Indonesia rolls out index to assess progress on Industry 4.0

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“If properly done, Industry 4.0 could contribute nearly $121 billion to Indonesia’s gross domestic product by 2025.”

The government has devised an index to measure the productivity and competitiveness of domestic manufacturers as the world enters the fourth industrial revolution, popularly called Industry 4.0.

The Indonesia Industry 4.0 Readiness Index (INDI 4.0) supports a government road map called Making Indonesia 4.0, which was launched by President Joko “Jokowi” Widodo in April last year.

The head of the Industry Ministry’s Industrial Research and Development Agency (BPPI), Ngakan Timur Antara, explained that INDI 4.0 consisted of five main development indicators: people and culture, management and organization, products and services, factory operations, and technology. Scores for each of the indicators range from 0 to 4.

“Currently, about 10 companies have signed up for the index, but we actually scored 20 companies before the index [was officially launched],” Ngakan told reporters at a recent press briefing. “We have trained 40 people to assess these companies and guide them in upgrading themselves once they receive their assessment results.”

The ministry, he added, would announce the index scores of all participants from March 20 to 21, following a conference and an opportunity for the companies to showcase themselves at the ministry’s headquarters. The registration and scoring process began this week.

Few of the companies the ministry had assessed were ready for Industry 4.0 in terms of their manufacturing activities, said Ngakan, adding that most of them had at least acknowledged the revolution.

He encouraged manufacturers to immediately take action, quoting undisclosed corporate research claiming that, if properly implemented, Industry 4.0 would “slash production costs by between 15 and 20 percent and the number of rejected products by 40 percent.”

Ngakan also addressed the issue of capital to obtain Industry 4.0 technology, noting that a factory owned by France-based Schneider Electric in Batam, Riau Islands, had earned back within a year all the money it had disbursed to implement Industry 4.0.

In accordance with President Jokowi’s road map, the index would prioritize five industries to score: food and beverage, textile and garment, automotive, chemical and electronics.

“Nevertheless, other industries are very much welcome to join the scoring […] as it would be useful for manufacturers’ self-assessments,” said Ngakan.

All costs of the index assessment will be borne by the 2019 state budget funds allocated for the ministry, which in 2018 had been granted an additional budget of Rp 2.57 trillion (US$181 million) dedicated to the Making Indonesia 4.0 road map.

According to a 2018 study by global consulting firm McKinsey, 78 percent of Indonesian companies are aware of the Industry 4.0 concept. The figure was beaten only by Vietnam at 79 percent, while countries like Thailand, Singapore and Malaysia saw lower awareness rates.

If properly done, Industry 4.0 could contribute nearly $121 billion to Indonesia’s gross domestic product by 2025, McKinsey calculated.

An Industry 4.0-ready manufacturing sector is expected to provide more than a quarter of the GDP increase at $34 billion, followed by retail at $25 billion, transportation at $16 billion, mining at $15 billion, agriculture at $11 billion, telecommunications at $8 billion, health care at $7 billion, public sector and utilities at $5 billion and financial services at $2 billion.

Indonesia Cloud Computing Association (ACCI) chairman Alex Budiyanto lauded the initiative, saying the association would support the ministry in the scoring effort, as cloud computing was the heart of a state-of-the-art Industry 4.0.

“Getting internet bandwidth and electricity as the enablers of cloud computing, I believe, is no longer an issue in Indonesia these days,” Alex said following the briefing. “[Industry 4.0] could help even more conventional businesses, in fact, by eliminating risks from things like blackouts or broken computers.”

The ACCI, he added, was currently working with the International Data Center (IDC) to measure the efficiency changes from incorporating Industry 4.0 technology and cloud computing in manufacturing environments.

Indonesia Industry 4.0 – Focus on Ready Made Garment (RMG) Sector

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Indonesia is one of the top largest manufacturing nations in the world, defined by output. The manufacturing sector employs more than 25 million workers and accounted for ~20% of Indonesia’s GDP in 2017, totaling roughly USD 203 billion. The sector has seen 67% growth annually for several years and is the backbone of the Indonesian economy.

Indonesia has rolled out a roadmap for industry 4.0 for its most vital sectors. Food & beverage, automotive, textile, electronics, and chemical jointly accounted for close to 2/3 of Indonesia’s total manufacturing output in 2017 and will be prioritized by the government under the new roadmap.

Manufacturing contributes significantly to employment in Indonesia with close to 1/5 of the working population being employed by the sector. The glory days of Indonesian manufacturing, however, has long since passed and Indonesia today faces immense competition from countries such as Vietnam, Thailand, and China.

The roadmap aims to improve the flow of goods, empower SMEs, increase foreign investments, strengthen the national digital infrastructure and sharpen the quality of human resources. This roadmap implementation will see new opportunities generated in IoT, automation and robotics, human-machine interface and AI…etc.

