Jakarta, INTI – Technological advancements continue to drive industrial transformation across various sectors, including manufacturing and machinery. Automation has become an integral part of improving efficiency and competitiveness in the industry. To delve deeper into this topic, INTI MEDIA had the opportunity to interview Mr. Solehan, Director of Machinery and Agricultural Equipment Industry at the Ministry of Industry of the Republic of Indonesia, on March 11, 2025.
Career Journey and Experience in the Industry
During the interview, Mr. Solehan shared his extensive career journey in the industrial sector. He began his career in Directorate of Textile and Apparel Industry before moving into some strategic positions, including green industry, electronic and ICT (Information and communication technology) , machinery and agricultural equipment, and in the secretariat of Directorate General of Metal, Machinery, Transportation Equipment, and Electronics (ILMATE) as Deputy Director of Program and Cooperation. His broad experience has provided him with insights into various aspects of the industry, eventually leading to his appointment as Director of Machinery and Agricultural Equipment Industry.
The State of the Manufacturing Industry in Indonesia
The manufacturing industry is the largest contributor to Indonesia’s Gross Domestic Product (GDP), making it a crucial sector for the national economy. However, this sector still faces several challenges, one of which is dependence on imported raw materials. To address this issue, the government concerns in downstreaming industries in order to increase value added, attract investment, and finally to increase their competitiveness.
Furthermore, industrial transformation towards digitalization and automation—known as Industry 4.0—has become a key aspect of enhancing manufacturing competitiveness. By implementing technologies such as the Internet of Things (IoT), digitalization can optimize raw material procurement, warehouse management, and marketing, making these processes more efficient and accurate.
Implementation of Automation and Robotics in the Industry
Automation and robotics technologies are increasingly being adopted across various industrial sectors to improve productivity and energy efficiency. With the use of cutting-edge technologies, industries can reduce energy consumption and emissions, making them more environmentally friendly and competitive in both local and global markets.
In Indonesia, the robotics industry is gradually developing as a supporting force for the manufacturing sector. The government is encouraging collaboration between domestic industries and advanced economies, such as Japan, South Korea, Germany, and other developed countries in technology development. Although Indonesia still relies on imported robotic hardware, its strength in software and application development serves as a vital asset in building a national robotics industry.
The Future of Industrial Transformation in Indonesia
Despite its abundant natural resources (comparative advantage), Indonesia's primary challenge is enhancing its technological capabilities (competitive advantage) to compete with developed nations. Investments in high-tech industries and strengthened industrial policies are expected to accelerate the adoption of automation and digitalization in the manufacturing sector.
The government also emphasizes the importance of high-quality investments that provide added value to domestic industries, rather than merely attracting large-scale investments without significant impact. With the right approach, Indonesia’s manufacturing industry has the potential to become a major player in the global market.
Conclusion
The interview with Mr. Solehan provided valuable insights into the importance of automation in enhancing the competitiveness of Indonesia’s manufacturing industry. Although challenges such as dependence on imports and technological readiness remain, with the right strategies and government support, the national industry can advance further. Technology-driven industrial transformation will be a key factor in shaping Indonesia’s economic landscape in the future.