Indonesia Can Be Economically Resilient in 2021’s New Normal

Like all economies throughout the world, the Indonesian economy finds itself in a precarious position. Even once the COVID-19 pandemic has been contained, businesses will face a long road to recovery after having been starved of revenue for an as yet unknown period of time. The pandemic has created social and economic uncertainty in Indonesia, but despite this hardship, Indonesia still holds the chance to prepare for a strong post-crisis emergence.

Bank Indonesia stated that Indonesia’s economic growth will reach 5,8% in 2021, but without significant effort, it will be difficult to achieve. Looking ahead, government and corporate leaders can begin to formulate longer-term strategies that will help Indonesia move forward quickly by building a modern economy.

With those themes in mind, Indonesia can reimagine and reform itself to be more resilient by boosting local industries with new normal IoT tech solutions. These are the important steps Indonesia should take to reimagine the economy after the crisis.

Encourage Medical Device Sector Development

The medical device market in Indonesia in recent years has been worth approximately $1 billion annually and is projected to grow to $1.5 billion by 2025. While Indonesia exported some basic devices such as surgical gloves and hospital beds, it has relied on imports for others. Expanding the local production would increase Indonesia’s resilience and strengthen its economic base. The industry can tackle the heavy distribution by relying on Asset Performance Management (APM) to monitor the condition of drugs, movement-sensitive medical devices, even blood plasma during transport.

Address Agricultural Challenges

The agricultural system in Indonesia has a big challenge: it is fragmented with most farmers owning less than half a hectare of land, preventing economies of scale and the use of modern equipment and practices. To fix this, e-commerce platforms can be used to give farmers more confidence and certainty in their markets and generate greater efficiencies. For example, NB-IoT-enabled sensors offer farmers predictive insights before issues happen so they can avoid loss by making informed decisions on how to avoid potential risks.

Accelerate Digitization in Manufacturers

Indonesia’s manufacturers could compete more effectively in the global economy if they digitized more quickly. Modern methods in manufacturing such as a link to advanced data analysis, automation, and machine learning are capable of cutting costs and creating efficiencies. One of the new normal IoT solutions available for manufacturers is TOMS, an order management solution that’s able to schedule deliveries or appointments automatically. Manufacturers can set work hours, deliveries, invoicing, purchasing, routine equipment checks, and repairs, without missing a beat. It will boost time and energy efficiency which increases business resilience and enables flexibility in operations. These advantages will in turn help Indonesia’s manufacturers accelerate toward strong emergence in 2021.

Develop Appropriate Talent for a Modern Economy

A McKinsey study shows that modern technology including automation could create more jobs in Indonesia than are lost between 2014 and 2020. Many of the new jobs will require new skills, and Indonesia can build from online learning efforts and habits developed during the pandemic to teach those new capabilities more broadly.

When a crisis strikes, it is difficult for Indonesia to take attention away from immediate concerns. However, looking toward the future won’t dull the efforts to minimize the harm caused by the pandemic; it demonstrates optimism for reimagining Indonesia’s journey to reach economic resilience. Visit here and find out how the aforementioned new normal solutions can accelerate Indonesia’s economic development in 2021’s new normal.