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Industrial Revolution: Making Indonesia 4.0

January 18, 2020

As we know that in 2018, President Joko Widodo has launched the Indonesian road map as a national
agenda to implement Industry 4.0. It is hoped that with this road map there will be a direction for the
development of industry in Indonesia as a developed country.

For additional information President Jokowi has launched Making Indonesia 4.0 road map on Wednesday
morning (April 3, 2018) in conjunction with the opening of the 2018 Indonesia Industrial Summit at
the Jakarta Convention Center, Senayan, Central Jakarta. The coordinator of this program is none
other than the Ministry of Industry and other institutions, local governments, businesses supporting
this program and working together carrying out their respective duties.

The focus of “Making Indonesia 4.0” is the food and beverage, textile and clothing, electronics,
automotive and chemical industries. Besides Indonesia, several countries in Asia are also ready with
their own strategies to make an industrial leap (leapfrog) to Industry 4.0 such as South Korea,
Thailand, Vietnam, Malaysia, and Singapore.

Based on the results of McKinsey research, Indonesia ranks second as the country with the highest
optimism in implementing industry 4.0, which is 78%. Above Indonesia, Vietnam is 79%, while
under Indonesia, Thailand is around 72%, Singapore 53%, the Philippines 52% and Malaysia 38%.

In addition, the government also has an agenda in the form of opening ten million new jobs in 2030
where in that year, it is expected that Indonesia has successfully applied industry 4.0 and competed
with other countries. Besides that, Ministry of Industry has produced a strategic policy in the effort to
implement the road map program.

Strategic Policy from Ministry of Industry:

First, improve the quality of human resources by overhauling the education curriculum by
emphasizing more on STEAM (Science, Technology, Engineering, the Arts, and Mathematics).

Second, building a national digital infrastructure including high-speed internet, and digital capabilities
in collaboration with government, public, and private sector to encourage collaboration between industry players.

Third, involving foreign investors to close the technology gap and encourage technology transfer to
local companies.

Fourth, strengthening local production by improving the flow of goods and materials nationally and
developing material sourcing strategies.

Fifth, accommodate sustainability standards by identifying technology applications and green growth
opportunities, and promoting a conducive environment (regulations, taxes, and subsidies) for
environmentally friendly investments.

With several policies set by the government, we hope that Making Indonesia 4.0 can run smoothly so that Indonesia can compete with other developed countries.

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