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Trade Minister Prepares Textile Industry to be in Top 5 in the World

Jakarta January 2019

Weaving MachineWeaving Machine

The Industry Ministry targets the Indonesian Textile and Textile Product Industry (TPT) to be in the top five in the world by the year 2030 by making it as one of the pioneers in the roadmap applying Industry 4.0

Mudhori, Director of the Textile, Leather, Chemical, Footwear and Multifarious Industry at the Industry Ministry, said in a statement that industry 4.0 is believed to strengthen the global competitiveness of textile industry in terms of product efficiency and quality. Indonesian Textile Industry, he says, is fully integrated ranging from upstream to downstream, and is supported by large human resources to support production.

In the era of industry 4.0, Muhdori continued, almost all industrial sectors inevitably had to start implementing high operational standards and sustainability. This 4.0 era must be oriented to automation, internet of things, 3D printing, machine-to-machine and human-to-machine communication, and artificial intelligence.

According to him, the industrial era 4.0 is a necessity, as well as the challenges and needs of the textile industry to be more efficient, while continuing to improve Human Resource competencies in accordance with technological developments. As an export-oriented labor-intensive industry, Mudhori said, the textile industry has significant contribution national economy.

The application of industry 4.0 in one textile company, namely PT, Pan Brother Tbk, can increase the company's output by two folds by not reducing the number of labor because the workforce assigned to the division is transferred to the assembly line (assembly). The company's production capacity around 90 million pcs annually can be increased by applying industrial 4.0 without adding new plants.

Meanwhile one of the garment companies in the North Jakarta Bonded Zone, the application of modern technology in the company can avoid from closure like many other garment companies in the bonded zone mainly due to wage increases that occur every year. The closure of garment factories or relocation in the labor-intensive industry because the rate of wage annual increase cannot meet the increase of productivity.