"The good performance of the manufacturing sector is certainly driven by the implementation of Making Indonesia 4.0, which is a key strategy for Indonesia to become one of the 10 largest economies in the world by 2030," he said here on Tuesday.
Such an acceleration can be done considering the report of 76 industry players who are members of Champion Indi 4.0, which has found a decrease of 4–40 percent in energy consumption, an increase of 5–22 percent in productivity, and a decline of 3–78 percent in production prices.
Furthermore, the minister explained that the success of efforts to advance the industry cannot be separated from the progress of the increasingly good innovation ecosystem—marked by the rise in Indonesia's Global Innovation Index ranking this year to 54th place.
"From 2013 to 2021, Indonesia's Global Innovation Index was ranked 83, 85, and 87. Only in 2022 did it rise to 75th, then in 2023, it rose again to 61st, and in 2024, it rose to 54th," he highlighted.
Kartasasmita said that the International Institute for Management Development (IMD) also released the World Competitiveness Ranking (WCR) 2024 with the competitiveness rankings of various countries in the world.
Currently, Indonesia is ranked 27th out of 67 countries, which places it in the top three in the Southeast Asia region, after Singapore, which is in the first place.
"In its release, IMD uses innovation and technology parameters as part of several parameters that play a role in the criteria for weighting and ranking the competitiveness of countries in the world," he said.
Indonesia's manufacturing industry sector remains the prime mover of the national economy and has recorded positive achievements, based on Ministry of Industry data.
This can be seen from the contribution of the non-oil and gas processing industry to the national gross domestic product (GDP) in the second quarter of 2024, which remained the largest contributor at 16.70 percent, with growth reaching 4.63 percent.
Furthermore, the value of investment in the non-oil and gas processing industry in the second quarter reached Rp169.18 trillion (US$1 = Rp15,200), or equivalent to 39.49 percent of total national investment.
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Translator: Ahmad Muzdaffar Fauzan, Yashinta Difa
Editor: Arie Novarina
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