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The Time to Unlock Industry 4.0 Growth is Now - Here’s How
ndonesia’s digital manufacturing ambitions are well-known. In 2018, the Industry Ministry launched Making Indonesia 4.0, a roadmap to accelerate digitization in the country’s industrial sector. Strides were made in 2019 when the World Economic Forum inducted two Indonesian factories –Schneider Electric’s Batam facility, as well as local mining company Petrosea’s Kalimantan operation – into its Global Lighthouse Network, in recognition of their transformation efforts. Then COVID-19 struck. In the past year, companies have taken massive steps to protect their people and business. This has been the biggest test 16
Automate Sept-Nov 2021
facing industrial digitization. McKinsey looked across industries and spoke to 400 business leaders worldwide to understand how their approach to digitization has affected their response to the pandemic. Overall, 94 percent of respondents said Industry 4.0 and its associated technologies helped them keep their operations running during the crisis, and 56 percent said these technologies are critical to their crisis response. Respondents in Indonesia partly reflected these results, with 94 percent saying that Industry 4.0 technologies kept them moving throughout the pandemic, while 26 percent classed them as critical to their response.
Looking more closely at responses to our survey, three broad outcomes have emerged. First, a win for early adopters. Based on our research, a majority of companies that embarked on digitization efforts before the coronavirus crisis felt more prepared to respond when the pandemic hit. 65 percent of respondents reported feeling more optimistic about the prospects for digital technologies than a year ago. Locally, respondents felt less optimistic, with just 30 percent in Indonesia more optimistic than a year ago. Second, reality check. Compared to last year, McKinsey’s research revealed a significant
