The upcoming industrial revolution will be shaped by smart technologies in the manufacturing sector and Indonesia will be among the top 10 economies of the world by 2030, said Airlangga Hartarto, Indonesia Industry Minister.
The manufacturing sector has continued to be a major chunk of the nation’s GDP and is thus one of the primary pillars upholding the Indonesian economy. At present, Indonesia is the 16th best economy in the world in terms of GDP and remains the first in the Southeast Asia region.
Hartarto said the country needs to gear up for Industry 4.0 through governmental efforts and widespread support for research and development. To that end, the Indonesian government will allocate 2 percent of its budget towards R&D initiatives in order to motivate homegrown innovation.
Lowering production costs and boosting net exports will help grow the GDP by 10 percent, Hartarto said. The manufacturing faculty currently contributes to about 20 percent of Indonesia’s GDP.
If the APAC region rapidly adopts digital transformation and implements the inevitable changes that Industry 4.0 is about to bring, then the entire region’s GDP stands to increase by $387 Bn by 2021, according to an earlier report by the IDC titled, Unlocking the Economic Impact of Digital Transformation in Asia Pacific
Hartarto spoke about the need to boost an already robust manufacturing sector in Indonesia with better technology at the Industrial Transformation Asia Pacific 2018 in Singapore Expo.
Lowering production costs and allocating governmental funds for research and development initiatives is going to play a key role in taking Indonesia to the level of top 10 economies in the world by 2030, according to Airlangga Hartarto, the country’s Industry Minister.