industri 4.0

What is Industry 4.0 and what is Indonesia’s Strategy to Face it?  

August 29th, 2019 |

The 4th industrial revolution has finally arrived. Indeed, the first two involved the use of industrial machinery and draft animals in order to further the progress of industry, as a whole. Mass production and the application of electricity helped progress these crucial stages of human development along. The third great change was marked by the use of automation. Following a similar vein reflected throughout history, we have now reached another threshold: Industry 4.0, where the application of information technology can now be fully realized.

What is Industry 4.0?

In 2011, the German city of Hannover was the first location to showcase the attributes of this 4th stage of Industry. Such Industrial innovations have allowed for computers to communicate with each other in order to make crucial decisions without the risk of human error. Indeed, this fourth revolution has been applying a concept very much speculated about throughout the course of human history: automated machines operating without human guidance.

The five main technologies supported by industry 4.0 are as follows:

  • The Internet
  • Artificial Intelligence
  • Human – Machine Interfacing Technology
  • Robotics and Sensor Technology
  • 3D Printing

industry 4.0

The 4 strategies Indonesia seeks to apply, in response to the onset of Industry 4.0.

The Minister of Industry, Mr. Airlangga Hartarto has stated that Indonesia will be addressing the revolution that will inevitably arise through industry 4.0 by applying 4 main strategies:

  1. By encouraging the workforce to continue adapting their skills to the new advancements in technology and by educating the general population in regards to using the internet, as such will prove highly applicable and useful in virtually every industry.
  2. Utilizing digital technology so that is spurs economic productivity and competitiveness between small – medium sized industries (IKM). Through such means, the export market can be penetrated through programs such as the e-smart IKM program.
  3. By encouraging national enterprises to participate in Industry 4.0 through the use of digital technologies, such as Big Data, Autonomous Robots, Cyber Security, Cloud and Augmented Reality. Digital technology can thereby increase the efficiency and reduce the expenditure of Industries by around 12 – 15 percent.
  4. The increased involvement of companies incorporating High-Tech solutions into their corporate structures has seen the advancement of startup companies from a wide array of industries becoming important contributors to the market, and has thereby given birth of what are referred to as the ‘Four Unicorns:’ Gojek, Traveloka, Tokopedia and Bukalapak. Such is an example of how new technologies have already been proven to lift the economy and facilitate micro-economic actors in gaining further access to the market.

Read Also: The Importance of Digital Transformation for Companies in Indonesia

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