ARTICLES — July 30, 2021

The Major Setback of Indonesia's Manufacturing Sector

Manufacturing plays a major role in building Indonesia’s economy. It contributes to the growth of the GDP. At its prime, manufacturing can lead to the growth of export which, if cycles, can lead to the growth in manufacturing output.

Unfortunately, Indonesia’s manufacturing sector has suffered from several issues such as underdeveloped infrastructure, tedious regulation, and costly investment for small or medium sized firms. Subsequently, the government has made an effort to develop nationwide infrastructure, creating reform packages and offering incentives for the manufacturing sector. These efforts are aimed to transform into industry 4.0 which utilizes manufacturing as its source of economic growth.

What does it mean for your company?

To take on this opportunity, companies have to initiate their own attempt to grow their business by developing their own manufacturing sector. If companies are not willing to invest in this development, no government handout will ever support their businesses’ growth.

To know what needs to be done, we need to take a closer look upon the major setback regarding the transformation into industry 4.0 namely, the lack of real-time data. The primary causes of this setback includes:

1. Unsynchronized Data

Different types of devices require different hardware to record data. Similarly, different software processes different kinds of data. In other words, data is scattered over various hardware and software. For example, equipment and the softwares utilized in the laboratory are mostly different from the ones that are operated in the warehouse. Without an integrated system, you won't be able to monitor and manage your manufacturing operation as a whole value-chain.

2. Inadequate Digitalization

Some companies still utilized pen and paper to record data. This method is slow and especially prone to human error. Moreover, without proper sensors and equipment, some data will not be documented. This could be detrimental to the company, because some of the missing data may account for so many progresses and failures in manufacturing operation. Such major oversight is the reason why the development in the manufacturing process may stall.

3. Complex Ecosystem

As the supply chain becomes more numerous and widespread, it would be difficult to monitor the process. A digital solution is essential to account for the number of people needed and the tools required to achieve the task. Moreover, it has the potential of monitoring the whole process supply chain by installing sensors and digital devices in the transportation system and the warehouse. Unfortunately, many companies are still using traditional solutions which depend on human intervention and the utilization of outdated technology. This type of interaction can be costly especially in making a specific type of product that depends on certain types of supplier. Therefore dampening companies’ capability to reach their potential to meet the market demand.

These challenges can be solved by implementing Internet of Things (IoT) solutions into the manufacturing process. Digitalization goes hand in hand with IoT. It can provide accessibility to all data provided by various equipment. With the support of integrated software, all data recorded from the manufacturing asset can be accounted for to identify any difficulty in the manufacturing process. Efficiency will be improved because of data transparency and automated troubleshooting. Specific consumer’s demands are met with minimum cost. This way, businesses can cut down unnecessary spending and business growth will be easier to achieve.

Find the best IoT manufacturing solution to develop your business. Find out more by visiting this webpage or contact our IoT Experts to know more about IoT for Manufacturing.

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