Indonesia Has High Optimism Set Industry 4.0

Wed, 2019-03-06 (All day)

Indonesia is considered to be a country at the Asean level that has high optimism regarding the readiness of industrial implementation 4.0. This was reflected in the launch of the road map of Making Indonesia 4.0 in April last year and the application of industrial digitalization by a number of domestic manufacturing companies.


The Minister of Industry also said, based on McKinsey's research results, Indonesia ranked second as country with the highest optimism in implementing industry 4.0, which was 78%. Above Indonesia there is Vietnam at 79%, while under Indonesia it is occupied by Thailand, around 72%, Singapore 53%, Philippines 52% and Malaysia 38%.


McKinsey research also shows that industry 4.0 will have a significant impact on the manufacturing sector in Indonesia. For example, digitalization will encourage an increase of as much as USD150 billion in Indonesia's economic output in 2025. About a quarter of that figure, or valued at USD38 billion, is generated by the manufacturing sector.


To that end, in order to optimize performance of national manufacturing industry, efforts are needed to accelerate the application of digital technology. The technology is determinant of success in industrial adaptation 4.0, including the Internet of Things, Big Data, Cloud Computing, Artificial Intelligence, Mobility, Virtual and Augmented Reality, sensor systems and automation, and Virtual Branding.


Minister of Industry explained, industry 4.0 was a big leap in the manufacturing sector through maximum utilization of information and communication technology. Not only in terms of production, but also the entire value chain to achieve optimal efficiency so as to give birth to new digital-based business models.


In addition, added Airlangga, initiative 4.0 industry not only has tremendous potential in driving policy changes in the manufacturing sector, but also able to change various aspects of human civilization life.


Making Indonesia 4.0 has selected five manufacturing sectors that will be the pioneers in implementation of the digitalization era, namely food and beverage industry, textiles and clothing, automotive, chemical, and electronics. This manufacturing group was chosen because of its high contribution to the national economy, with contributions of up to 60 percent in GDP, export value, and employment.


The implementation of industry 4.0 will open up employment opportunities for up to 17 million people who are literate in digital technology, with a composition of 4.5 million from the manufacturing sector and 12.5 million from the supporting industries.


"In order to fulfill these HR competencies, we have to retraining skills for new jobs. This is in line with the wishes of President Joko Widodo, who this year focused on building quality human resources through massive vocational training and industrial education activities, with dual system concepts in vocational and polytechnic," he said.


Since 2017, the Ministry of Industry has launched a vocational education program that links and matches between SMK and industry. Until now, it has reached Java, Sumatra, Kalimantan to Sulawesi by cooperating with 2,074 SMKs and 745 companies involving more than 441,800 students.


In addition, a competency-based industry training program with a 3 in 1 system (training, certification and work placement) is held that is targeted at capturing 72,000 participants in 2019. Then a Diploma I program which graduates are immediately absorbed working in the industry with a target of 600 college student.

Source :


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