Minister believes Industrial Revolution 4.0 drives economic growth

Minister believes Industrial Revolution 4.0 drives economic growth

Jakarta (ANTARA) - Minister of Industry Airlangga Hartarto expressed belief that the development of digital economy, including the industrial revolution 4.0, was targeted at bolstering the nation's economic growth.

"We are currently ranked 16th in the world, while in 2030, Indonesia will be able to escape the middle-income trap. Indonesia can thereafter be recognized as an upper middle income nation, though now, it currently is a lower middle income country. However, next year, it will have entered the league of middle-income nations," Hartarto noted through his statement in Jakarta on Friday.

The minister opined that in 2030, Indonesia is expected to break into the list of 10 major nations having the strongest economy in the world.

With the implementation of industry 4.0, Hartarto believes economic growth will record a one to two percent rise and can thereafter make way for 17 million jobs.

"It is based on a study by McKinsey, and of the 17 million jobs created, nearly four million will be in the industrial sector, while the remaining will be in the industrial support services sector, so that the opportunity is wide open for us," he affirmed.

The industry ministry has striven to encourage entrepreneurs or SMEs in the digital economy era through efforts including facilitating their products to gain entry into the e-commerce market through the IKM e-Smart program launched in 2017.

Furthermore, the Ministry of Industry has applied the Santripreneur program to spur the growth of new industrial entrepreneurs from among boarding schools.

According to the minister, students of Islamic boarding schools, or santri, have their own communities. Islamic boarding schools can also potentially facilitate economic empowerment since several of them have set up cooperatives, developed various small- and medium-sized business units or industries, and have business incubators.

"All this potential serves as a strong enough capital to face the industrial revolution 4.0 and its concrete shell. The Ministry of Industry has been encouraging in its approach, for instance, by helping to produce bread in the Muhammadiyah Islamic Boarding School in Sragen. Thus, the economic ecosystem runs smoothly, and entrepreneurial development occurs in Islamic boarding schools," he noted.

In addition to Sragen, Central Java, Hartarto noted that the Santripreneur program had been implemented in various other areas, including in Bogor, West Java.

"Santripreneur is believed to fine-tune the economic ecosystem in the pesantren environment, so the needs of santris and growing business units could be met," he explained.