Indonesia’s Strategy in Facing The Industrial Era 4.

1
Group 3 :
Adnan Iman Nurtjahjo Amir (18100344) | Linda Fitriyani (18100316)
Randito Hendy Prasetyo (18100343) | Dody Pratama (18100329)
INTRODUCTION
PRESENTATION
The presence of the fourth industrial Revolution (Industry 4.1) is no
longer inevitable. Indonesia needs to prepare strategic measures to
adapt to this era of digital industry. Indonesia is committed to
building a global competitive manufacturing industry through the
acceleration of Industrial 4.1 implementation.

But on the other hand the digitisation of this industry will negatively impact labor
absorption and disrupt conventional businesses. The government should
anticipate the negative impact of industrial 4.1. By the time the Government
decided to adapt to the 4.1 industrial system, the government should also think
about continuity. Do not use this digital industrial system to be a burden
because it cannot be optimally utilized.
Strategic Steps of the Indonesian Government

The Indonesian Government is currently implementing a strategic step

that is set based on the road map of Making Indonesia 4.1. This effort
was made to accelerate the realization of a nationally established
vision to capitalize on opportunities in the era of the fourth industrial
Revolution. One of the vision of Making Indonesia 4.1 is to make
Indonesia into the top 10 countries that have the strongest economy
in the world in 2030.
Positive and Negative Impacts
of the Industrial Revolution 4.1
The world is currently facing a change of industry 4th or known as Industry 4.1.
Based on the Mckinsey Global Institute's analysis, the 4.1 industry has had a
huge and widespread impact, especially in the employment sector, where robots
and machinery will eliminate many jobs in the world. Therefore, this era of
industrial revolution must be addressed by industry actors wisely and carefully.

On the one hand, the industry's era through its connectivity and digiticity are
able to improve the efficiency of manufacturing chains and product quality.
However, on the other hand, the Industrial Revolution will also eliminate 800
million jobs worldwide by the year 2030 because of the robots being taken
over by the robot. This can be a threat to Indonesia as a country that has a
high labor force and unemployment rate. Therefore, the Government needs to
properly respond to this change through the preparation of strategies that can
improve the competitiveness of the national industry while creating a wider
workforce.
 GLOBAL INDUSTRIAL REVOLUTION
Fourth Era of Industrial Revolution is Characterized By

Super Computers

2 1 Artificial Intelligence

Nano Technology
4 3 Genetic Engineering

Innovations
6 5 Auto Cars

These changes occur in exponential speeds that will impact economy, industry, government, and
politics. In this era the more visible world that has become a global village.
The 4.1 Industry
Was a term first created in Germany in the year 2011 marked with
a digital revolution. This industry is a digitally connected industry
process that covers a wide range of technologies, ranging from 3D
printing to robotics that are believed to be able to improve
productivity. Before this there have been three industrial
revolutions characterized by:

1 2 3
The discovery of steam Discovery of electricity, Computer discovery, Internet,
engines and trains in communication equipment, and mobile phone years
1750-1930 chemistry, and oil in 1870-1900 1960-present.
INDUSTRY ROADMAP 4.1
Indonesia is committed to building a global competitiveness manufacturing industry through the acceleration of
Industrial 4.1 implementation. It is characterized by the launch of Making Indonesia 4.1 as a roadmap and strategy of
Indonesia entering the digital era that is currently running. The Ministry of Industry designed Making Indonesia 4.1 as
an integrated roadmap to implement a number of strategies to enter the era of Industrial 4.1. The implementation of
the 4.1 industry aims to create more sustainable economic growth.

In the roadmap,  Food and Beverage

there are five  Textile
industries that
 Automotive
focus on
 Electronics
implementation,
 Chemical
namely :
These five industries are the backbone of the economy that will hopefully be able to give a great leverage, increase
competitiveness, and make a real contribution to the Indonesian economy. In addition, Making Indonesia 4.1 contains 10
cross-sectoral national initiatives to accelerate the development of the manufacturing industry.
Indonesia has initiated the process of adaptation to the 4.1 industry by
enhancing the competency of human resources through a link and match
program between education and industry. This effort is carried out
synergistically between the Ministry of Industry and related ministries and
institutions such as Bappenas, Ministry of BUMN, Ministry of Manpower,
Ministry of Education and Culture, and Ministry of Research, Technology, and
higher education.

