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Minister of Industry: Digital Transformation Boosts Industrial Productivity and Competitiveness

Minister of Industry: Digital Transformation Boosts Industrial Productivity and Competitiveness

The Industry 4.0 transformation brings many changes in economic activity, especially in adapting to digital technology. Accelerating digital transformation is also a strategy to make national manufacturing more productive and competitive, and more sustainable, flexible and efficient.

In 2018, the Ministry of Industry launched the Making Indonesia 4.0 roadmap to accelerate digital transformation in the country's manufacturing sector. The roadmap serves as a reference for industry players and policymakers in applying the Industry 4.0 concept, with the big target of Indonesia joining the world's 10 largest economies by 2030.

“Manufacturers play an important role in the national economy. Industry 4.0 transformation and implementation in manufacturing companies is believed to increase productivity, competitiveness, efficiency, value-added contribution and the sustainability of national industry,” Minister of Industry Agus Gumiwang Kartasasmita said in his remarks at the National Lighthouse Industry 4.0 Awards and the Soft Launch of Indonesia 4.0 Conference and Expo 2024 and Regional Cloud & Datacenter Congress 2024 in Jakarta on Wednesday (21/2).

The Minister stressed that applying Industry 4.0 technology can deliver positive financial, operational and technological impacts. “The most important component in digital transformation is awareness of the benefits of using digital tools; it is not just about the ability to adopt technology, but must go hand in hand with a change in digital mindset,” he said.

In line with accelerating Industry 4.0 transformation in Indonesian manufacturing, Kemenperin has run the National Lighthouse Industry 4.0 program since 2019. Manufacturers designated as National Lighthouse Industry 4.0 are selected because they can be a role model for other manufacturers in Industry 4.0 transformation and implementation.

“From 2019 to 2022, 14 companies were designated as National Lighthouse Industry 4.0,” the Head of the Agency for Industrial Standardization and Services Policy (BSKJI), Andi Rizaldi, said. As National Lighthouses, these companies are expected to actively engage in knowledge sharing and serve as training sites for other companies.

“These companies can act as a lighthouse to guide other industries in accelerating the implementation of Industry 4.0 technology and overcoming challenges in improving their production systems,” Andi added.

Therefore, the more manufacturers are designated as National Lighthouse Industry 4.0, the more other companies will be spurred to learn from best practices in adapting to the latest technology. The companies that learn can then start adopting Industry 4.0 technology to boost their competitiveness and business continuity.

The National Lighthouse Industry 4.0 selection ran from mid-2023 to January 2024 in several stages, including evaluation, assessment and designation. It involved representatives from government, universities or academics, associations, technology providers and companies previously designated as Lighthouse Industry 4.0.

Becoming a role model

On this occasion, the Minister, accompanied by the Head of BSKJI, presented the Lighthouse Industry 4.0 in Indonesia certificate to 15 companies that completed all selection stages and were designated as National Lighthouse Industry 4.0.

The 15 companies are PT Tirta Investama (Pandaan and Banyuwangi Plants), PT Gelora Djaja, PT Pupuk Indonesia (Persero), PT Petrokimia Gresik, PT Pupuk Sriwidjaja Palembang, PT Chandra Asri Pacific Tbk, PT Kalbe Farma Tbk, PT Paragon Technology and Innovation and PT Semen Tonasa.

They also include PT Solusi Bangun Indonesia Tbk, PT Pancaprima Ekabrothers, PT Toyota Motor Manufacturing Indonesia (Plant 3: Engine Plant), PT Astra Komponen Indonesia, PT Hartono Istana Teknologi (Kudus Factory) and PT Yamaha Electronics Manufacturing Indonesia.

“These companies deserve to be role models for industry players in their respective sectors and can be the government's dialogue partners in implementing Industry 4.0 in Indonesia,” the Minister explained. This exceeds the Minister's earlier target of adding five National Lighthouse Industry 4.0 companies in Indonesia in 2024.

In 2019, two companies in Indonesia obtained Global Lighthouse Network status from the World Economic Forum (WEF) and became global references for Industry 4.0 transformation: PT Schneider Electric Manufacturing Batam and PT Petrosea Tbk.

In early 2024, three companies are taking part in the selection for the WEF Global Lighthouse Network wave 12: PT Akebono Brake Astra Indonesia, PT Astra Honda Motor and PT Pupuk Kalimantan Timur. All three were previously designated as National Lighthouse Industry 4.0.

The Minister urged these candidate companies to prepare as well as possible and in a measured way. “We must keep up our enthusiasm and not be complacent. Compared with the 153 industrial companies in the Global Lighthouse Network, what domestic industries have achieved is already quite good,” he said.

On the same occasion, the Minister, with the Head of BSKJI, the CEO of Naganaya Indonesia, Aditya Adiguna, and the Chair of the Indonesian Digital Transformation Council (WANTRII), Fadli Hamsani, soft-launched the Indonesia 4.0 Conference & Expo 2024 with the theme “Together Towards Sustainability”, which is highly relevant to Industry 4.0.

Entering its sixth year, the Indonesia 4.0 Conference & Expo 2024 will feature a new program, the Regional Cloud and Datacenter Congress (RCDC), co-hosted with the Indonesian Cloud and Hosting Association (ACHI). The exhibition will take place on 27–28 August 2024 in Jakarta, targeting 6,000 visitors and more than 80 speakers. It will cover a range of topics on the latest information, especially sustainability in Industry 4.0.

“The success of the Indonesia 4.0 Conference & Expo will have a positive impact on all Industry 4.0 and digital transformation stakeholders in Indonesia. The collaboration with RCDC 2024 further strengthens and accelerates the growth of the digital transformation and Industry 4.0 ecosystem in Indonesia,” said Aditya Adiguna, CEO of Naganaya Indonesia.

In addition, the Indonesia 4.0 Conference & Expo 2024 will foster synergy among government, industry, associations, academia, technology providers, media and other stakeholders in supporting Industry 4.0 technology transformation.

“Indonesia, as an economic center of Southeast Asia, has shown a positive trend in information technology development over the past decade. The RCDC connects multiple stakeholders in Indonesia's Cloud and Hosting industry, and this can be the foundation for our future technology development,” said Rendy Maulana Akbar, Chair of the Indonesian Cloud and Hosting Association.

Source: Press Release of the Ministry of Industry of the Republic of Indonesia

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