Abstract

Industry 4.0, the fourth revolution Industry, has become a global trend in the manufacturing industry because it is able to produce a smart factory with cyber-physical systems (CPS). CPS integrate the physical world with digital by monitoring physical processes, making digital copies of the physical world, and making decentralized production systems. Industry 4.0 can increase productivity, revenue, business competitiveness, customer service, and optimize manufacturing processes. Implementing Industry 4.0 in the Indonesian manufacturing industry is observed to be able to increase productivity and improve product quality. As a result, it has an impact on GDP growth, increased technology adoption, and new employment opportunities so that it becomes a game-changer for national economic growth. However, based on the Indonesia Industry 4.0 Readiness Index, the Indonesian manufacturing industry is still in the medium readiness stage. Therefore, this study aims to identify drivers and barriers of Industry 4.0 adoption in the Indonesian manufacturing industry using literature review that and have been validated through expert interviews. The results of this study may help decision-makers and practitioners to address the drivers and barriers highlighted, paving the way for successful implementation of Industry 4.0 across the manufacturing sector.

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