The Ministry of Industry continues to accelerate the application of Industry 4.0 in the manufacturing sector so it can be more productive and globally competitive. Accelerating this digital transformation requires cooperation with various stakeholders at both national and international levels.
“Collaboration between government, the private sector and educational institutions is essential to ensure that Indonesia can compete globally in this digital era,” the Head of the Agency for Industrial Standardization and Services Policy (BSKJI) at Kemenperin, Andi Rizaldi, said in an official statement in Jakarta on Sunday (26/1).
The Head of BSKJI stressed that the government is increasingly aware of the importance of Industry 4.0, including for manufacturing. The government has therefore launched various initiatives, one of which is “Making Indonesia 4.0”, which aims to accelerate the adoption of digital technology in manufacturing.
“However, major challenges remain, including infrastructure readiness, developing skilled human resources, and the digital divide that still exists in some regions,” Andi said. To address these challenges, Kemenperin has established bilateral cooperation with the Government of South Korea, represented by the International Economic Affairs Bureau, Ministry of Economy and Finance (MOEF)
on digitalizing the manufacturing industry in Indonesia.
This bilateral cooperation was formalized through the signing of a Memorandum of Arrangement (MoA) on 22 January 2025. The MoA was signed by the Head of the Center for Optimizing the Use of Industrial Technology and Industrial Services Policy (POPTIKJI), Priyadi Arie Nugroho, on behalf of Kemenperin, and the Director of the Trade Policy Coordination Division, representing MOEF,
Choi Dong Il.
The Head of POPTIKJI expressed confidence that applying the Smart Factory concept will improve production efficiency and productivity, reduce operational costs and increase the competitiveness of Indonesian manufactured products in global markets.
“With the experience of South Korea, which has already successfully developed a smart factory ecosystem, we are optimistic that this collaboration will be an inspiration, a valuable guide and a first step toward a major leap in the transformation of Indonesia's manufacturing industry,” he explained.
Meanwhile, Choi Dong Il supported the cooperation initiative chosen by Kemenperin for 2025, namely developing smart factory guidelines to support the digitalization of manufacturing in Indonesia. The project is expected to increase the competitiveness of Indonesia's manufacturing sector while encouraging collaboration between South Korean and Indonesian companies in creating opportunities for partnership in global markets.
“We hope more good projects like this will be found in the future, and that economic cooperation projects related to trade will continue to provide opportunities to breathe new life into trade relations between Korea and Indonesia,” he said.
Meanwhile, the Director of International Industrial Access (AII) at the Directorate General of Resilience, Regional Development and International Industrial Access (KPAII), Dewi Muliana, said the bilateral cooperation is one form of the AII Directorate's active participation in carrying out its role as coordinator for improving the implementation of technical cooperation in industry with a number of strategic partners. The aims of the cooperation include increasing industrial competitiveness, exports, domestic investment and participation in global supply chains.
“The cooperation with South Korea, explored through POPTIKJI's proposal on The Digitalization of the Manufacturing Industry in Indonesia, is expected to accelerate digital transformation in Indonesia's manufacturing sector by drawing up guidelines for smart factories, thereby increasing the productivity and efficiency of Indonesia's manufacturing sector,” Dewi said.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia