President Joko Widodo has said that sustainability, upskilling workers and the Fourth Industrial Revolution are among his priorities in the second term, in a meeting with the Singapore-based EU ASEAN Business Council (EU ABC) in Jakarta last week.
ABB was represented by its South East Asia Managing Director, Johan de Villiers, who talked about the tremendous potential of Indonesia 4.0 in driving sustainable economic growth in Indonesia, and about the importance to invest in people above all. “Indonesia is one of the most exciting and defining markets for the industry. ABB stands ready to make a significant contribution to Indonesia 4.0,” de Villiers said, referring to ABB’s technological leadership that drives growth across utilities, industries and transportation and infrastructure.
President Jokowi has set a goal for Indonesia to become the largest digital economy in Southeast Asia by 2020. His government’s Industry 4.0 initiative focusses on industries such as food and beverage, automotive, textiles, electronics and chemicals. As part of the initiative, the government is encouraging modernization of the manufacturing sector since it contributes more than 20% of GDP – the largest share among all sectors. This includes increasing productivity and exports, and furthering innovation by easing regulations. The plan is to create as many as 19 million jobs in the next decade.
The government has also set an ambitious roadmap for electric vehicles, with a sales target of 20% of total Indonesia’s automotive production by 2025, through tax incentives for battery producers, EV makers and buyers. As Partner Country of HANNOVER MESSE 2020, the government will introduce the "Making Indonesia 4.0" roadmap to the world and seek investments to upgrade manufacturing capabilities and develop a digital infrastructure.
ABB is strongly poised to support Indonesia through the Fourth Industrial and Energy Revolution. The company, which sold its first electrical motors in the nation in 1987, has demonstrated its steadfast commitment to Indonesia’s progress and development, particularly the national grid. The company has invested more than $30 million in the last five years and has a thousand employees working across its manufacturing and service facilities, research center, engineering and sales offices in the archipelago.
ABB has utilized its wide presence to make a real difference to Indonesia, including industries that are set to drive Indonesia 4.0. For instance, ABB has made a difference to customers such as Indolakto and Bogasari in F&B sector. In the port and airport infrastructure sector, ABB has installed the latest systems and electrical technology at the Kertajati Airport terminal building, and the new Makassar port. ABB has also contributed to the recent ASEAN games, with its involvement in ensuring reliable electricity to the event’s high-profile venues. And it is supplying the first connected fast EV charging stations to BPPT and PLN Jakarta, the nation’s major power utility.
Looking into the future, ABB can drive the digitalization that is key for Indonesia 4.0. “We believe that digitalization in industries can be even more impactful and transformative than the consumer space,” de Villiers said. “ABB is well placed to take on this challenge with an installed base of 70 million digitally connected devices globally of which a million are in Indonesia, transforming performance, efficiency and maintenance using data and analytics.”
ABB is also bringing the future of electric transport to Indonesia. The local team is busy preparing for the Formula E race, the world’s fully electric motor race, that is coming for the first time to Jakarta in 2020. As title sponsors, the race underscores ABB’s position as a global leader in e-mobility, with cutting-edge charging technology that drives the race cars and can one day, power Indonesia’s growing fleet of EVs as envisioned by President Jokowi.
In the years to come, ABB will be a trusted partner with President Jokowi’s government in driving productivity and competitiveness, as well as GDP growth and employment, to build a strong, sustainable foundation for generations to come. ABB will also work with the government on the technology skillsets required for Industry 4.0, so that there is a sustained pipeline of talent to drive this transformation, shape national policy and implement it, and change behavior and mindset on an industrial scale.