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Targets that Indonesia Want to Achieve in the 4th Industrial Revolutionary Era

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horizon-usa.com - The government has launched a roadmap related to the 4th industrial revolution or industry 4.0. Roadmap under the name of Making Indonesia 4.0 was launched on April 4, 2018 by President Joko Widodo (Jokowi).

In the 4th industrial revolution, there is connectivity between humans, machines and data. Implementation of Industry 4.0 can increase productivity, employment, and market expansion for national industry. However, such opportunities need to require alignment with technological developments and new skills sets.

"Indonesia saw it from other countries, starting from Germany, they introduced Industry 4.0, it was 4-5 years ago, then other Asian countries adopted, for example India has Make in India, Thailand has Thailand 4.0.Therefore, see the development that exists, Indonesia chose Making Indonesia 4.0, "said Minister of Industry (Menperin) Airlangga Hartarto to Liputan6.com in Jakarta, as written Monday (28/05/2018).

Making Indonesia 4.0 will increase GDP significantly, contribute to manufacturing and create jobs. In terms of GDP, the increase in real GDP growth is expected to rise from 5 percent to 6-7 percent in the period 2018-2030.

Then, the number of jobs will rise from 20 million to 30 million jobs by 2030. Manufacturing contribution to GDP will also increase from 16 percent to 25 percent by 2030.

"The Industrial Revolution 4.0 is a transfomation effort towards improvement by integrating the online world and the production line in the industry, where all production processes run on the Internet as a major support," he said.

One of the targets to be achieved through Making Indonesia 4.0 is Indonesia's entry into the world's top 10 economies by 2030. This is characterized by, first, 10 percent of export contribution to GDP. This will restore the position of net exports to Indonesia level as in 2000.

Second, increase productivity twice to cost. This is similar to what India does by increasing production through cost management.

Third, the budget allocation for research and development or Research and Development (R & D) increases to 2 percent of GDP. This will build local innovation capabilities and the level of Indonesia will be equivalent to China in terms of R & D.

The 4th industrial revolution era also had an impact, directly or indirectly, on the Indonesian economy. The immediate impact of revitalization in the manufacturing sector.

The indirect impacts are increased state financial strength, increased state expenditure, and increased investment and a better labor market.

There are five industry sectors that are the focus of the government in implementing this 4th industrial revolution. First, the food and beverage industry with a target towards a great power in ASEAN. Second, the textile and clothing industries are aiming to become the leading productive functional clothing producers.

Third, the automotive industry is targeted to become a leading player in the export of internal combustion engine (ICE) and electric vehicle (EV) vehicles. Fourth, the chemical industry in which the target makes Indonesia as a superior player in the biochemical industry. And fifth, the electronics industry will develop the capabilities of domestic industry players.

"Our industry sector is 84, but those who can follow the digital industry are only five leading sectors, contributing more than 60 percent of Indonesia's GDP manufacturing, 60 percent of exports, and 60 percent of the workforce," he said. .

10 Priorities

In Making Indonesia 4.0, the government has also set 10 priorities, namely:

1. Improved material flow flow. Strengthening upstream material production sector. This is because 50 percent of imported petrochemical raw materials.

2. Redesigning the industrial zone. Building a national industrial zone road map and addressing the problems faced in several industrial zones.

3. Standard accommodation sustainability. Opportunity competitiveness through global sustainability trends, such as EV, biofuel, and renewable energy.

4. Empowerment of UMKM. Empowering 3.7 million UMKM1 through technology, such as e-commerce UMKM and technology funding

5. Building a national digital infrastructure. Development of networks and digital platforms such as 4G to 5G, 1Gbps optical fiber, data center, and cloud.

6. Attract foreign investment. Targeting global leading manufacturing companies through attractive offerings and incentives for technology transfer acceleration.

7. Increasing the quality of human resources. Re-design of the Education curriculum adapts the Industry 4.0 era and talent mobility program to professionals.

8. The establishment of an innovation ecosystem. Development of research, development and demonstration (R & D & D) by government, private, public, and university.

9. Implement technology investment incentives. Introduce tax exemptions for technology adoption and funding support.

10. Harmonization of rules and policies. To harmonize cross-ministerial policies and regulations.