Govt form KINAS to Ready Itself for 4th Industrial Revolution

   •    02 April 2018 15:10 WIB
tech industry (en)
Govt form KINAS to Ready Itself for 4th Industrial Revolution
Industry Minister Airlangga Hartarto (second from right) (Photo: Antara).

Jakarta: The government has decided to form a National Industry Committee (KINAS) to be ready for the digital era brought about by the 4th Industrial Revolution (Industry 4.0).
The Committee is necessary to strengthen cooperation  and to facilitate harmony between ministries  and other related agencies and industrial players in the country to improve its competitiveness in entering the digital era.  
"The National Industrial Committee is prepared for the digital era . Coordination is needed both for harmonization of regulations, fiscal incentives,  and telecommunications infrastructure," Industry Minister Airlangga Hartarto said here on Sunday.
Airlangga said based on the Law No. 3 of 2014, on industry, it is possible to form the Committee to be headed by the President  and coordinated by the Coordinating Minister fro Economy.  
"The plan is a Presidential Regulationwould be issued similar to one we have initiated on level of national content (TKDN), for which a team was also formed for evaluation," he said.
In its implementation the Industry Ministry has planned Making Indonesia 4.0 as a road-map, which is integrated to adopt a number of Indonesian strategies in facing Industry 4.0.
"In preparing the road-map we do not rely on a single  Ministry, but on a synergy of various Ministries," Airlangga said.  
The Industry Ministry will set a schedule for the launch of the road-map on 4 April 2018. The Road-map indicates the country's readiness in the era of digital industry until 2030, he added.
One of the country's strategies in entering the Industry 4.0 is preparations for five manufacturing sectors as pilot project to strengthen the fundamental of the country's industrial structure. The five sectors are food and beverage industry, automotive industry, electronic industry, chemical industry and textile industry. 
"The five sectors are among 10 manufacturing sectors higher in the demand in the world," Airlangga.
Implementation of Industry 4.0 would bring about big opportunity for revitalization of the national manufacturing sector and will trigger acceleration to reach the Indonesian vision to break into the ranks of world's 10 largest economies in 2030, Airlangga said.
In principle, the targets  are to put the country among 10 largest economies in the world in 2030, to recover the industrial net export figure 10 percent, increase in the productivity of Indonesian workers twice as much as the increase in the labor cost; increase in the contribution of the manufacturing sector to the GDP to 25 percent, availability of more jobs  and allocation of 2 percent of GDP for Research and Development (R&D) of technology and innovation or a seven-fold increase from the present level.
Implementation of the road-map would increase investment encourage expansion in the industrial sector resulting in more jobs open, Airlangga said.
The Minister said the initial steps Indonesia has taken in entering the era of Industry 4.0, is to strengthen competence of human resources through the program of link and match between education and industry. This step is aimed at creating skilled workers to suit the industrial sector, he added.
Earlier, Coordinating Minister for Economy Darmin Nasution said the National Industrial Committee is aimed at facilitating  and accelerating development of Industry 4.0.
"Through the Committee we  want to build sustainable communications related to the 4th Industrial Revolution," Darmin said after heading a coordinating meeting on Industry 4.0 here earlier last week.
The government has decided to form the National Committee to create harmonization between government agencies to ensure that the country's manufacturing sector will gain from the digital era  of Industry 4.0.
Darmin therefore, asked the Industry Ministry to make complete the structure of the national Committee  and prepare the road-map for Industry 4.0 in greater details.
"We need road-map in greater details  and more specific to be able to set priorities," he said.
The industry Ministry said it would hold an Industrial Summit on 4 April 2018 between industrial players, stakeholders including regional administrations to introduce the 4th Industrial Revolution.
"The purpose of introducing the 4th Industrial Revolution is that we all are aware of what is taking place in the world," Airlangga said.