Making Indonesia 4.0: Accelerating Industrial Technology Transformation for SMEs in Indonesia

Jakarta, INTI – Making Indonesia 4.0, officially launched by President Joko Widodo in 2018, is a strategic roadmap for implementing Industry 4.0 in Indonesia. Among the ten priority programs within Making Indonesia 4.0, empowering SMEs is one that directly targets small and medium enterprises (SMEs). This program aims to enhance the competitiveness and productivity of SMEs by leveraging digital technology and automation.

The Director General of Small, Medium, and Various Industries (IKMA), Reni Yanita, stated that in the context of Industry 4.0, digital transformation is not only intended for large companies but also for the SME sector. "The application of technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics can help SMEs improve operational efficiency, product quality, and customer service," Reni said in her statement on Saturday (July 20).

The Director General of IKMA also mentioned that to support the accelerated implementation of Industry 4.0 in Indonesia, the Ministry of Industry has launched the Indonesia Industry 4.0 Readiness Index (INDI 4.0) as a tool to assess companies' readiness to adopt Industry 4.0 technologies. "Through INDI 4.0, companies, including SMEs, can evaluate their position in the digital transformation journey and identify areas that need improvement," she explained.

INDI 4.0 Adoption Workshop in Magelang

To raise awareness and prepare SMEs for the adoption of Industry 4.0, the Ministry of Industry, through the Directorate General of IKMA, held an INDI 4.0 Adoption Workshop for SMEs in Magelang, Central Java, on July 18, 2024. The event was attended by 50 SME participants from Magelang City and Magelang Regency. The agenda was also followed online by 10 Industry Development Officials from cities and regencies in West Nusa Tenggara Province as part of the Proudly Made in Indonesia NTB 2024 program.

Reni added that the Directorate General of IKMA also facilitates the implementation of Industry 4.0 technology according to the business needs of SMEs, one example being PT SkinSol Kosmetik from Bandung, West Java, with an Enterprise Resource Planning (ERP) system for several production and management lines in the company. This ERP system was also provided to SMEs in Bekasi, West Java; Tegal, Central Java; Sleman, Yogyakarta; and Sidoarjo, East Java.

"The facilitation of industry technology implementation that has been carried out requires measurement in terms of increasing the technology readiness index and success in boosting business productivity," she explained.

For this reason, the Directorate General of IKMA initiated the adoption of INDI 4.0 so that awareness about Industry 4.0 and its self-assessment can be known, understood, and beneficial for SMEs, especially those who are advancing in improving their technology and marketing.

e-Smart IKM Program to Enhance Digital Literacy

The Directorate General of IKMA has also continuously provided guidance and education related to increasing digital literacy through the e-Smart IKM program. In e-Smart IKM, activities include introducing literacy, understanding the scope, and adapting capabilities to business readiness.

The e-Smart IKM activities are conducted in series, starting from training, mentoring, promotion, and digital marketing of SME products. Up to 2023, a total of 26,982 SMEs have benefited from this series of activities. The e-Smart IKM activities also support SMEs in increasing their turnover through sales in marketplaces.

The Secretary of the Directorate General of IKMA, Riefky Yuswandi, said that the e-Smart IKM activities are an important part of the Proudly Made in Indonesia National Movement (Gernas BBI) series, which has been organized by the Ministry of Industry in Joglosemar in 2021, Lampung in 2022, Bengkulu in 2023, and this year in West Nusa Tenggara.

Riefky stated that the materials presented at the INDI 4.0 Adoption event included Awareness of SME Transformation and INDI 4.0 Adoption, Filling in the INDI 4.0 Self-Assessment for SMEs, Success Stories of INDI 4.0 Lighthouse Industries, and Digital Marketing Optimization.

"We hope that the participants can make the best use of the knowledge and experiences shared by the speakers so that there will be SMEs in Magelang and NTB that can commit to improving their production capabilities through the application of Industry 4.0 technology. We also hope that industry advisors throughout West Nusa Tenggara Province can follow the workshop to guide the Gernas BBI 2024 SMEs that will also receive technology transformation facilitation this year," he concluded.

Invitation to Attend Indonesia Technology and Innovation 2024 Exhibition

We invite you to attend and witness the Indonesia Technology and Innovation 2024 (INTI 2024) exhibition at JI-EXPO on August 12-14, 2024. INTI 2024 is the largest technology and innovation exhibition in Indonesia. For more information, please visit the following link: https://inti.asia/. By attending INTI 2024, it is hoped that the public will be inspired and motivated to continue developing digital skills and contribute to building a more advanced digital ecosystem in Indonesia.