the digital technology, biology and hardware automations, and also implies that cyber-physical systems can make their own basic decisions, hence becoming increasingly self-ruling.
Industry 4.0 is supported by five key technological advances: Internet of things, artificial intelligence, human-machine interface, robot and sensor technology, and 3D printing.
The world is now experiencing Industry 4.0 and therefore Indonesia needs to be well prepared to join the new trend. Industry 4.0 is expected to result in very rapid and wide transformations. As such, countries, including Indonesia, need to be ready.
Widodo is enthusiastic about Industry 4.0 and is optimistic that the transformation will lead to more jobs – rather than job shedding – on the Indonesian market. Moreover, he regards Industry 4.0 as an opportunity for Indonesia to enter the top ten of biggest global economies by 2030 as it should lead to a boost in exports. Furthermore, Widodo emphasized the importance of safeguarding inclusive economic growth, shared by all portions of society.
Per Wednesday (04/04) the “Making Indonesia 4.0” roadmap, which is led by the Industry Ministry, is an important element on the national agenda. Therefore, all sides have to support this roadmap and contribute to a more successful and developed nation.
Industry Minister Hartarto said it will be key to encourage added value and high-technology downstream industries to become a competitive player in the new global context. In order to turn Indonesia into a competitive nation, it will require the development and integration of connectivity, technology, information and communication. This should lead to a more efficient economy as well as higher quality output in the industry sector.
In the “Making Indonesia 4.0” roadmap five sectors are named priority sectors: food and drinks, automotive, textile, electronics, and chemicals. These five sectors are all key sectors in the world economy and Indonesia should become among the leading global players in these sectors. As such, these sectors are envisaged to boost the country’s exports in the future and cause a thriving role of the manufacturing sector towards Indonesia’s gross domestic product (GDP).
The design of the “Making Indonesia 4.0” roadmap involved stakeholders from various segments, including the government, industry players, industry associations, tech companies, as well as research and educational organizations. The commitments and efforts of all sides involved is required to turn the roadmap into a success.
Hartarto expects to see quick results. If successful, then the roadmap will boost the real economy of Indonesia by between 1 – 2 percent. Hence, in the period 2018-2030 Indonesia’s GDP growth rates should be at least 6-7 percent per year. Meanwhile, the manufacturing industry is targeted to contribute between 21-26 percent to the nation’s GDP by 2030. Meanwhile, on the back of the thriving manufacturing industry and export performance, job creation through the roadmap is estimated at 7-19 million by 2030.
Indonesia’s roadmap also involves ten cross-sectoral national initiatives:
(1) improve the flow of goods
(2) develop a roadmap for comprehensive and cross-sectoral industrial zones
(3) improve sustainability standards
(4) empower the small and medium-sized entrepreneurs
(5) build national, digital infrastructure
(6) attract foreign investment
(7) boost the quality of local human resources
(8) boost the development of ecosystem innovation
(9) design incentives for investment in technology
(10) harmonize regulations and policies
(2) develop a roadmap for comprehensive and cross-sectoral industrial zones
(3) improve sustainability standards
(4) empower the small and medium-sized entrepreneurs
(5) build national, digital infrastructure
(6) attract foreign investment
(7) boost the quality of local human resources
(8) boost the development of ecosystem innovation
(9) design incentives for investment in technology
(10) harmonize regulations and policies