Industry 4.0: Is Indonesia Ready?

Donny Susilo

doi:10.15294/maj.v9i3.39695

Abstract

Developed countries are racing to propose new concept of technology revolution that will bring more benefit to human life. In industrial level, the concept of industry 4.0 has been introduced and applied by most developed countries. Meanwhile, the developing countries are preparing themselves to adopt this new concept and increase their competitiveness in the global market. Indonesia is not excluded from this euphoria. However a lack of regional economic study becomes barrier, especially the readiness of Indonesia to adopt industry 4.0 remains a big question. This study aims to provide a descriptive analysis of Indonesia readiness for industry 4.0 based on its economic and information communication and technology (ICT) development at provincial level. Data visualization and regional economic portfolio matrix analysis method were employed to analyze secondary data from various valid and reliable sources. Jakarta, East Java, West Java, Central Java, Riau, Banten, South Sulawesi and East Kalimantan becomes the most promising provinces with gross regional domestic product and ICT development index above average. Meanwhile, North Sumatra has gross regional domestic product above the average but ICT development index below the average. Reversely, provinces like West Sumatra, South Kalimantan, North Sulawesi, West Papua, Bali, Riau Islands, Yogyakarta and North Kalimantan have ICT development index above the average but gross regional domestic product below the average. The other provinces out of those that are already mentioned still need to spend more effort to increase its economic performance and ICT development within their region.

Highlights

The rapid development of technology has pushed all countries to adapt in order to keep being competitive in global competition, while the technology implementation has spread widely to all aspects of human life, not all countries are ready to adopt it due to lack of intellectual capacity and infrastructure
(53.74%), East Kalimantan (50.25%) and Banten (47.90%), these provinces become perfect alternative regions to Jakarta when it comes to information communication and technology (ICT) investment
By large number of internet users, these provinces become an attractive market for information and communication technology based business and product, it is easier to find skill labor and employee with sufficient internet literacy that will contribute in industry 4.0 adoption process

Summary

Introduction

The rapid development of technology has pushed all countries to adapt in order to keep being competitive in global competition, while the technology implementation has spread widely to all aspects of human life, not all countries are ready to adopt it due to lack of intellectual capacity and infrastructure. Indonesia is pushing itself to implement industry 4.0 revolutionary concept in order to increase its country economy competiveness in the global market, especially since concept of society 5.0 (Super Smart Society) had been introduced by Japan in 2016 (Skobelev & Borovik, 2017). It indicates that Indonesia must work extra to run after the global trend in industrial development that rapidly evolves over time. Despite the importance of information communication and technology, the readiness of many regions in Indonesia with industry 4.0 remains a big question because a region must have a sufficient human capital and infrastructure to adopt industry 4.0. Alternative regions are needed in order to reduce the economy development gap

Objectives

Methods

Results

Conclusion