Industry 4.0 to put Indonesia among world’s top 10 economies

Indonesian Industry Minister Airlangga Hartarto (Source: en.tempo.co)

Jakarta (VNA) - The fourth Industrial Revolution (Industry 4.0), is expected to make Indonesia one of the top 10 economies in the world in 2030, stated Industry Minister Airlangga Hartarto.

"To achieve the target, Indonesia has launched a roadmap called Making Indonesia 4.0, as part of the strategy to apply the fourth industrial revolution," he said on October 16.

The fourth Industrial Revolution also gives a clear direction to the development of the national industry, which has a global competitive edge in the future, he added.

The Indonesian Government will try to raise the contribution of net exports to the gross domestic product by 10 percent, increase production, keep down production costs up to twice as much as the current ratio of productivity cost, and develop the innovative capability of the national industry by allocating 2 percent of the budget fund for research and development activities.

The minister noted that the manufacturing industry has consistently made significant contributions to the country`s GDP. It plays an important role as the backbone of the national economy because it has a far-reaching effect on the efforts to increase added value, create job opportunities, raise tax and excise receipts, as well as foreign exchange earnings from exports.

Data from the Central Statistics Agency (BPS) showed Indonesia's GDP stood at over 1 trillion USD in 2017, higher than that of the Netherlands, Turkey, and Switzerland. The figure confirms Indonesia as the largest economy in Southeast Asia.

Indonesia is now present in the one trillion dollar club and is among the top 20 countries with the largest GDP in the world, he said.-VNA