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Textile and Clothing Industry must be ready for Industry 4.0

Jakarta October 2018


Not long ago President Joko Widodo warned that Indonesia should not be left behind in applying the concept of Industry 4.0 as part of efforts to improve Indonesia's competitiveness in the current digital era. Like the industrial revolution in the previous generation, he said, industry 4.0 pursuing the same results, namely increased revenue, cost savings and operational efficiency. The leading business consultant, PricewaterhouseCooper (PwC), in its report, said that digital transformation and industry 4.0 revolution are expected to increase corporate income in the Asia Pacific by 39 percent over the next five years.

Related to this, Industry Ministry has set 10 priorities industries to enter the era of industry 4.0 including textile and textile products (TPT) industry so that improvement of material flow is required, improving the quality of human resources, building national digital infrastructure, attracting foreign investment, empowering SMEs and harmonizing rules and policies.

Secretary General of the Industry Ministry Haris Munandar said that in industry 4.0 era textile and textile products (TPT) sector must carry out a transformation to as there will be connectivity between humans, machines, and data.

Furthermore Haris Munandar said that as a matter of fact there are still some domestic production cannot compete with other countries producers such as weaving, knitting, dyeing, finishing, spinning and fiber. Efforts to strengthen this sector are required to increase capacity through modern machinery investment with industry-friendly financing schemes. "Textile industry will continue to grow. This is in line with the demand for clothing in the community that cannot be reduced," Haris said in a seminar on TPT Industry Transformation Strategy Towards Industry 4.0, not long recently.

Businessmen in this sector need the help of the government and related parties to transform and implement industry 4.0 standards. In terms of power, manpower, and market access, Indonesia is unable to compete with Bangladesh and Vietnam.