Developing I4.0 Readiness Index for Factory Operation in Indonesia to Enhance INDI 4.0

Abstract

Adopting Industry 4.0 (I4.0) is an effort to gain competitiveness through technological innovation for enhancing productivity and efficiency. Indonesia left behind in launching the policy timeline of the I4.0 initiative, compared to Singapore, Thailand, Malaysia, and Vietnam. In an official government report, Indonesia’s I4.0 index showed a low score at an average of 1.992 (scale 0 to 4). Indonesia designed INDI 4.0 (Industry 4.0 readiness index Indonesia) in 2018 to prepare industry readiness. It lacks accuracy and is less comprehensive in capturing I4.0 readiness, especially in the factory operation aspect. INDI 4.0 just provides very few questions to capture extensive information in measuring I4.0. This study aimed to develop a comprehensive I4.0 index by enhancing INDI 4.0 in the factory operation aspect. By exploring issues in the I4.0 readiness index, the research extensively searched the journal articles and some other I4.0 indexes used in some countries. Finally, the paper designed a comprehensive I4.0 index with determinant indicators comprising data life cycle (sources, collection, storage, analysis, and transmission) and smart product life cycles (designing, planning, monitoring, quality, and maintenance). This model is expected to be an essential contribution to improve INDI 4.0 in Indonesia. The I4.0 phenomena will undoubtedly influence all countries, and more research into this topic and other critical variables affecting I4.0 preparation are required to complete this study. To improve this research, additional research from other academics is needed to fill in the gaps, incompleteness, and loopholes.