economy

For Industry 4.0, The Minister Of Industry: AI Technology Realizes Smart Manufacturing

The government launched the Making Indonesia 4.0 roadmap in 2018. This shows the government's commitment to prepare for the 4.0 industrial era, especially by encouraging the manufacturing sector to adopt digital transformation for better global competitiveness.

"Making Indonesia 4.0 is a milestone for industries to optimize the use of 4.0 technologies in supply chains and production processes, aiming to improve efficiency and productivity," said Deputy Minister of Industry Faisol Riza at the "AI for Indonesia" event in Jakarta on Wednesday (December 4).

The Deputy Minister stated that the main goal of this roadmap is to make Indonesia one of the top 10 economies in the world by 2030. "The three main aspirations to achieve this are a 10% net export contribution to GDP, doubling productivity relative to costs, and 2% of R&D spending relative to GDP," he explained.

The Ministry of Industry has identified seven priority manufacturing sectors for development to achieve the main goals of Making Indonesia 4.0. These sectors are food and beverage, textiles and apparel, automotive, chemicals, electronics, pharmaceuticals, and medical devices.

"Five of these seven sectors were chosen because they have the potential to contribute up to 70% of total manufacturing GDP, 65% of manufacturing exports, and 60% of industrial jobs," Faisol noted.

The Deputy Minister explained that implementing industry 4.0 is crucial for supporting production processes in manufacturing, as it can create more efficient, flexible, and connected systems. Some examples of technologies used in industry 4.0 include the Internet of Things (IoT), artificial intelligence (AI), cloud computing, augmented reality (AR), big data, and advanced robotics.

AI technology is transforming industries by boosting efficiency, speeding up innovation, and enabling real-time adaptation to market changes, he stated. In the context of Industry 4.0, he added, AI acts as the "brain" that integrates other technologies like IoT, robotics, and big data in production processes, creating a smarter, more autonomous, and productive industrial ecosystem.

Faisol provided examples of AI applications already adopted by industries in Indonesia, such as operational excellence in energy management. "In this process, cement companies have implemented AI and IoT technologies focused on productivity, stability, and energy index improvement (fuel and electricity) in cement production," he explained.

Next, AI is used to reduce time to market. Pharmaceutical companies have utilized digital twin technology in dry labs to accelerate R&D methods. "In production, adaptive processes with micro-NIR sensors are used for analyzing raw materials, intermediate products, and finished goods. For microbial control, digital imaging technology speeds up contamination testing," he noted.

Additionally, AI Ergonomics has been applied across various industrial sectors. Its positive impact includes making work easier and more enjoyable by eliminating non-ergonomic movements through AI-based analysis.

However, according to the Deputy Minister of Industry, there are challenges in adopting AI, such as limited technology infrastructure, a shortage of digital talent, high implementation costs, especially for small and medium enterprises, and data security concerns.

Despite these challenges, we must not give up, as AI technology will lead to significant advancements for our industries and economy.

Tag: AI Technology Faisol Riza Ministry Of Industry