Jakarta, Jan 9 (Antara) - In keeping abreast of industrial technology development and in the face of digitally connected fourth industrial revolution or usually called Industry 4.0, the Indonesian government is preparing steps to take advantage of such developments.
Therefore, the government outlines steps to improve human resources, take advantage of the country's demographic bonus, expand equitable industrial zone development and develop its downstream metal industry.
Industry Minister Airlangga Hartarto has set the four steps in an integrated target to achieve inclusive and sustainable industrial development.
"The first target is that we will continue to develop links and match vocational education to create one million trained workers by 2019," Hartarto noted in written statement in Jakarta on Sunday.
One of the main focus areas of the government in 2018 is to create skilled human resources in the industrial sector. The solution to facing the demographic bonus is vocation, according to the minister who expressed his conviction that a competent industrial workforce will boost productivity and economic growth that will eventually have a positive impact on the people's welfare.
It is necessary to take this strategic step to increase Indonesia's competitive edge at the global level. Essentially, Indonesia is targeted to become the world's seventh-strongest economy in 2030.
The rapid demographic change in the country will bring Indonesia to a state of windows of opportunity, an increasing number of productive age (15-64 years old) which will peak around 2030.
In that period, Indonesia became one of the countries with the largest labor force in Asia. Increasing number of productive age population is one source of economic growth due to high consumption, increased investment, productivity, and decreased dependence rate. The condition is already known to the public with the term demographic bonus.
Data from the Central Bureau of Statistics projected that by 2019, the productive age group will reach 67 percent of the total population and 45 percent of the 67 percent are aged between 15-34 years.
However, after 2030, the rate of dependence begins to increase as the number of elderly people (65 years and over) increases. Until 2045, Indonesia has become an aging society with an estimated population of 12.45 percent of the total population.
"The second target we are focusing on is developing the industrial zones or estates to ensure balanced development across Indonesia's regions (or dubbed as Indonesia centric)," he remarked.
This is part of President Joko Widodo's target in his Nawacita development priority concept, which is developing Indonesia from the border areas and strengthening regions and villages in the framework of the unitary state.
The Ministry of Industry is focusing on developing industrial zones and vocational education to realize equitable economic equity for all Indonesian people.
According to Hartarto, related to the absorption of state budget, the Ministry of Industry has facilitated the development of industrial estates outside Java. This effort encourages the spread of equitable industries as well as realizing Indonesia centric.
As of May 2017, as many as five industrial zones outside Java have been built and operated. The five industrial areas are Sei Mangkei Industrial Estate in North Sumatera, Morowali Industrial Area in Central Sulawesi, Bantaeng Industrial Estate in Southeast Sulawesi, Palu Industrial Area in Central Sulawesi, and Konawe Industrial Area in Southeast Sulawesi.
The third target is that the industry ministry will produce an Industry 4.0 roadmap, or digitally connected fourth industrial revolution outlines. This step is being taken to face the ongoing digital economy era.
"We are offering not only large-scale industries but also small- and medium-scale industries (IKM) the chance to seize opportunities in the current development of manufacturing technology," he stated.
With regard to research and development of the Industry 4.0 system and technology, the industry ministry has explored cooperation to conduct research collaboration with the Tsinghua University of China and Institute of Technical Education of Singapore.
In addition, the Ministry of Industry has launched the IKM e-Smart program to encourage national IKM players, so they are not left behind in the current era of digitalization.
The program will utilize the digital platform through the facilitation of cooperation between IKM and start-up companies in Indonesia, especially those engaged in e-commerce and shipping companies.
Fourthly, Hartarto is committed to implementing industrial downstream policies, one of them in the metal sector. "Indonesia is targeting the production of 10 million tons of steel by 2025. In addition, it will produce four million tons of stainless steel by 2019," he noted.
The Ministry of Industry reinforces the Small and Medium Enterprises (IKM) as a domestic industrial supply chain in order to establish mutually beneficial cooperation.
"Strengthening the role of IKM is done in supply chain, facilitation of IKM partnerships with large industries and enhancing industry competitiveness and broad market access," said IKM Director General of the Ministry of Industry Gati Wibawaningsih in Yogyakarta, recently .
Several programs have been implemented by Directorate General of IKM in the form of cooperation of state-owned train industry PT INKA and railway operator PT KAI. PT INKA and PT KAI have partnered with Batur Jaya Cooperative which oversees metal IKM to distribute rail component.
Fifth, Minister Hartarto is focusing on creating new jobs in the industrial sector, as the manufacturing sector is one of the major contributors to the nation's economy through the absorption of significant workforce.
The Ministry of Industry projects that the number of manpower in the manufacturing sector in 2017 will reach 17.01 million people, up from 15.54 million in 2016. With the absorption of manpower in this industrial sector, the unemployment rate will decrease.
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