Abstract
Industry 4.0 is a popular topic today because of its significant influence in the manufacturing sector. Issues and Challenges in implementing Industry 4.0 for the Manufacturing Sector in Indonesia examined in this study. The problem will be considered the 4.0 industrial revolution is related to the issues and challenges facing the manufacturing industry in Indonesia. The main purpose of this research is to conduct an empirical analysis of the effect of issues to challenges the implementation of Industry 4.0 for manufacturing sectors in Indonesia. The research method in this study uses a quantitative approach. The data were collected and analyzed statistically using smartPLS software. The main results of this study state that the issues in implementing Industry 4.0 have a positive and significant impact on the challenges of the manufacturing sector in Indonesia. This study results also revealed that the most dominant issues in implementing Industry 4.0 are high investment costs. On the other hand, financial constraints are the biggest challenges in implementing industry 4.0. Finally, the benefit of this research will be to encourage the manufacturing sectors in its consideration to implement industry 4.0.
Highlights
The Industry 4.0 concept is the new reality of the modern economy, as innovation and technological development play a significant role in every organization
The main purpose of this research is to conduct an empirical analysis of the effect of issues to challenges the implementation of Industry 4.0 for manufacturing sectors in Indonesia
Financial constraints are the biggest challenges in implementing industry 4.0
Summary
The Industry 4.0 concept is the new reality of the modern economy, as innovation and technological development play a significant role in every organization. Industry 4.0 significantly changes products and production systems related to design, processes, operations, and services[2]. Countries are embracing Industry 4.0 to advance their manufacturing industries and to position themselves to compete in the future[3]. Studying the concept of Industry 4.0 for its application in Indonesia is a must because if not, industry and manufacturing in Indonesia will not be able to compete with industry and manufacturing in other countries in the world[4]. According to Partama & Farizal[5], this Industry 4.0 phenomenon is the right time to revitalize the manufacturing industry sectors and contribute significantly to Indonesia's GDP
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