The Ministry Of Industry Holds A Workshop On INDI 4.0 To Prepare SMEs For Using Digital Technology

In the face of increasing global economic competition, the adoption of Industry 4.0 technology is essential. The government is actively encouraging all industry players, including small and medium enterprises (SMEs), to implement digital technology and automation in their business processes through various programs and initiatives.

To support this goal, the Ministry of Industry is promoting awareness of Industry 4.0 and running the e-Smart SME program to enhance the competitiveness of SMEs in the global market. The implementation of digital technology and automation aligns with the Making Indonesia 4.0 roadmap launched in 2018, which focuses on ten national priorities, including empowering SMEs in digital technology development.

“With this roadmap, we aim to encourage the adoption of technology in the business processes of SMEs, from management to production lines and improving marketing access,” said Reni Yanita, Director General of Small, Medium, and Various Industries (IKMA) at the Ministry of Industry, in a statement in Jakarta.

To implement Making Indonesia 4.0 in the SME sector, the IKMA regularly conducts digital literacy programs for SME players, especially regarding online marketing through the e-Smart SME initiative. The IKMA also collaborates with marketplaces to provide SMEs with opportunities to showcase their products online.

Additionally, the IKMA emphasizes the importance of technology in SME business processes and continuously assesses their readiness to implement Industry 4.0 technology. “Through Industry 4.0 awareness, we hope to unlock many development potentials,” Reni stated.

The IKMA Director General noted that the application of Industry 4.0 technology has positively impacted SMEs, such as palm sugar producers in Banyumas and metal industries in Tegal, among others. The application of technology can greatly enhance productivity, resource efficiency, and product quality, she stated.

To assess the readiness of small and medium enterprises (SMEs) in adopting Industry 4.0 technology, the Ministry of Industry has implemented the Indonesia Industry 4.0 Readiness Index (INDI 4.0). This index serves as a benchmark for companies to evaluate their preparedness for adopting technologies and systems that support automation and digitalization. The results from this assessment help identify challenges, formulate strategies, and guide government policies to encourage industry transformation towards Industry 4.0.

"INDI 4.0 is expected to become a national standard for measuring the readiness of domestic industries," Reni explained.

Reni noted that the Ministry of Industry needs to adjust the assessment process for INDI 4.0 in the SME sector based on previous evaluations. "This is especially to help SMEs assess their readiness. Therefore, clear explanations and details are necessary for better understanding by SME operators," she said.

The adjustments include providing additional explanations to facilitate assessment and to further explore the conditions and challenges faced by SMEs, without altering the pillars and areas of INDI 4.0. The assessment follows the Minister of Industry Regulation No. 20 of 2021 regarding the Measurement of Industry Readiness Levels for Transformation to Industry 4.0 (INDI 4.0). At the end of the INDI 4.0 assessment, recommendations for SMEs are provided based on the evaluation of each pillar and the final score. Previously, the Directorate General of Small and Medium Industries conducted the INDI 4.0 assessment twice, once for 50 SMEs in Magelang in July 2024 and again for 58 SMEs in West Nusa Tenggara in November 2024. From these two assessments, it was found that the average score for SMEs in both regions was 1.31, indicating they are at level 1.

Tag: Digital Technology IKMA Ministry Of Industry