Hannover Messe 2023 Conference Session: Strengthening the Manufacturing Ecosystem through Industry 4.0 Acceleration

One of the strategies to achieve economic growth amidst the current global economic challenges is economic transformation. Indonesia has demonstrated economic change through optimism for economic growth in 2022 of 5.3%, the highest in the last decade.

"This optimism is also supported by the implementation of national policies, one of which is the enactment of the Job Creation Law, which simplifies regulatory procedures for ease of doing business, application of risk-based licensing, implementation of a business licensing system with a risk-based approach with the Online Single Submission system and others," said the Deputy for Coordination Commerce and Industry, Coordinating Ministry for Economic Affairs, Ali Murtopo Simbolon in the Hannover Messe 2023 discussion forum with the theme Strengthening Manufacturing Ecosystem by Accelerating Industry 4.0 which was held on Tuesday (18/4) Hannover time.

 

He continued that the Making Indonesia 4.0 roadmap also provides an opportunity to revitalize Indonesia's manufacturing industry to become one of the ten largest economies in the world. This is achieved by developing seven priority industries: food and beverages, textiles and apparel, automotive, electronics, chemicals, pharmaceuticals, and medical devices. These seven priority sectors contribute 70% to the national industrial GDP, 65% to industrial exports, and 60% to industrial employment.

In the same forum, PT Telkom Indonesia (Persero) Tbk Digital Business Director Muhamad Fajrin Rasyid said that in the 2020-2030 period, Indonesia's Gross Domestic Product (GDP) would move around 1.5 times to USD 1.6 trillion. When referring to the Indonesia Digital Economic (IDE) can grow eight times by 2030. Regarding this opportunity, Telkom participates in developing the national economy through the digital economy.

Currently, Telkom has more than 170,000 fibre optic networks, or more than four times the circumference of the earth, more than 200,000 BTS, more than 30,000 towers, and more than 30 data centres throughout Indonesia. "Telkom's efforts in facing the digital economy era include improving cellular convergence, developing infraco fibre, building DC Co (data company), developing B2B Digital IT, establishing Service Co, and establishing DigiCo. The entire program has supported the nation's digitization efforts, especially in SME incubation, digital applications such as PeduliLindungi, OSS, GovTechEdu, and other digital collaborations," he explained.

Regarding the acceleration of Industry 4.0 in manufacturing companies, Director of PT Akebono Brake Astra Indonesia Daniel Suryananta said that his party had carried out four levelling of Industry 4.0 implementation. In 2026, the performance of Industry 4.0 is targeted to reach level 4, namely intelligent manufacturing. PT Akebono Brake Astra Indonesia is an Indonesian-Japanese joint venture that produces the largest block-brick for automotive components in Indonesia, particularly brake pads and pedals.

 

Akebono is an example of a company that has implemented digitization of production. Industry 4.0 has a digitization map, from receiving orders from customers and purchasing materials from suppliers to issuing customer invoices. "Akebono has converted all devices to digital and backed up data measurements. This shows that the Indonesian industry is ready to implement the digital economy era," said Daniel.

 

From international digital business players, Senior Director Factory Automation Sales Asia-Pacific, Siemens AG Factory Sascha Maennl said, in essence, the company has implemented the industrial revolution process since it was first established. Siemens considers that the development of digital transformation requires a focus on three aspects: people, process and technology. In addition, Siemens now operates three business lines, including factory acceleration, solution framework and metering technology. "Currently, Siemens is developing printed circuit board (PCB) cutting machine technology with the development of algorithms based on artificial intelligence that industrial-scale users can develop," he explained.

The conference, part of the Hannover Messe 2023 agenda, is a collaboration between the Government of Indonesia and SOEs, authority agencies, associations, national and multinational industries, and international institutions. Apart from raising this topic, there were also five other conference themes: Investing in The New National Capital City, Investing in The Manufacturing Sector, Electric Vehicle Ecosystem, Sustainability & Carbon Neutrality, and Investing in Human Capital for Industrial Competitiveness). The conference will be held from 18 - 20 April 2023 in Hall 2 of the Indonesian Pavilion and can be followed via the YouTube channel - Indonesia Hannover Messe.