Industry 4.0: Is Indonesia Ready?

Abstract

Developed countries are racing to propose new concept of technology revolution that will bring more benefit to human life. In industrial level, the concept of industry 4.0 has been introduced and applied by most developed countries. Meanwhile, the developing countries are preparing themselves to adopt this new concept and increase their competitiveness in the global market. Indonesia is not excluded from this euphoria. However a lack of regional economic study becomes barrier, especially the readiness of Indonesia to adopt industry 4.0 remains a big question. This study aims to provide a descriptive analysis of Indonesia readiness for industry 4.0 based on its economic and information communication and technology (ICT) development at provincial level. Data visualization and regional economic portfolio matrix analysis method were employed to analyze secondary data from various valid and reliable sources. Jakarta, East Java, West Java, Central Java, Riau, Banten, South Sulawesi and East Kalimantan becomes the most promising provinces with gross regional domestic product and ICT development index above average. Meanwhile, North Sumatra has gross regional domestic product above the average but ICT development index below the average. Reversely, provinces like West Sumatra, South Kalimantan, North Sulawesi, West Papua, Bali, Riau Islands, Yogyakarta and North Kalimantan have ICT development index above the average but gross regional domestic product below the average. The other provinces out of those that are already mentioned still need to spend more effort to increase its economic performance and ICT development within their region. Industry has to cooperate with government in developing economic from the existing market penetration and create more innovative product that meets the new era of industrial revolution. Then it will attract more investors to come and develop ICT infrastructures, which will eventually change the consumer’s behavior into more digitalized society. Article Information Article History: Received July 2020 Approved August 2020 Published September 2020