Indonesia prepares Industry 4.0 legal basis to bolster growth

Source: Xinhua| 2019-09-05 23:22:27|Editor: Mu Xuequan
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JAKARTA, Sept. 5 (Xinhua) -- Preparation to issue a presidential regulation as a legal basis to accelerate implementation of Industry 4.0 drive is underway at present, aimed at accomplishing higher growth in the country, an Indonesian minister said on Thursday.

The move to issue the legal basis was to follow suit the Industry 4.0 roadmap, called Making Indonesia 4.0, initially launched by President Joko Widodo in April last year.

Among the central tasks to accelerate implementation of Industry 4.0 is by expanding the investments that favor new industry development so as to further strengthen and deepen the existing national manufacturing structure, Industry Minister Airlangga Hartarto said.

"That's why we are committed to encourage investments in a bid to expand the nation's production capacity capable to serve domestic, export demands and substitute the imported goods," the minister said in a statement.

Five industry sectors have been identified for initial implementation of the drive in the country, comprised of food and beverages, textile and garments, automotive, chemical products and electronics, the minister added.

Plans to further apply the new industrial drive have also been set for Small and Middle Enterprises (SMEs) firms, aimed at expanding their production's efficiency and quality, he said.

Implementation of new industrial drive heavily supported by internet of things and automation mechanism is expected to bring the nation among world's big ten economies by 2030, he added.

"We are confident that Industry 4.0 could bolster our economic growth by 1 or 2 percent, adding up to 10 million jobs and a 25 percent contribution of manufacturing sector to growth by 2030," he said.

The Industry 4.0 drive would also help the nation to improve its net export by 10 percent by that time, or 13 times higher than it is at present. Besides that, it would also double productivity of the nation's workers and expand research allocation by 2 percent, he added.

Indonesia is in herculean efforts to attract foreign investors to propel the nation's growth with dozens of reform packages have been issued to facilitate investors, particularly for the foreign ones.

The nation saw a 13.7 percent year-on-year growth of total investments in second quarter this year, of which foreign investment growth stood at 9.6 percent in the period.

Significant drops of foreign investments were seen in the third and second quarters last year at 20.2 and 12.9 percent respectively.

Investment and consumption are the nation's key drivers to attain higher growth which targeted by government equally at 5.3 percent for this year and next year.