Boosting Global Competitiveness in Indonesia: is Industri 4.0 the answer?



The Fourth Industrial Revolution, or Industry 4.0, is coming. It allows us to further utilize information technology, such as networking and cloud computing, to manufacturing principle. Indonesia responds the wave with the launching of Making Indonesia 4.0. It discloses how Indonesia can utilize Industry 4.0 to boost manufacturing and expand market to a growth-led export level. It claims to help increase GDP growth by 2% from the baseline and improve manufacturing productivity. The plan seems bold especially since Indonesia’s technological readiness is lagged behind and its economy is relatively not open. We argue that the plan is not concise enough in explaining how Indonesia can adopt Industry 4.0 to Indonesian manufacturing. Making Indonesia 4.0 needs to have better indicators and specific action for businesses to make sense of the plan

Krisna Gupta
Krisna Gupta

Research mainly on international trade and investment policy and its impact on firms. Indonesia in particular is my main geographical focus.

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