The agreement was a result of activity on the sidelines of the annual meeting of the International Monetary Fund (IMF) and the World Bank (WB) 2018 now underway in Nusa Dua , Bali.
"Immediate adoption of the Industrial Revolution 4.0 becomes very important as it could be a big leap in the national manufacturing sector," said in a statement received here on Thursday.
Ngakan made the statement when attending the IMF-WB meeting in Nusa Dua, Bali. The week long IMF-WB meeting will last until Oct 14, attended by delegations including finance ministers, Central Bank leaders from 189 countries and delegations of the IMF and the World Bank and other invitees.
The two countries signed the commitment in a Memorandum of Understanding (MoU) by the BBPI chief and the CEO of Enterprise Singapore, Png Cheong Boon, with Vice Prime Minister of Singapore Teo Chee Hean and Indonesian Industry Minister Airlangga Hartarto witnessing.
The scope of implementation of the MoU to be collaborated together include connecting Indonesian industry with Singapore`s technology providers, exploring the initiative to push forward the adoption on solution to manufacturing innovation between industries and expansion of training in curriculum related to Industry 4.0 for Indonesian industry.
"The cooperation includes exchange of facilities between institutions about the plan or implementation of facility for manufacturing innovation and expansion of platform of innovation, which will become the digital bridge for Indonesian producers in accessing solution to Industry 4.0," Ngakan said.
The MoU supports adoption of Making Indonesia 4.0 to boost five manufacturing sectors - food and beverage industry, textile and wear industry, automotive industry , chemical industry and electronic industry .
The cooperation agreement is effective as from the date it was signed for two years and could be extended for another two years.
Ngakan said he was optimistic , Making Indonesia 4.0, which has been a national agenda would accelerate the growth of the country`s Gross Domestic Product (GDP) that the annual GDP growth is expected to increase from the baseline of 5 percent to 6-7 percent in 2018-2030.
The net export ratio to the GDP is also expected to rise and there would be an increase in productivity with the adoption of technology and innovation and the creation of 10 million jobs in 2030.
"The big aspiration target is to place Indonesia in the ranks of 10 strongest economies in the world in 2030 . Therefore, the key is to be ready with competent human resources and digital infrastructure," he said.
Industry Minister Airlangga Hartarto said in the present eras of digitalization, the manufacturing industry has to use high automatization technology backed up by internet based infrastructure.
The process of digitalization is important not only in the production sector but also improving efficiency and optimization.
Png Cheong Boon said Enterprise Singapore is committed to contributing developing the innovation capacity of Indonesia`s industrial sector.
"We are government agency which supports development of the business sector. We also support the growth of Singapore as a global trade center," he said.
Reporting by Sella Panduarsa Gareta
Editing by Albert Saragih