How Ready Are Entrepreneurs to Face the Industry 4.0 Revolution?

What efforts has the government made to support entrepreneurs in facing the Industry 4.0 revolution? Here is the explanation.

Entering the Industry 4.0 revolution, how prepared are entrepreneurs in Indonesia to face these challenges? Until last year, this topic was still a hot topic and a challenge for the government to have a specific strategy.

To answer how entrepreneurs are ready to face the Industry 4.0 revolution, there are actually many factors that need to be assessed. From there, the government introduced Indi 4.0 as an assessment indicator to measure the readiness of entrepreneurs entering the new era.

Understanding Indi 4.0 as an Assessment Indicator for Facing Industry 4.0

Facing the Industry 4.0 era, the government is not idle in preparing entrepreneurs in Indonesia to compete. Through the Ministry of Industry, Indonesia now has an assessment indicator to measure the extent to which entrepreneurs are ready to face Industry 4.0.

Understanding the definition of Indi 4.0

According to the Head of Research and Development of the Ministry of Industry, Indi 4.0 is a reference used by the government to assess readiness towards Industry 4.0. On the other hand, this method is also one of the stages of implementing the Making Indonesia 4.0 program—the strategy for Indonesia to enter the 4.0 revolution.

Later, the results of the Indi 4.0 measurement will be the government’s benchmark in determining strategies and policies to encourage the manufacturing sector to develop towards Industry 4.0.

Indi 4.0 uses a scoring system ranging from level 0 to level 4, with details as follows:

  • Level 0: industry is not ready
  • Level 1: industry is entering the early stage of readiness
  • Level 2: readiness to enter Industry 4.0 is at a moderate stage
  • Level 3: readiness at a mature stage
  • Level 4: the industry has applied most of the concepts of Industry 4.0

5 Pillars of Indi 4.0

Indi 4.0 has 5 pillars as assessment references, including management and organization, products and services, people and culture, factory operations, and technology.

Of the 5 mentioned pillars, they are further detailed into 17 areas such as strategy and leadership, investment towards Industry 4.0, smart machines, digitization, and smart supply chain and logistics.

Entrepreneur Readiness to Face the Industry 4.0 Revolution

Through Indi 4.0, the government hopes that entrepreneurs in Indonesia can conduct self-assessment to measure their ability to face the Industry 4.0 revolution.

In April 2019, the Ministry of Industry held the Indonesia Industrial Summit (IIS) 2019 with the theme “Implementation of Making Indonesia 4.0 Towards the Top 10 World Economies.” The event was attended by 328 industrial companies from various fields who then conducted self-assessment. The results of the self-assessment were also validated by a jury team consisting of representatives from the Ministry of Industry, McKinsey & Company, SAP Indonesia, Microsoft Indonesia, Academics of Diponegoro University, and PT. Schneider Electric Indonesia.

From the number of companies present at the event, the Head of Research and Development of the Ministry of Industry emphasized that Indonesia is quite ready to transform towards Industry 4.0.

In October 2019, the Ministry of Industry released data related to entrepreneur readiness to face the Industry 4.0 revolution. The data showed that five priority sectors (textiles, food & beverages, chemicals, electronics, and automotive) were approaching levels 2 and 3. Among these five sectors, the textile industry ranked first as the most prepared sector to face Industry 4.0.

Indonesia’s Readiness to Face Industry 4.0

Although the Ministry of Industry claims that Indonesia is quite ready to face Industry 4.0, according to the World Economic Forum Competitiveness Index, Indonesia’s readiness for the Industry 4.0 revolution is still ranked 45th globally.

Finance Minister Sri Mulyani Indrawati has stated that Indonesia still needs to make a strong effort and requires a lot of time to uniformly face the Industry 4.0 revolution. This is because Indonesia is a vast country with a large population.

Some aspects that need improvement include promoting the development of digital infrastructure, online systems to facilitate business permits, and, importantly, preparing a qualified workforce.

In conclusion, this provides a small overview of how entrepreneurs are ready to face the Industry 4.0 revolution. Speaking of Industry 4.0, every business actor is required to maximize the use of technology. As a result, technology also affects how business operates, including the implementation of virtual offices that allow entrepreneurs to work anywhere and anytime.

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