Government creates Road Map for “Making Indonesia 4.0”

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RI President Jokowi opening the Hannover Messe 2021 virtually from the Merdeka Presidential Palace, Jakarta, on Monday (12/04/2021)

IO – Indonesia is getting ready to manifest its vision of “Golden Indonesia” through Industry 4.0 into reality. Indonesia’s digital economy and 4.0 industrial development is the most rapid in Southeast Asia, and this will be a special force for us in achieving our vision. “Indonesia has the fastest digital economy and 4.0 industry in Southeast Asia. We have 2,193 startups, fifth largest number in the world. Indonesia has 5 unicorns and even 1 decacorn,” said President Joko Widodo in his virtual address during the opening of the Hannover Messe 2021 broadcast live from Merdeka Presidential Palace, Jakarta, on Monday (12/04/2021).

Indonesia as an official partner country of the Hannover Digital Trade Fair, is the only ASEAN country given this honor. By 2025, Indonesia’s 4.0 industry is estimated to contribute up to USD 133 billion to the country’s GDP. With the support of 185 million citizens connected by the internet (fourth-biggest national connection network worldwide), development in this industry will surely help make Indonesia become one of the top ten global economic powers by 2030.

Therefore, Indonesia creates a partnership with Germany, as the organizer of the Hannover Messe, in order for the two countries to jointly achieve digital transforms, especially in Indonesia. This will help both Indonesia and Germany recover their respective economies from the current crisis and grow stronger more rapidly.

Indonesia has prepared the Road Map for implementing the “Making Indonesia 4.0” program which was launched in 2018. This Road Map describes Indonesia’s three main powers and foci for developing 4.0 industry. First, Indonesia’s demographic bonus. This will help Indonesia strengthen the quality of its HR in the future. “In the 4.0 industrial era, strengthening HR is a necessity. Indonesia has a demographic bonus. By 2030, Indonesia’s productive workforce will double in size,” the President said. “However, the issue we are all facing is how to ensure that this large HR is able to face digital challenges in the future. In this case, I believe that Germany can support the strengthening of Indonesia’s HR by cooperating in the development of vocational education, research, and technology-based universities.” Second, the Road Map focuses on creating an investment climate that supports the development of 4.0 industry. The President stated that improving our investment climate requires structural reforms, “Including the validation of the Job Creation Law. This Law will make it easier for people to obtain business permits, provide legal certainty, and regulate incentives. Specifically, the Job Creation

Law also provides for incentives to support the development of digital economy and 4.0 industry,” he said. Third, Indonesia will invest in “green development”. According to the World Economic Forum, this initiative has a business potential of up to USD 10.1 trillion and a potential of 395 million new job opportunities by 2030. Indonesia has made various breakthroughs in this sector, including the development of biodiesel from coconut palm oil and the implementation of solar power electricity generators using catchers installed on rooftops for domestic households. “At the same time, Indonesia is ready to contribute to future energies. As the biggest nickel-producing country in the world, Indonesia is also developing the processing of nickel ore into lithium batteries as the primary component of both cellphone batteries and electrical car batteries,” President Jokowi said.

Meanwhile, Chancellor of Germany Angela Merkel expressed her hope that the Hannover Messe 2021 can help improve the economies of both Germany and Indonesia. In 2022, Indonesia will host the G20 Summit, while Germany will host the G7 Summit the same year. She believes that this is an opportunity to establish more strategic partnerships between the two countries.

Ms. Merkel went on to say that Indonesia is a strong partner for Germany. Partnership with Indonesia is not limited to trade fairs like the Hannover Messe, but also in events like the Berlin international tourism exhibition and the Frankfurt Book Fair. Indonesia is not just a famous tourist destination. It is also a country suitable for innovative developments, technological transformation, and vocational education. Therefore, as Germany’s Chancellor, she welcomes President Jokowi’s invitation of partnership for digital evolution in Indonesia. (Ekawati)