Minister of Industry: Digital Transformation Boosts Productivity and Industrial Competitiveness.

The Industrial 4.0 transformation brings about many changes in various economic activities, especially efforts to adapt the use of digital technology. The acceleration of this digital transformation is also seen as one of the strategies to enhance the sustainability, flexibility, and efficiency of national manufacturing industries, thereby improving their productivity and competitiveness.

In 2018, the Ministry of Industry initiated the launch of the Making Indonesia 4.0 roadmap as an effort to accelerate the digital transformation of the manufacturing sector in the country. This roadmap serves as a reference for industry players and policymakers to implement the concept of the Industrial Revolution 4.0, with the overarching target being for Indonesia to rank among the top 10 largest economies in the world by 2030.

"Manufacturing companies play a crucial role in the national economy. The transformation and implementation of Industry 4.0 in manufacturing companies are believed to enhance productivity, competitiveness, efficiency, value-added contribution, and sustainability of the national industry," said Minister of Industry Agus Gumiwang Kartasasmita in his address at the National Lighthouse Industry 4.0 Awards and the Soft Launching of the Indonesia 4.0 Conference And Expo 2024 as well as the Regional Cloud & Datacenter Congress 2024 in Jakarta, Wednesday (21/2), as quoted from the Ministry of Industry press release.

The Minister emphasized that the implementation of Industry 4.0 technology can drive positive impacts on financial, operational, and technological aspects. "The most important component in the digital transformation process is the awareness of the benefits of using digital equipment, not only the ability to adopt technology but also to align with digital mindset changes," he added.

In line with the efforts to accelerate the Industry 4.0 transformation in the manufacturing sector in Indonesia, since 2019, the Ministry of Industry has also been running the National Lighthouse Industry 4.0 program. Manufacturing companies designated as National Lighthouse Industry 4.0 are selected because they are deemed to be able to serve as role models for other manufacturing companies in carrying out the transformation and implementation of Industry 4.0.

"From 2019 to 2022, there have been 14 companies designated as National Lighthouse Industry 4.0," said Andi Rizaldi, Head of the Industrial Standardization and Policy Service Agency (BSKJI). As designated National Lighthouse Industry 4.0, these companies are expected to actively share knowledge and provide training for other companies.

"These companies can act as beacons or lighthouses to guide other industries in accelerating the implementation of Industry 4.0 technology in their companies and overcoming challenges in improving existing production systems," added Andi.

Therefore, the more manufacturing companies designated as National Lighthouse Industry 4.0, the more other companies will be encouraged to learn best practices in adapting to the latest technological developments. Thus, these learning companies can begin to adopt Industry 4.0 technology to enhance competitiveness and business sustainability. The selection of National Lighthouse Industry 4.0 was conducted from mid-2023 to January 2024, involving several stages such as evaluation, assessment, and determination. These stages involve various representatives from the government, universities or academia, associations, technology providers, and companies that have previously been designated as Lighthouse Industry 4.0.



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