There’s a target of 5% of the global share, which may sound ambitious in the current situation but not impossible. There are lots of challenges, but the government has already taken lots of positive and potential initiatives to achieve the goal. These include funding and subsidies, as well as tax holiday programs. To ensure maximum impact by the roadmap, a wide range of stakeholders are being involved. Leading industry companies, industry associations, tech companies, as well as research and educational organizations are some of the stakeholders being engaged by the government.

Manufacturing, being one of the major priority sectors of Indonesia, it can become a global leader under this roadmap, with manufacturing forecasts to account for 21 to 26 percent of GDP by 2030, up from 18 percent in 2016. It will make seven million to nineteen million new jobs by 2030 and that will contribute a sustainable GDP growth 1 to 2 percent.

Efforts to advance Industry 4.0 implementation in Indonesia will bring massive opportunities for foreign companies and investors. Indonesia’s most important industries are in strong need of productivity improvements to increase efficiency and the government’s ambitions to support these industries will be vital in the coming years to increase effectiveness.

 

 

 

 

 

GCR Announces its Strategic Alliance with one more Technology Partner for Field Force Management and Asset Tracking Solutions on its Platform

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Global Channel Resources India Pvt. Ltd. a leading global online B2B “Partners Platform”, well known for its SaaS connected IoT solutions and networking infrastructure solutions, announced its strategic alliance with one more Technology Partner to onboard two new tracking solutions Field Force Management and Asset Tracking on its Partners Platform.

These solutions are aimed to provide a platform for its technology partner to showcase and position the Field Force Management and Asset Tracking solutions, which will enable GCR’s Integration partners to offer these to various verticals like Education, Retail, Hospitality, BFSI, Manufacturing, and many more.

Elated with the strategic alliance for these two solutions Tony Tsao, Founder & CEO, GCR commented, “Offering the just-right experience to the customer is increasingly becoming vital in the industry. Gauging the customer’s preferences continually is the crux to success. This two tracking software will certainly create a wave in the market that will build an improved customer service experience along with a strong and collaborative alliance of MSPs/ISVs/Sis on our partner’s platform”.

It is clear that there is a need for a certain sense of discipline and streamlining of field operations. This is one of the reasons why it is important to automate certain tasks within field personnel and operations. GCR’s Field Force Management software comes with web-based access for Command Center and Administration, and also a smartphone based user-friendly application for field personnel. This is a perfect solution to manage field force effectively and increase their productivity. With various authentication mechanisms such as geo-tagging, location time and input validation, assigning task, expenses, approval process, and performance of the team can be measured on a real-time basis against pre-defined KPIs / KRAs. The software further helps in reducing errors in data gathering from remote sites.

“The latest solution is a tool for field force management and is an advantage to any of the industry or organization for greater collaboration among the field service staff, simplifying the core field scheduling and ensuring productivity” quoted, Amod Phadke, Sales & Marketing Director, GCR.

While managers/admin can track individual or team’s performance through numerous reports and dashboards available in the web application, it also enables a field employee to track his/her own performance through various reports, dashboards and assigned tasks status features available in the mobile app.

It enables to keep a record of all interactions and important data within a database, without you having to manually go through sales receipts, complaint slips, and other such details.

The feature-rich Field force management solution empowers you to connected and in control all the time. It automates what can be automated and leave only the most human-human interaction left to your staff” added, Phadke.

GCR’s IoT based Asset Tracking SaaS-enabled solution using BLE (Bluetooth Low Energy); a new approach and implementation of new technology, enables industry/enterprise for their step towards digital transformation. This tracking solution provides key features like Asset Trace Log on a periodic basis and Geo Fence breach alerts. It also allows the report to be transformed into actionable insights in real-time which in further helps to drive the operational efficiencies.

We are excited to be partnered with GCR. They have an incredible team and a strong partner relationship to understand our objectives and can find not only the right channel-friendly vendors more efficiently, but also can minimize our time to go-to-market. The key factor of GCR is that they have a revolutionary online partners’ platform where Integration Partner can find our SaaS-enabled products and, in turn, lead us to the faster penetration into their respective end-customers, said Vijay Mysore – Technology Partner of GCR for Field Force Management and Asset Tracking Solutions.
Now get exact real-time and reliable info about location, movement, and maintenance status of the assets. Accurate quick knowledge of the current position for an asset/equipment; permanence time for an asset/equipment in any department; maintenance status of the equipment; detect forbidden transit from one department to another for some particular tools/assets are some of the advanced features offered by this solution.

Further adding Tsao said, “These solutions would further help companies to reduce administration cost and increase productivity, and automate data integration which usually done with the help of cloud servers.”

Features of Field Force Management:

  • Health-Safe Campus Tracking Solution
  • Monitor & manage the movements across the campus
  • Geo-fencing
  • Daily Standard Operating Procedure (SOP) and SoS escalation
  • Security breach Alerts and Alarms
  • Reports & Notifications
  • Deviation and Violation Campus Governance

 Features of Asset Tracking are: 

  • Real-time within premises tracking
  • Alarms and zones alert
  • Productivity monitoring
  • Web console
  • Mobile consoles