October 25, 2020, 09.29 PM

JAKARTA, KOMPAS.com – Indonesia will need to take advantage of Industry 4.0 should it strive to become a top-10 economy in the world in 2030.

The projection came from the Chief of the Research and Development Agency of Indonesia’s Ministry of Industry.

Indonesia must work to harness the benefits of Industry 4.0 to revitalize its manufacturing sector which can offer massive contributions toward its gross domestic product (GDP).

Read also: Potential Value of Indonesia’s Halal Industry Estimated at $202 Million

“The circular economy concept can answer numerous common problems facing the country’s industries,” said Doddy.

The manufacturing sector contributed 20.2 percent to Indonesia’s GDP in 2018 and absorbed 14 million workers.

During the coronavirus pandemic, it managed to contribute 19.98 percent to the national GDP totaling Rp 700.51 trillion while absorbing 19.5 million workers.

Based on the data, Doddy added that Indonesia must get serious about realizing its national priority goal of ‘Making Indonesia 4.0’.

Read also: Indonesia’s Digital Divide Limits Reach of Service Delivery, Says Sri Mulyani

To become a top-10 economy in the world, Indonesia's industries must adopt sustainable economic principles in addition to working alongside research institutions.

“In doing so, industries are able to manufacture value-added goods, become more efficient in their production process, and the waste industry can benefit other industries,” explained Doddy.

He added that the manufacturing sector generally experiences the usual problems such as the shortage of local resources and policies on cross-sector collaboration.

Read also: Establish Downstream Coal Sector Now, Indonesian President Instructs Cabinet

‘Making Indonesia 4.0’ has the potential to answer Indonesia’s challenges to accelerate the development of its national manufacturing industry and to propel its potential of becoming a top-10 economy in the world in 2030.

(Writer: Akhdi Martin Pratama | Editor: Bambang P. Jatmiko)

Source: https://money.kompas.com/read/2020/10/21/180201926/mau-jadi-negara-top-10-dunia-indonesia-perlu-maksimalkan-industri-40 

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