“Making Indonesia 4.0”


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Fri, 6 Apr. 2018

    Indonesia Investments

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 supported by five key technological advances: internet of things, artificial intelligence, human-machine interface, robot and sensor technology, and 3D printing.

President 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.

Indonesian 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. Hartarto expects to see quick results. If successful, 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.

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