Making a technological leap can be as bold as it is perilous, especially for an emerging country like Indonesia. While the world grapples with the still vague idea of Industry 5.0, Indonesia is wholeheartedly embracing Industry 4.0, designed enthusiastically as a roadmap towards a new industrial era. Despite its ambition, the country must confront misunderstandings resulting from a partial understanding of the fundamental principles of this industrial revolution. Disparities between the pace of technological adoption and industrial maturity raise concerns about the sustainability and adaptability of local infrastructures. These challenges reveal the urgent need for a thoughtful strategy to ensure that enthusiasm does not precede the necessary preparation for success.
Indonesia, through the initiative “Making Indonesia 4.0”, is attempting to integrate the era of Industry 4.0 through a cohesive roadmap. However, it faces many misunderstandings regarding what this industrial revolution truly entails.
Although some policymakers are already mentioning Industry 5.0, most industrialized countries have not yet fully tapped into the potential of Industry 4.0. This confusion stems from a lack of understanding of the essential principles of this industrial transformation, coupled with varying levels of technological maturity, and an uneven adoption of innovations.
In Europe, the momentum towards Industry 4.0 has been fueled by Germany’s efforts, which, faced with rising competition from Asia, introduced this concept at the Hannover Fair in 2011. Aiming to make industries more sustainable and globally competitive, Germany sought to modernize industrial production by utilizing advanced cyber-physical systems.
In this context, Indonesia, while ambitious, still needs to overcome significant challenges to successfully achieve this technological transformation and avoid a rushed adoption that could hinder its industrial development.
Industry 4.0 and its issues in Indonesia
Indonesia, in search of technological progress, is trying to establish itself in the field of Industry 4.0. However, this ambition faces numerous challenges. The very concept of Industry 4.0 seems to be poorly understood by many decision-makers. A member of Indonesia’s House of Representatives recently expressed concern about the rise of robots in industry. This hasty reference to a supposed “Industry 5.0” underscores the confusion surrounding the real implications of the fourth industrial revolution.
Initiatives such as “Making Indonesia 4.0” aim to prepare the country for this new industrial era by optimizing production and adopting digital transformation technologies. This includes the integration of cyber-physical systems into production chains. Yet, a lack of clear understanding of these persistent technologies hampers their effective adoption. Local industries risk launching blindly without a well-defined strategy, which could undermine the expected results.
Strategic error and rapid imitation
The stakes of the rushed adoption of Industry 4.0 in Indonesia can be compared to the mixed results observed in industrialized countries. In Europe, the Industry 4.0 model launched by Germany in 2011 aimed for customized production while maintaining competitiveness. However, the challenges overcome by these nations include heavy regulation and high labor costs. If Indonesia fails to overcome its own cultural and technological barriers, it risks experiencing a comparable stagnation.
Towards optimized integration in Indonesia
One of the key steps for Indonesia towards successful adoption of Industry 4.0 is the training of tomorrow’s teams. The effective integration of new technologies largely depends on how well workers are prepared for it. Reskilling and upskilling initiatives are essential to prevent the workforce from becoming obsolete. A proactive approach to cybersecurity is also a priority, given the increasing virtualization of industrial processes with these innovations.
