ARTICLES — August 12, 2022

Government's Vision On Digital Transformation

How does the Indonesian government play a significant role in the company's digital transformation?


The current industry is in a state of digital transformation with the use of technological advances such as artificial intelligence (AI), robotics, and the Internet of Things (IoT). The term 4.0 industry refers to the smart and connected systems that are built to monitor, manage,  and predict what is happening in the company’s iterative operation.


In this digital transformation era, everybody plays a role. Even the government is a stakeholder who is responsible for economic sustainability. The government needs to build a solid trajectory of revolutionary industry 4.0 to support all industrial and business sectors’ needs.


With the huge responsibility and diverse challenges along the way, as a developing country, Indonesia has an important task to diversify its production towards more technologically advanced sectors. This is what the Indonesian government is doing to help the country compete in the global industrial market.


Building 4.0 Industry Roadmap and Manufacturing Improvement


With employing more than 14 million people, the manufacturing sector plays a vital role in Indonesia’s economic growth. According to Head of Agency for Industrial Research and Development (BPPI) Ngakan Timur Antara mentioned that the implementation of Industry 4.0 will pose major opportunities to revitalize the manufacturing sector and serve as an accelerator for Indonesia's aim of being one of the top 10 economies in the world by 2030. 


As the government harnesses such technologies it can help manufacturers reinvigorate the whole sector, boost employee productivity, and competitiveness, increase the growth of market share, and keep updated with the changing business models in the future. 


The Indonesian government has selected these 3 sectors based on economic implementation, including GDP size, trade size, the potential impact on other industries, and speed of market penetration. Those three industries are automotive, food and beverage, and chemicals. 


First one is automotive, which is already the second-largest exporter in the region. It can further its growth by improving their local production of raw materials. Second one is food and beverage, which has 29 percent of the nation's manufacturing GDP. By adopting technology such as automated monitoring systems, it has a huge potential to improve the utilization of agricultural commodities and domestic demand. Last one is chemicals. By adopting technological advances, Indonesia can leverage its abundant agricultural, gas, and oil resources to keep the chemical industry’s competitiveness.


Human Resources Development


Human development is one of the most important things in transforming into a 4.0 Industry which pushes more on productivity, innovation, and competitiveness. By assessing and preparing for human and cultural development as one of Indonesia's Industry 4.0 Readiness Index (INDI 4.0), the government has determined to answer the current industry needs for competent human resources. The Ministry of Industry continues to encourage the development of industrial human resources through its main programs, including competency-based vocational education, education and training development units in industrial growth centers, as well as link and match programs between the education and industry.

As the government focuses on building an 4.0 industry roadmap and developing human resources, Telkomsel IoT is here as a collaborator to support the government’s vision and give advice for your company on any business challenges through an innovative use of technology. Just contact our experts and we are ready to collaborate with you!

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