01 National Development Planning Agency

02 Ministry of BUMN

03 Ministry of Manpower

04 Ministry of Education and Culture

05 Ministry of Research, Technology, and higher education

 The Ministry of Industry
has set four strategic steps in the face of industrial 4.1. The steps that will be implemented are:

ST

ST

ST

ST
EP

EP

EP

EP
S
S

S
1

01 03
Encouraging the workforce in Indonesia continues to
improve its skills and skills, especially in using internet
of things technology or integrating Internet capabilities
with production lines in the industry
4
The utilization of digital technology is more optimal in national
industries such as Big Data, Autonomous Robots, Cybersecurity,
Cloud, and Augmented Reality

02 The utilization of digital technology to spur productivity

and competitiveness for the small and medium industries
(IKM) to be able to penetrate the export market through
04
Encouraging technological innovation through the development
of start up by facilitating business incubation for more
technology-based entrepreneurs in the region of Indonesia
the E-smart IKM program
By implementing the 4.1 industry, the Minister of Industry targets, major national
visions can be achieved. The Vision is outline:

Brought Indonesia into the 10 Return the net export industry Increased labour productivity Allocating two percent of GDP
major economies in 2030 number 10 percent by doubling the increase in for research and development
labor costs technology and innovation, or
seven times the current.
Opportunities and Challenges in The Industrial 4.1
Based on The McKinsey Survey in March 2017 to 300 Southeast Asian
leading company leaders showed as many as 9 out of 10 respondents
believed in the effectiveness of the industrial 4.1. And there is no doubt
about it. However, when asked if they were ready for the change, only 48
percent felt ready. Indeed, the step towards industry 4.1 will provide benefits
for the private sector. The integrated large producers will be able to optimize
and simplify the supply chain. On the other hand, the digitally operated
manufacturing system will also open new market opportunities for SME
technology providers such as sensors, robotic, 3D printing, or between
machines communication technology.
 For developed countries, the 4.1 industry can be a way to regain the competitiveness of infrastructure. For
developing countries, the 4.1 industry can help to simplify the production supply chain, which in this case is
necessary to improve the increasing cost of labor. Therefore, in the face of the fourth era of Industrial revolution,
the national industry sector needs to be changed a lot, especially in the aspect of technology mastery that is the
key to competitiveness.

There are at least five key technologies that support the construction of the 4.1 Industrial system:

Internet of Things Artificial Intelligence Robotic technology 3D Printing

and sensors technology

Human-Machine Interface

These five elements must be able to be mastered by Indonesian manufacturing companies in order to compete.
 Anticipate
Create
Negative
Impact

THE
GOVERNMENT
Must also anticipate the negative impact of industrial 4.1 such as
disruptive technology. The presence of disruptive technology will
make a big change and will gradually turn off the traditional
business. The role of Industry 4.1 is also still questionable when
viewed from the symptoms of global deindustrialization that
occurred lately. This is due to the increasing role of service
sectors. The combination of rapid economic growth projections
and the decline in manufacturing sector roles has raised doubts
about the greatness of the 4.1 industry. In addition industry 4.1
also negatively affects job creation. In the ASEAN region, only
Singapore is ready to try this new industrial era.
 When the Government decided to adapt to the 4.1 industrial system, the government
should also think about continuity. Do not use this digital industrial system to be a burden
because it cannot be optimally utilized. Many things to be prepared such as:

The role of
Governance
decision-makers

Risk Management
Implementation System

Public access to Security factor

technology System
implemented
 In addition, The Government must also:

have a design
set the total set service level thinking to ensure
price/cost of standards the sustainability
system ownership of the industry.

prepare a data prepare a legal To develop

collection system umbrella and strategic road
that integrity protection maps that are
mechanisms for applicative and
personal data anticipatory
 CONCLUSION
The world today has entered the era of the fourth industrial
Revolution. In this industrial revolution there is a major leap
in the industrial sector, where information and
communication technologies are fully utilized. In order to be
able to compete, Indonesia should be able to adopt this 4.1
industry and prepare the right strategy in all sectors.
In addition to accelerating economic growth, the
revolution also has a negative impact. The industry is
going to disrupt conventional business and reduce
demand for labour. Therefore, the Government should
prepare an anticipatory strategy against various
possibilities that will negatively impact the national
economy.
Indonesia has been committed to building a globally
competitive manufacturing industry through the acceleration
of Industrial 4.1 implementation. It is characterized by the
launch of Making Indonesia 4.1 as a roadmap and Indonesia
strategy enters the digital era. The Ministry of Industry
designed Making Indonesia 4.1 as a roadmap to implement
a number of strategies integrated .
The House of Representatives of the Republic of Indonesia
needs to encourage the Government to prepare various matters
relating to the implementation of the 4.1 industry which is no longer
inevitable. In addition, the DPR RI as legislation needs to prepare a
legal paying that will govern the implementation of the new system. It is
very important to anticipate the negative impact of this industrial
revolution on industry, economy, government, and politics in Indonesia
Thank You
May Be Useful For You