Industry 4.0 to put Indonesia among top 10 economies

Industry 4.0 to put Indonesia among top 10 economies

Industry Minister Airlangga Hartarto. (ANTARA/Hanni Sofia)

Jakarta (ANTARA News) - The fourth industrial revolution, also known as industry 4.0, is expected to make Indonesia one of the top 10 economies in the world in 2030, Industry Minister Airlangga Hartarto said.

"To achieve the target, Indonesia has launched a roadmap called Making Indonesia 4.0, as part of the strategy to apply the fourth industrial revolution," he said in a written statement released on Tuesday.

The fourth industrial revolution also gives a clear direction to the development of the national industry, which has a global competitive edge in the future, he said while addressing a panel discussion of Industrial Transformation Asia-Pacific (ITAP) 2018 in Singapore.

For its part, the government will try to raise the contribution of net exports to the gross domestic product by 10 percent, increase production output, keep down production costs up to twice as much as the current ratio of productivity cost, and develop the innovative capability of the national industry by allocating 2 percent of the budget fund for research and development activities.

He noted that the manufacturing industry has consistently given significant contributions to the country`s GDP. "The manufacturing industry plays an important role as the backbone of the national economy because it has a far-reaching effect on the efforts to increase added value, create job opportunities, raise tax and excise receipts, as well as foreign exchange earnings from exports," he said.

In the second quarter of 2018, the non-oil/non-gas manufacturing industry grew 4.41 percent compared to 3.93 percent in the same period last year, he said.

In fact, the manufacturing sector made the biggest contribution to national GDP at 19.83 percent.

The result of the latest research conducted by Microsoft and IDC Asia/Pacific showed digital transformation could double its income in the manufacturing sector.

There will be an addition of US$387 billion to GDP in Asia and the Pacific in the 2016-2021 period so that it will increase to $8,393 trillion in 2021.

Data from the Central Statistics Agency (BPS) showed Indonesia`s GDP stood at Rp13,588.8 trillion in 2017 ahead of the Netherlands, Turkey, and Switzerland. The figure confirms Indonesia as the largest economy in Southeast Asia.

"So, Indonesia now belongs to the one trillion dollar club and is among the top 20 countries with the largest highest GDP in the world," he said.

Reporting by Sella Panduarsa Gareta
Editing by Andi Abdussalam